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- Make An Offer-A formal offer is written up and signed. This is a legally binding contract, however, contingencies can be added to allow the buyer to opt out of the contract should certain circumstances arise.
- Disclosures-Sellers are obligated to disclose any known issues that may affect property value or livability. If something is listed here that is a negative for you as the buyer, you may opt out of the contract.
- Appraisal– Buyers will usually put a sum of money down towards the purchase of the home. The bank will send out an appraiser to come out and evaluate the value of the property. If the contract price does not align with the appraisal value, the bank can reject the loan or change the terms of the loan.
- Inspection-As a buyer, one of your rights is to have a property inspection done. An inspector will come out and evaluate the entire property from the foundation to the roof. If there are minor issues that come up as a result of the inspection, a buyer can negotiate with the seller to have something fixed or to add a credit.
- Loan approval– The lending bank will go through your credit history, income, and debt and will also ensure that there are no liens against the property in question. The bank can take up to 30 days to complete their review. Once they are done, you are closer to the purchase of your dream home!
- Final walk–through-Just prior to closing, you will walk through the property to make sure that it is still in the condition it was when you first saw it and also to ensure that any fixes that were negotiated are completed.
- Closing– The closing will take place at an attorney’s office or a title company. All closings happen under different circumstances; sometimes the buyers and sellers will close together and sign papers in the same room and other times the buyers and sellers may never meet. If you are a buyer and obtaining a loan, be prepared to sign many documents and make sure to have your photo ID. It is always a good idea to review the closing statement prior to closing in order to avoid any surprises.