From Contract to Closing, A Buyers guide to Purchasing a New Home

As a realtor one of my favorite things to do is helping first time buyers find that first home that fits their needs and their budgets perfectly. There are many important factors when buying your first home and I will post a generic outline of the entire process below and I hope it helps you feel more comfortable if you have been on the fence about buying.

Find yourself a lender that you feel comfortable with and ask the appropriate questions? You should ask if you can get a “Good Faith Estimate” (estimate of your closing cost), how long your rate is locked for, How long the entire process should take (30-45 day from contract to close is normal), and what are the best methods of communication for the lender.  Make sure to speak to more than one so you can compare everything “apples to apples”.  You will need to provide tax returns, bank info and work history to your lender as the process moves forward.

Once you are pre-approved for a home loan and a certain amount we can begin shopping. Contact me to set up an initial appointment and we can begin getting a feel for exactly what you are looking for. We will search the market high and low for a great deal that fits your needs. It may take a little while to find that perfect house and that is ok, we can look at as many as it takes until we find the home of your dreams.

After deciding on a home we will then take about 45 minutes to an hour and half to go through our options and write an offer that you are comfortable with and present it to the seller’s agent to present to the seller. We will negotiate all aspects from inspections, to possession date, price and closing cost until you are satisfied with what you are paying for the property and all conditions of our offer. After that we are “under contract”.

Once under contract, you are still protected in a number of ways depending on negotiations. The word contingent means that the contract is depending on this condition to become fully executed. The typical offer  is contingent on financing, appraisal, inspections, and clean title. There can be more conditions or less depending on your situation while buying.  I will always suggest a good home inspection so you are fully aware of what you are buying. After the inspection you will have the opportunity to request repairs to be done by the seller.  There are still a ton of protections for a buyer when buying a home and this is one of the reasons having a quality realtor like myself is so important.

After all inspections, appraisals, title works, and underwriting by the home lender or bank you are now ready to prepare to close on your home purchase and make it your own. Closing can be a stressful time as all the last minute paperwork comes together and final details hammered out between the lender, closing attorney, realtors, buyers and sellers. A few days prior to closing the agents should have a HUD-1 form or settlement statement that tells everyone involved the final dollar amount to be paid by buyer or made by seller and list all closing cost and items paid for regarding the transaction.  At the closing table you can expect to sign legal documents that allow you to take ownership of your home and agreements to pay the bank for money borrowed.

There is a lot of behind the scenes work that the lender, realtor and closing company or attorney are involved with to pull the transaction together and make a smooth process for the buyers or sellers. What you have read here is only part of the process. You need to make sure to have quality real estate representation when making the biggest investment of your life. I will gladly take the time to walk you through the process and take you from Contract to Closing.  I want to be your realtor for life not just one deal. I will take the time to educate and have your best interest at heart 100% of the time. Please keep in mind this is only an example of a typical transaction in the state of Tennessee, real estate laws are different in each state if you are not in Tennessee please search for a quality Realtor for all information regarding purchasing a home in your home state.

Thanks for reading,

Steve Jernigan

Realtor/ Broker

Call or Text Anytime 931-841-0945