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Buying a Home Timeline: From Bidding to Mortgage Closing
By Jonathan Haeber
CMR Columnist
It takes a while to find the right home. It may take even longer to complete the process once you've found your home. Here is a step-by-step guide to help you stay on track.
- Bid, Call, or Fold. This is the business side of buying a home. It's important not to underbid in this process, because you may be outbid by other buyers. On the other hand, you don't want to pay too much for the home you plan on buying. Good research will give you an idea of the going rate for homes in the neighborhood.
- Investigative Measures. Once you've found a home, hire an inspector to view the foundation, roofing, and any other potentially costly remodeling projects. Be sure to get an estimate of the costs associated with repairing termite or roofing damage. You can often deduct this costs from the agreed upon total purchase or home mortgage cost.
- Protect Your Assets. Even if the home loan terms don't require you to get certain disaster insurance, it's a good idea to do so. Remember, your home is your most valuable asset--protect it with homeowners insurance and any disaster insurance you might need!
- Tally it Up. Your home mortgage consultant will provide you with the terms of your home loan. The document (required by law) is entitled "Your Settlement Costs." It will include closing costs, commissions, and transfer taxes. Closing costs can be as high as $16,000-20,000, so be aware of these costs before you commit to your loan.
- Gather the Bennies. Ask for the "cash to close" from you home loan or title company. Often the cash to close is simply the sum of your closing costs and your agreed-upon down payment. Cut a cashier's check or arrange to have it wired to the title company.
- Capture the Keys. Once you've signed your title, your closing should occur a few days later. Now you're a proud homeowner. Congratulations!
Sources
"Buying a Home Timeline," BankRate.com
About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home, and took a self-taught crash course in home mortgages.
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