Understanding Key Steps in the Home Buying Process

For those looking to purchase a home for the first time, the entire home buying kingston process can be easily misunderstood. All too often, first-time buyers believe that once they have an accepted offer on a home, it's pretty much theirs. Unfortunately, the real estate process is very complicated and there's much more to it than that, in most cases. By understanding the key steps in the buying process, however, it's possible to better prepare for the journey.

Getting an Accepted Offer Upon finding the right home, the prospective buyer typically works with a real estate agent or Realtor to propose an offer to the seller. This could get accepted on-the-spot, or it could go back and forth in negotiations until the buyer and seller reach an agreed-upon price. However, this price isn't locked in just yet because the inspection and appraisal haven't yet been completed. The Home Inspection Often times, the home inspection is used as a negotiation tool of sorts by the buyer. Specifically, if the inspection brings forth any major problems, the buyer can use this as leverage to either have the repairs paid for and completed by the seller, or to lower the asking price of the home itself. Typically, the inspection is paid for by the buyer.

The Real Estate Appraisal Next comes the real estate appraisal, which involves having a professional come out to the home and determine its current value. This is an important step for those looking to take out a mortgage in order to buy a home, as mortgage companies won't lend out more money than the home is appraised for. For example, if the buyer and seller agreed on a $200,000 price but the appraisal only comes back at $190,000, the lender will only provide a loan of up to $190,000 to the buyer. As such, the buyer and seller may need to strike a different agreement is the appraisal comes back low.

The Closing Process Once the appraisal is complete, the final sale price is agreed upon, and the buyer is officially approved for a mortgage, it's time to set a closing date. This is the day where all paperwork related to the home sale will be signed and the transaction will be completed. The buyer will also likely receive the keys to his or her new home on this date.