• Make The Decision to Buy

This is the first, and most important decision you will have to make.  Nobody can make this decision for you, and nobody should pressure you into making this decision - especially your Real Estate Agent!  For more discussion on this topic, and links to helpful calculators, visit our Buy v. Rent Page.

• Hire A Buyer's Agent

This is the second most important decision you should make.  There is no reason to EVER buy a home - especially your first - without hiring a buyer's agent.  It will not cost you anything, since the buyer's agent is typically paid by the seller at the time of closing.  A buyer's agent will represent you throughout the process, and will never put the seller's interests above yours, as the listing agent is required to do.  Remember, the listing agent represents the seller!  You need a buyer's agent representing you.  Even if you are an experienced homebuyer, familiar with the process, it is still wise to hire a buyer's agent.  Why not?  A buyer's agent will do all the work for you, and it will cost you nothing.  Many people think that they can negotiate a better deal with the seller if they work alone, since the seller will not have to pay for the buyer's agent, but this usually isn't true.  The seller is contractually obligated to pay the same commission to his listing agent, regardless of whether or not a buyer's agent is involved.  When a buyer's agent does get involved, he or she simply shares in the listing agent's commission.  So there is no savings for the seller either way - and no cost to you.

It is important that you hire a buyer's agent with whom you are comfortable.  At PRG, it is our mission to provide you with the fastest, best, and most friendly service available.  To learn more about working with a buyer's agent, visit our Buyer's Page HERE or contact us to schedule a no obligation, no pressure meeting.

• Get Pre-Approved For Financing

Unless you are paying cash, the next step is to line up financing.  You should meet with several lenders or go through a mortgage broker to shop rates and make sure you are getting the best deal.  If you need help finding a lender, we can help to set you up with a few.

There is a big difference between being pre-qualified and being pre-approved.  For a pre-qualification, the lender simply relies upon the information you give him about your finances, and determines a mortgage amount for which you are likely to qualify for, assuming the information is accurate.  The lender usually will not even check your credit to issue a pre-approval.  A pre-approval is more in depth.  For this, the lender will pull your credit, and actually verify the information you provide.  At this point, you will know what mortgage terms you can actually be approved for.

Some people may feel more comfortable getting a pre-qualification rather than a pre-approval since no social security number is required, but this is not advisable because a pre-qualification is subject to change.  In a hot seller's market, or a multiple offer situation, a seller is more likely to accept an offer from someone who is pre-approved as opposed to pre-qualified, since the pre-approved buyer is less likely to have financing problems short of closing.  The seller will not want to take a property off the market on a contingent offer, if it the offer is likely to fall through for lack of financing.

To be in a solid position to make an offer, you should be pre-approved.  Usually, once you are pre-approved for a certain amount, once you find a property you like (assuming it is in your pre-approved price range), you can get the lender to issue a pre-approval letter for that specific property, putting the seller at ease and increasing the likelihood that your offer will be accepted.

While the lender will ultimately decide how much home you are qualified to buy, you can get a pretty good idea for yourself if you wish to consider this before beginning the process.  For more information on estimating how much home you can afford, click HERE.

• Look At Homes For Sale

Next you should sit down with your buyer's agent and let him know what you are looking for in terms of home style, location, size, options, price, etc.  At PRG, we take this step very seriously because we value your time.  You do not want to spend countless hours looking at houses that fail to meet your criteria.  Instead, after you tell us what you are looking for, we will go to work, scouring the market for all homes that meet your criteria.  We will e-mail you detailed information (usually including pictures) on these homes, and you will decide which ones you want to see.  Once you decide, we will arrange a time to show you the home so you can do a full walkthrough for yourself.

At PRG, as your Charleston SC Buyer's Agent, we will show you as many homes as necessary.  While you may never find a home that has everything you want (home buying often requires compromise), you should never buy a home that you are not happy with.  You should never feel pressured to make a decision, or stop looking because your agent seems tired of showing you homes.  Keep looking until you find the one you want.

• Write An Offer

Once you find the home you want, it is time to write the offer.  As your Charleston SC Buyer's Agent, we will help you decide how much to offer.  Often, you will want to offer something less than full asking price.  Sometimes, if the home is well priced, and you have your heart set on getting it, you may need to make a full price offer or - on rare occasions - an offer above listing.  These are things we will discuss with you in detail before you are required to make any decisions.

