What Are the Steps to Buying a House?
The following are the common steps when buying a house. It can not be stressed enough, but the first step before any major real estate purchase is to secure the expertise of a skilled Real Estate Professional. Real estate purchases represent the largest investment an individual will likely make during their lifetime. It is prudent to select a qualified Real Estate Agent that will save you the time, hassle and expense of an error in a real estate transaction. A Real Estate Agent can safeguard the buyer from dishonest individuals and uninformed decisions when purchasing real estate. In addition, a qualified Real Estate Professional can provide the best information on programs, opportunities, and techniques to secure financing and the ultimate purchase of an enjoyable home. It should be noted that the buyer pays no expense for the services of a Real Estate Agent. The buyer's Real Estate Agent is compensated by the seller for introducing the buyer to the seller, making financing opportunities available, and completing the transaction.

Common Steps for Buying a House

1. Select a qualified Real Estate Agent

2. Discuss Loan Qualification

a. Discuss finances (income, assets, debts, downpayment etc.)

b. Obtain pre-qualification from lender (i.e. bank etc.)

3. Look at potential homes

a. Select a property within the set price range that fits your needs

b. Discuss an offer with your agent

c. Buyer reviews contract with agent

d. Agent presents initial offer to selling owner/agent

4. Present and Negotiate Offer (Seller can accept your offer, counter your offer, or reject your offer)

a. Seller accepts your offer

b. Buyer prepares "earnest money" deposit (usually, 1 to 3% of purchase price- this is non-refundable)

5. Open Escrow

a. Deposit "earnest money" into escrow

b. Escrow will order Preliminary Title Report

6. Submit Loan Application

7. Contingency Period

a. Conduct Physical Inspection of property by a qualified inspector

b. Approve Seller's Transfer Disclosure Statement

c. Approve Preliminary Title Report

d. Conduct property appraisal (usually lender will appraise the property)

e. Obtain loan approval from lender

f. Perform termite inspection and certification

7. Obtain Title Insurance (To insure that title to property is as stated)

a. Select insurance company and coverage

b. Insurance will be in effect at close of escrow

8. If applicable, obtain Home Warranty Insurance

9. Sign Documents

a. Title Company receives signed documents

10. Down Payment

a. Send cashier's check or money transfer to Escrow prior to closing date

11. Closing the Escrow

a. Deposit closing costs to escrow

b. Lender sends balance of purchase price

c. Deed is recorded with County Recorder's office

d. Transaction is complete and You are ready to Move In