Buying a pre-owned house could be a daunting process, especially for someone who may be buying a house for the first time.
We walk you through different steps entailing the purchase of a pre-owned house, so that you can know what to expect from the process and plan things accordingly.
Evaluate your needs and assess where you stand
Before falling in love with the listing, evaluate your needs and assess where you stand. The space you need, the house you can afford, how much of your own money you can put into the purchase and how your credit is doing—you need to find an answer to all these questions.
Hire a real estate agent
While not required, having a real estate agent by your side will be a great comfort and help in the process. Get recommendations from people you know for a designated realtor. Check to ensure the realtor is licensed and trustworthy.
Find a lender
Unless you’re paying for the ticket out of your pocket, you’ll need a lender to finance your purchase. The lender will let you know how much they’re willing to sanction in loan and provide incentives like these Lender Incentives in Travis TX, and will give you a preapproval letter, which you can then use to prove to the seller that you can afford the purchase price of the house.
Decide on a house to buy
It’s now time to go shopping. Search the market for the home that best suits your budget and accommodation needs—both current and future. With the help of your real estate agent Collin County Texas, decide on a house to buy.
Make an offer
An offer is a verbal, nonbinding number. You aren’t writing the check at this stage; you’re simply letting the seller know you want to buy their property, this is how much you’re willing to pay (of course—you don’t reveal all your cards), and if the offer interests them you’d be more than happy to pursue the case.
Get an attorney
You can do this earlier as well. An attorney will assist you with the legal side of the deal and will prepare and review the necessary documents to close the purchase.
Sign the contract
If the seller accepts your offer, you’ll then ask your attorney to prepare the contract. You and the seller will sign the contract. Now, the property inspections, title checks and the remaining paperwork can begin. At this step, you’ll have to put down some earnest money into an escrow account handled by your realtor, which will count as a down payment. The money will remain in the escrow until everything is finalized, after which it will be transferred to the seller.
Get the property inspected
Next, you’ll visit the house with a property inspector who will walk through the property to assess its condition. The inspector will communicate their findings with you which will help you establish a fair price of the house.
Check the title
Hire a title company. Investigate the legitimacy of the title and check if there are any unpaid taxes or leftover liens on the property.
Negotiate the final price
Based on the property inspection report and findings from the title search, negotiate the final price of the house with the seller.
Close the deal
Send your lender the purchase contract with the agreed-upon price. The lender will review the contract and will instruct their appraiser to visit the house and make sure it’s worth the price that you’ve agreed to pay to the seller. On receiving a green signal from the appraiser, your lender will ask you to complete the remaining paperwork. You’ll contact your lawyer and have everything ready and signed. The completed paperwork will be forwarded to the lender who will then send a check to the seller.
Pop up the champagne; you’re now the owner of your own house.
For further reading: How to get a real estate rebate when buying a property
