Buying A New Home
Buying A New Home
By: Clay Roe, Assistant Vice President

One of the biggest private financial transactions that many of us are likely to engage in is the purchase of a new home. If you are thinking about purchasing a new home, what should you expect? Some of the factors in the home buying process are described below. Separate articles examine the loan application process and what happens at closing.

A homeowner can attempt to sell a home on his or her own, but often the owner will list the home for sale through a real estate broker. Sometimes a buyer will hire a "buyer's broker" to represent the buyer in the home-buying process. In many transactions, there will be two real estate brokers, one representing the buyer and one representing the seller. In some states, a real estate broker may have obligations to both parties to a transaction, which can be difficult since there are potential conflicts of interest. You need to know who the broker you are dealing with represents - the seller, the buyer, or both?

When the buyer and seller reach agreement regarding the terms of the sale of the home, a written sales contract needs to be drawn up. The form used could be a preprinted form with fill-in-the-blank spaces that is provided by the realtor, the seller, or the seller's attorney. Before signing the contract, consider having it reviewed by an attorney to make sure your interests are protected. And note that many lenders will require a copy of this contract as part of the loan application process.

What are some of the variables included in a sales contract besides the sale price? Some of the typical provisions include, but are not limited to, the following:

Now that you've contracted to buy a house, what happens next? See "Applying for a Residential Mortgage Loan."

This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service or as a determination that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situations, and particular needs. This article is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought.


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