Steps to Owning a Home
Steps to Owning Your Own Home:
- Pre-approved: Get pre-approved by a Mortgage Originator/Loan Officer or Banker.
- Home: Discover your Needs and Wants in a home:
- How much to spend?
- How many bedrooms/bathrooms?
- Listings: Look through current home listings from MLS search emailed by your Avenue Realty Realtor®.
- Showings: Go on home showings with your Realtor®.
- Purchase Agreement: After finding your dream home, you will write a Purchase Agreement with your Realtor®. You should anticipate making a check for your earnest money which will go towards closing cost to originate your home loan, generally $1,000-$10,000 or 1-2% of home sales price. Earnest money is showing your sincerity towards your new home to the Sellers. Typically, we will make your Purchase Agreement contingent on a complete Home Inspection.
- Earnest Money: Waiting to see if the Sellers of your desired home accept your Purchase Agreement. If not accepted, then you will get your earnest money back; however, if accepted earnest money will be deposited into Listing Agents Broker account within 2 business days.
- Association: If buying a condo, townhome or home within an association then you will be given 10 days to review the association documents. If you find the association documents acceptable then you continue to move forward in purchasing your new home. If you do not find the association documents to your satisfaction then you can retract your purchase agreement and retain your earnest money.
- Home Inspection: After your Purchase Agreement is accepted then comes the Home Inspection (unless you are purchasing new construction). Be prepared to pay anywhere between $300-$800 for cost of Inspector -- depending on size of home. We can give you some Home Inspector recommendations; however, you are welcome to use an inspector of your choice.
- Negotiate Inspection Items: If the Home Inspection is to your approval -- the Purchase Agreement is final! If the Home Inspection is NOT to your satisfaction then you can attempt to re-negotiate with the Sellers of the home or retract your offer completely and retain your earnest money.
- Loan: Then call your Mortgage Originator/Bank to confirm the Home Inspection is complete so s/he can proceed with your new Loan and order your Appraisal. Get your current paperwork (paystubs, bank statements, down payment documentation, etc.) together for your Mortgage Originator!
- Insurance: Insurance for your home or condo/townhome:
- If buying a home, contact an insurance agent to purchase homeowners insurance. Keep in mind you will need to pay 12 months upfront which is part of your pre-paid closing cost. We can give you some Insurance recommendations; however, if you know of someone please contact them.
- If buying a condo or townhome your monthly association payment normally includes hazard insurance. We recommend still purchasing renters insurance so that your personal belongings will be covered.
- Final Walk Through: Sit back and wait for your final walk thru the day before or day of closing. Closing date is determined on your Purchase Agreement but it typically takes 30-45 days to generate your new home loan. In the meantime, do NOT make ANY big purchases prior to closing on your new home such as: cars, furniture, carpet, major appliances, etc.
- Closing: Stay in contact with your Avenue Realty Realtor® and Mortgage Originator until closing!
When buying a new home your Realtor® services are FREE. However, generating a new loan will cost around 3% of loan amount. Those are called “closing cost.”