Steps to Buying a Property

  1. If you require financing, get pre-qualified by a lender for the type of property you wish to purchase.

  2. Select an agent to help you identify the property you want to purchase. 

  3. Make an offer on property. The offer is accompanied by an earnest money check made out to the Buyerʼs broker to be held in escrow until closing. The offer establishes the terms of the sale. The earnest money will ultimately be applied toward the buyersʼ down payment or closing costs 

  4. The offer may be countered by the seller. There could be several counteroffers exchanged between the buyers and sellers before all terms are agreed upon by all parties

  5. Once all parties agree to all the terms set forth in the contract a BINDING AGREEMENT has been established. The date on which this occurs is called THE BINDING AGREEMENT DATE. This date is important because several timed deadlines are based upon this date 

  6. According to the contract, the Buyer has a set number of days to exercise their DUE DILIGENCE. This is when Buyers are allowed to inspect the home. During any point during the Due Diligence phase, the Buyer, for any reason, can decide to terminate the contract and have all their earnest money returned to them. Once the Due Diligence time period has expired, this right is terminated. 

  7. Concurrently with the Due Diligence, the Buyer should begin the formal application for their loan approval. The Buyer has a set number of days to apply for the loan, get the property appraised and to get their loan approved. This is referred to as the FINANCIAL CONTINGENCY PERIOD. It is very important that the loan officer is aware of the time limit because if this time passes and the loan is not approved you could lose your earnest money.

  8. Once the Due Diligence and Financial Contingency have been met the contract is “clear to close”. 

  9. If obtaining a loan, the Buyer must acquire Home Ownerʼs Insurance prior to closing.

  10. The Buyer should begin making arrangements for the move 

  • contact moving companies

  • transferring utilities

  • notifying the current landlord 

  • notifying the post office, etc 

   11. CLOSING. Buyers and Sellers meet at an attorneyʼs office and sign the papers that transfer                the deed from Seller to Buyer and sign all necessary documents to obtain the loan. 

    12. CELEBRATE!!!!