THE PROCESS | reaganrealty

Steps to Take
Before Buying a Home

Step One

Finding a Lender You Trust The first step in the home buying process is to speak with a lender and make sure you have all of the documentation required to be qualified for a loan. This is also the best way to find out how much you can spend and more importantly, how much you are COMFORTABLE spending.

Step Two

Qualification Letter Once your lender has approved you for a loan, they will issue you a pre-qualification letter. Having this letter before making an offer will let the seller know that you are a qualified buyer.

Step Three

Meet With Your Realtor Let us know what qualities make a home right for you. Letting your Realtor know the areas you are interested in, your price range, and necessities will help ensure you will see the properties that best fit your needs. Make sure your Realtor knows what your end goals are. Are you looking for a home for a lifetime? As an investment to flip, rent, or hold? Perhaps a second home, or a place for your childern. Help us help you find the perfect home.

The Process Once You Find a Home

Once You Have Found the Perfect Home

Have your Realtor find out what homes have recently sold for in the area of comparable condition. Make an offer based on comparables, the Austin market and guidance from your realtor.

Negotiate the Offer

Sometimes your offer will be accepted right away. Often there will be some amount of negotiation.

Option Period and Earnest Money

Once the purchase price is settled, you will need an option check usually between $100 and .01% of the agreed upon price. This check is made out to the seller as an act of good faith and secures a specified time for you to complete your due dilligence. This option period is typically 10 days. The next check is an Earnest Check. Once your option period expires, you must forfit the earnest money to exit the transaction. Earnest checks are typically $1000 to 1% of the property.

Inspections

Have a third party inspect the home for any deficiencies. We always recommend a general home inspection for any property. In the case of a septic, well, or pool on the property, we recommend having an additional inspection as well.