Life is always so much easier when you know what to expect. When purchasing a home it can seem overwhelming, especially at the beginning, because there are so many unknowns (especially if you are a first time home buyer). So today I am going to try and paint the picture of what the home buying process looks like, as well as identify key things to expect during the process.

1. Find a Realtor and Mortgage Lender– The first person to contact is your realtor (hint hint Kristin Perry). We will sit down and discuss all the fine details of what your looking for in a home, location, etc. Then we will get you set up on an e-mail portal which will send you all the homes for sale, the minute they hit the market (this is different than Zillow, Trulia, etc. which have homes listed for sale, but with a few days delay from the time they were actually listed for sale). The next person you will speak with is a mortgage lender, who will quickly get you pre-approved/qualified so we can begin looking at homes together.

Avg. Time Spent: 2-3 hours

2. View Homes– Once you are pre-approved/qualified and have met with your realtor, we will begin looking at homes. There are several things to be looking for in a home, which we will discuss in depth at a later date. But a few key points to consider; do you like the layout? does it have all the amenities you are looking for? does it have a solid foundation? roof? plumbing? electric? Having a good realtor will help immensely in this process.

Avg Time Spent: 15-45 minutes per viewing

3. Write an offer/have offer accepted– Your realtor will write and review the offer with you so you will know exactly what to expect. There are several contingencies in a contract, so reviewing with your agent is essential to success. When your offer is accepted, you will need to submit earnest money (typically 1% of the sales price) and option fee (commonly $50-$100) to the listing agent and Title company. Your realtor will give you instructions on all of this. The first 5-10 (on average) days are called the “option period”. This is your time to have an inspector review the property for potential repairs (keep in mind that any home, whether pre-owned or new, is not going to be perfect. So expect repairs, but having a good agent will help you discern what repairs are necessary and which are not).

Avg. Time Spent: 1-3 hours to write contract, 5-10 days for option period

4. Under Contract– This can take anywhere from 30-45 days, sometimes sooner. We touched on this above, but the first 5-10 days of being “under contract” (aka the seller has accepted your offer) are the option period. During the same time as option period, your mortgage application will go into the underwriting process. In a nut shell, this means that someone else (called an underwriter) is reviewing your application and the property you would like to purchase, to make the final decision on approving the loan. An appraiser will visit the property and give their opinion on the value of the home which is required by the lender. You will want to make sure that during this time you are supplying your lender with everything they need to process your application. At least three days before closing, you will be sent final closing documents from the lender/Title company. You will want to review these documents with your lender to make sure all the numbers are correct (sales price, interest rate, etc.).

Avg. Time Spent: 30-45 days

5. Closing Day– This is the day you will receive the keys to your new home! Closing day, contrary to popular belief, is actually a pretty smooth sail. When you show up to the Title company to sign for your new home, the documents you will be signing will have already been reviewed by you, your lender and your realtor (see #4). You will know exactly what is on each document. Expect your realtor will be at closing with you, as well as the escrow agent (works for the Title company) and possibly your mortgage lender.

Avg. Time Spent: 1 hour

In a nut shell, this is how you can expect the home buying process to work. It is actually a really fun and exciting journey, especially when you know what to expect! If you are interested or have additional question, feel free to contact me at 972-740-3531 or kperryhomes@gmail.com. If you would like to speak with a mortgage lender, Kim Kurak is the bomb.com! You can reach her at 972-965-9098 or kkurak@highlandsmortgage.com.