The Home Buying Process

There are numerous steps in the home buying process, but your REALTOR, Lender and Attorney (if you want one) can guide you along the way. Even the first-time home buyer, should not be concerned by the process, it's really just a step-by-step process and you have professionals to assist you.

1) Select a REALTOR and a Lender. As a REALTOR, I can advise you on the generalities of the lending process, but the details we'll leave to the expert--the lender. We'll start out be getting you "Pre-Qualified" with a lender. At this time, we'll also tentatively select a type of financing that best fits your needs and desires. Note: There are hundreds of types of loans. Here's info on the WCDA program for First Time Home Buyers.

2) Then we'll look at homes in the price range that fits both the lender's parameters and your own comfort level for monthly payments. During this time, you may decide to get "pre-approved" for a loan. This is the next step after "pre-qualification." The Lender actually does a credit check for "pre-approval." This may give you a negotiating advantage when making an offer on your future home.

3) When you find a home that you want to buy, then we'll write up an "offer" to the Seller on the standard Wyoming Real Estate contract form. Along with the offer you will offer Earnest Money to show your intention of buying this home. This offer will become a binding "contract" when it's mutually accepted by both you and the Seller(s). (Note: There may be several "offers" and "Counteroffers" before you both agree.) We'll include any contingencies necessary for you, such as: the lender approving your financing at a specified rate and term, selling your current home (if necessary), completing any professional inspections of the house you desire.

4) Along with the offer, you'll need to provide earnest money. The amount depends on the price of the home, but will probably be in the area of $1,000 or more. The purpose is to let the seller know you are serious in your desire to buy his home. Your earnest money check will be deposited in a broker's escrow account and will be applied to your down payment.

5) Now it's back to the lender. This time, the lender will want a copy of the contract and money to pay an appraiser to determine the value of the home, check your credit report (if not done earlier) and a certificate to determine if the home is in a Flood Hazard Area. After verifying and evaluating your income and debts and the value of the home, the lender will send your loan package to an underwriter for final approval. Final approval moves us one step closer to your owning your new home. You may elect to pay "Points" to the lender to reduce your long term interest rate. (A point is 1% of the loan amount). You may also decide to "lock in" the rate at this time, or float with the market (this can be expensive if the interest rate goes up). A list of the typical documentation needed for a loan application is available on another page.

6) The lender will provide you with a Truth-in-Lending form that discloses the total cost of borrowing the money to buy the house (don't be shocked--it's going to be about 3x the amount of the loan!). You'll also get a calculation of your monthly payment (principle, interest, taxes and insurance and PMI (Private Mortgage Insurance - Lenders require PMI if your down payment is less than 20% of the purchase price).

7) You may want the home to be inspected by professional plumbing, heating, electrical, roofing, structural or other inspectors. There are also "All Around" home inspections available. (NOTE: The buyer pays for the home inspections, which run about $35 to $45 per inspection or $200+/- for an "All Around" home inspection). If the inspectors find any major problems with the home, we'll send a written notice to the Seller with a request to remedy them at the Seller's expense. If the problems can not be rectified to your satisfaction, the contract will be voided and you'll get your earnest money back.

8) You'll need to shop for Homeowner's Insurance. I can give you some recommendations. You'll also need to schedule the necessary utilities (electricity, gas, water, sewer, trash, cable TV, phone, etc.).

9) For the closing, you'll need to bring a 'certified' or 'cashier's check' for the down payment and closing costs. I'll get you a copy of the Settlement Statement a day or two before the closing and review it with you, so you'll understand it.

10) We will schedule a "walk through" to inspect just prior to closing (within a day or two) to verify that the home is in substantially the same condition as when you contracted to buy it.

11) "HOUSE DAY" -- Finally, closing day is here. You'll sign lots of documents and get the keys. You are now a Home Owner! Congratulations!

Remember, as you go along the step-by-step process, I'm available to answer questions and provide the guidance you'll need. Many of these steps, I'm doing for you and keeping you informed as they are accomplished.

Caution: The Internet is not an experienced real estate professional.
It cannot cousult, counsel, or advise you.
We can!

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