Purchasing a home is not as simple as going to the store to pick out a new shirt or even clicking “add to bag” on your favorite store’s website. Your decisions are based on a much larger scale, and it’s common to question everything that is going to happen along the journey. Many questions our real estate agents get from buyers are:

• Where do I start?
• Do I have enough money?
• What is the home-buying process?

Whether you are a first-time home buyer or upgrading to your third home, the process is important to know and understand. So, to simplify all of your thoughts and questions, we’ve asked our Realtors to help break things down and explain steps in the process with us. Who better to ask than the experts themselves that have gone through the buying process hundreds of times, right?

1. What are your housing needs?
    First, its best to determine what exactly you are looking for, what you can afford, and determining if you are financially prepared to purchase a house. Getting in touch with a mortgage company for pre-approval will give you a jump start. And if you don’t know who to turn to, you real estate agent is all too familiar and will easily be able to point you in the right direction. A few more considerations to add (but are definitely not limited to) to help find the home of your dreams include:

• What part of town do you want to live in?
• How many bedrooms? Bathrooms?
• Would you prefer a newer or older house?
• What type of home? Ranch? Two-story? Townhome?
• A fixer-upper or move-in-ready?
• Do you prefer to be near public transportation or other amenities?
• Are you looking for acreage or a small yard?

2. What expenses will there be?
The first and one of the most important payments is the down payment. This amount is determined based on a handful of factors relative in your sales agreement. It will be decided amongst you as the buyer and your Realtor. Aside from the downpayment, there are other expenses to be prepared for. Earnest money is a smaller deposit often held by the listing agent’s Broker. It is considered your good faith to the sellers of the home upon signing the agreement of sale.

If you decide you get a home inspection and other tests on the property, this will be another cost as the buyer. Additionally, if you are using a mortgage, an appraisal is required and will be a cost to you. When it is time to close on your new home, you will receive you closing costs broken down about three days before closing. Closing costs are the sum of an appraisal, credit report, loan origination fees, home insurance premiums, property taxes, title insurance, deed recording fees attorney’s fees, an initial deposit to your monthly payment escrow account. The closing cost vary and are mainly on the total purchase price of your home.

3. What does your real estate agent do?
By working on the purchase of your next property with a trained and licensed real estate professional, you are immediately one step closer to gaining your dream home. Your agent will know the ins and outs of the market, what the conditions are, what homes are on the market, and help to find something that checks all the boxes. A Realtor will be able to access information about a specific property that is not readily available for the public or that you can find online. All of the above benefits a buyer’s purchasing power and knowledge.

The real estate agent of your choice will be the negotiator to represent you as the buyer. Initially your agent will be able to show you properties that are on the market. They will negotiate with the seller’s agent to come to an agreement between both parties. The will come to an agreement on the purchase price and all other stipulations that are included in the sales agreement. They will handle documents and signatures according to sales agreement times set in place, and they will manage any other issues that may arise. Your real estate agent’s ultimate duty is to get you to the closing table.

Because after the contract is accepted, it’s mostly out of your hands and into your Realtors, any hiccups along the way have potential to delay the process. If you need to sign an authorization or respond to a request, do it as quickly as you can.