Hello Future HomeOwner! When buying a home, especially for the first time you will have many questions about the process. Below is a general guideline of what to expect and how the process works. The following list will give you an idea of the timeline involved with buying a home.
1. Select your agent and sign a Buyer Agreement allowing your agent to work for you. It is required in Utah to have a Buyer Agreement in place along with Buyer Due Diligence forms. The forms allow me to search and inquire about all types of homes for sale or not yet for sale across Utah. As a buyer it cost you nothing to have an agent work for you and represent you. Buyers are asked to let me know if they see a home for sale that they are interested in whether its listed by an agent, bank, for sale by owner, or new construction. For new construction homes, you will need to have me present everytime you go into a new construction site, model or open house. New Construction sites will have it posted that if your agent is not present when you see the model, then your agent can not represent you. (they do this for various reasons) You have the right to be represented and you should be represented. You are making one of the biggest purchases of your life. The sellers agent has been hired by the seller to sell his home not look out for you, the buyer.
2. Lender: This is huge! you need a lender that is full time, knowledgeable and licensed. If you need names, let me know. Your lender will take a look at your whole financial picture, your goals , what your current needs are and what has happened in the past. They will make sure you have the funds, credit and ability to purchase a home/condo/townhome. Underwriters will look closely at all the factors. Meeting with your lender before you start looking into homes will ensure you that you are at the correct price point and are able to purchase the home/townhome/condo you have fallen in love with. Credit, debt and your financial history is a huge factor.
3. Once your lender has given you a preapproval (the thumbs up) we are ready to start searching for homes. Once a home is found please be ready to act on it. Utah has a lot of homes for sale, but the good ones always go under contract very fast, often with multiple offers. While writing up an offer, you will be asked to offer an earnest money deposit anywhere from $500 to 1% of the purchase price. (New construction will want more money down, often non refundable) This is called your Earnest Money deposit. It shows the sellers that you are serious about the home. The earnest money goes towards your closing cost at the end of the transaction.
4. Once a contract is agreed upon, you lender and agent get very very busy. We watch all the contractual deadlines, home inspection is ordered (buyer cost $300-$500) An appraisal is ordered (buyer cost $300-$500) Both cost depend on location and size of home. These cost are in addition to the earnest money deposit. 5. Once the home inspection and appraisal have been completed, negotiated and approved the lender submits your loan. This may take 2-4 weeks depending on what type of loan you are purchasing. Just as a reminder your credit report will be pulled and reviewed before you purchase the home and also the day you close on your home. DO NOT make any major purchases, DO NOT open any new store cards, credit cards or credit lines, DO NOT swap around balances, DO NOT quit your job, DO NOT switch jobs, DO NOT file for divorce, bankruptcy DO NOT shop for a car, truck, atv, trailers etc.(they will pull your credit) DO NOT overdraft on your checking accounts, keep money in your checking account at all times. Not following these simple rules will jeopardize your chance for purchasing your home, you may end up losing the home and your earnest monies. If any item listed above does occur, please let your lender and myself know.
6. Last but not least we go to the title company and close the loan. Once both sides, the sellers and buyers sign the documents it usually takes 24 to 72 hours to fund and record the loan. Once the loan is funded, possession can take place anywhere from 24-72 hours from that point.
7. My job is to make this as hassle and drama free as possible while achieving your goals. Its a fun process. Just kick back, enjoy.