Learn About the Home Buying Process
Are You a First Time Home Buyer in Metropolitan Indianapolis?
At first, the home-buying process may seem daunting; however, our step-by-step guide will help you feel more confident by teaching you what to expect and when to expect it.
Watch our First Time Home Buyer Webinar below for a detailed look at the home-buying process. See our key notes outlining the process
Step 1 - Getting Your Finances Prepared
- Find a lender – a Realtor is a great resource that can help you find a lender.
- Get pre-qualified or pre-approved – you cannot make an offer until this is completed.
- Determine which loan type is best for you – conventional, FHA, VA, USDA, etc.
Step 2 - Home Searching
- All big-name boards online pull information from Mibor. The Ogan Family Realtors also get their information directly from Mibor for the best accuracy and timeliness of finding the best properties for our clients.
- Consider what you are looking for vs. what you can afford – don’t ever buy more than what you can afford.
- Determine the amount of space, bedrooms, and bathrooms you need.
- What key features are important to you? Do you want an updated kitchen, large garage, backyard, etc.
- When you know what you are looking for and know what you can afford, it will make the home buying process much easier!
Step 3 - Selecting a Realtor ®
- How can a Realtor® help you?
- A Realtor can help you book an in-person showing or a virtual walk-through of a home you are interested in seeing.
- A good Realtor can answer (or quickly get you an answer to) your questions.
- Attributes of a good Realtor ®:
- Full-time dedication to real estate
- Tenure – several years of service with successful transactions each year
- Adds value to your home search through their knowledge, honesty, and expertise
- The Realtor has many connections to resources in the real estate industry
- Trustworthy – check the Realtor’s reviews
- Listens to your needs and hopes
- Excellent availability
Step 4 - Making an Offer
- Your Realtor should give you the seller’s disclosure (what condition the house is in)
- Verify you are pre-approved.
- Price – make a strong offering price, as the market is highly competitive.
- Consideration – a seller is going to look at how much earnest money (up-front money, usually 1% of the offer) you are offering. This shows the seller that you are a serious buyer.
- Personal Property – include any personal property that you want to be included in the purchase (refrigerator, fountain/landscape items, laundry machines, etc.).
- Type of Financing – conventional loan or cash buyer may appear as a more promising sale to the home-seller.
- Time of Possession – the seller may need additional time to move out of the home before you can take possession of the home. This can be a bargaining chip for you.
- Contingencies – if you are contingent on selling your current home before you can purchase this home.
- Inspections – require an inspection to know what is going on with the house before you buy it. This can be a reason to back out of the sale if something is very wrong with the property.
- Expiration of the offer – you can make a short timeline on a strong offer to stand out against the competition.
- This information all goes into the purchase agreement that will be sent to you from your Realtor. Once you sign, you will wait for the offer to be accepted or rejected.
Step 5 - The Process to Closing
- It usually takes about 30 days to get closed.
- The purchase agreement must be accepted.
- 48 hours to get your earnest money submitted.
- Usually 14 days to complete the inspection and make an inspection response. This allows the seller to respond with resolution to a problem (fixing the issue or crediting you). Note – Some types of loans require the issue to be fixed before the loan can be issued. A good Real Estate Agent can help you navigate this process.
- 2-3 weeks later, an appraisal will occur (rate the value of what they think the house is worth). The bank will only lend what the appraiser says the house is worth.
- Final walkthrough – ensure nothing has changes that you didn’t ask for and verify the house is in the agreed upon state.
- Head to the closing table!
- Closing day – typically in-person, signing a bunch of paperwork which should be well-explained to you. You’ll bring the predetermined cash-to-close, and you’ll typically gain possession of your new home right after closing!
Additional Notes
- Earnest Money – is held by a 3rd party, typically the title company. The earnest money can be given back if both parties agree that the sale will not happen. Earnest money needs to be in the form of a certified check.
- Home Inspection – you will get an inspection report, photos of the issues that were found – focusing on safety concerns like termite damage or septic issues. This is an opportunity to negotiate safety repairs.
- The Ogan Family Realtors will help connect you with the behind-the-scenes gurus for lending, inspection, and closing agents.