The process of buying a home, while exciting, can also seem overwhelming! The good news is, it doesn’t have to be! It’s so helpful to have an experienced agent on your side, walking through each step with you from beginning to end. If this is your first time, or if it’s been a while since you’ve bought a home, I’d like to offer a little refresher on what to expect. Here are a few steps and expenses to keep in mind.
If you will be obtaining a loan for your purchase, the first step is to get pre-approved. Lenders require a pre-approval letter for all loans. This process is helpful in determining what you can afford so you know which homes fit within your budget.
After you’ve been approved, I will set up an MLS search designed with your specific criteria in mind! Any homes that hit the market within your criteria will come directly to your email. If you see homes you like, send them my way and we can set up a time to tour the home(s).
When you’re ready, we will submit a contract on the home (or homes) that you’re interested in. In this competitive market, it’s good to be prepared both mentally and emotionally that your first offer(s) may not be accepted. Patience is key to the process! I am committed to helping you make the best offer and finding you the right home.
Once you have an accepted offer (yay!) there are several expenses to prepare for:
- Earnest money is your “good faith” deposit, showing that you are serious about purchasing the home. This is typically 1% of the accepted offer and is required within 3 days of the executed contract.
- Option money is put in place on your behalf. This money gives you unrestricted rights to terminate the contract during the option and inspection period should any unforeseen problems arise. This cost is due at the same time as the earnest money and is typically anywhere from $100-400, depending on how the contract is written.
- Inspection money covers the cost of the home inspection. A professional will thoroughly inspect the condition of the home and come back with a full report. At this time, you can ask the seller to make any needed repairs, or they may choose to offer you a “seller concession,” in which they give you (the buyer) money towards closing costs. Inspection costs are determined by the square footage and extra amenities such as a pool, etc, and begin at around $500.
- An Appraisal (also $500) is required by the lender as a “security” of sorts, proving to the lender that the home value constitutes the amount of the loan.
At LEAGUE, our goal is to faithfully serve our clients to the best of our ability. We love what we do, and it is our pleasure to help make the home buying process an enjoyable one! Please don’t hesitate to reach out with any questions you may have. As always, we are here for you and #ReadyToServe.