The Home Buying Process: A Step-by-Step Guide
For most people, buying a home is the single biggest financial transaction they'll make in a lifetime. Before diving in, it's helpful to understand the basic steps that take people from browsing on Zillow to the closing table. Below is a description of the different stages in the buying process from start to finish:
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Before diving into the search, take some time to clarify what you want in a home. Ask yourself:
- What type of home do I need? (Single-family, condo, multi-family, etc.)
- What’s my ideal location?
- How much can I afford comfortably?
- What features are most important (e.g., a fenced yard, proximity to public transportation, etc.)
Your list does not need to be perfect - in fact, it will almost certainly evolve as you explore financing options and see properties in-person - but purposely thinking about and discussing these variables sets the stage for a smooth journey.
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A pre-approval letter from a lender shows sellers you’re a serious buyer and gives you a clear idea of what you can afford. During this process, your lender will review your income, credit, and debt-to-income ratio.
Tip: If you need lender recommendations, we can connect you with trusted professionals!
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A great buyer’s agent helps you navigate the market, identify the right home, and negotiate the best deal. As your agent, we:
- Actively search for listings that match your criteria, including both on-market and off-market opportunities
- Arrange private showings
- Provide insights on home values and neighborhoods
- Advise and negotiate price and terms on your behalf
Bonus: Ask us about our exclusive Greater Boston off-market database!
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Once we find a home you love, we’ll strategize and craft a competitive offer. An offer to purchase includes:
- Purchase Price: Based on market value and competition
- Earnest Money Deposits: Shows your commitment (usually $1000 with the offer, then 5% later on)
- Contingencies: Protecting you against financing, inspection, or appraisal issues
If the seller accepts, we move to the next step!
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A home inspection helps identify hidden issues with the property. We may negotiate repairs or a seller credit (or walk away if major concerns arise!).
Key Takeaway: Inspections don’t just protect your investment - they give you peace of mind.
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Think of the Purchase & Sale (P&S) as the official contract that locks in the details of your home purchase. Your attorney will review and negotiate the contract to protect your interests. Once finalized, you’ll sign the agreement and submit a larger deposit, typically bringing your total deposit to 5% of the purchase price.
With the P&S signed, your purchase is well on its way to closing!
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Your lender will finalize your mortgage by verifying financial documents and coordinating an appraisal to ensure the home’s value supports the loan amount.
Important: Avoid making large purchases (like a car) during this time, as it can impact your loan approval.
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Once your loan is fully approved and all conditions are met, you’ll attend closing with your attorney to sign the final paperwork. After that, the home is officially yours!
Time to pop champagne and plan your move!! 🎉
Ready to Start Your Home Search?
Let’s chat! Whether you’re just exploring or ready to make a move, we’re here to guide you every step of the way. Reach out today for a free consultation!
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