Houston First Time Home Buyer’s process
Hi, as a first time home buyer in Houston TX, Katy TX, Humble TX, Richmond TX, and Spring TX, we want to make sure you have all the information regarding this very important decision.
Now that you are ready to purchase your first home, please take a moment to review the steps below, and use it as a guide to help you navigate the home buying process with a trusted Realtor. This is too big a task to take on alone.
The process of buying a home can be very exciting, as well as challenging, time consuming, and a bit stressful for some. These steps do not address the many things that can go wrong during the process because, every transaction vary.
These steps however, can serve as your basic guide through some of the necessary steps. I believe you will find this information useful. Happy home shopping and I will see you at the closing table.
Buyer (you)
Contact a trusted Realtor.
Initial consultation.
Sign realtor’s required documents (buyer agreement)
Analyze your needs (number of bedrooms, bath, etc.,)
Obtain loan Pre-approval/How much can you afford.
Receive loan estimate from loan officer
Decide on location. Where do you want to live?
Begin viewing selected homes (always make sure to stay within the pre-approval amount)
Choose a home and have your realtor make an offer.
If buying a brand new home. View home with Realtor before making your selection. You will need to complete a mortgage application at that time, if you have not been pre approved already. A pre approval must be received by the sales representative before he or she will write the contract. Contract will be written at the builder’s office. Expect to pay the desired earnest money at the time of contract. Once the contract is written, a copy will be send to you, please make sure to read it before signing. Ask questions for things you do not understand or need clarification on.
For existing homes, your realtor will do all the necessary negotiation and counter offers on your behalf.
If your offer gets accepted you continue/ if denied, the process stops, and you and your Realtor will go back to step 8.
If your offer gets accepted, both parties sign contract and you now have a legally binding contract.
Your Realtor will advise you of how much earnest money to deliver to title company. This amount is spelled out in the contract as well.
In addition to your earnest money, you will also be required to pay an option fee which will begin your option period. FYI, Houston First Time Home Buyers, if you are buying a brand new home, no option fee amount is required.
During the option period, (this is a set number of days, also spelled out in the contract) you are allowed to hire an home inspector to inspect the home. It is also during this period, that you can cancel the contract, should you choose to and get your earnest money back. However, you will lose the option fee money you paid.
Home inspection is highly recommended if you are buying brand new home or an existing home.
Other inspections you may choose to have during the option period are, mole and termite, etc. For VA buyers, termite inspection is a must.
Pay appraisal fee/ lender may require credit card or add cost to closing cost.
Title commitment (this is done at the title company)
The underwriting is the person that make the final decision on approving or denying your mortgage loan. During this process, you may hear the word contingencies, this means additional documentation or verification is required to move the loan to approval.
Next, you receive final approval and your loan is now clear to close.
Obtain your home insurance policy rider and submit to the loan processor.
At this point you will begin to get more communication from the title company.
Survey will be ordered.
Brand new homes. First walk thru/ point out any defects, etc., This will be the first of two walk-thru. For existing homes, a final walk is recommended, to ensure the home still looks the same as it did when you viewed it the first time.
The title and or your Realtor will advise you of your closing date, time and location.
Closing disclosure received. This document is usually received 3 days before closing and contain all the financials regarding the purchase of your home. It is also on this document where you will see the final amount you will need to bring to the closing with you.
Review closing disclosure/ ask questions, if you have any.
Final walk through/ make sure all items from first walk-thru has been completed.
In addition to your driver’s license, you can bring a certified check or money order for your closing cost. You can also wire the amount to the title company. The title company will provide you with their wiring instruction. If you choose to wire your funds to the title company, please make sure you check, and double check with the title company before wiring. If you receive any email advising you that the wiring instructions have changed, please do not wire any money until you speak with someone at the title company and your Realtor to verify the information.
Closing and funding of your new home. You sign all the documents and the lender pays the builder. Please keep in mind, after you have signed all your documents, the keys may not be released until the account has been fully funded. The title company must receive the full fund from the lender before keys will be released.
Obtain your keys either at the closing or at the builder’s office.
Congratulation on the purchase of your brand new home. Let the moving begin.
We love having you visit. Make sure to visit us often. Let us know what you think. As always, thank you for stopping by. Until next time…Diana
Image Created by Diana for First Home Houston
