There are several common stages involved in buying a home. Below, we have included a brief summary of some of the more important steps. It is important to remember that individual situations vary, so it is a good idea to contact your real estate professional for more information.

Finding a REALTOR®
This is the most common first step in buying a home is selecting a real estate agent. Of course you may elect to go through this process yourself, in which case you may want to skip to the next section.

Your agent represents your interests and can save you money, time and frustration. The best way to find an agent is through a referral. Find out who your friends and co-workers have used successfully in the past. Ask if they are trustworthy, assertive, made the transaction as convenient as possible and most importantly, did what they said they were going to do.

Your agent will use their knowledge and experience to determine your different needs and wants. They will guide you through the entire transaction.

Pre-Qualification and Pre-Approval
After selecting an agent, the next logical step is to determine your financial eligibility. It is a very good idea to get pre-approved before finding the home of your dreams.

Are you familiar with the phrase, "there’s no use letting your mouth water for steak you can’t taste?" Well, that old adage certainly applies to shopping for a new home. The first advantage of pre-qualification and pre-approval lies in helping you to determine your price range.

First let’s discuss the difference between pre-qualification and pre-approval. Pre-qualification is a very brief process wherein you discuss your situation with your loan officer. Based on information you give, they can pre-qualify you for a loan. While this is a good thing, it is by no means certain. They don’t do a thorough check.

That’s where pre-approval comes in. Pre-approval is a virtual guarantee. Your loan officer processes your tax documents, credit history and all other relevant information to come to a very accurate picture of your financial status. Pre-approval usually comes in just a few days.

In addition to knowing your price range, pre-approval has the added benefit of increasing your buying leverage. In a situation where a seller receives multiple offers, the seller will usually accept the pre-approved offer, sometimes even if it is for less money.
Once you’ve determined your financial qualifications, it’s time for the real fun to begin.

Find Your Home
Naturally you will want to select a property that is affordable and meets your needs. A little advanced planning can be very beneficial here. Do you want to buy an existing home or build a new one? What area of town do you want to live in? Do you want to be close to work? Shopping? Do you want to be in a specific school district?

Your real estate agent will be a great help to you throughout your home search.

Once you have found your dream home, discuss your offer and review your contract with your agent, who will then present your offer to the seller. Negotiations usually follow.

Once your offer has been accepted, you will prepare an "earnest money" deposit for escrow. This deposit is usually 1 to 3% of the purchase price of the home.

Opening Escrow
Deposit your "earnest money" into escrow. In brief, escrow is a transaction where one person delivers something of value to a neutral third party, to be held until the happening of a specified event or condition, upon which the third party delivers it to the second party. Whew!

Both parties in a real estate transaction entrust legal documents and various funds to the escrow holder, which transfers the papers and funds upon the closing of escrow. Since escrow is a neutral third party, both the buyer and seller are assured that all mutually agreed to terms are met before the transaction is completed.

Escrow will then order a preliminary report.

Finishing Up
Submit your loan application. Next, have a qualified inspector conduct a physical inspection of the property during the contingency period. Once the Preliminary Report and the seller’s Transfer Disclosure Statement are approved, conduct a property appraisal. Don’t forget to perform termite inspection and certification.

Once you have obtained approval for your loan, select your insurance company. This way you will be covered at the close of escrow.

Now it’s time to sign all the documents. Your Title Company then receives all the documentation. Deposit your down payment and closing costs to escrow. Your lender will then send the balance of the purchase price to your Title Company. Your deed is then recorded at the County Recorder’s office.

Pick up your keys and move in!