Step by Step Process for Buying Real Estate

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 Calculate how much you can afford to spend on a property, taking into account your income, savings, and any financing options. Use our free mortgage calculator below to get started!

Visit a lender to get pre-approved for a mortgage, which will give you an idea of how much you can borrow and help you narrow down your property search. A pre approval letter increases negotiating power by letting sellers know you are a serious buyer who can secure financing, expedites the home buying process, and can help identify any issues that may prevent you from securing a mortgage. Unsure where to start? Greene Realty can help connect you with a reputable and trustworthy lender. Contact us today to get started!

Getting to know your realtor and discussing your criteria can be crucial for a smooth buying experience. It helps build a strong working relationship and ensures that your broker understands your needs and preferences. This initial discussion can also help you understand the entire home-buying process, from start to finish, which can alleviate any anxiety or uncertainty you may have. Being well-informed and prepared makes the buying process more enjoyable and less stressful. This can be done over the phone, face to face, or at the first showing of a home you’re interested in.  

Work with Greene Realty to search for properties that fit your budget and preferences. Narrow down your search by specifying preferred locations, such as neighborhoods, zip codes, or proximity to specific schools. If you're unfamiliar with the area, consider taking a drive to explore different parts of town or surrounding areas to see what catches your interest.  You can also browse online listings and attend open houses. Select a few properties that match your preferences and have your agent arrange showings. Important items to consider during house showings include the property's location, condition, size, layout, and potential for future growth or improvement. Pay attention to the overall feel of the neighborhood and whether the property meets your lifestyle needs. Discuss with your agent any potential costs and repairs associated with each specific property. Take notes and pictures to help you compare properties later on. 

Once you find a property you like, we will assist you in drafting an offer that the seller will find attractive. We will thoroughly review each part of the purchase agreement with you and discuss offer strategy in depth before submitting it. Our goal is to craft an offer that gives you an edge over any competing offers. We will negotiate with the seller on your behalf to reach a price and terms that are agreeable to both parties. 

After your offer is accepted, your agent will notify your lender and deliver the fully executed documents so that they can start your loan file. Contact your lender promptly to finalize your mortgage financing by providing the necessary documentation to your lender. It is important to communicate closely with your lender throughout the entire loan process to ensure they have what they need to conduct a final review of your finances before approving the loan. 

Inspections: It's recommended to reserve the right to an inspection. You'll have a window of time to order, execute, and respond to the findings. Your agent will explain the inspection process and the definition of a true defect. Buyers can submit an inspection response form for any concerns they feel should be addressed by the seller. The buyer's agent and listing agent will negotiate requested items until both parties agree.

Appraisal: If you're financing your purchase, your lender will require an independent appraisal. This should be ordered promptly by your lender to avoid delays in closing. The appraiser will assess the home and review comparable properties to determine its value.

Insurance: If you're getting a loan, your lender will require you to purchase a certain amount of insurance on the home. Shop around for the best rates and options. Obtain insurance according to the timeline in your purchase agreement to avoid delays.

Your broker will schedule a final walk through a day or so before closing. This is an opportunity to ensure agreed-upon repairs were made, and that the property is in the same, if not better condition as before. You will verify that everything is in working condition and no surprises when you get the keys.  Make sure to obtain utility provider information and schedule transfer to your name for closing day.

The closing process involves several important steps:

1. Settlement Statement: The closing agent will prepare a settlement statement detailing all financials for both sides of the transaction. All parties will review and certify its accuracy.
2. Funds for Closing: If you are bringing down payment funds (down payment and closing costs) to the transaction, you can choose to wire them into the closing agent's escrow account or bring a certified check. Deduct the earnest money already deposited from the total amount you need to bring to closing.
3. Transfer of Ownership: The listing agent and seller will provide keys and any other items necessary for the transfer of ownership.
4. Signing Documents: You will sign a variety of documents, including the closing disclosure, mortgage documents, and any other paperwork required by the lender and closing agent.
5. Closing: Once all documents are signed and funds are verified, the closing agent will officially transfer ownership of the property. This may involve recording the deed with the county.
6. Receive Keys: After everything is completed, you'll receive the keys to your new home!

Closing can be a complex process, so it's important to work closely with your real estate agent and closing agent to ensure everything goes smoothly.

When buying real estate, there are several out-of-pocket expenses you should be prepared for. These expenses can vary based on the location and specific circumstances of your purchase, but some common ones include:

1. Earnest Money Deposit:  $500+ depending on the property & due with offer. Earnest money is a deposit made by the buyer to demonstrate their serious intention to purchase the property. It is typically held in an escrow account by a third party, such as a closing agent or title company, until the closing of the transaction. If the buyer backs out of the agreement without a valid reason, the seller may be entitled to keep the earnest money as compensation for taking the property off the market and potentially losing other potential buyers. 
2. Home Inspection: Typically $250-$500, due at time of inspection. It's highly recommended to have a professional home inspection to uncover any issues with the property. 
3. Appraisal Fee: $400+, varies when paid. If you are obtaining a mortgage, your lender will require an appraisal to determine the value of the property. Speak with your lender to check if due at time of ordering or included in closing costs. 
4. Closing Costs: $2500-$6500, due at closing. These are fees associated with closing the real estate transaction and can include loan origination fees, title insurance, recording fees, escrow property taxes and Homeowner's Insurance, and more. 
5. Utilities and Moving Expenses: Don't forget to budget for utility setup fees and the cost of moving your belongings to the new property.

It's important to budget for these out-of-pocket expenses in addition to your down payment and monthly mortgage payments to ensure a smooth home buying process.