Buying a home is a multiple-step process. Each “deal” has a certain cadence. Sometimes there are things you’ll need to do fairly quickly to meet a deadline, and other times you’ll get to relax and wait until the next to-do item.
- Start researching areas where you’d like to live, browse some homes online, and ensure your financial affairs are in order
- Select a real estate agent to represent you and discuss your wants and needs so they can narrow your search
- Get pre-approved for a mortgage so you’ll be able to make an offer with confidence you’ll be able to afford the home (your agent can provide guidance here)
- View homes for sale at open houses and at private showings with your agent
- Make an offer to purchase a home and negotiate until the seller accepts it
- Get the home inspected by a professional to ensure its in good working order and so you know what future maintenance will be required
- Apply for the mortgage so you can finance the purchase (80% of the purchase price is typical)
- Hire an attorney to prepare the Purchase and Sale Agreement (P&S) to protect your interests (your agent and lender can provide guidance here)
- Sign the P&S and deliver additional deposit funds to the seller (typically 5% of the purchase price)
- Officially buy the home at the “closing” where the legal title is transferred and the seller is paid