Home Buying Process

Step 1: Building a Partnership

There are many steps to the home buying process, but none more critical than Step 1 – Building the right Partnerships.

Too often home shoppers fall in love with the idea of homeownership or a specific house and dive right into the home buying process.  In short, they skip Step 1.

Failure to build the right home buying partnerships can lead to costly mistakes, missed opportunities and/or loss of the home you wish to buy.

During the Homeownership Now event we will explain in great detail the importance of team building and what to look for when interviewing professionals. 

Briefly;

There are three main professionals that you will need in order to have a successful real estate purchase.   They are;

  • A Realtor
  • A Lender
  • An Attorney

These professional will make up your “home buying team”.

If you asked 10 potential home buyers who they would add to their team first, ultimately 9 out of 10 would indicate the Realtor since he or she is the one that will show them the home.  However, ask yourself this question – when you located the home of your dreams will you be paying “all cash” for the property?  The answer here is most likely no and that you will need some kind of financing to purchase your new home.

Because of this, we highly recommend that you add a Lending Partner to your home buying team first.   The reason is simply the fact that without the proper financing in place, home shopping could be a wasted effort. 

Step back and think for a minute, would you fill your cart with groceries and then hope when you got to the checkout counter you had enough money to buy the groceries?  Why then would you spend weeks or months looking for your dream home with a realtor only to find out later you fail to qualify for the financing you need to purchase it.

When looking for a Lending Partner to add to your home buying team, it is important that he or she;

  • Have the knowledge to properly explain all the lending options available to you within your qualifications
  • Be willing to spend the time necessary to guide you through the home buying process
  • Work with you to prepare your personal documentation so that you qualify for the best possible financing options
  • Have the ability and desire to help you obtain a Full Approval ( not a pre-approval ) well in advance of your home purchase

The Full Approval is further explained in Step 2;

The second person we encourage you to add to your home buying team is a Full-Time Real Estate Attorney, which is an attorney that spends most of their day reviewing real estate purchase contracts.

While it’s true that anyone licensed to practice law in your state can assist you with your real estate contract and closing, the real estate process is a timely event that requires a “hands on” attorney.  If the attorney you hire is in court all day and not easily accessible, your contract and/or loan commitment could be in jeopardy.  

However, the most important reason for having an attorney on your team second is so that someone is ready, willing and able to review your contract quickly should you place a bid on a home.  Moving through the Attorney Review process is crucial.

During the Homeownership Now event we will highlight what qualities you should look for when hiring your real estate attorney and discuss in detail the need to expedite Attorney Review.

The third person you will add to your home buying team is a Full-Time Realtor.  This professional is critical to your home buying success as he or she will become your eyes and ears to the real estate marketplace.

We list the Realtor third only because the other two professionals mentioned above (your lender and attorney) are important to completing the home buying process and should already be in place should your Realtor help you discover the right home.  Finding a home first and then searching for a lender and attorney could cause you to make a poor and rushed decision.

 At the Homeownership Now event, you will learn;

  • How to build a successful home buying team
  • What questions you should ask each professional during the interview process
  • What qualities you should demand
  • How to avoid the most common pitfalls to team building

In addition, industry leading real estate and finance professionals will be present to assist you with your immediate questions.  To register for the next Homeownership Now Event, click here.

Step 2: Full Approval