Whether you’re a first-time home buyer or an experienced homeowner, buying a new home can be an exciting and overwhelming process. At Cardinal Financial, we want to provide our clients with as many tips, tools and resources as possible to ensure your experience is both smooth and comfortable.
To get started, we’ve provided a brief overview below of what you can expect during the home buying process.
Knowledge is power
The process of buying a home has plenty of twists and turns, but the more homework you do up front, the smoother your experience will be. If you’re buying a home for the first time, you’ll need to familiarize yourself with the most common loan terms. For your convenience, our website offers a Glossary of Mortgage Terms for you to use as a reference throughout the process.
In addition, we encourage you to take the time to understand the ins and outs of the home buying process and ask questions so you can emerge at the end of the day with a house you’re proud to call home.
There are several steps to the buying process you will go through before you can officially call it your own and we’ve listed them for you below.
Purchase and Sale Agreement
Once an offer on a property has been made by a buyer and accepted by the seller, they enter into a legal contract known as a Purchase and Sale Agreement. This document outlines the specific terms and conditions of the transaction and is acknowledged by both parties by the signing of the document.
Inspection
Once a buyer and seller reach mutual acceptance on a property, a home inspector is hired to investigate every nook and cranny to determine if the home is in need of any repairs. An inspector will check items, such as the roof, basement, heating system, water heater, air-conditioning system, structure, plumbing, and electrical. Afterwards, buyers will have a chance to negotiate with the sellers to cover the costs of certain repairs or to ask for concessions. For your convenience, we’ve provided you with a list of questions to ask your home inspector.
Negotiation
Whether you’re a buyer or a seller, negotiation is the key to getting the best deal. Negotiations can involve everything from settling on a sales price to concessions and financing. It is your real estate agent’s job to represent your best interests during the give and take of a real estate transaction.
Financing
You may already be pre-approved, but now that you’re closer to the actual purchase price, you’ll be working more in-depth with one of our mortgage specialists on your final loan approval. To learn more about this process, please click here.
Title Insurance
You will receive a full report detailing the property history for you and we will ensure there are no legal encumbrances between a new owner and the property being purchased.
Escrow
Once the offer is accepted and a closing date agreed upon, escrow allows the buyer and the seller to have an outside party ensure all parts of the contact are complete. Your real estate agent can help coordinate the completion of all necessary forms to the escrow company and monitor the escrow process until the transaction is complete.
Closing
At closing, all the paperwork is signed by the buyer and seller, both parties pay any settlement fees and the documents are officially recorded. Prior to closing, you’ll receive a closing disclosure outlining any fees which may apply to you. After closing is finalized and recorded, the home is yours!
To get started on your dream of owning a home, please contact one of our mortgage specialists or fill out our application online. We look forward to serving you.
