Buying a home is a major financial investment. At Capstone, our goal is to ensure that you not only understand the process, but also feel confident. That’s why we stand by you every step of the way. Having a team you can trust and with whom you feel comfortable makes all the difference.
If you have questions or need assistance, call Capstone. We have the tools and information needed to start the process with confidence. We hope you find this step-by-step guide useful:
- Do Your Homework Before Starting Your Search
Investigate schools and local amenities to decide on neighborhoods that are right for you. Determine specifically what home features are most important.
- Be Picky but Not Unrealistic
To save time when looking at homes, keep in mind what you like and don't like, and pass along this information to your agent. Remember, there is no perfect home! Think in terms of possibilities as well as ‘what you see is what you get.’
- Get Your Finances in Order
Review your credit report and be sure you have enough money to cover the down payment and closing costs.
- Don't Wait to Get a Loan
Talk to a mortgage professional and get pre-qualified for a mortgage before you start looking. Your pre-qualification letter will help you be taken more seriously by agents and sellers, because they will recognize you as someone who is prepared to buy.
- Get Help
Consider hiring a real estate agent who’ll act on your behalf as a buyer's representative. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. Buyer's reps are sometimes paid out of the seller's commission payment.
- Think Long Term
Consider future needs if you plan to own your home for several years. This will help you determine what type of home and mortgage terms will best suit you in the long term.
- Don't Let Yourself Be ‘House Poor’
If you overextend yourself to buy the biggest home you can afford, you won’t have money left for maintenance, repairs, and decoration or to save money for other financial goals.
- Make an Offer
With your input, your agent will draft a written contract outlining what needs to be done by both parties to execute the transaction. It’s often a good idea to request a warranty from the seller to cover defects within one year. If the seller accepts the offer, the document becomes a binding agreement; so it is extremely important to carefully review it with your agent and speak up if anything isn’t clear. If the seller changes any aspect of the offer, the agreement becomes nonbinding until the buyer agrees to the seller’s changes. Your contract should be contingent upon an inspection and mortgage (if you are getting one). If the inspection reveals a big problem, you can either back out of the sale or you and the seller can renegotiate the purchase price if you are still interested in buying.
- Move Forward on Your Mortgage
As soon as the seller agrees to the contract, call your loan officer to start the loan process in earnest. If you have been pre-qualified, much of the legwork is already done and your loan will process more quickly.
- Close the Deal
Congratulations! At the closing, you sign the papers and get the keys to your new home – ownership is legally transferred from the seller to the buyer. Closing procedures usually are held at the offices of the title company or lawyer. The closing officer will coordinate all the document signing and the collection and disbursement of funds.
For more detailed information about the steps involved in a home purchase, check out the Department of Housing and Urban Development’s comprehensive guide, Buying a Home.