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STEP #1: DECIDE TO BUY
The initial step in the home-buying process is simply making the decision to purchase a home.
STEP #2: CONTACT CLASSIVE REALTY
Click here to contact us or call Classive at (703) 491-3303 and leave the rest to us!
STEP #3: HELP YOU OBTAIN A LOAN PRE-APPROVAL
Before shopping for a home, it is a good idea to set the boundaries on what you can realistically afford. Your Classive Realtor® will help you figure out what your purchasing power is based on current mortgage terms, how much you could make from the sale of your current home (if applicable), your credit history and your personal financial situation.
For more information on selling your current home, click here to review our Seller’s Guide to Success.
Pre-Qualification
Determining how much you can afford, based on information you provide about your income and expenses, begins the process of formally applying for a mortgage. Pre-qualification gives everyone involved an idea of how to proceed. Click here to pre-qualify now!
Pre-Approval
The next step in the loan process is to have a mortgage lender look closely at both your credit report and your income to determine if you qualify for a loan. The lender will tell you the maximum loan it will make and which loan programs you qualify for, as well as discuss the interest rates it will offer for different types of loans.
When you’re pre-approved you can go shopping for a home with confidence about your buying power. Pre-approval also gives you more leverage when negotiating with a seller. Sellers often prefer to negotiate with pre-approved buyers because they know the pre-approved buyers are financially qualified to make the purchase.
Please keep in mind that a pre-approval is not binding on the lender. It is also subject to the appraisal of the home you want to purchase and they are both time sensitive. If your financial situation changes or interest rates rise, for example, the lender will reevaluate your situation and recalculate your maximum loan amount.
STEP #4: FIND YOUR HOME
Your Classive Realtor® will help focus the search for a home that fits your needs and desires, as well as your budget. With access to the Multiple Listing Service (MLS) — an extensive database of available homes, your Classive Realtor® will identify the neighborhoods, types of homes and amenities you are interested in.
STEP #5: MAKE AN OFFER
Contract
Once you have identified the home you wish to buy, your Classive Realtor® will prepare a written contract specifying the details of the purchase. When the contract has been completed and signed by you, your Realtor® will present it to the Seller’s agent (also referred to as the Listing Agent) for presentation to the Seller. It is possible that your original offer may not be accepted if the seller does not accept every detail — coming back with a counter-offer to your original offer. Your Classive Realtor® will assist you in all contract negotiations until all parties are in agreement.
Earnest Money Deposit
The sales contract must be accompanied by an earnest money deposit. This deposit will go toward the expenses you pay at closing. Closing is the time when the purchase of your home is complete. (When you apply for a loan, your Lender will provide a “good faith estimate” of closing costs which should include both the Lender’s and title company’s estimated charges, as well as recording fees and taxes).
If the contract is accepted by the seller and you do not follow through with the transaction, you will forfeit your deposit. Your Classive Realtor® will give you guidance concerning how much of a deposit to make. Your Realtor® can also include contingencies in the contract that allow you to be released from the agreement in case you cannot obtain affordable financing or sell your current home.
STEP #6: HELP YOU OBTAIN A MORTGAGE LOAN
As soon as your contract for purchase has been ratified (agreed upon by all parties), you will need to apply for a mortgage loan. Selecting a Lender for financing is crucial to the smooth completion of the purchase. Your loan officer will be responsible for taking your loan application and overseeing the processing of that application as you move toward loan approval. Your Classive Realtor® will be able to provide you with the names of loan officers with whom he or she has worked in the past and has had successful transactions.
STEP #7: CLOSE THE DEAL (SETTLEMENT)
Home Inspection
The period between loan approval and closing is critical and a number of important tasks must be completed by the seller and buyer. Your Classive Realtor's® main responsibility now is to ensure that the property is in good condition and meets your requirements. He or she will recommend that a professional home inspection be performed (at your expense). An inspector will check the roof, basement, heating system, water heater, air-conditioning system, structure, plumbing, electrical, and many other aspects of the property, looking for damage which may require expensive repairs, as well as fire, safety and health hazards.
Title Company
Your Classive Realtor® will also help you select a title company, which acts as a neutral third party holding all instruments necessary to the sale, including funds. The title company will research the complete recorded history of the property, to insure that the title is free and clear of encumbrances (claims or liens against the property), by the date of closing, and that all new encumbrances are properly added to the title.
A few days before you take possession of the property, you will complete one last inspection to ensure everything is in order. You will also have to change the utilities and services of the new house over to your name. Your Classive Realtor® will assist in this process.
When your transaction is nearly completed, the title company will provide you with a “closing statement” that lists all of the financial details of your home purchase. Your Classive Realtor® will review this with you to ensure its accuracy.
In the last step of the buying process, the title company will have you sign the final paperwork, including loan documents. When everything is complete, the title company will record the transaction for your local tax office and you will become the official new owner.
STEP #8: MOVE IN
Congratulations! You have successfully completed the home-buying process and you’re free to enjoy your new home!
To receive specialized service that will produce maximum results,
contact Classive and leave the rest to us! |
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