Utah Home Purchase Process

Buying your first Home?  It is important for you to understand the process completely before starting. Listed below are the steps necessary for a successful Home Buying experience.

Getting Pre Qualified

Decide where you want to live and how many bedrooms and bathrooms you will need. Condominiums offer shared amenities with little responsibility. Single family homes offer more space and privacy but much more exterior and yard maintenance.  Think about how far you are willing to commute to work.  Be willing to comprise if you find a home with most of the things you want.

Hire a Realtor

Your Realtor should be an expert in the area where you want to live and be familiar with the type of home you want to buy.  Your Realtor has experience in your neighborhood and can offer the best advise on homes in your range.  Ask for referrals from people you know who have recently bought or sold a home or choose an agent in the neighborhood who is less than 20 minutes from the neighborhood you want to live.

Select your Home

No home is perfect, so expect to find a few things that are disappointing.  Try to see past minor flaws such as bad paint colors or older carpet. Is this the house you would want if it were painted and had new carpet?  Which home best suits the activities and needs of your household now and in the years ahead?

Make an Offer

If a home has been on the market for a long time, you can ask the seller for a price reduction, repair concessions and help with closing costs, but if it's new on the market, the Seller is unlikely to accept an offer lower than the asking price.  Ask your Realtor for advice and a Comparable Market Analysis (CMA) so that you can determine a fair offer price.  Be sure to make your offer contingent on a satisfactory inspection.

Get an Inspection

The Home Inspection is a professional third-party opinion of the home's condition.  The inspector works for you, so it is his job to point out problems big and small.  He will check age of all systems, note large and small repairs that are needed, code violations and so on.  You need to know what problems and expenses you will be facing as the next owner.

Renegotiate Terms

If the Home Inspection reveals a problem that is more severe or is not noted on the Seller Disclosure of the property, you should renegotiate terms.  Either request the Seller fix the problem or ask for a price reduction if you prefer to fix problems yourself.

Get an Appraisal

The Appraisal determines Market Value.  If the home doesn't appraise for the Purchase Price, the bank will refuse to make the loan unless you increase the size of your down payment or renegotiate a lower price with the Seller.  If the home meets the appraisal price then the lede will move toward closing.  Pay close attention to the comparable that the appraisal uses, they may skew the value in a different direction than you might be expecting

Go to Closing

Final negotiations are complete and you have done a final walk through of the property to make sure all repairs have been made, the parties to the transaction meet at the Title Insurance Office.  All paperwork is signed by both parties.  The lender pays the Seller minus any liens against the home such as the Seller Mortgage.  Once all the disbursements have been made and the Sale has been recorded with the County, you get the keys to your new home according to your contracted agreement.