In many cases, you may also chose to ask for other things in your offer, such as the refrigerator, some seller contribution toward closing costs, or even furniture or other items within the home.  Your agent should also include contingencies within the offer to protect your earnest money deposit (discussed below).  These contingencies allow you to back out of the offer, after it is accepted by the seller (and get your earnest money back) if certain contingencies aren't met.  Standard contingencies include a satisfactory home inspection, and the ability to secure financing.  

• Make an Earnest Money Deposit

If your offer is accepted, you will need to provide some earnest money to show the seller that you are a serious buyer.  This earnest money deposit could be anywhere from $1,000 and up.  The earnest money deposit is placed in an escrow account, and applied to the purchase price once the deal closes.  If you pull out of the deal due to one of the contingencies not being met (for example, you are not satisfied with the inspection, or cannot obtain financing) then your earnest money deposit is refunded.  You will only forfeit your earnest money deposit if you back out of the deal for some reason not spelled out in the contingencies.  This is why it is important to work with an experienced Charleston SC Buyer's Agent when drafting the offer.

• Order An Inspection

Once your offer is accepted, and your earnest money deposited, you will have a period of due diligence in which you should have the home inspected.  An inspection will be required by the bank if you are seeking a mortgage, and is advisable even on a cash purchase.  You can hire any inspector you chose (although he or she should be certified).  If you need a referral, we can provide you with one.  You will generally have to pay the inspector up front, so you should have this money available.  These can range from $250 to $1000, but typically cost around $300-$400.

The inspector will inspect the entire house, and issue you a detailed report, including pictures, to let you know what, if anything is wrong, or could be wrong with the house.

• Order An Appraisal

If you are taking out a mortgage, the bank will also require you to have the home appraised.  Here again, this is a cost you will pay up front, but you will not choose the appraiser.  One will be specified by the bank.  If you are paying cash, you will not be required to have the property appraised, and likely will not, assuming you are comfortable with the purchase price.

• Negotiate Repairs

Once you have had an opportunity to review the seller's disclosure, and your inspection report, you will need to decide whether you still want to move forward with the purchase.  If you do not, you can back out, and get your earnest money refunded, assuming this contingency was in  your offer.

If you still want to purchase the house, you will need to address the deficiencies noted in the inspection.  You may ask the seller to make the repairs prior to closing, or to reduce the purchase price so that you can make the repairs after closing.  Depending on what repairs need to be made, your lender may require that certain repairs are completed prior to closing.

Here, your Charleston SC Buyer's Agent will help you negotiate these issues.  If you and the buyer can agree on repairs and/or price reduction, the purchase contract will be amended, and the deal will move forward.  If no agreement is reached, you can back out of the deal and continue to look for another home.

• Purchase Homeowner's Insurance

This is also the time to go ahead and line up a homeowner's insurance policy.  You will want one ready to take effect as of the date of the closing and your lender will require this as part of the mortgage.  Luckily, though, you will not have to pay this cost up front.  Instead, your first year's premium will be paid at closing, and may be covered by the seller if this was negotiated as part of your offer.

• Comply With Other Lender Requirements

As noted above, your lender will require many things of you before the mortgage is finalized.  You will need to provide them with tax returns, and the inspection report, make sure that the appraisal is complete and that the insurance is lined up.  It is important to have this done as far out as possible from the closing date so that you do not hit any last minute snags.

• Remove Contingencies

Once your financing is finalized, and the seller has made all the negotiated repairs, you will remove the contingencies from the contract and prepare for closing.

• Final Walk Through

Immediately prior to closing, you should conduct a final walkthrough of the home.  Make sure it is in the same condition as when you made your offer and that all negotiated repairs have been made.  If you find a serious issue, you must address it now before the deal closes.

• Close

Once everything is ready, you will meet with your closing attorney, the seller, and the buyer's and listing agents to close the deal.  You will be required to bring a cashier's check for all closing costs, downpayment, points and mortgage escrow payments, or you may have the funds wired in advance.  Your lender will have provided you with a good faith estimate (GFE) in the early stages of the process so you have an expectation of these costs, and your closing attorney should have provided you with the final numbers a few days prior to the closing.

At closing, you will sign all the necessary purchase and loan documents.  Your closing attorney will record your deed and you will walk away with the keys to your new home!