The Home Buying Process

The information in this article will help youpurchase is written)
understand what to expect when buying a home.6. Conduct a home inspection. Choosing a home
We have put the information in a step-by-stepinspector is optional. You do not have to conduct
format and have included a time frame for eacha home inspection. However, it is a good idea to
step so that you can mark it in a calendar.make sure that the home is structurally sound
1. Get pre-approved. Obtain pre-approval for aand that all major systems in the home are
home loan before beginning your home search.running properly. (Time frame: within about 2
Before writing a contract on a home, you willweeks of ratifying the purchase contract)
need to get a letter of pre-approval from your7. Write a repair list. Getting the home repaired is
lender specific to the home you are buying tooptional. If the buyer is dissatisfied with the home
attach to the purchasing contract. This is free.inspection, the buyer's real estate agent will make
(Time frame: before you begin the home search)a list of items for the seller to repair. These items
2. Choose a real estate agent. This is a freewill be negotiated in contract form between the
service for buyers. Your agent will write thebuyer and the seller. (Time frame: within 48 hours
contract for you and help you negotiate with theof the last day for inspection, which is specified in
sellers. Your agent will also be able to give youthe purchase contract)
recommendations on what lender, attorney,8. Get home insurance. Most homes will require
insurance agent, and home inspector to hire. Also,purchasing hazard insurance (fire and dwelling
your agent will help you set up appointments withinsurance). If the home is in a flood plain, flood
the attorney, home inspector, and anyinsurance will also be required. Some condos and
contractors you may need. (Time frame:townhomes collect the insurance through Home
approximately 1-2 months before move-in date)Owners Association dues or Regime fees. Ask
3. Find a home and write a contract. It normallyyour real estate agent or your insurance
takes 30 to 45 days from the time you find acompany what type of insurance your home
home to close on it and move in. When you findrequires. (Time frame: at least 2 weeks before
the home you want, you'll write a contract. If youclosing)
have a real estate agent, he or she will write the9. Make a final walk-thru. This walk-thru allows
contract for you and help you negotiate with thebuyers to inspect any last minute repairs the
sellers. (Time frame: approximately 30-45 daysseller has made to the property. This walk-thru is
before move-in date)the buyer's last chance before closing to examine
4. Give earnest money. After the purchasingthe condition of the property. (Time frame: a day
contract has been ratified (meaning both partiesbefore the closing, but sometimes the day of
have signed and agreed to the terms of theclosing)
contract), you will write a check for earnest10. Wire funds or get a certified check for the
money showing the seller you are serious aboutclosing. About 24 hours before the closing date,
purchasing. This money will be placed in an escrowyou will receive a call telling you how much money
account and will be credited to the buyer atyou will need to bring to the closing. You will then
closing. The amount of earnest money isneed to get a certified check payable to the
determined by the buyer and the seller. There isattorney's office. If you are from out of town,
no standard amount. (Time frame: within 48 hoursyou may need to wire funds to the attorney's
of ratifying the purchase contract)office a day or two before closing. In this case,
5. Choose a lender. There are many differentask the attorney's office for wiring instructions.
kinds of loans. Although you can get a 0% downBring your checkbook and driver's license to the
loan, it is good to shop around with 2 or 3 lendersclosing with you, just in case. Total closing costs
to see what loans are available and to compare(lender's fees, attorney's fees, title company's
rates and closing costs. Make sure to get a "goodfees, and insurance, other closing costs) will be
faith estimate" of closing costs from the lenderapproximately 3% of the purchase price of the
before committing to the loan. If you cannot gethome. (Time frame: approximately 24-48 hrs.
a loan before the specified date on the contract,before closing)
then you are not obligated to purchase the home,Search for homes and vacant land in Charleston,
and you will get your earnest money back inSC!
full.(Time frame: as soon as the contract to