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Guide To Home Buying Process

Planning to Buy a Home ?

You need to know the steps in the Home Buying process ?

You are at the right place. We hope you find this page useful in understanding the Home Buying Process. 

Note: These steps are guidelines only and vary by state laws. Talk to your Sales Agent/Broker to address your specific needs. 

If you are looking for an Agent/Broker, you can call us at 469-544-9527. (Sales Agent: Rishi Nattamai of SAI Residential Realty)

Cherish Your Dream

  • Do you have the jitters of Home Buying ?
  • Its quite common and natural.
  • Our Goal is to remove your Jitters.
  • You are at the right spot.
  • Continue Reading.


New versus Used Homes

  • Constructing a new house or buying a used house ?
  • Take time to debate and decide on your need. 
  • Both have their respective pros and cons. 
  • Click on the picture to the right to read the Pros & Cons

Location and Features

  • Decide on the location - Cities, School Districts etc.,
  • Prepare list of features.
  • Bedrooms, Baths, Size, Age, Backyard, Fireplace, Pool etc.,  
  • Decide on your Budget


Mortgage/Finance Preapproval

  • Mortgaging is common & 20% down payment is standard
  • Lower Down Payment - Higher Interest Rate & PMI 
  • Get a financing preapproval letter from a lender
  • Sales agent/broker can provide lender references
  • Click Picture to the Right to know basics for Mortgage.

Realtor Selection

  • Choose a realtor
  • Discuss your requirements.

You can call Sales Agent Rishi Nattamai of SAI Residential Realty for a free No obligation consultation. 

Ph#: 469-544-9527 Email: SAIResidentialRealty@gmail.

Take Detour for New Home Construction Here

  • For New Homes Click the Image on the Right
  • For Used Homes Continue Reading the Page

Review MLS Email Updates

  • Realtor sets Home Search Criteria in MLS
  • Daily Emails triggered with the matching homes  
  • Review the houses in MLS daily email updates 
  • Review the pictures of the houses in the MLS. 
  • Review Sellers Disclosure (SD), Survey or any other documents.

What is Sellers Disclosure (SD) ?

  • Legally required in most states
  • Material Facts of the home
  • Contains details about the home features
  • Lists all known defects of the house KNOWN by the seller  
  • Seller NOT liable for any disclosed defects. 
  • If buyer don't like anything in SD, better to SKIP the house


Showings

  • Select houses you want to view in person
  • Give list of houses and timeline to your realtor 
  • Realtor schedule appointments and show the homes
  • Carefully review all the features of the home
  • Make notes of Pluses and Minuses of the home
  • Realtor help identify major structural/Foundation issues
  • (Hint: look for zig zag cracks in the walls and ceilings)  

Purchase and Offer

  • Buyer decide on houses to make purchase offer
  • Realtor prepare Comparative Market Analysis (CMA) report
  • CMA shows the prices of the similar homes sold recently
  • CMA shows the prices of the similar homes  
  • The realtor may recommend price range to win offer
  • Buyer ultimately decide offer price
  • Realtor prepare an option contract, usually a TREC form
  • Contract specifies the offer price, financial terms and conditions. 

Offer & Acceptance

  • Buyers Signs the Option Contract
  • Offer: Buyer's realtor => Seller's agent => Seller
  • If Seller likes offer, Seller Signs the Offer
  • Acceptance Communication: Seller => Seller's Agent => Buyers' Agent => Buyer
  • The option period begins 
  • Option Money Check by Buyer - usually $100 to $200  
  • Earnest Money Check by Buyer - usually 1% of sales price

Option Period and Inspection

  • Option Period - 5 to 10 days as defined in the contract
  • Option Period - Buyer can back out unconditionally 
  • Buyer have home inspected by a Certified Home Inspector
  • Have inspection by Structural Engineer if necessary
  • Use contract amendments for defects that needs repair

Contract Amendments

  • Contract Amendment used for any contract change
  • Changes can be Repairs, extending option period etc.,
  • Amendments should be agreed and signed by Seller
  • The seller may accept All or Some or None of the changes
  • During option period, the buyer can terminate the contact
  • The option money (usually $100 or $200) will be forfeited
  • The earnest money will be returned back to the buyer. 

Mortgage/Loan Processing

  • Start the loan application process
  • Loan Application process is different from the Pre-approval
  • Shop and lock in the best interest  rates.
  • The lender must provide the Good Faith Estimate (GFE)
  • Review GFE for all the associated cost of the loan
  • Verify lender can meet the financing contingency date
  • Verify lender can meet the closing date
  • Financing contingency is 10 to 14 days from the option period 
  • Lender need to complete the appraisal & underwriting process by Financing Contingency period

Before Closing

  • After Option, Seller makes repair of agreed defects 
  • Buyer works with lender to get the loan approved
  • Title company works on Title and other legal aspects
  • 2 days prior Closing, Closing officer send closing statement to all parties involved
  • A day or 2 before closing, Buyer makes a pre closing walk-thru of the home. 

Closing Statement

  • Closing statement has financial details of the transaction
  • Tells how much $ the buyer needs to bring for closing
  • Tell the $ the seller will receive from the transaction
  • Has all outstanding dues like loan balance listed
  • Has prorated HOA dues,  prorated tax dues, etc., listed 

Closing

  • Closing happens usually at the office of the Title company
  • The closing officer coordinate  timings for Buyer/Seller
  • Various documents are signed by all responsible parties
  • Example of documents - Deed, Mortgage, HOA etc.,
  • After funding, cash is dispersed to all concerned parties. 
  • The Seller/Seller agent will arrange hand over of the keys 

After Closing

  • Seller arranges to hand over keys to Buyer. 
  • Buyer should transfer all utilities under their name.
  • Recommended that buyer to re-key all the locks. 
  • Watch mail for the deed copy and owner's Title insurance 
  • Buyer to verify County Appraisal District website (CAD)
  • CAD is updated in 6 to 8  weeks with new owner info

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