Step-By-Step Home Buying Process

1. Investigate local realtor reviews online, look at their website to determine if they have a full and complete presence and verify that they are focused on the area where you want to live.
• Contact the top two or three agents you would like to interview. Ask if there is a good time that you can schedule an interview by phone call.
• Make a list of questions to ask during the phone interview regarding the area and types of housing available where you want to live.
2. Meet with the realtor whom you feel is the best qualified
• Establish a relationship and make sure it’s a good Good chemistry matters.
• Verify that the realtor is qualified, has substantial experience and knowledge of the area, and understands your wants and needs.
• Create customer home search with realtor to automatically deliver new listings through a shared portal
• Check your email regularly and let your realtor know your favorite homes, so they can learn your preferences.
• Take advantage of all available options for finding homes including using the home search portal, driving through neighborhoods that interest you, and talking to friends, family, and business contacts for additional information and leads.
3. Shop mortgage lenders to see who will offer the best terms.
• Many large banks are harder to work with than a local mortgage broker.
• Local mortgage brokers and credit unions often have the best terms.
• Indiana Realty Pros can provide a few suggestions that we have had good experiences with over the past years.
4. Select lender of your choice and get pre-approved for mortgage loan.
• Your mortgage lender will discuss, explain, and review all of your loan options so you can make an educated decision.
• Pre-approval prepares you to make offers when you find the right home
5. Schedule showings to view homes in person
• Do not wait too long, the best homes sell quickly.
• Seven things to look for when viewing homes in person: be thorough and bring a flashlight.
• Floors – Any unusual sagging, dipping, or damage?
• Walls, Ceilings, Trims, & Doors – Look for cracks, a bad paint job, or water markers.
• Basement – Do is it have a mildew smell or any sitting water? It must be dry.
• Roof – Inspect for any missing shingles or obvious
• Trees & Landscape – Any dead plants or trees to deal with after closing?
• Cleanliness & Odors – Use all of your senses to evaluate the home.
• Cabinets, Drawers, & Doors – Open and close to determine quality. Real wood dove tailed drawers are a key indicator of quality cabinets.
6. Make an offer to purchase.
• When you find the perfect home, the realtor will conduct a Comparable Market Analysis to help you confirm the value of the
• You and your realtor will discuss the home and determine a price you would like to offer to purchase the home.
• Your realtor will negotiate with the other party’s agent to come to an agreement.
• You will be required to make an earnest money deposit into an escrow account held by the listing broker or title insurance company. This amount typically is 1% of the purchase price and will be returned to you if the seller is unable to meet the terms of the agreement or the loan was declined for some reason, including potential defects of the property.
7. Submit formal application for mortgage loan with your lender.
• Typical documents required: two most recent pay stubs, two most recent statements from ALL bank accounts, possibly two-year tax returns depending on lender requirements.
• Once your mortgage is applied for, please do not make any purchases that would result in a change to your credit score or make any big cash purchases from your bank account, without discussing it first with your loan officer.
• The mortgage company will review your credit, order an appraisal, and conduct all other underwriting for the transaction of the purchase of the home.
8. Schedule the whole home inspection to discover any major defects.
• You will typically have 14 days from the acceptance of the purchase agreement to deliver a written buyer’s inspection response to the seller.
• If there are any major defects, there will be a negotiation with the seller to see if they are willing to make any repairs and continue with the purchase of the home.
• If the seller is unwilling or unable to repair the defects, you will receive your earnest money deposit back and the contract will be voided
• If there are no repairs required, or the seller comes to an agreement with you, the earnest money will continue to be held until closing and will be credited to you as part of your purchase cost.
9. Buyer to-do
• Shop for homeowner’s insurance
• Be prepared to have utilities transferred into your name at least two business days before closing.
• Once the lender has issued “cleared to close,” make plans to be off work to attend closing.
• Obtain wiring instructions from the title insurance company, print them out, and take them into your bank to initiate a wire transfer. This is not a step you can do alone; it has to be done by your banker.
• Start purging things you know you are not going to move to your new home.
• Get quotes from moving companies right away. They are usually booked up for weeks in advance.
10. Closing Day.
• Congratulations! You made it to closing day
• Make sure your drivers’ licenses are valid and not expired. Some lenders require a second form of Please ask your lender.
• By now, your money should have been wired yesterday, one day before closing, to make sure it gets to the title insurance company on time.
• Decide ahead of time if you are willing to take a picture with your realtor, so that they can share the happy news.