Buying a home sometimes feels like “hurry up and wait”. Several components factor into how long the home-buying process takes, too. How hot is the local market? How picky are you? Etc., etc. I wanted to provide you with a step-by-step guideline for this process and include how your actions affect that timeline. Sometimes, your decisions may actually help speed up the process a little. Other times, it could slow it down. With interest rates on the rise, this could prove quite crucial to your pocketbook.
The Home Buying Process
Hire a REALTOR®
This may actually take a little time. Ask friends, family, and co-workers for recommendations. You might even run into an agent you like at an open house. Also, try visiting the Tulsa Parade of Homes. Not only do you get to see some amazing work done by local builders, but they typically include an agent or two on-site. And, you are in luck! Our local Parade of Homes takes place from June 18th to 26th. Plus, you pay nothing to tour them…just gas money to get you from home to home. Finding someone you “vibe” with and who has extensive knowledge of the local market is imperative to a successful home purchase.
Get Pre-Approved for Your Mortgage
In a seller’s market, this should probably come before finding a REALTOR®. Or it should at the very least run in tandem with it. Most sellers will not even entertain an offer that does not include a pre-approval letter. It also gives you an idea of what budget you are working with. This part of the home buying process can take a couple of weeks. Therefore, the sooner you start on it, the better.
Online Househunting
While working on your loan pre-approval and searching for an agent, hop online and look at what’s available in the neighborhoods you are interested in settling down in. Even after you find an agent, feel free to continue searching online. If you find something you like, let your REALTOR® know. They can set up a private viewing and do more in-depth research on the property for you.
View Properties in Person
The next natural step in the home-buying process is an in-person tour. Online pictures drive interest. But they can be deceiving. Nothing beats an in-person viewing. Again, your agent can make those arrangements for you.
Make an Offer
When you find the right Tulsa home, put in an offer. However, in today’s market, you may find yourself in a multiple-offer situation. Talk to your agent about how to present a strong offer. Money is not always the motivating factor for sellers. Your agent can do some digging to find out what else may make your offer stand out. Be prepared to negotiate. (Again, this is where a good agent comes in handy.) Fewer contingencies always look more attractive to a seller.
Home Inspection
After acceptance of your offer, you need to schedule a home inspection. This typically needs to take place between three to ten days after an offer’s acceptance. (The sooner, the better.) Even a new build should get an inspection. While you might feel like leaving this contingency out of your negotiations, I highly suggest you do not. Why? You never know what lurks beneath the surface of the house. Finding out any bugaboos early on in the process provides you with a much wider variety of options about how to handle them (and your purchase).
Home Appraisal
Your lender requires a home appraisal as part of their loan procedure. They will not approve a mortgage for more than what the property is appraised for. If the appraisal comes in too low, you either need to try to negotiate a lower sale price with the seller or pay the difference out of pocket. If this cannot be resolved either way, you may want to consider backing out of the deal entirely. An appraisal tends to take the biggest chunk of time in the entire home buying process. So, your lender may set it up rather early on after an offer gets accepted. If you live in a particularly busy market, you might want to opt to pay an additional fee to rush the appraisal along. But talk to your lender about the timeline before you pay any more money than necessary.
Final Approval
After your appraisal comes in and satisfies the lender, you move to final approval. As long as you have not made any changes in employment, done any excessive spending, or applied for new credit since your initial pre-approval, you should receive final approval within a matter of days from the completion of your appraisal.
Closing Time
Finally, get your signing hand ready. It’s time to close! Within three days of closing, you should receive your final closing disclosure forms. These show you the terms of the loan, the final amount of the loan, your mortgage payment, your interest rate, and an itemized list of what both you and the seller paid for the various aspects of your Tulsa home’s purchase. If you have any questions, this is the time to ask them. Then, you and your agent meet up at the title company to sign all the paperwork required for a transfer of ownership. You should receive any keys and remotes to your new home at that time. Congratulations!
Lori Cain, REALTOR®, Serving Midtown and the greater Tulsa, OK area. Call 918-852-5036.
