Buying a home can be an exciting yet intimidating experience, especially when you're not sure what to expect for the overall cost and timeline. To help you move forward confidently with the home-buying process, I’m here with a closer look at the essential steps and expenses involved.
The first step is talking to a lender, such as myself, to get pre-approved. This involves completing a homebuyer consultation and credit report, as well as ensuring that you're comfortable with the monthly payment and down payment. This process is free and can take anywhere from a few minutes to several days.
Once you have your preapproval, the next step is to take that information to your Realtor and start looking at properties. This can take a couple of weeks or longer, depending on your preferences and the market.
Once you find a property you like, you'll write an offer, come to terms with the seller, and open escrow. Opening escrow means sending the contract to the title company to activate the file. They will require earnest money from you, which is a deposit that is typically equal to 1% of the purchase price. The title company holds this deposit until closing.
“Purchasing a home is a 30-day process that involves several steps and expenses.“
As soon as you go under contract in Arizona, you'll have 10 days to complete your home inspection, which generally costs between $400 and $600. The inspection report is normally 20 to 50 pages long. It details every aspect of the home, such as the condition of the roof, air conditioner, mechanicals, and utilities.
After the inspection, you'll need an appraisal. This is when an appraiser will measure the square footage of the property, analyze comparable homes, and deliver a 30-page report detailing the home's value. This process generally costs between $500 and $700.
After the appraisal is completed, you're about halfway through the home-buying process, which typically takes 30 days. During this time, the final underwriting is completed and your loan is officially approved within the next five days. The last 10 days are dedicated to signing paperwork at the title company, closing, and transferring the rest of your funds for a down payment.
Overall, purchasing a home is a 30-day process that involves several steps and expenses. While it can seem overwhelming at first, it's essential to work with a qualified lender and Realtor who can guide you through the process and ensure that everything runs smoothly. If you need help with your buying plans, don’t hesitate to call or email me. I’d be happy to guide you.