Buying a home can seem like an overwhelming task however, if done correctly, you will find yourself in your new home before you know it. So you know what to expect we have summarized the home buying process into 5 easy steps.

Step #1 - Obtain a loan. Just like shopping for a new car or even a new pair of shoes you need to set a budget. You certainly do not want to waste your precious time looking in the wrong neighborhoods and get yourself into a payment that you may not be able to afford, right? A good mortgage specialist can help set you on the right path. Working together, your mortgage specialist will review your credit history, job stability, and financial situation to help you determine how much money to put down, if necessary, and what type of loan program(s) that you may qualify for. With this information in hand you will have selected your target purchase price and a monthly payment that you will be comfortable with. You will also become a more attractive buyer to a seller since they will have peace of mind knowing that you are qualified to purchase their home. This, in turn, will help you negotiate a better price on your dream home!

Step #2 - Find a Realtor to help you find your dream home. It is important to select a Realtor that is representing your best interests. Choosing to work with a Realtor that is representing the sellers of a home you would like to buy is not always in your best interest since their loyalty is to their own client first. After an initial consultation, Jeff Davis will be able to work closely with you to help you reach your goals. If, at that time, you have not been able to find a mortgage specialist Jeff will be able to refer you to one that has a proven record of success and high quality customer service. Based on your budget and individual needs, Jeff will determine where to focus your home search. Using the “MLS” or Multiple Listing Service and his knowledge of neighborhoods you will be able to narrow you search to the home that is right for you.

Step #3 - Finding a home. After viewing a few homes together Jeff will have a better understanding of what you are looking for and then will be able to “preview” homes for you in advance. That way you are only spending your time looking at the homes that are right for you - saving you precious time and energy. You may feel like you need to look at every home out there and that is a normal feeling however, this is where Jeff Davis is worth his weight in gold! Because of his tools and experience you will be looking at only the best of the best homes out there so don’t be surprised if you fall in love with the first home he shows you! Best of all, Jeff is paid by the seller of the home that you buy, which means their knowledge, experience and assistance is provided at NO COST TO YOU!

After you find a home that meets your needs it is time for:

Step #4 - Writing the offer. Together you and Jeff will review recent sales in the neighborhood, location, upgrades and current housing market conditions to determine an offer price. Your offer will include an earnest money deposit which is usually 1%-3% of the offer price. This amount is negotiable and serves as “good faith” security to the seller that you will follow through on the purchase. Since there are many other terms to consider beyond price, your offer should be in writing. This way you can assure that all terms of your offer will be presented to the seller properly and that your best interests will be protected. It is important to not get too emotionally attached to the home at this point just in case you and your Realtor are unable to come to an agreement with the seller. It is not uncommon for there to be one or more counter offers before an agreement is reached and this step can sometimes take a few days depending on the circumstances and or location of you and the seller. Depending on the popularity and price of the home you choose there may be other competing offers from other buyers.

Once an agreement is reached it is time for:

Step #5 - Opening escrow. Escrow is a neutral, 3rd party that handles the monetary functions of the sale including accepting earnest money deposits from the buyer and executing the terms agreed in the contract. A typical escrow period is 30 to 60 days and is negotiated between you and the seller in the offer. The escrow period allows you, the buyer, to make sure that you are happy with the home that you are buying. A contingency period, usually 17 calendar days after acceptance, gives you the opportunity to review all required disclosures from the seller, complete any physical inspections of the home and obtain formal loan approval from the bank. Once your loan papers have been reviewed and signed by you the loan can be funded, escrow can close and YOU ARE NOW A PROUD HOMEOWNER!