What is the Home Buying Process?

Did you know there’s a lot that goes into the home buying process? It’s more than just waking up one day and decided you’re ready to buy a home. Although, that’s obviously the first step. From the time you make an offer on a house to the time it closes and you officially become a homeowner, you’re looking at about 30-40 days. This doesn’t include the number of days or weeks or even months it took to find a home!

One of my favorite parts of my job is getting to guide folks through the home buying process. I love answering questions and explaining how the process actually works! If I’m not explaining the home buying process to each of my clients, then I’m not serving them well.

Here’s an overview of the home buying process:

Step #1: get pre-approved/pre-qualified

We don’t want you getting the cart before the horse. You’ll hear me say this numerous times! Before we ever beginning looking at homes, we’ll need to get you pre-qualified with a lender first (unless you’re paying with cash).

Step #2: narrow down your home search

We’ll sit down together and figure out your wants vs. needs (i.e. school district, # of bed/bath, lot size, etc.) and then I’ll take the information and put it into a search in the MLS! This will narrow down the number of homes available that meet your specific criteria.

Step #3: view homes

After we’ve narrowed down your search criteria, we’ll take a look and see what’s available. If there’s a house you love online, I will always, always, ALWAYS have you drive by it first to make sure you like the location! I don’t want to waste your time or my time. After you’ve driven by, if you still like the house, I’ll schedule showings with the listing agents and we’ll go take a look!

Step #4: make an offer

If you love a house, we’ll make an offer on it! I’ll make my professional recommendation, and then I will get the offer drawn up. We’ll include your pre-qualification letter with the offer!

Step #5: reach an agreement with the seller

This is my favorite part. It’s rare for a seller to accept your original offer. Typically, they will make a counter-offer. They may ask for a shorter option period, higher sales price, etc. and we’ll continue to negotiate until we can come to an agreement!

Step #6: execute the contract

Once we come to an agreement, I’ll make any necessary changes to the contract and we’ll send it to the listing agent. A contract is executed once BOTH PARTIES have signed!

Step #7: option period

The option period is typically 7-10 days depending on the offer situation. This number is negotiable. During this time, the Earnest Money (1% of the sales price) and option fee (typically $100) will be due within 3 days of going under contract. Buyers have an unrestricted right to terminate for any reason during option period. We’ll order the home inspection and pest inspection (and any other inspection that may be important to you). When you receive the inspection report(s), you’ll have the opportunity to request items to be repaired if you desire. We will negotiate these items out with the seller.

If you decide to terminate during this time, you’ll receive your Earnest Money back minus the cost of inspections. The sellers, however, will get to keep the option fee.

Step #8: home appraisal

The lender will order an appraisal to take place. The appraisal will go out and determine how much they believe the house is actually worth. This is important because a lender doesn’t want to loan more money than required. As a buyer, you want your house to appraise for more than the agreed upon sales price. If it doesn’t, you’ll be able to negotiate what happens next. We can see if the seller is willing to lower the agreed upon sales price to the appraised amount or meet us in the middle. You would be responsible for paying the difference in cash if they weren’t willing to come down to the appraised amount.

Step #9: transaction management

This is when you get to sit back and (mostly) relax. During this time, I’ll be communicating with all parties involved—the title company, listing agent, appraiser, lender, surveyor, etc.

My job as your real estate agent is to maintain proper communication to ensure everyone stays on schedule. We want to keep the transaction heading in the right direction in hopes of us meeting our target proposed closing date!

Step #10: schedule closing

We’ll get to schedule closing after you get the “clear to close” from your lender! This means your financing was approved, and you are all set and ready to become a homeowner. We’ll have a better idea of whether or not we’ll be on track with the proposed closing date at this point. Typically, we’ll know about 3 days ahead of time what day we’ll actually be closing.

Step #11: connect utilities

Once we know we’ll make it to the closing table, you’ll need to call the utility companies found on the Seller’s Disclosure and begin scheduling those to be transferred into your name after you close. This is important, but easy to forget! You don’t want to be without water or electricity the day you are moving in.

Step #12: prepare for closing

This is when you’ll want to schedule a few hours away from work. You’ll be required to either get a cashier’s check or you can wire the funds you’ll need to bring to closing! I’ll remind you to bring your Driver’s License because the title company will need this information.

Step #13: close

We’ll show up at the title company, sign a LOT of papers (your hand will probably get tired), take a cute picture, and celebrate you officially becoming a HOMEOWNER!

Here’s the thing…

There are a lot of hoops to jump through when it comes to buying a home…a lot that goes on behind the scenes during a transaction that a professional real estate agent takes care of so you don’t have to! We understand contracts and contingencies and our purpose is to make the home buying process as easy and stress-free as possible! At least, that’s my goal. If you feel like you’re ready to begin the home buying process in East Texas, take a few minutes and fill out my buyer’s intake form. I’ll be in touch!

Kristin Koonce Burroughs, REALTOR®
(903)241-2608
kristinkoonce@gmail.com
BOLD Real Estate Group