Home Buying Process

Are you thinking of buying a home?

Unsure about the first steps of the process?

Buying a home is an exciting journey, and we’re here to guide you every step of the way. Our team put this process together to help you map out your next steps.

Home Buying Process

1. Select an Agent
   Choose a trusted real estate agent who understands your preferences and needs. This professional will be your advocate, assisting you throughout the process. When selecting an agent, go with your gut!
2. Obtain Loan Pre-Approval
   Connect with a reputable lender to get pre-approved for a mortgage. This process involves providing financial documents and helps you determine your budget and refine your home search. Obtaining preapproval demonstrates to sellers your ability to pay.
3. Search and View Homes
   Work with your agent to search for homes that match your defined criteria i.e., size, location, bedrooms, baths, etc. Schedule viewings to get a firsthand feel for each property. Take notes and communicate your feedback to your agent.
4. Make an Offer and Negotiate a Contract
   Once you find the perfect home, your agent will help you craft an offer. This includes the price you’re willing to pay, contingencies (such as inspections), and other terms. Negotiations may ensue until both parties reach an agreement.
5. Apply for Mortgage
   With your offer accepted, you formally apply for your mortgage. The lender will review your financial details and appraise the property’s value. It is important to be responsive to any requests for additional information.
6. Resolve Contingencies
   Contingencies are conditions that must be met for the sale to proceed. Common contingencies can include inspections, final approval of financing, attorney review of documents, and the sale of your current home. Your agent will coordinate these steps.
7. Perform Title Work
   The title company is an independent third party that ensures the property is “free and clear” for ownership to be transferred to a buyer. They conduct searches to uncover any potential issues, like liens, claims, or unpaid property taxes, and addresses them before closing.
8. Closing
   During closing, you’ll sign all necessary documents to transfer ownership. You’ll also pay closing costs, which include downpayment and various fees. Your lender will provide a Closing Disclosure detailing these costs. At closing, both the seller and buyer often participate in-person, although other arrangements can be made if someone is not able to attend.

What Do You Pay and When?

Buyer agent commission is typically paid by seller, but not always.

Earnest Money Deposit (EMD)
● Check written at the time of initial offer
● Typically, 1-2% of Purchase Price
● Deposited After Contract Accepted
● Credited towards Closing Cost

Loan Application
● Cost Depends on Lender (Approx. $400-$600)
● Paid at Formal Loan Application (After Contract Accepted)

Inspections/Attorney Reviews
● Contractor/Pest/Radon – Approx. $500 paid at the time of inspection
● Well/Septic – Approx. $600 (Who pays depends on County)
● Attorney Review – Pay for your own

Closing Costs
• Transfer of Ownership Costs
● Processing Fees
● Title Insurance
● Property Tax Proration

Lender Costs
○ Origination Fees
○ Down payment itself
○ Home-Owner Insurance
○ Property Tax Escrows

Daum Group Real Estate Provides Guidance During Your Home-Buying Journey

Every home purchase is unique, and your real estate agent in Ann Arbor will tailor the process to your situation. With their expertise and your dedication, you’ll soon be stepping into your dream home.

Contact our team with any questions you may have at (844)328-6477.