Steps to Home Ownership

Thinking about buying a home? The steps you need to take may seem a bit overwhelming if you are a first time home buyer. Here are the basic steps you need to make to call it home sweet home.

1. Offer
Once you look around and find the perfect home, you’ll need to make an offer on the property. If your offer is accepted, you pay a fee to secure your offer. If the deal goes through, your fee goes towards the purchase price of the house. If the deal folds, you’ll get your deposit back.

2. Inspection
Arrange to have a licensed inspector examine your intended property. If the inspection turns up serious issues such as a leaky roof or cracks in the foundation, you may negotiate a better offer or withdraw it altogether based on the severity of the problems.

3. Negotiation
Your agent will negotiate with the seller’s agent to get you the best price. If the owners are eager to sell, they may consider a reduction in price or even holding part of the mortgage to make the deal.

4. Contract
This is a legal document between you and the seller detailing the purchase agreement. Standard contracts are modified to include the details of your property, such as price, date of transaction, and fixtures. Contracts are usually contingent upon your ability to secure a mortgage.

5. Deposit
When you sign the contract, you will make a deposit of the agreed amount. This is held in escrow and will become part of your down payment. The deposit is returned if the deal does not close.