How To Buy Your Dream Home
How do I buy a house? Now that's a question we get a quite a lot. At Elliott Real Estate Team, we are dedicated to guiding you through each step of this exciting journey. Our approach is personalized, educated, and tailored to your unique situation. Keep reading for your step-by-step guide of the home buying process.
Step 1
Finding Your Real Estate Agent
The first step in buying a home is finding a real estate agent. As the buyer, the agents are usually paid by the seller, this service is free and worthwhile for you.
We'll guide you through every step of the process and help you understand it all, so you are empowered to make educated decisions.
Step 2
Get A Mortgage Loan Pre-approval
Before diving into the property search, it's crucial to get pre-approved for a mortgage loan. This step provides clarity on how much you can afford, which is influenced by your income and credit score.
In Washington State, there are a lot of first time buyers programs, special programs for doctors, nurses, teachers, veterans and more. Choosing a good lender that understands all the available options can help you get the best deal.
Although you can buy a home with a credit score as low as 500, a good credit score, typically 700 or above, will significantly impact your mortgage approval and interest rates.
We've made finding a good lender easy for you. Below is a list of Mortgage Lenders we have worked with and would love to work with again. Of course, if you have a Lender you're connected with and love, by all means, use them!
Step 3
Finding The Perfect Home
With a clear budget in mind, the exciting phase of searching for your dream home begins. Our online property search feature is optimized to help you explore homes within your budget and preferred locations across Western Washington. Hey, you don't have to complete steps one and two to take a peek. I won't tell.
Pro Tip
When it's time to tour homes, wear slip on shoes. You'll be taking them off to go in a lot of the homes.
Buyers Tour
One of the things we love to do for our buyers are property tours.
This is a time where we go together and see 3 to 5 of the homes that pique your interest in one in one day. We take care of setting appointments with the sellers, adjusting the showings for drive times and getting you information about each home.
It's a great time for us to get to know each other as well. Many of our buyers thought they knew what they wanted in a home until they walked through a few and completely changed what they thought the perfect home would be.
Step 4
Making an Offer
Found that dream home? It's time to make an offer.
We walk you through every step in-depth, so you know exactly what you're getting into. We understand you don't do this every day, so we do our best to educate you on the details, after all, this is your home and your money. You should know have a full understanding of all the contingencies and expectations, so they never become an unexpected issue.
Step 5
Escrow and Earnest Money
What is earnest money?
Upon acceptance of your offer, you'll need provide earnest money to escrow as a show of good faith. This step ensures that you are serious about purchasing the home. It's like a deposit. As a rule of thumb, the earnest money is due to the escrow company about 2 or 3 days after the contract is accepted by the seller. Earnest money is usually 2% of the sales price of the home, but it can be any amount you and the seller agree upon in the contract and often is lower than the expected 2%.
These funds will stay with the escrow company until closing unless you've made other arrangements within the contract. At closing the funds can then be credited to your purchase.
What is escrow?
Well, it's actually Title and Escrow. These folks are the behind-the-scenes experts that transfer the ownership of the home legally. Title and escrow acts as an uninterested middleman in the transaction to make sure everything is legal and on the up and up.
Step 6
Home Inspection
A thorough home inspection is crucial to uncover any potential issues with the property. It’s a step that could save you from future headaches and unforeseen expenses. An inspection is an option although we highly recommend doing it. There is a cost that is paid by you.
A good inspector will go on the roof and under the house. They check every sink, outlet and more so you will have a full report on the home.
Pro Tip
Appraisal vs. inspection
We're often asked, "My bank does an inspection, why do I need another one?"
Because your (bank) future mortgage company will order an appraisal and it's not the same. In an appraisal the mortgage company wants to ensure the home is worth what you're paying for it.
They also look for anything that could cause future damage. An inspection looks much deeper at the homes condition and doesn't look at the value.
An appraisal usually takes 10 to 30 minutes while an inspection can take 2 to 4 hours.
An inspection is worth the time and money.
Step 7
Home Appraisal
The home appraisal ensures that the price you've agreed to pay is in line with the home's true market value. This step is crucial for finalizing your mortgage loan. Your mortgage lender will order it.
Step 8
Finalizing Paperwork with Your Mortgage Lender
With a successful appraisal, you'll proceed to finalize the paperwork with your mortgage lender. This step brings you closer to the finish line. It's crucial you move quickly during this time, so closing isn't delayed.
Step 9
Signing the Closing Papers
Almost there!! This step is where you'll sign the necessary papers to transfer ownership through the title and escrow company. A lot of buyers think this is when you can have the keys and start moving in. Hold up! It's not a done deal until the county records the change of ownership. Usually within a day or two of signing.
Step 10
Receiving Your Keys and Moving In
Congratulations! You now hold the keys to your new home. Gather your friends, it's moving time!!
Bonus Step 11
Take action!
Now that you've gone through the ten steps to buying a home, it's time to act.
Sometimes the process can take more time than expected. The sooner you start your personal home journey, the sooner you'll be getting that shiny new set of keys!
Dusty and Nicky Elliott are here to help.
