Pre-Offer
1. Get pre-approved.
2. Initial consult with a REALTOR®
**Steps 1 and 2 are interchangeable**
-Ask about your local market, what to look for and what to expect about the home
buying process
- Make a list of “must haves”, wish-list, and deal breakers.
3. Begin your home search
Found your home, now what?
1. Make an offer! Work with your agent to determine the best offer for you.
2. Earnest/Trust Money, Inspections, Appraisals
-Think of earnest/trust money as a good-faith deposit. This gets held in escrow until
close on your home, or the contract is terminated. It DOES count towards your
purchase price/down payment, and is refundable under certain conditions
(Unsatisfactory home inspection, unable to obtain a loan/financing, home does not
appraise for at least the agreed upon purchase price. Refer to your purchase
and sale agreement for more details). Earnest/Trust Money is typically due within
a few calendar days of an agreed upon contract (Binding Agreement)
- Many contracts allow the buyer to reserve the right to have a home inspection. The
contract states how many days the buyer has to perform any inspection they see fit.
Your agent likely has recommendations of home inspectors, though you may choose
to hire a different. It is recommended they are licensed in your state of business, and
that they are members in good standing with a National Home Inspector association.
Ask around, read reviews, and just like any other professional you work with, feel free
to call and interview!
*Don’t forget, you can often ask a seller/have your agent ask the seller’s agent
for utility providers and previous bill history. You may also want to search
permit history for the property you are considering (if applicable), and request
any Homeowner’s Association (HOA) documents, preferably all within your
inspection period!
- A purchase contract can be made contingent on appraisal, and just about any time
you are getting a loan, your bank/lender will require one as a condition of the loan.
An appraisal can help ensure that the property you are purchasing is worth at least
what you offered to pay for it, and you have the option of terminating your contract
if the value is deemed to be less than the purchase price.
3. Loan Do’s and Don’ts
Check with your lender on these details, but some general advice here is to
keep your credit and income consistent throughout your application and closing
process. Do not obtain a new credit card, loan, or change jobs without talking
to your lender first! Make sure any deposits into your bank account(s) have a
paper trail, and be sure that the earnest/trust money can be traced back to your
bank account(s)!
While your unique buying situation may vary and all of these steps may not apply, these are general recommendations following a general timeline of the home buying process.
Jason Kaczmarski
RE/MAX 1st Choice
Office: 615-384-7355
Each RE/MAX office Independently Owned and Operated
