Buying a Home

The homebuying process may seem overwhelming, but if you take it one step at a time, you will soon find yourself holding the keys to your new home!

There are 6 steps to buying a home

1. Become preapproved
2. Select a real estate agent
3. Shop for a home
4. Make an offer
5. Complete the purchase
6. Move in!

1. Become Preapproved

Your first step in buying a home is to meet with your lender so you can better understand the loan programs available to you and so you know how much home you can afford. Your lender will provide a pre-approval based on the type of home you want to buy, your assets, your credit rating, your income and the amount of debt you currently have. Once you have been pre-approved your lender will provide you with a pre-approval letter that will accompany any offer your real estate agent makes on your behalf.

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2. Select a Real Estate Agent

A real estate agent is your advocate throughout the purchase process. What's more, the agent's commission is normally paid for by the seller. A good agent will help you decide what you want in a home and will narrow your search based on your needs and wants. Agents are the first to know when a home comes on the market which gives you an opportunity to make the first offer. There are many agents and it can be difficult to decide which one to go with. Why not let your lender help you. Lenders work with many different agents and they may be able to help you chose an agent that best fits your personality. If you would like help selecting an agent, see our Find an Agent page.

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3. Shop for a Home

This is where the homebuying process gets fun! A word of caution though, this is the home you will be living in so make sure you walk through each home with your eyes open and be critical. Here are some tips :

• Make sure you look beyond the paint and carpet. You want to identify deficiencies in the home that may require a large outlay of money. These would be things such as structural, plumbing, electrical, and heating and cooling systems. These items can be costly so be sure you know what you are buying.
• Like a good suit or a nice pair of shoes you want to make sure the house is a good fit. Does the layout work for you? Does it have the number of bedrooms and bathrooms that you need? A great way to be sure you find a home that fits your needs is to create a checklist of the features you want. See our Home Buying Wish List. By the way, this is also a great tool to provide to your agent.
• Do you like how the home feels? Does the flow work for you? Does it feel right?
• Check out the neighborhood. Take a drive through the neighborhood at different times of day and night. Ask your agent or lender for a list of businesses, schools and other features so you will know what is available.
• Make sure the homes in the neighborhood are similar to the one you want to buy. If you are looking at a home that is a lot bigger and more expensive than the others in the neighborhood you may have trouble getting the value out of the home when it is time to sell.

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4. Make an Offer

You've found the home of your dreams! Okay, maybe not the home of your dreams but it's the one you can afford and it meets most of your needs and some of your wants. Now is the time to decide what price to offer and then have your agent present the price to the seller.

• Your agent will complete and provide a standard form real estate purchase and sale agreement. The agreement will have important clauses that will protect you and there will also be addendums regarding financing, home inspection, and other negotiable items.
• When deciding on price, your agent will help you by providing recent comparable sales that are in the same area, length of time the home has been for sale, market conditions which tell you how hot or slwo the market is, and the agent will also point out major repairs that will affect your offer.
• Show your PC Home Loans pre-approval letter-this gives you an advantage over a competing offer from a buyer that has not gone through the pre-approval process.*
• Consult with you agent and determine what you will ask for in your offer. The seller may be willing to pay for some or all of your closing costs. One this is certain, if you do not ask for the seller to pay for the closing costs, the seller will not pay for them.
• Make sure your agent structures the offer in a manner that will give you an out should the home inspection turn up major and or costly repair items or the appraisal does not support the sales price.
• Be sure your close date is realistic. While our process is very fast, you will need time for the neighborhood review, home inspection, negotiations and appraisal to be completed.
• If you need to sell your current home, make sure the contract is contingent on the sale of your home. If the seller rejects this offer, ask for a later close date so you will have more time to sell your home.

 At the same time your offer is bein gsubmitted you will also provide earnest money. This is a cash deposit that may be several hundred to several thousand depending on the value of the home you are making an offer on. The earnest money check will be made out to the escrow company that the seller's agent has chosen. Don't worry, the earnest money can be applied toward your down-payment, closing costs, or it can be refunded to you at closing. This will in all likelihood be determined ahead of time during the pre-approval process.

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5. Complete the Purchase

 As long as you have completed step 2 and have been pre-approved for a loan, you are almost a homeowner. The next step in completing the purchase is to have the appraisal completed and have a few other details taken care of. You will need to provide a copy of your mutuallu accepted purchase and sale agreement to PC Home Loans. Your agent will normally complete this step. Now that we have your purchase an dsale agreement we are ready to process your loan. If you haven't become pre-approved, contact Shawn Anderson and become pre-approved today!

Once your loan has gone through the underwriting process and finall approval has been received, your loan documents will be delivered to the escrow agent assigned to the purchase transaction. The escrow agent will schedule your signing and they will also prepare the final HUD-1 Settlement Agreement for review 24-hours prior to your scheduled signing. Once the final HUD-1 Settlement Agreement has been approved, final documents will be drawn and you will sign them at your escrow appointment.

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6. Move in!

You are now ready to start life in your new home-congratulations! Moving can be a huge challenge depending on how much yoru moving, how far your moving and the costs associated with moving. Your agent or lender may be able to refer you to a reputable moving company.

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