Okay, you want to buy a house — that’s great news! But, let’s quickly go through the 7 steps to buying a home so you have a clear and precise understanding of the action plan.
1. Opening a bank account
This step is necessary only if the property is purchased on credit. If the buyer pays for the transaction from their funds, there is no need to open an account.
2. Preparing a purchase offer
As soon as the buyer has decided on the choice of the object, the realtor prepares an offer to purchase on behalf of the buyer. This standard contract specifies all the conditions on which the buyer offers the seller to make a deal.
3. Signing the contract and making a deposit
The contract is signed in the presence of the realtor. In concluding a transaction, a specialized agency, a title company, and an escrow company must be present. Or the buyer’s lawyer, or closing attorney, who will register the deal. They carry out legal control of the entire transaction, verification, and certification of documents.
4. Property Inspection and Valuation
The transaction is processed from 30 to 60 days. During this period, an inspection of the property is carried out to detect deficiencies. The licensed professional prepares a written report. If the identified deficiencies are significant, the buyer can ask the seller for a discount or refuse the transaction. The site inspection step is optional, but it is recommended to complete it.
5. Conducting due diligence
After signing the contract of sale, the buyer’s lawyer or escrow company checks the legal registration of property ownership (title search). The essence of the check is to determine whether the sale of real estate is possible, whether there are mortgages or other debts. In parallel, at this stage, the title company draws up a compulsory real estate insurance contract.
When buying a land plot, there is no need to carry out any checks or inspections. Acquisition of a land plot in the USA is the most straightforward transaction.
6. Registration of a new owner
At the time of receipt of payment for the transaction, the buyer receives a certificate of ownership of the property -deed. Registration of ownership takes six to ten weeks.
7. Transaction payment
The buyer pays the principal amount at the transaction’s closing, when they receive ownership of the property. At this point, settling any additional expenses, including taxes, is critical. The transfer of funds will be handled smoothly., with the option of sending it to the transaction attorney. Or depositing it to the account of a reputable and independent escrow company.
7 steps to buying a home and one extra step!
Contact a mortgage advisor, a person who will not only be able to find the best financing but will also explain all the details of buying a house. So you will have more time and energy to search for your dream property!