5-Step Home Buying Process

Some think of buying a home as a stressful process — and it can be. But with the proper guidance and preparation, being home-buyer is immensely exciting.

Home Buying Process, Step-by-Step

  • Step 1 – Get a Rock-Solid Guaranteed Pre-approval from Accunet

  • Step 2 – Choose and work with a bona fide Buyer’s Agent to find a home

    1. Buyer’s Agent has a fiduciary duty (in WI) to get the lowest price and best terms for YOU.
    2. Opposite of the Listing Agent whose job is to get the best terms for the seller.

    3. Buyer’s agent / broker typically gets 2.4% of purchase price, $4,800 on a $200,000 home.

    4. Seller typically pays 6% no matter who represents the buyer.

    5. No reason not to use buyer’s agent 

  • Step 3 – Write Offer / Negotiate – More to it than just price

    1. Sale of home contingency – (Seller’s really don’t like this)
    2. Earnest money and Closing Date
    3. Seller’s right to cure Defects – “shall not” is best for Buyer, but it’s a point of negotiation. If Seller demands “Right to Cure”, try to add language that Buyer and Seller must agree in writing on how any Defects will be cured.
    4. Appraisal contingency - Buyers who waive the appraisal contingency have a big competitive advantage in multiple-offer situations, but it’s a risk.
    5. Financing – Cash offer is best; Sellers like bigger down payments
    6. Reminder – don’t include personal property like lawnmowers or furniture in the offer. That goes on a Bill of Sale. Kitchen appliances, washer, dryer, are ok.
    7. Accelerator Clause (Addendum AC in Wisconsin)

  • Step 4 – Accepted Offer – Now get busy meeting your contingency deadlines

    1. Home inspection – 10-15 days typical, don’t wait to start! (Buyer pays). Regarding amendments to the contract relating to the inspection.
      1. Don’t say “Because of the roof problem, Seller agrees to give Buyer $2000 credit at closing.” If you do this, your lender will make you fix the problem before closing.
      2. Instead, say “Seller to give Buyer $2,000 credit for closing costs and pre-paids. Upon acceptance of this amendment, Buyer waives home inspection contingency.”
    2. Appraisal – 30-days typical, Buyer pays, $475 for typical home.
    3. Financing contingency 30-days typical
      1. Goal is to provide Seller with your Loan Commitment Letter stating your loan is officially approved, including the property, prior to the financing contingency deadline date.
      2. Best practice - don’t give the Loan Commitment Letter to the Seller until 1 day before the deadline.
    4. Well and Septic inspections (may not apply) paid by Seller
      1. Completed within X days of closing
      2. Same Right to Cure choice as Home Inspection. See 4a above.

  • Step 5 – Count Down to Closing

    1. Homeowners insurance - 2 to 3 weeks before closing, get your homeowners insurance policy lined up (even for a condo you have to insure the inside of your unit). We prefer paying the 1st year’s insurance premium at closing, not prior to closing. Provide the name and phone number of your insurance agent to Accunet.
    2. Initial Closing Disclosure - 8 days before closing, you receive the initial Closing Disclosure with all costs and estimated final amount of funds needed at closing.
    3. Final Closing Disclosure - 1 to 2 days before closing, Seller provides their “Seller Closing Statement” as though you were paying cash, reflecting all prorations, credits, commissions, taxes, etc., except those related to the mortgage. Accunet uses the Seller Closing Statement to create the final Closing Disclosure with the final dollar amount needed at closing.
    4. Money for Closing - 1 to 2 days before closing, we send you wiring instructions via SECURE email, and you contact your bank to wire the funds to the title insurance company the day before closing if closing is in the morning, or first thing on the day of closing if your closing is in the afternoon. Wiring the day before is always safest.

Get Your Rock-Solid Pre-Approval

Fill out the Form Below or Call (262) 781-1100