The Home Buying Process Simplified

Buying a home can be an overwhelming and confusing process.  However, it does not have to be.  This article breaks down the home buying process.

First Steps

During this phase, you are researching mortgage lenders and types of loans.  This is essential to your home buying process because you need to know the difference between different types of loans (VA, FHA, Conventional, etc.).  

Gathering your financial documents is also important.  Mortgage lenders will ask for paycheck stubs, bank statements, W2’s, social security card, and your driver’s license.  I kept these all in Google Drive.

Researching Real Estate Sales professionals happens in this phase.  You want to find an agent who is the right fit for you.

Financial Documents

Pre approval 

Pre-approval is where you apply for mortgages through mortgage officers and directly through financial institutions (unless you are paying cash).  When you apply for your mortgage, you will be asked lots of personal information such as your income, where you plan to buy a home, if you have a home picked out.  You will also need to upload your financial documents to your potential lender’s website.

Finally, you will receive a pre-approval letter that states the amount you are approved for.  Once you have this, you will begin working with a Real Estate Sales Professional to find your ideal home.  The pre-approval letter is very important because it helps you know what you can afford and also shows sellers that you are serious and have funds to purchase.

Home search

House Hunters is definitely a popular show as it highlights the home search.  For many, this is the most exciting part of the home buying process.  You get to tour different homes that you may be interested in.  Before viewing homes, it is very important to review your needs and wants with your agent.  Your agent will then send via email or text you homes that fit your needs.  After receiving feedback, you will tour the properties.  Three properties a day is typical, unless you are moving to a new area, and you may want to see more in one day.  

Home Tour

Purchase offer

Once you’ve viewed 3 properties, hopefully you find a home that you wish to buy.  However, if not, you will continue to look until you find that ideal property.  When you want to buy, you will discuss with your agent the home you would like to purchase.  You along with your agent will decide a price you would like to purchase the home for.  Once the seller accepts your offer, you will be under contract.

Under contract

Under contract has two phases:  option pending and pending.  Option pending occurs during the time you are getting the home inspection, appraisals, and final negotiations.  After the options period, the contract is moved to pending.  This is pending until the close of the home.  Your mortgage lender is working to secure financing, and you may need to submit additional documents.

Signing Contract

Closing

And for the moment you’ve been waiting for…. closing day.  This is the day you sign your final documents- deed, mortgage, land survey, etc.  You also transfer your utilities in your name.  Finally, you get the keys to your new home!

Getting keys to your home.
Buying a home can be scary, which is why it is important to hire the right Real Estate Professional to help you.  If you are in the Houston, TX area and are in need of a dedicated Realtor, you can contact me at 346.481.7050 or email me at Reginald@nxhre.com.  Thanks for reading!