Home Buying Process, Home Buying Checklist, Southern UT

HOME BUYING PROCESS

If you are a first time home buyer, you may be ready to jump in head first and start looking for your dream home. You’ve saved up all your pennies, and with thoughts of a grandiose mansion you decide to buy. However, a house - like most big decisions - requires some forethought in order to make that dream a reality. But, buying one may be easier than you think.

First things first, you need to find a Realtor. Some people think it is best to buy a home without a licensed professional, but we would highly recommend against it. Think of it this way, if you had appendicitis, would you try to remove your appendix yourself? Of course not! You would find the most qualified professional to do it! It only follows that when you make what will probably be the biggest purchase of your life, you find a qualified professional. Another reason to use a realtor when buying a home, is because 99% of the time, you don’t need to pay the buying agent anything – but we will get into that later.

After you find a realtor, you will sign something called a Buyer Broker Agreement. This document means you will only work with this Agent and their Broker (a type of agency); and in return they are legally bound to work in your best interest. Without signing a Buyer Broker Agreement, you put yourself in danger of being misrepresented and losing all negotiation power. However, after signing this document, you have the full loyalty of the Realtor and their Brokerage. After years of experience, training, and continuing education: they are masters of negotiation.

Picture of a african american womans hand shaking a caucasian woman's hand in front of a blurred out background of a 2 story brown and cream home in st george utah.

Picture of an upper view looking down from the ceiling of a modern boho chic living room. The living room features a rose gold two tier upside down wedding cake shaped chandelier. The flooring is a dark almost black wood and has a white rug with tassels and black lined diamonds on it, covering most of the room. There is a glowing fireplace surrounded by gray rock and a light wood mantel. Above the mantle is a picture in black and white of the ocean. There are two vases on the mantle in white. On two sides of the rug are a love seat and a sofa both in cream and holding many pillows of black and white and gray.

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The next step is to find a lender that can help you get a home loan. Getting a pre-qualification letter is very necessary in order to view homes. A Pre-Qualification letter is basically a letter saying that you can afford to pay a mortgage for x amount of dollars. It is really easy to get a pre-qualification letter: you meet with a lender, they ask you certain questions (your name, marital status, income, social security number, etc.), they pull your credit, and through a bunch of math mumbo jumbo they tell you just how much you can afford. Knowing how much you can afford is necessary in order to set your expectations.

Setting expectations is one of the first things you will do with your Realtor. Being a professional who has been around the block a few times, your Real Estate Agent will help you determine what to expect from what you can afford. If you can afford a new construction house, or an older home, four bedrooms or three, a large yard or a great view. They can also steer you towards family friendly neighborhoods or a bustling metropolis. Knowing the area, and the market, your Realtor can guide you to the best match for you.

After setting expectations, your Realtor will look on the MLS (Multiple Listing Service) for all the homes that suit your needs. The MLS is a big database where all of the licensed realtors post the houses that they are listing. This is why you most likely won’t have to pay your Agent. When someone sells a home, they offer the selling Realtor a 6% commission on the house. The Selling Agent then offers half of that to the Buying Agent. This is a win/win situation. It helps sell the house faster (which means that the selling agent gets paid faster), and the buyer doesn’t pay the Buying Agent anything. If you have any other questions about how a realtor gets paid, call: 435-220-3393.

Picture of a close up of a mom and dad with their baby in the middle laying on a white bed. The baby only has a diaper on and is about 2 months old. The man has a dark black beard and the woman has golden hair sprawled out on the bed. They are all sleeping soundly.

Picture of a contemporary living room. The center of the picture is a large wooden art fixture in the shape of a picture frame with twigs covering it. The back wall is a dark gray and has a metal sunflower art piece. A light wood coffee table sits in the center of the room. The room holds two more chairs and a sofa.

Picture of a computerized drawing of a small home with an oversized key suspended in the air ready to unlock the southern utah house.

Now that your real estate agent has found you a house on the MLS, they will schedule a time for you to go and see that home. You go in, fall in love, and have your agent write up an offer. Using your pre-qualification letter, and their professional negotiation tactics, they write an offer the seller just can’t refuse. The Seller accepts. Then you go through the wonderful process of finalizing the purchase.
There are a few key dates that your Realtor will help you be aware of, such as the Seller Disclosure Deadline, Buyer Due Diligence Deadline, Financing & Appraisal Deadline, and the Settlement Deadline.

Seller Disclosure Deadline: The Seller Disclosure Form is something that is legally required to be given to buyers. Your Realtor will make sure you know everything about the property before you buy it. This form needs to be filled out, signed, and given to you before the Seller Disclosure Deadline.
Buyer Due Diligence Deadline: This deadline is very important. If you find something wrong with the house (structural damage, termites, mold, etc.) before this deadline, you can get out of the contract and get your earnest money back.
Earnest Money is a form of deposit when you first write up an offer. It is due within 24 hours of submitting an offer, and is a way of showing how interested you are in the house. If you default on the contract, the seller gets the Earnest Money. However, if there is a problem with the Seller’s Disclosure, or you find a problem before the Buyer Due Diligence Deadline, you can default without losing your Earnest Money. If you have any questions about Earnest Money, or anything else, call 435-220-3393.

Picture of a white document on a black background and a hand holding a fountain pen signing the document. This document represents your closing documents signed upon closing your home.

Picture of a computerized home. Behind it in big bold letters is the word bought in red. A signature that reads P. Smith is written in cursive below the house with a hand holding a pen.

The next deadline you need to know about is the Financing and Appraisal deadline. Unless you are sitting on a ridiculous amount of cash, for your first house you are going to need to get a loan. That is where this deadline comes in. If your loan doesn’t go through, you have until this day to cancel without losing your Earnest Money.
Last but not least, the Settlement Deadline. This is the day that you close on your new home! You will go to a Title Company to sign the papers, and there an Escrow Officer will walk you through all the paperwork as you sign the last of the contracts.
Congratulations! You have just finished the home buying process! Don’t forget to forward your mail, put the utilities in your name, and meet all of your new neighbors.

A Maple wood background with the word home spelled out in light blue wood block letters. About that is a knit heart in the same light blue.

Picture of a man holding three boxes, which cover his face and most of his body. He is packing to move. The boxes are precariously positioned as if they might fall.

Picture of the words open house, written boldly on a gray piece of paper with a bearded man in the background blurred out and holding it.

Southern Utah Realtor