What Is The Home Purchase Process?

 

For most people, finding the right home begins with a house-hunting strategy combining personal preferences, guidance from others (such as myself) and a mix of neighborhood exploring and online search.

For some, the search takes a while; others find what they want right away. In either case, your agent will be a resource of insight and guidance, working through issues or complications that arise along the way.

Here’s a general outline of what to expect during a home purchase, from the buyer's perspective.

Buyers make a purchase offer.
This is it! You've found the home of your dreams, looked over disclosure documents, reviewed comparable sales data, talked it over with your agent and submitted an offer. The sellers may accept your first offer, but more often will return a counteroffer. In fact, additional negotiations are common, and I will help you through this generally stressful stage.

 

The sellers accept.

Once everyone is happy with the terms, the parties have reached what is known as mutual acceptance and enter into a purchase and sale agreement.

Buyers put up earnest money.
To solidify your intent to buy, you'll place a deposit, or earnest money, on the property. The amount varies, but is generally at least 1 percent of the purchase price. You'll write the check to the escrow company, not the seller. Note: This money counts toward your down payment later.

Escrow opens.
The earnest money deposit goes into an escrow account, where all funds will be held until closing, when they are then distributed to the right people (lender, mortgage broker, title insurer, real estate agents, etc.).

Buyers apply for a mortgage.
This step is streamlined if you've already been preapproved for a loan (which is a smart thing to do). If not, you'll begin the loan application process now.

The lender inspects title history and orders a property appraisal.
The lender needs key information about the property before granting a loan. This is when potential problems can come to light. For example, the appraisal could show a lower value than the purchase price, or the lender could have trouble finding comparable homes. Also, the title search could turn up liens or other problems.

A home inspection takes place.
You'll hire an inspector – generally, your agent can suggest some and will offer you a list of different inspectors – to check the home and point out minor and major problems that should be fixed before closing. At this point, you still have the option of backing out of the deal. You need to be careful here, because if you request the seller to perform work, or ask for money, then you have legally created a counteroffer, and the seller may have the option of backing out and taking a better offer it one has come in.

Removing contingencies.
If the house passes inspection, appraisal and title search, and everything is good to go, then all contingencies can be removed, paving the way to a closing.

Closing time arrives.
Once contingencies are removed and financing is set, all parties sign documents, and the transaction closes.

Packing begins!
When the final signatures are in place, it’s time to put down the pens, shake hands, and deliver the keys!

Get In Touch

Local Expert Updates

Aaron Jones

Cell: 712.320.9442

Brooke Jones

Cell: 641.420.2172

Janie Eick

Cell: 712.339.0574

Community Updates

Spencer Hospital

Spencer Hospital in Spencer

Spencer Hospital delivers the highest quality healthcare in its area.They are compassionate about their patients, while providing high-tech, and professional care to each of their patients. They have a specialized cancer center, diagnostic imaging, surgery center, and a brand new OB unit. Spencer Hospital's amazing doctors provide personalized care, and treat each patient with compassion, and care.

Real Estate and MLS Homes For Sale in Spencer

Dry Dock

Dry Dock in Restaurants of the Iowa Great Lakes

The Dry Dock, connected to Four Season's Resort offers a simplified menu, but consistent delicious food. One of the few restaurants on West Lake Okoboji, the Dry Dock offers up legendary breakfasts, great lunches and dinners, and the local favorite Friday Night Fish Fry. Sit inside or out after arriving by foot, car, or boat.

The Barefoot Bar

The Barefoot Bar in Okoboji

Arguably the most iconic spot in all of the lakes area, Barefoot Bar is the one place you must visit when you're here for the summer. They have the best blended drinks, as well as every other cocktail you can think of, served in their signature cups. Its the perfect place on the lake to sit back and relax with friends, while enjoying the view, and all of the palm trees. Barefoot Bar also has a menu, to enjoy some food while you're soaking in the sun. Its even the perfect place for kids, with a full swing set, and even a slide that goes right into the lake!

Real Estate and MLS Homes For Sale in Okoboji

Subscribe To Our Newsletter