16 Steps of Buying a Home: From Budgeting to Close

The home buying process can be both exciting but complex. One of the questions I hear most as a Realtor is “What’s the next step?”. So to simplify the home buying process, I have outlined the basic steps involved in buying a home:

• 1) Assess Your Finances: Determine your budget, review your credit score, and calculate how much you can afford for a down payment and monthly mortgage payments. (CLICK HERE for a in depth post on this topic available on 8/7/23)

• 2) Get Pre-approved for a Mortgage: Contact lenders to get pre-approved for a mortgage. This will give you an idea of the loan amount you qualify for and help you narrow down your search.

• 3) Hire a Real Estate Agent: Find a reliable and experienced real estate agent who can guide you through the entire process, from home search to closing. That’s Me! Give me a call at 201-218-9666!

• 4) Begin Your Home Search: I will work with you to identify your needs and preferences. We will visit potential properties and attend open houses to get a feel for what’s available in the market that meets your needs and desires. 

• 5) Make an Offer: Once we find the right home, I will work together prepare and submit a written offer to the seller. Negotiations may occur until both parties agree on the terms. In todays extremely competitive market my advice is not to get discouraged if you have to submit several offers or if sellers do not give you the opportunity to negotiate with them before acceptance.

• 6) Attorney Review Process: In some states, like New Jersey, the attorney review process occurs after mutual acceptance of the contract. Both the buyer’s and seller’s attorneys will get a chance to review the contract within a specific timeframe, typically three to five business days. During this period, either party’s attorney can suggest changes, and if no agreement is reached, the contract can be terminated.

• 7) Conduct a Home Inspection: When Attorney review is completed, schedule a professional home inspection to evaluate the property’s condition. The inspection report will highlight any potential issues or repairs needed.

• 8) Negotiating After Inspections: Based on the inspection report, the buyer may negotiate with the seller via their attorneys to address repair issues. The parties may agree on repairs, credits, or a price reduction.

• 9) Secure Financing: Once your offer is accepted, work with your lender to finalize your mortgage application lock in your rate and secure financing.

• 10) Appraisal and Underwriting: The lender will arrange for an appraisal to determine the home’s value. Additionally, your loan will go through underwriting for final approval.

• 11) Obtain Homeowners Insurance: Purchase a homeowners insurance policy to protect your investment in the event of unforeseen circumstances.

• 12) Prepare Closing Process: Your lender,  Title Insurance Company and I will coordinate the closing date and prepare all necessary documents for signing. During the closing, you’ll finalize the purchase by signing the mortgage and other paperwork. During this time your will receive a Closing Disclosure, outlining all the final costs and fees associated with the purchase.

• 13) Perform a Final Walk-through: Just before closing, we will conduct a final walk-through of the property to ensure everything is in the agreed condition.

• 14) Closing Day: On the closing day, you’ll sign all the required documents, pay closing costs and fees, and receive the keys to your new home.

• 15) Recordation: The deed is recorded in your name with the county clerk. Your Title company will typically take care of this step. Documents will be provided to you when the process is complete.

• 16) Move-In and Celebrate: It’s time to move into your new home! Celebrate this exciting milestone and start making your new house feel like a home. (CLICK HERE FOR 5 SIMPLE TIPS FOR MOVING)

Remember, the home buying process is unique and may vary depending on local laws, regulations, and individual circumstances. This list is just a basic outline of how most home buying processes go in New Jersey. Having a knowledgeable real estate agent (THATS ME!) by your side will streamline the process and tailor it to your needs and circumstances. So when you are ready to start your real estate journey call me at 201-218-9666!