Home Buying Process

Step 1: Start Your Research Early

You already on the path by being here. Educate yourself on the home buying process, Set up an automatic search and start getting to know the listings and areas available.  By getting to know the process and the homes available you will be better positioned to make a sound financial decision on which home to purchase.  

Step 2: Determine How Much House You Can Afford

Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income.  

But you should make this determination based on your own financial situation.  Consider making a monthly payment into a savings account to start to save money for a down payment.  Also ask a lender about the availability of any 100% financing programs as well as FHA and VA programs with low to no money down.   

Step 3: Get Prequalified and Preapproved for Your Mortgage

Before you start looking for a home, you will need to know how much you can actually spend. The best way to do that is to get pre-qualified for a mortgage. To get pre-qualified, you just need to provide some financial information to your lender, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much he/she can lend you. This will tell you the price range of the homes you should be looking at. Later, you will get pre-approved for your mortgage, which involves providing your financial documents (W-2 statements, paycheck stubs, bank account statements, etc.) so your lender can verify your financial status and credit.

If you would like to get pre-qualified please contact us for a list of the best lenders in the Cedar City area.  

Step 4: Find the Right Real Estate Agent

Real estate agents are important partners when you’re buying or selling a home. Real estate agents can provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it doesn’t cost you anything to use an agent – they’re compensated from the commission paid by the seller of the house.

I would love to be your agent.   If you are interested in buying or selling your home please feel free to contact me.   I am available to help and feel I have knowledge, and experience to make sure your purchase or sell goes off flawlessly.  

Step 5: Shop for Your Home and Make an Offer

Now that you have picked an agent with the Sam Dodd Team it is time to start looking at properties. It might be helpful to take notes on all the homes you visit. You will see a lot of houses! It can be hard to remember everything about them, so you might want to take pictures or video to help you remember each home.

Make sure to check out the little details of each house. For example:

  • Test the plumbing by running the shower to see how strong the water pressure is and how long it takes to get hot water
  • Try the electrical system by turning switches on and off
  • Open and close the windows and doors to see if they work properly
  • It’s also important to evaluate the neighborhood and make a note of things such as:
  • Are the other homes on the block well maintained?
  • How much traffic does the street get?
  • Is there enough street parking for your family and visitors?
  • Is it conveniently located near places of interest to you: schools, shopping centers, restaurants, parks, and work?

Take as much time as you need to find the right home. Then work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached agreement on a price, the house will go into escrow, which is the period of time it takes to complete all of the remaining steps in the home buying process.

Step 6: Get a Home Inspection

Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. As your real estate agent I will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.

Both you and the seller will receive a report on the home inspector’s findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house, which gives you the chance to confirm that any agreed-upon repairs have been made.

Step 7: Work with a lender

Lender's have a wide range of competitively priced loan programs.   You will have many questions when you are purchasing a home, and having an experienced, responsive lender assist you can make the process much easier.  Don't forget to ask for a list of the best lenders in the area it can prevent heartaches and save you money! 

Every home buyer has their own priorities when choosing a mortgage. Some are interested in keeping their monthly payments as low as possible. Others are interested in making sure that their monthly payments never increase. And still others pick a loan based on the knowledge they will be moving again in just a few years.

Step 8: Have the Home Appraised

Your lender and loan officer will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company and is not directly associated with the Sam Dodd team or with your lender. The appraisal will let all the parties involved know that you are paying a fair price for the home.

Step 9: Coordinate the Paperwork

As you can imagine, there is a lot of paperwork involved in buying a house. The Sam Dodd team will arrange for a title company to handle all of the paperwork and make sure that the seller is the rightful owner of the house you are buying.

Step 10: Close the Sale

At closing, you will sign all of the paperwork required to complete the purchase, including your loan documents and deed. It typically takes a day or two for your loan to be funded after the paperwork is signed. Once the check is delivered to the seller, you are ready to move into your new home!  The Sam Dodd team will provide you with the keys to your new home!

 

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