Buying a home can feel daunting and foreign simply due to the seemingly overwhelming process. However, if you pick the right Realtor, he/she can guide you and make the experience much more enjoyable and complete. Below is a step by step process for buying your new home.
Get Pre-Approved by a qualified Mortgage Lender. This does 2 things: It lets sellers know you are qualified and serious AND allows you to set your budget for purchase.
Make a List of the things you are looking for in your new home, including: location, sq ft, # of bedrooms, # of baths, fenced yard or not, garage, style of home, schools, etc...
Begin the search for your home. In today’s high tech world, over 85% of searches begin online. However, in this extremely competitive market, folks quickly seek a Realtor to help them navigate this detailed process. Realtors help in many, many areas including: finding the home, negotiating the sale price AND putting together a team of professionals to make your dream a safe & secure reality.
Once your new home is located:
After thoroughly explaining all paperwork, your Realtor presents your offer to the Listing Agent. This paperwork can include: Property Condition Disclosure, Lead Base Paint Disclosure, Disclaimer Notice, Official Offer and any/all other documents required by the Tennessee Real Estate Commission.
Once offer is accepted by both parties:
The offer becomes a binding contract.
The executed contract is sent to closing attorneys for both sides. Your Realtor can help you choose a competent attorney.
You have 7 to 10 days to conduct a Home Inspection & Termite Inspection. Your agent can help you pick an inspector if you don’t have one. Typically the inspection can be paid at closing. Average cost of Home Inspection is: $340 to $450, depending on the square footage of the home and Termite Inspection: $75 to $85.
After the home inspection there are usually items to be addressed via repairs, etc...and your home inspector can advise you as to what might be asked of the seller to repair. Your Realtor will handle negotiating the repair requests with the listing agent.
While the inspections are occurring, your lender will request an appraisal on the property. If your offer includes a Appraisal Contingency the appraisal needs to come in at or higher than the agreed upon sales price. Otherwise, you can exercise your appraisal contingency and terminate the contract, you can agree to pay the difference, or negotiate a lower price to the seller.
Once the appraisal comes back and all is ok, then the docs move on to the underwriters. Underwriters sometimes request other items or documents from you, so be prepared. Their job is to make sure that you and the property are good investments for the lender.
Typically this process takes about 30 days once the offer becomes a contract and then you are ready to close on your home and take possession. But in a hot market, the closing can take as long as 45 days.
At EXIT Realty East Nashville we are committed to our clients.
Let us help you today.
Connie & Sheila