Step-by-Step Homebuyer Process

Here we provide an in-depth and step-by-step approach to the homebuying process.  We offer details about each step along the way.  High Ground Realty specializes in making sure that all of our clients are sufficiently educated and informed about the homebuying process. 

  1. Pull Your Credit Report to Determine Your Ability to Get a Mortgage.  Make sure that there are no errors on the report.  Commonly, there are items that appear on a credit report that either were resolved in the past or do not belong to you.  Disputing errors with the credit bureaus can take time and effort, so it is best to initiate the process as soon as possible.  Make sure that the monthy payments from creditors are accurate and are not showing as duplicate accounts. 
  2. Get a Mortgage Pre-Approval Letter.  A loan officer will be happy to do an in-depth analysis of your income, debt, credit and assets to determine your ability to obtain a mortgage.  A true pre-approval is complete only when all qualifying factors are verified by documentation.  This means that a full credit report is pulled, a debt-to-income ratio is analyzed and in most cases, employment, income and assets are verified.  Once you are pre-approved, you can now rest assured that a lender is committed to loaning you the money.  Most pre-approvals last for a 90 day duration, so don't do anything radical in the meantime that might impair your credit or increase your debt load.
  3. Search MLS for Available Homes.  The Multiple Listing Service is the most complete source of real estate listings in a given area.  We give you access to all of the listings posted on the MLS in the New Paltz area.  You may also sign up for our Housetrack feature that alerts you when new properties that fit your criteria come on the market.  As you search, pay attention to some of the features and areas that you prefer.  Write down (or save them on our website) the listings that appeal to you.
  4. Discuss Your Needs and Goals with One of Our Agents.  Our agents are available to discuss your objectives and help tailor a plan of action to help you find the right home to fit your needs and budget.  Rather than handing you hundreds of listings which may or may not match your criteria, we'd like to help you focus in what you want.  The following questions will help us assess your goals and help pinpoint suitable options: When do you want or need to be in a new house? Why were you thinking of buying a home? What is your price range? Would your move involve changing jobs?  If so, where would you work? Do you have any absolute requirements for a house? Do you favor any particular style of home or area of Ulster County? Have you been working with another agent?
  5. Ask One of Our Agents to Represent You.  Rather than going through the hassle of calling several agents to set up appointments to view homes, you are able to designate one of our agents to represent you exclusively.  It is a win-win situation for both the buyer and the agent.  By designating an agent to work exclusively on your behalf, you now can rest assured you will have a professional, honest and caring Realtor on your side.  An agent will be far more inclined to offer you his time, talents, energy and best efforts when he knows that his time will be spent wisely working with a qualified and committed buyer.
  6. Together with the Agent, Make a List of Homes to View.  After consulting with you about your needs, our agent will take your suggestions and add some other properties to a list of potential homes to see.  You will work out a mutually convienient time to see the properties.  It is important to note that an agent should be given 1-2 days advance notice in order to schedule the appointments.  Some sellers require a minimum of 24 hour notice.
  7. Agent Shows You Homes.  By actually going out to physically see homes, you will be able to refine your search and identify potential homes to buy.  An agent who represents you will be able to suggest potential pluses and minuses of each property.
  8. REALTOR® Helps Research Information on Specific Properties.  After narrowing down your list to a couple of clear possibilities, you will want to get more information to help you in your decision-making process.  Our agents can help you verify pertinent information about each property such as: property tax figures, zoning, lot dimensions, the property's sales history, and whether the property is in a flood plain or has designated wetlands. The agent will also see if the seller has filled out a Property Condition Disclosure. 
