The 5 Easy Steps To Purchase A Home

Many folks don't purchase a home because they don't know how, and feel like they just can't do it or will even qualify.  I have created this page for those who really "want and can afford a home" but just feel a bit overwhelmed about the process and don't know where to start.  I can help you sort through the steps and procedures. 

STEP 1.  Find a Realtor who will work hard for you and will return your phone calls on a timely basis.  For your best interest, make sure that your Realtor is working for you as your buyer's agent so he or she can properly represent you with your real estate transaction.  This is done by using a TREC promulgated agreement that your Realtor will provide for you. You should disclose that you are working with your Realtor when inquiring about a property (ie visiting an open house or new home subdivision) or when talking to another Realtor about a property if your Realtor isn't with you, and you have established this buyer's agency relationship with your Realtor. 

For a free copy of the TREC required form that Realtors must provide to you explaining agency relationships and their duties to buyers and sellers, please click on the following button.  I have provided this form in a printable .PDF file for your convenience.  This form is called "Information About Brokerage Services".

STEP 2.  Getting your finances in order.  Don't make any more major charges until you get the loan and have your home purchased and closed at the title company.   Next you need to find your lender. You can choose any lender you want, and there are many of them available with many different loan programs and rates. 

You can now pull your own credit reports for free, once a year by visiting this website: http://www.AnnualCreditReport.com.  This offer may vary from state to state.  You can pull the 3 credit reporting agency reports online and print them out.  Your lender will still have to use their own credit reporting service to get the information they need.  

You will be given instructions how to get problems or mistakes found on your credit report cleaned up.  Many times there may be a problem on your report that might make you think  you can't get  financed.  That is not always the case, so don't let a blemish or two keep you from at least trying to get your home!  I have actually sold a family a home who was still in bankruptcy.  Be sure to be 100% honest about everything!  If you have left anything un-disclosed, it is likely to be found out before closing, and it could cost you a lot of wasted time and money.   Most of the loan information can be done via email, online applications, faxes, and by overnight deliveries so you won't lose as much precious time away from your work or family. 

After the loan officer reviews your credit and income vs. debts and determines that you are eligible for a loan, you then make the loan application with the lender or mortgage broker. Your lender or mortgage broker will then tell much you will be able to qualify for.

Now you have your Realtor and lender with the loan process working for you, let's go find that home!

STEP 3.  We should know which home you can afford according to the information provided to us by your lender, and can begin the house hunting.  We will evaluate your needs and I will spend a lot of time looking for your home.  While you are at your computer, you can be looking too!  Sometimes a home that I don't think you would like, using the information you have provided me, just might catch your attention and you will want to see it!  I have provided the links on this website for you to access the public version of the Houston Multiple Listing Service, and the Galveston Multiple Listing Service.  If you find a special home, just write down the MLS # and we can look at that property.  I also have the Harris and Galveston County tax database accesses on this site, so you can further investigate the home and property.  There are actual lot sizes and dimensions which can be found in the .tiff and .pdf files found on these sites.

I have built homes so I have the home construction and remodeling experience that you can benefit from.   When we visit the homes, I can point out issues that you may need to bring to your inspector's attention.  I may see something that will make you want to just pass up that house and go on to the next one.   Realtors are not home inspectors, but when we represent you as a buyer's agent, it is our responsibility to point out any deficiencies we notice to you during our home preview. 

STEP 4.  Because we have already been to a lender, we should be able to get a loan pre-approval letter within a few days.  This letter can influence a seller to accept your offer if there are multiple offers on a property at the same time.  Some sellers require the pre-approval letter with a contract.  After finding the home, we fill out the appropriate contract and paperwork and hopefully the seller will accept our offer.  Next we order the inspections.  Your Realtor is aware of the several date and time requirements on the contract and should make sure everything happens on a timely basis.  If you have been pre-approved by the lender, you can usually close within 30 days after you have an accepted contract to purchase the home from the seller.

STEP 5.   Now that we have the found your home, your contract is signed and is in place, all of the inspections and necessary repairs are made, the title policy shows clear title, the survey is satisfactory, and you are approved by the lender,  all we need to do is take about 1 hour out of your busy schedule to meet at the title company with the seller to sign all of the closing documents.  You will be instructed what to bring with you. That will usually be certified funds for the rest of the down payment and your driver's license.  You get the keys to the house, and the title company will handle the distribution of funds to the sellers, realtor, taxing districts and etc.