The 7 steps of buying a home from start to finish.
The process of buying a home or investment generally starts with getting pre-approved for a mortgage loan. If you do not know a lender, we can refer you to some lenders so that you can pick the one you feel most comfortable with and to get a pre-approval letter. This will help establish the price range of homes that we will show you.
2. Looking for a home (Search Here)
Once you know how much you can and want to spend on a home, the next step is to find the homes that most closely fit your needs. We will find homes available on the MLS for you but sometimes the home you are looking for is available but is not actively advertised in the market. It will take some investigation and hard work to find all available properties that might fit your needs.
3. Choosing the right home
We can help you find the right home by providing information about each home and showing you several homes that might work for you. We can provide local community information on utilities, zoning, schools, crime rates, etc. You will need to decide if the home you choose provides the environment you want for a home or investment. It is also important to determine if the home be able to be re-sold if you need to sell at some point? A bad location or poor floor plan can cause problems for resale value.
4. Negotiating the purchase
There are many negotiating factors, including price, financing, terms, date of possession and often the inclusion or exclusion of appliances, fixtures and furnishings that are addressed in a real estate purchase contract. The contract should provide a period of time for you to complete inspections and investigations of the home before you must complete the purchase of the home. This is called the due diligence period in Utah. We can advise you as to which investigations and inspections are recommended or required.
5. Due diligence
With a negotiated accepted contract in hand, it is time to complete a home inspection and any other tests or research about the home that are deemed appropriate. Depending on the area and the home, this could include inspections for termites, radon, roof condition, moisture conditions, etc. We can assist you in finding qualified professionals to do most of these inspections. You will also want to see a preliminary report on the title of the property to ensure there are no liens on the home from contractors, etc. which the seller will provide and we will review for you.
As soon as you put a home under contract, the process of obtaining a mortgage loan begins. We can help you in understanding different financing options and we will help keep your lender on track to meet the closing deadline. It is imperative that you are responsive to lender requests for documentation in order to get your loan approved on time.
7. Settlement and closing
Finally, there is the settlement and closing. Settlement is the process of signing all of the paperwork at the title company and the closing is when the money exchanges hands for the purchase and the deed transfers to the new buyer. The title company will handle this process and will walk you through the paperwork required to close on your new home. We can guide you through the closing process and ensure that everything runs smoothly. After closing we will get keys to your new home for you and you can move in to your new home!
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