Twelve Steps to Buying A Home
1. Buyer
makes offer, seller accepts (do your
homework).
2. Buyer's
earnest money (good-faith deposit) is placed
in the listing agency's trust account.
3. Buyer’s
mortgage lender orders appraisal (order it
yourself in a cash purchase).
4. Buyer’s mortgage lender orders
termite inspection (must be within 30 days
of closing).
5. Buyer
orders a home inspection after an acceptable
appraisal is received and after termite
inspection (if you are confident of
receiving acceptable appraisal and termite
report, order home inspection earlier).
6. Negotiate
price concession with seller to compensate
for repairs (seller has the option to make
repairs).
7. Land
surveys are ordered after a successful
appraisal and inspections (buyers don't want
to invest too much into the property until
they are sure it's a go).
8. Buyer
applies for hazard insurance and the
information goes to the lender and closing
attorney.
9. Nearing
closing date, buyer arranges for utilities
to be switched over.
10. Closing
takes place at the office of the buyer's
attorney. The seller's attorney has
forwarded signed deeds to the closing
attorney.
11. Buyer
gives attorney certified funds to pay for
closing and signs loan papers and other
required documents.
12. Attorney
records new deed at the courthouse and
disperses funds due to all parties.
