Understanding how to buy a home is key to simplifying the process. Call your LJ Group Realtor today to have them explain how simple it is to buy, when you are informed and prepared.

Step 1: Get A Loan Pre-Approval

It is important to understand your buying power before you start home shopping. In addition, offers may not be presented without proof that a buyer has been pre-approved for a home loan. Submit these documents to your loan officer for a pre-approval:

  • Two years tax returns (W2 or 1099)
  • Two months bank statements
  • Last two pay check stubs
  • Copy of ID and SSN

Step 2: Tour Homes

We will discuss features that are important to you in your home. Your LJ Group Realtor will use this information to find homes that you are most likely to enjoy. We will personally tour the homes with you in to determine which one is the best fit. Your realtor will help you when considering things such as:

  • How much do I want to invest in my monthly mortgage payment?
  • What design features in a home would be suit my lifestyle?
  • Should I purchase a new construction or existing home?

Step 3: Make an Offer

Once you have selected the best home, your LJ Group realtor will conduct a market survey of similar homes in the neighborhood that were recently sold and that are currently listed. This data will allow you to make an informed offer. You will need the following to submit an offer:

  • Pre-approval letter from your lender
  • Two checks to present for:
    • Earnest money deposit- this deposit shows the seller that you are serious and is refundable depending on the terms of the contract. In a successful acquisition, this amount is credited towards your closing costs.
    • Option fee- this optional fee provides time for you to have a home inspection conducted and cancel the contract if needed. A specific time frame will be allotted by contract and this fee is non-refundable.

Step 4: Due Diligence

To formally approve your loan, your lender will confirm that your home is a sound investment by having its value and condition evaluated with two processes:

  • Appraisal- an estimate of a property’s value based on several factors conducted by a licensed home appraiser.
  • Home inspection- a visual inspection of a home’s functional condition performed by a licensed home inspector.

Step 5: Welcome Home

From the date your offer is accepted to the closing of your purchase, the process will take about 45 days. On closing day, you remit payment of your closing costs and down payment and accept your keys at the title office. Congratulations!