Step 1

Find a good agent. I know this sounds self-serving, but a good agent can save you thousands and going it alone or a bad one can cost you thousands. Having an agent help you is free to you as a buyer, so why wouldn’t you have one?

Step 2

Get pre-approved. Being pre-approved helps you be aware of any credit issues you need to overcome, as well as understand your budget. For more on this subject, check out our video on why you should get pre-approved before you start looking at houses.

Step 3

Set up your search criteria. 

There are 2 MLS systems

Determine your price range, area (neighborhood, school, city, zip code or county)

Likes vs must haves

Step4

Write a competitive offer:

Competitive is relative

Step 5

Get a copy of the contract to your lender and make sure they have all documents

Once you are under contract it’s a hurry and wait scenario. Very rushed at the beginning and hopefully just waiting at the end.

Step 6

Do you inspections:

There are several inspections you can do based on your needs and the home.

These need to be completed before your due diligence expires

Leave yourself time to negotiate repairs if needed.

Step 7

Order the appraisal:

You have the option of doing this from day one or waiting. 

It depends on your contract and your timeframe

If your agent is on top of it, they should be able to order it immediately after your due diligence.

Your appraisal can come in at the contract price, below or above.

Step 8

Get conditional approval from your lender:

Conditional approval means you will be fully approved once you provide certain items. 

Depending on how fast your lender works, a condition may be the appraisal. It could also be verifying that a debt was paid or you’re still employed, and so forth.

Step 9

Get the CD:

CD stands for closing disclosure

Ever since the last market meltdown, the government has required this 3 days prior to close.

You must acknowledge.

Step 10

Receive your clear to close:

This means you’re fully done with your loan and can now wire your funds to close.

The closing attorney is going to send you wiring instructions. Do not blindly send the money. Go online and search for the name of the law firm you are closing at and find their phone number. Call that number, not the one on the wiring instructions. Have them verify the account number.

Wire fraud is real and rampant. Once you send it, the money is gone.

You cannot bring cash or a personal check to closing. 

Step 11

Closing Day!

In Georgia, we use closing attorneys and actually sit across the table from the seller in most cases and exchange keys once all documents have been signed and funds have been received. 

Congratulations, you’re a homeowner!

Do's

1. Do hire a good real estate agent. This includes new construction. It's free to buyers! 
2. Do get setup on instant or at least auto notifications from the MLS from your agent. 
3. Do have a home inspection - Yes, even in new construction 
4. Do have the septic inspected - If possible, word your offer to have the seller pay for it 
5. Do have all inspections done at least 2 days prior to your due diligence expiration  

Don'ts 

1. Don't go directly to a listing agent thinking you will save money. This goes with our Do hire an agent, but we have an entire video on why you usually won't get a better deal doing this on our channel. 
2. Don't blindly hire an agent. Do your homework. Don't "do your friend" a favor. Once you're in that contract, you can't get out. 
3. Don't blindly waive your appraisal or other contingencies. You usually have 3 primary contingencies. 

Suggestions 

1. Escalation clause - X Dollars over the next best offer. 
2. Ask for money instead of repairs. 

Summary

The right agent isn't there to "find you a house"...especially not sell you a house. The right agent is there to guide through buying a house while protecting your interests and your money. 

 If you aren’t a cash buyer, you need to get pre-approved with a lender. You don't have to go through this process alone. Your agent should be able to help you otherwise this. Now, you can use whichever lender you want, but we have lenders that we work with regularly and trust.

Communication is key during the home buying process.  Sometimes lenders who are not local and we don’t have a relationship with don’t feel obligated to communicate with us which can cause delays or even the loss of your earnest money and your dream home. 

That doesn’t mean the lenders we recommend are perfect, but they will go above and beyond for our clients and try to make the process as stress-free as possible by staying in communication with us and you.

It’s important to know your numbers before you go shopping. You may qualify for more than you want to pay for or you may be willing to pay for more than a bank will lend you. 

Some people think they know how much they want to spend so they don’t need to get pre-approved first. While that may be true, the seller of the home isn’t going to take your word for it. Before your offer is accepted the seller is going to want to see that a bank will lend you the money to buy it. If you wait until you find the “perfect” house, it may be gone or have multiple offers before you can get the pre-approval letter.

Oh, and a little side note, don’t trust those payment estimates you see on websites when you’re looking at homes. Those estimates assume certain down payments that they don’t exactly tell you about and oftentimes don’t calculate in taxes and insurance, which will be added to your monthly payment and impounded by your lender.

Now, some people are concerned about running their credit for a pre-approval when they aren’t even sure they plan to buy something. This is a valid concern. However, a credit inquiry typically only affects your credit score by a few points and that pre-approval letter will be accepted by most sellers for about 90 days. By the time the 90 days has ended, the points from the initial credit check will usually be replenished, allowing you update the pre-approval again without terribly affecting your credit score.

1. The commission to the agent is set when the agent takes the listing. People often believe they can negotiate a better price because the seller won’t have to pay the buyer’s agent commission.  The reality is the listing agreement states the entire commission is paid to the listing agent whether they split it with a buyers agent or not.
2. The listing agent has a fiduciary responsibility to the seller...not you. Our agreements with our clients state that our fiduciary responsibility is to our client. That means that even if the listing agent is a nice, honest person, their job is still to get the best possible outcome for the seller, not you.
3. They might help you put your offer on paper, but they aren’t going to include things that may be common for agents to negotiate. Again, because the listing agent has a responsibility to the seller, they cannot guide you to ask the seller to pay for things such as a home warranty or closing costs.
4. They might shorten your due diligence or other contingency periods. There are contingency periods that protect you and your earnest money, and those are negotiable. A listing agent has a responsibility to set those terms as favorable as possible to the seller...not you.
5. If there’s a delay, the listing agent may not tell you about ways for you to avoid losing your earnest money. Sometimes things can happen that cause delays. If you can’t close on time you could lose your earnest money and the home.  A knowledgeable real estate agent can help prevent a delay in closing and possibly get you more time if needed.

The reality is that a good real estate agent is not only free for buyers to use, but can often times save you more money than going it alone. Notice that I said a good real estate agent. Not all agents are created equal, so make sure to reach out to the right one.