While buying a home can be exciting, it is also a multi-step process. Weeks can elapse from the day you decide to purchase a property to the day you move in. If this is your first time going through this, the guide below looks at what is involved in finalizing a real estate transaction. 

5 Steps to Buying a Home 

1. Get Pre-Approved for a Mortgage 

Unless you’ll be paying for the property in cash, you should start the house hunt by getting preapproved for a mortgage. This will let you know precisely how much you can afford, so you only search for homes within your budget. It will also yield a formal preapproval letter, which you will need to show the seller to prove that you’re a serious buyer. 

2. Submit a Formal Offer

Once you find your dream home, a seasoned real estate agent will help you put together an offer letter. This document should include the proposed sale price and down payment, any necessary provisions or contingencies, the earnest money deposit amount, the ideal closing date, and the expiration date. 

3. Perform Your Due Diligence 

If the seller accepts your offer, you will have a couple of weeks to perform your due diligence before finalizing the sale. During this period, schedule an inspection to learn about any structural issues, an appraisal to learn the property’s market value, and evaluate the neighborhood. If issues are revealed that are concerning to you—for example, if you learn of a faulty roof—this is your chance to renegotiate the purchase.

4. Purchase Homeowners Insurance 

Your lender will likely require proof of coverage before extending the funds for the sale. As such, start shopping around for homeowners insurance as soon as the seller accepts your offer. Once you find a carrier that offers a policy that will meet your needs, request a proof of insurance letter to supply your mortgage broker. 

5. Close the Sale

Once the seller completes all necessary tasks on their end, it will be time to close. The actual proceeding shouldn’t take more than an hour or two. Be prepared to sign several documents, all of which your realtor will explain to you in detail. If you’ll be purchasing the home with someone, like your spouse, he or she must also attend the closing. 

If you want to buy or sell real estate in the Twin Lakes area of Arkansas, turn to Gilbert Realty. Comprised of 35 licensed agents and brokers, this firm serves clients across south-central Missouri and north-central Arkansas. Founded in 1968, they’ve been treating clients like family ever since. To discuss your needs with one of their real estate agents, call (870) 425-6282. Visit their website to view available listings.