The Home Buying Process Explained In 3 Phases
#1 - BEGIN THE PROCESS
In this process, your real estate agent can help you with the following:
Determine your price point after being pre-approved
Find your perfect home and make a competitive offer
Review the seller’s response and plan a strategic reply to win over multiple offers
#2 - OPEN ESCROW
Once the purchase agreement accepted and signed by all parties, your real estate agent will open escrow for you and help you:
Choose an escrow & title company if required (in a competitive market, the seller will choose the escrow and title company)
Deposit Earnest Money (your escrow company will handle all funds associated with your transaction)
Enter the contingency period (average 21 to 60 days) and obtain inspection & appraisal of the property. This time period is specified in your real estate purchase agreement and is used to obtain the following item: physical inspection of the property, property pest inspection, property appraisal, approval of seller’s transfer disclosure statement, preliminary report approval from the title company, HOA disclosures and any important information of the property that can impact the buyer’s decision.
Receive preliminary property report
Get final loan approval
Obtain homeowner insurance
#3 - CLOSE ESCROW
Before escrow can close, you will need:
A cashier’s check or wire transfer in the amount of your down payment and closing cost
To review and sign all loan documents for your lender
When all conditions of the purchase agreement have been met, you will then sign all of the closing documents. After you deposit the balance of your downpayment and closing costs with the escrow company, and your lender has approved your final loan document, your lender will then deposit the balance of the purchase price. Next, the county recorder’s office will record the deed. You will then be the new owner of your home!
*Please note, this blog post is just a short summary of the home buying process and is not exhaustive. Feel free to reach out if you have questions and stay tuned for more updates and home buying tips by subscribing to the newsletter below.
