“Can’t see the forest for the trees.” That expression has never been more apt than when talking about buying a home. The home buying process can be lengthy, complicated and overwhelming. Fortunately the iTeam will be with you every step of the way. Ready? Here we go…
Home Buying Process (in a nutshell)
Step 1: Pre Qualification: Getting pre qualified helps to set the parameters for what you can buy, what loan program fits your needs and how we can help you achieve your home buying goals. It’s important to know any limitations before going down the home buying path.
Step 2: Initial Consultation: Once you know what your price range is, we will sit down with you and determine all the factors that go into choosing a home: size, location, floor plan and other important features.
Step 3: Home Viewing: This is where the fun begins! Now that we know budget and desired home characteristics, we will work together to find properties that fit your criteria based on your wants and needs. We can show you any listing you may be interested in regardless of listing agent, type of property, or location.
Step 4: Making a choice: Once you found the home you want to buy, we will conduct a Comparative Market Analysis to determine the home’s true market value before putting in an offer.
Step 5: Preparing and delivering the Offer: Based on market value, condition of the property, days on the market and other factors we will craft an offer. It is important to note that along with the offer we will need to include earnest money; a good faith gesture that shows the seller you are serious about buying their property.
Step 6: Contract Negotiation/Acceptance: If the seller does not accept your initial offer we will work on your behalf to negotiate any and all areas of concern and submit another offer. Once the seller accepts the contract you are officially “under contract” to buy the home. The accepted contract is the trigger for the start of the due diligence period during which time we will help you:
- Step 6b): Finalize the Loan Application and Processing: Once you are officially “under contract” we will send a copy of the agreement to the lender. If you have not already sat with the lender to fill out a full application this is the time to do it. They will have you bring in several important financial papers like paystubs, W–2’s, tax returns and bank statements. Once they have the file complete they send it to processing and underwriting for final loan approval and clear to close.
- Step 6c): Conduct a Property Inspection: We will help you find a qualified and competent individual that will conduct a thorough assessment of the property. Inspectors are not licensed or governed but those backed by organizations such as the American Society of Home Inspectors, the National Association of Home Inspectors, and the Inspection Training Associates are a good way to find a skilled inspector. Additionally, past experiences and referrals also serve as good sources for hiring a qualified inspector; we will help you find a skilled professional.
- Step 6d): Resolve Property Inspection Issues: At the conclusion of the inspection we will have a detailed report that will list all items, if any, that are defective or need attention. We then have the option to submit the unsatisfactory conditions to the seller (Inspection Notice to Correct). The seller will then have 3 different options to respond to us. He can agree to complete all the items listed, he can refuse to complete all the items listed, or he can propose an alternate resolution. An alternate resolution usually is a seller agreeing to complete some items but not all the items listed. If the seller refuses to complete all items or proposes an alternate resolution, we have the opportunity to accept the proposed options or walk away from the deal with the earnest money intact.
- Step 6e): Conduct an Appraisal: After the conclusion of negotiating the inspection items we will inform the lender that it is time to order the appraisal. A licensed, professional appraiser will inspect the property and research the value of the home. If the appraiser sees any unsatisfactory conditions (e.g., chipping paint, roof damage, siding damage) then he will note them on the appraisal as conditions to the loan. If a condition to the loan has been noted then those items must be fixed or repaired prior to closing before you can obtain the loan. Once the items are corrected the appraiser will go back to the home to check off on all the conditions.
Step 7: Final Walk Through: Prior to closing we will do a final walk through of the property. This is our time to verify that all inspection items the seller agreed to complete have been done, that all contractual inclusions are still at the property, and that the property condition is acceptable, prior to the seller receiving funds.
Step 8: Closing: The closing of the deal. You’re almost home…closing takes place at the title company that the seller chooses. We will review all closing documents and final figures (HUD–1). We will ensure all the lenders figures and any other costs that were contractually agreed upon are listed correctly. Lots of documents will be signed, checks will be exchanged, you’ll receive the keys and then you can go directly to your new home!
Step 9: Ongoing Support: Here at the iTeam our relationship doesn’t end after closing. We are here for you for ongoing support as long as you need it