5 Steps to Buying a House in Indiana – Home Buying Process

The steps to buying a house (in Indiana) can be summarized into 5 basic steps. The home buying process may be different in your state, so be sure to check with a local Realtor!

Even if you’ve bought homes before, it’s a good idea to become familiar with the current market and the up-to-date home buying process so you don’t have any surprises along the way.

If you’ve never bought a home, this is a good reference for Indiana residents to look over and even refer back to once you go under contract to buy a home.

Here we go!

Step #1 – Find Your Professionals

Home Buying Process

The first step is finding a good REALTOR so that you have the guidance you need throughout the process. Make sure it’s someone you get along with and don’t mind spending time with. You’ll be talking a lot for a couple of months, at least!

After you’ve made that decision, securing a Lender is next. Your REALTOR should be able to provide a few Lenders they have had great success. Of course, if you already have a Lender, that’s good too!

You’ll need to get a pre-approval letter from your chosen Lender. This process can usually take place online and over the phone, so it’s convenient for you.

Once he/she has your information, they will tell you what amount you are approved up to.

My advice? You don’t have to spend every dime you are approved for. Take a look at the monthly payment associated with the price. Choose a payment you are comfortable with and use that house price as your guide when you start looking at homes.

You don’t want to be house poor, barely able to make your payment. You want to be able to buy furniture, do home maintenance and upgrades along the way.

So, now that you have a REALTOR, are pre-approved with the lender of your choice and know what you want to spend on a house, we move on to the next step…

Step #2 – Finding Your Home

Steps to Buying a House

Most buyers begin their search online. And, with your pre-approval in hand, you’ll know the price range you are comfortable looking in.

Undoubtedly, your REALTOR will set-up a search based on the criteria for a home you give them. Things like:

• Location (Neighborhood, Rural or City)
• 1 or 2 Level
• Lot Size
• Number of Beds and Baths
• Garage Size, etc…

I set my clients up with email notifications that arrive within seconds of a home going on the market. That way they have the most up to date list of homes available. We can act fast!

We can usually cull the list down to the homes you want to see in person and then we set up showing requests.

Once you’ve found “the one,” we move on to the writing of an offer.

Step #3 – Offer and Negotiations

Home Buying Process

During this step of the home buying process, your REALTOR will work with you to write a competitive offer in hopes the seller accepts.

There are lots of terms in the purchase contract besides the price. You’ll decide what to offer, like:

• Survey
• Home Warranty
• As-Is?
• or Inspections and Deadlines
• Earnest Money
• Closing Date
• Title Order
• Property Taxes
• Covenants, Conditions & Restrictions / HOA Deadlines
• What will convey with the home and what will not
• Possession date, etc…

Your Realtor will negotiate with the Listing Agent on your behalf. Occasionally it takes some finagling to get it right for both parties!

When you come to terms with the seller, you will officially be under contract to purchase a home.

Congratulations! Now on to the next steps in buying a house…

Step #4 – Pending Sale

Steps to Buying a House

During the pending portion of the transaction, a lot of things are going on and some of it is in the background. Different parties will be doing different tasks all with the goal of closing on your home.

• Buyer or Seller’s REALTOR Orders Title
• You make formal application for a Mortgage
• You pay the Earnest Money (usually held in escrow by the Listing Brokerage or the Title Company)
• You order inspections
• Initial Underwriting is approved
  • The Lender may request additional documentation from you for the underwriter
• The Lender orders the Appraisal
• CCR’s and HOA Documents are received
• Title Commitment is received
• Inspections take place and we receive the report
• Inspections are negotiated with the Seller (through the List Agent)
• Appraisal is received (negotiated if needed)
• All loan documentation is sent for final underwriting approval
• You receive the “Clear to Close” from the Lender

Almost there! Next steps to buying a house…

Step #5 – Closing

The Finish Line

The lender gives the “Clear to Close,” on your loan. Once that happens, the title company will complete the ALTA Settlement Statement. This statement shows all accounts of the monies for the sale of the home.

The REALTORS will coordinate the closing appointment with all parties.

On closing day, you will sign the ALTA, Mortgage and a myriad of other paperwork for the Title Company, Lender and local governing units.

You’ll get a copy of everything and the keys to your new home!

Congratulations! You made it through.