Hello,

I'm Doug Greene, owner of YourHomeUtah.com and RE/MAX Associates Realtor. If you're a first time home buyer you may find the information below interesting. It provides a basic outline for the Home Purchase Process.

If you have any questions regarding your home purchase, getting a loan, or Utah Real Estate in general please give me a call today at (801) 913-5869 or email me at dg@yourhomeutah.com.

Best Regards,
Doug

Home Purchase Summary

Step 1) Mortgage Pre-Qualification

Unless you're financially independent you'll most likely need financing to purchase your new home. Before spending any time looking at homes you'll need to establish your price range. The Mortgage Pre-Qualification process is fast and easy. Your Loan Officer will look at your income, debt, expenses and credit scores to determine how much home you can afford. Most Loan Officers will do this for free as the first step in getting approved for a loan. If your Loan Officer is asking for a fee to pre-qualify, go find another loan officer. Once you're pre-qualified you're ready to begin the home search.

Is it possible for us to buy a home with no-money down?

The answer to this question depends upon many factors. The main factor, your credit score. Your Loan Officer should be able to answer this question after conducting the Pre-Qualification.

Click here to get pre-qualified.

Step 2) Keep your eye on the prize.

Now that you're pre-qualified it is very important that you do NOTHING to hurt your credit. Your Loan Officer based his/her opinion on the credit score you had when the pre-qualification was done. This means that the new car, credit cards, store credit, etc. will have to wait until you've closed on your new home. And if possible, pay down any credit card debt you can.

Step 3) Search for Homes

Now it's time to work with your Realtor to begin searching for and touring homes. Your Realtor will help you create a list of homes that meet your needs and will set up showings. It is also the Realtor's responsibility to ensure that the asking price for any home you're interested in is realistic and that you have a decent probability to enjoy above average price appreciation.

Why not just go from house to house calling the agent on the sign?

First of all, the listing agent (agent on the sign) has a primary responsibility to the seller and not to you. By Utah Law, they are prohibited from discussing price with you other than to state the listing price. It is in their best interest to get the home under contract at or above the asking price. Many people assume that the listing agent will forgo part of their commission to make the deal sweeter for the buyer. In the vast majority of closings this does not happen, and when it does, the buyer most likely would have received a better price had they worked with an independent agent to begin with.

Secondly, when you work with one agent, that person will get to know your needs, likes and dislikes. They will be much better informed. The likelihood of getting the best home for your family is greatly increased. Your agent will also fight to get you the best price for the home. They can discuss the homes price history and help determine a realistic market value.

Need a Realtor? Call Doug today (801) 913-5869 or send email to dg@yourhomeutah.com.

Step 4) Making an Offer

Once you find a home that you love, it's time to start the negotiation process with the final outcome being an executed purchase agreement. Your Realtor will work with you to determine the offer price, complete all paperwork and submit the offer to the seller. They should take time to explain all sections of the purchase contract so there are no surprises later on. Sometimes the purchase contract will go through a series of changes until the buyer and seller agree to all terms. Your Realtor will manage this process making sure to keep your interests protected.

Step 5) Escrow Period

The Escrow Period is the time between the date that the Purchase Agreement was signed and the date you finally close on the home. Many professionals will be working for you during this period to ensure your interests are protected. Here's a summary…

Realtor will send purchase agreement to your Loan Officer in order to get the Loan Approval process started.
Realtor will order an inspection of the home to ensure there are no major issues you are unaware of.
Loan Officer will work towards the approval of your financing and will order an appraisal of the home.
Title Company will start title work on the home in order to issue a title policy safeguarding the property.

The entire process (including the items above) will be managed by your Realtor who will work with you to ensure you're aware of everything that is gong on and that all deadlines are met.

Step 6) Closing

This is the big day. You'll meet with your Realtor, Loan Officer and Title Company to sign all papers and have your deed notarized. In most cases you'll be able to move into your new home the next day. Your Realtor will be working behind the scenes before closing to ensure you have no surprises at closing. Everything should be as you expected.

In Conclusion

Of course this is only a summary and greatly simplifies the entire process. However, if you're working with a professional full-time Realtor buying a home should be simple, enjoyable and ultimately profitable.