THE HOME BUYING PROCESS
Hire a Buyer’s Agent
- A Buyer’s Agent will represent only you and have a fiduciary responsibility to look out for your best interests.
Get Prequalified/Preapproved with a Lender
- A lender will pull your credit report and let you know if there are problems that need to be addressed.
- A lender will determine your maximum loan amount, but choose a mortgage type that you understand and a
payment that you will feel comfortable with, which sometimes may be less than the maximum you are approved for.
- You and your agent will receive a loan preapproval letter which means the lender has verified your income and pulled your credit report.
Look at Homes for Sale
- Look at homes online at www.NewUtahListings.com
- Narrow your search to those homes that fit your exact parameters to find that perfect home.
- Tell your agent which online home listings you are interested in previewing and ask for additional input.
Write a Purchase Offer
- Select a home offer price based on the amount you feel a seller will accept or counter. Talk with your agent and ask their opinion. When deciding on an offer price, consider that you may be in a multiple offer situation.
Negotiate and Write Counter Offers
- Expect the seller to counter offer.
Make an Earnest Money Deposit
- When your ofer is accepted, deposit your earnest money check with the appropriate party. Usually the Buyer Agent’s Brokerage or Title Company.
Open Escrow/Order Title
- Your agent will open escrow and title with the title company.
- Give the Escrow Officer’s information to your lender and insurance agent.
Order/Conduct Home Inspection
- Your agent will ask you if you would like to order a home inspection. It is an out of pocket expense to you as the Buyer.
- It is a good idea to attend a Buyer walk thru with the inspector.
- Your lender may require an advance payment for the appraisal
- If your appraisal comes in low you will need to discuss your options with your agent.
- The lender will supply you a copy of your appraisal.
Comply with Lender Requirements
- Lenders may ask for additional information.
- DO NOT MAKE PURCHASES WITH CREDIT DURING YOUR HOME BUYING PROCESS.
- When the file is complete and all paperwork is turned into the lender they will submit it for final underwriter
Approve Seller Disclosures
- Read and understand the items on the Sellers Disclosures, Home Inspection and Title Policy.
- Realize you have 10 days to cancel if lead paint is a health hazard.
- Read every document in its entirety and ask questions as needed.
Order Homeowners Insurance Policy
- Order your homeowner’s insurance policy early. Normally the lender will ask you to do so and you will need to forward the information to the lender.
Issue Request for Repairs
- If the home inspection and/or appraisal turns up health and safety issues, your agent can write up a Repair Addendum. Which asks the seller to address the issues or reduce the price for you to repair them yourself.
- If you have placed an addendum with a contingency you will need to remove the contingency or the seller can cancel the contract on top of demanding your earnest money deposit.
Do Final Walk-Through
- Do not pass up a final walk-through.
- Inspect the property to make sure it’s in the same condition or better as when you agreed to buy it.
- If you find a serious issue, address it before you go to closing.
Sign Loan/Escrow Documents
- Bring 2 forms of I.D. Typically your Drivers License and Social Security Card or Military I.D.
- This is where you will meet at the Title Company and sign all of your Loan Documents and Settlement Statement.
- This process is typically about an hour long.
- The Escrow Officer at the Title Company will let you know what amount you will need to wire into their account and will provide the instructions for you to give to your bank teller.
- After you have signed the Loan and Escrow documents the Title Company will submit your deed for recording.
- Title will notify you and your agent when it records and funds.
- After it has recorded, unless your contract specifies otherwise the property is yours.
After Escrow Has Closed
- Your Agent will schedule a time to meet with you at your new home to give you your keys.
- Change your locks immediately so that your home is secure. You never know who had keys to the home with the previous owners.