  9. Make an Offer on a Home.  Now that you are empowered with all of the pertinent information about a particular home you are ready to consider making an offer on a home.  Our agents will be able to give you a report that shows what similar homes have sold for.  This will help you to estimate the market value of a given home.  Knowing the value of a particular home and the potential motivation of the seller will allow you to develop a bidding strategy.  Utilizing your bidding strategy, your agent will submit an offer which is accompanied by your pre-approval letter.  Having a firm pre-approval from a local lender strengthens your negotiating position.  You will want to include contigencies (or conditions subject to) in your offer.  Contingencies offer you additional time to complete due dilligence items the by performing inspections, tests and gathering more information.  Common contingencies include making the purchase subject to: attorney review, insurable title, a mortgage commitment,  potable water, a structural inspection, a pest inspection, a septic inspection, a CLUE Homeseller's Disclosure Report and a bank appraisal.
  10. Seller Accepts, Rejects or Counter-Offers.  Next, your agent takes your signed offer and presents it to the listing agent.  The listing agent presents the offer directly to the seller.  The seller now has the option to accept, reject or counter-offer.  If the seller counter-offers, he indicates that he wants to continue the negotiation process.
  11. Offer is Accepted and You Submit a Binder Deposit.  If your offer is accepted, Congratulations!  There are several steps before the sale is complete, but it's a good feeling to know that you've come to an agreement with the seller.  Your binder deposit check is placed in our escrow account, which is set apart to hold your funds in trust until you've either completed your purchase or discontinued your desire to purchase the home based on a contingency not being met.
  12. Choose an Attorney to Represent You.  An attorney will be a valuable part of your team.  He can review your binder and offer suggestions moving forward.
  13. Schedule Tests and Inspections to Verify Property Condition.  Our agents can help you schedule the tests and inspections.  We recommend that purchasers always be present to obtain information and suggestions from the inspectors and testers.   
  14. Lock in an Interest Rate with Your Lender and Put the Loan into Process.  If the inspection failed to turn up any items of concern, you are now ready to lock your mortgage rate and initiate the underwriting of your loan.  If you submitted the required documents upon getting pre-approved then very little additional paperwork will be required of you.  Being prepared ahead of time will allow the bank to close your loan in a expedited fashion.
  15. Appraisal and Title Search Are Requested by Your Lender.  When the lender locks in your interest rate they will probably also order an appraisal.  The appraiser will make an appointment to gain access to the home in order to evaluate the market value of the property.  The lender will also contact your attorney to co-ordinate the title search.
  16. Survey is Ordered (Sometimes Required)  In certain cases, a survey might be requested by the title company or attorney to verify boundaries or delineate proper setbacks.
  17. You and Seller Sign the Sales Contract.  Upon clearing all contingencies, you are prepared to sign the formal contract.  The seller's attorney usually prepares the contract for your attorney's review.  Your attorney will discuss with you any concerns or questions before signing the contract. 
  18. You Obtain Homeowner’s Insurance.  When the buyer is nearing the settlement date, he will be required by the bank to obtain homeowners insurance.  Typically, a buyer can get a discount on their home policy by using the same provider who holds their auto policy. 
  19. Title Search is Completed.  Once the title search is completed, your attorney will review it to make sure that the seller can offer a clear and marketable title to convey ownership of the property.
  20. Lender Notifies You That Your Mortgage is Clear to Close.  After the lender has completed their underwriting and all title and appraisal conditions are satisfied, they are ready to clear the file to close.  The bank co-ordinates with all parties to schedule a closing settlement.  The buyer should obtain an estimated amount of funds to bring to closing from his/her attorney.
  21. Buyer Participates in Final Walk-Through.  The buyer and our agent do a final walk-through to certify that all agreed upon repairs are completed and that all agreed upon items are either left or removed.
  22. Closing Settlement is Completed.  The buyer, seller, real estate agents, attorneys and title company meet to sign the final documents in order to officially transfer ownership from the seller to buyer.  Funds are received and disbursed to the seller and appropriate parties.  The buyer then receives the key to the house.
  23. Buyer Takes Possession of the Property.  The homebuying process is finally complete when the buyer takes full possession of the property to enjoy for his or her pleasure and use.