For a lot of people, purchasing a house is the most significant financial commitment they will ever make. The homebuying process is often grueling and full of obstacles that can test anyone’s patience. Why do people do it? It’s simple — the feeling one gets from standing in the living room of their forever home for the first time is truly priceless. To get to that point, though, you have to navigate a fairly involved process, which we outline below.
- Making an offer. This blog presumes that you have already put your own house on the market or provided notice to your landlord and hired a rock star real estate agent. Once you identify the house you want and absorb all the information available to you, it’s time to craft an offer. Depending on a whole host of factors, you might want to offer slightly above or below the asking price. Your real estate agent should help you with this step.
- Coming to an agreement. So, the seller of the house you want to buy has received your offer. What next? The seller will either accept your offer, reject it, or come back with a counteroffer. After receiving either an offer or counteroffer, you typically have a couple of days to respond. Again, your agent needs to lead the negotiation efforts at this stage. Having the proper contingencies (like the inspection contingency) is important.
- Getting the inspection and survey. There are certain things the seller must disclose during the homebuying process. To both verify those statements and look for any other problems, an inspector will need to give your future home a once-over to make sure you won’t unknowingly purchase a money pit. Your mortgage lender will probably require a survey to confirm the boundary of the property as well as an appraisal to gauge the true value of the home.
- Get your insurance policies and closing documents in order. You will definitely need two insurance policies before you close on your home: title insurance and homeowner’s insurance. The former provides coverage in case you have to spend money (thousands of dollars, sometimes) to settle an issue with the home’s title. Homeowner’s insurance will cover many instances of damages to your possessions or the property itself.
- Close on your future home. Closing on real property means filling out a mountain of paperwork. It doesn’t take all day, but it will likely take around an hour or two. You’ll put the down payment and other fees into the escrow account at this point. Your real estate agent and attorney will inform you of your obligations prior to arriving at the closing table.
That’s right — we strongly recommend hiring an attorney during your homebuying process. Your real estate agent fulfills important roles, but only your lawyer has an in-depth knowledge of real estate law. Having an attorney by your side ensures your rights are protected and lowers the possibility of some costly legal matter cropping up months or years after your close on your home.
The homebuying process is full of exciting things, but it’s important to have a legal professional help navigate your way through the ordeal. Alvarez Law Group would be more than happy to be your guide. Our firm offers a $150 discount on real estate closing services to veterans, law enforcement, and first responders. Give us a call today at (786) 620-2820 to see how we can serve you.
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