Buying your house is already difficult as it is. What more if you have not a single idea on where to start and if it is your first purchase?

Knowing the basic steps in buying a home does not only help you get the best on the market but it also spares you from undergoing all the hassles of real estate buying.

Below is the outline of the stages in buying a home:

1. Make an Offer

Once the purchaser sees a home that she wants, she makes an offer to purchase with the seller. If the offer is accepted, then both the purchaser and the seller inform the real estate broker and their respective real estate lawyers. The seller’s attorney prepares a Contract of Sale and forwards it to the purchaser’s attorney for review. It is at this point that the purchaser should seriously consider retaining the services of a building inspector. While not required, an inspection by a qualified building inspector can help the purchaser to better understand the condition of the home and what the purchaser should expect with regard to repairs, etc.

2. Down payment

When the purchaser signs the Contract of Sale they usually make a down payment which is held in the escrow account of the seller’s lawyer. It is usually 10 % of the purchase price but can often be reduced upon request. The main purpose of this is to ensure that the purchaser is serious about the transaction and will not attempt to back out once the contracts are signed.

Provided all of the parties comply with the terms of the contract, the only way that the purchaser can get the down payment back is if they do not obtain a mortgage loan, if the cooperative corporation does not approve the purchase of a cooperative apartment, or if the seller cannot transfer good title of the property to the purchaser.

3. Obtain the Necessary Financing

After the seller signs the contract of sale, the purchaser needs to make best efforts to obtain financing. If the purchaser is not sure how to go about this, they should ask for advice from their real estate lawyer.

As the mortgage process progresses, the purchaser’s attorney will probably order a title report which will indicate if the seller actually owns the property, if there are any judgments against the seller or the purchaser, if there are any building violations issued by the municipality, if the seller has a mortgage or mortgages to satisfy at closing, and if the Certificate of Occupancy covering the premises matches the dwelling.

4. Schedule Closing

Once the title report has been received and once the purchaser’s mortgage lender is ready to give the purchaser the money to purchase the home, a closing can be scheduled.