The Ultimate Home Buying Guide

The Ultimate Home Buying Guide: 
Step-by-Step Breakdown
Welcome to your comprehensive guide to navigating the home buying process. Whether you're a first-time buyer or returning to the market, this presentation walks you through each critical step from financing to receiving your keys. Let's demystify the journey to homeownership together.
Pre-Approval & Loan Options
Getting pre-approved is your crucial first step in the home buying journey. Unlike a basic pre-qualification, pre-approval involves a thorough financial assessment that results in a lender's conditional commitment.
Pre-Approval Validity: Typically 30-90 days, depending on your lender
Most sellers now require pre-approval letters with offers, especially in competitive markets.
Requirements
Credit check (620+ for conventional, 580+ for FHA)
Proof of income, assets, debts, and employment
DTI ratio typically under 43%
Verified funds for down payment & closing costs
Common Loan Types
Conventional: Typically requires higher credit scores
FHA: Lower down payment requirements
VA: For veterans with no down payment
USDA: For rural properties with no down payment
Jumbo: For high-cost properties above conforming limits
Don't forget about state grants and first-time buyer programs (I can help with this)!
Working with a Buyer's Agent
A dedicated buyer's agent serves as your advocate throughout the entire home buying process, offering expertise that can save you time, money, and stress.
Agent Responsibilities
Market analysis and pricing advice
Expert negotiation of terms and price
Drafting legally sound offers
Guidance through inspections and closing
Fiduciary duties including loyalty and confidentiality
Finding the Right Agent
Personal referrals from friends and family
Online reviews and testimonials
Local brokerage recommendations
Interview multiple agents before deciding
Always sign a Buyer-Broker Agreement that clearly defines your representation and compensation terms.
Important 2024 Update: Due to NAR settlement changes effective July 2024, buyers may need to pay their agent directly rather than through the traditional seller commission split.
Property Search Process
Define Your Search Parameters
Create two separate lists: absolute "must-haves" versus desirable "nice-to-haves" to focus your search.
Location/neighborhood preferences
Minimum bedrooms/bathrooms
Required features (garage, yard, etc.)
Deal-breakers (busy street, flood zone)
Utilize All Search Resources
Cast a wide net using multiple channels to find potential properties:
MLS access through your agent
Online platforms (Zillow, Redfin, Realtor.com)
Open houses and community drives
Off-market or "coming soon" listings
Refine and Adjust
Be prepared to evolve your criteria based on what you learn during the search:
Evaluate tradeoffs between price and features
Consider compromising on less important factors
Expand or narrow geographic boundaries
Timeline Expectation: The search typically takes anywhere from a few weeks to several months, depending on market conditions, inventory levels, and your flexibility.
Making an Offer & Negotiating
Strategic Considerations: Your agent will help you determine whether to offer above, at, or below asking price based on market conditions, comparable sales, and the property's condition.
Negotiation Timeline
Sellers typically respond within 24-72 hours
Multiple counteroffers may go back and forth
Final agreement can take several days in competitive markets
In seller's markets, you may need to consider waiving certain contingencies to make your offer more attractive, though this carries additional risk.
Components of a Complete Offer
1
Purchase Price
Your proposed amount, carefully determined based on comparable sales and market conditions
2
Earnest Money
Good faith deposit showing your serious intent (typically 1-3% of purchase price)
3
Contingencies
Conditions that must be met for the deal to proceed (inspection, financing, appraisal)
4
Closing Timeline
Proposed date for completing the transaction (usually 30-60 days)
5
Included Items
ApplianceS, fixtures, or other items you want included in the sale
Offer Acceptance & Earnest Money
When Is Your Contract Legally Binding?
Your purchase agreement becomes legally binding only after both parties have signed the contract in writing and all parties have received copies of the fully executed agreement.
Verbal acceptances are not legally binding in real estate transactions - everything must be documented in writing to be enforceable.
What Happens Next?
Your agent will provide you with copies of all signed documents
The contract is distributed to all relevant parties (lender, title company)
The earnest money deposit must be submitted
The due diligence period officially begins
Earnest Money Deposit (EMD)
1-3%
Typical Amount
Of the purchase price, held in escrow
1-3
Submission Timeline
Business days after offer acceptance
100%
Credit at Closing
Applied toward your down payment or closing costs
Your earnest money is typically refundable if you terminate the contract during contingency periods, but may be forfeited if you back out without a contractual reason.
Home Inspection & Due Diligence
The inspection period is your opportunity to thoroughly evaluate the property's condition before committing fully to the purchase.
Due Diligence Timeline
You typically have 10 days from contract acceptance to complete all inspections and review property disclosures.
What Inspections Cover
Foundation and structural integrity
Roof condition and remaining life
HVAC, plumbing, and electrical systems
Appliance functionality
Termite/pest inspection
Environmental concerns (radon, mold)
TRR Negotiation
You have 7 days to request repairs via the Treatment, Repairs and Replacements (TRR) addendum or request seller credits for identified issues.
Buyer Options
Accept the property as-is
Request repairs or credits
Terminate the contract and recover earnest money
Morgan's Pro Tip: Always attend the inspection in person to get direct explanations from the inspector about any issues found. Photos in reports don't tell the complete story.
Appraisal & Underwriting
The Appraisal Process
Your lender requires an independent appraisal to verify the property's market value matches or exceeds your purchase price.
Ordered by your lender, not you directly
Typically costs $450-650, paid upfront
Takes 1-2 weeks to complete in most markets
Loan Underwriting
The final loan approval process involves a thorough verification of both you as the borrower and the property itself.
What Underwriters Review:
1
Borrower Verification
Credit history and employment
Asset documentation
Debt-to-income ratios
Tax returns and bank statements
2
Property Verification
Appraisal report
Title search results
Property insurance
Flood zone determination
Once all conditions are satisfied, your lender will issue a "clear to close" status, allowing you to schedule your closing appointment.
If Appraisal Comes In Low: You'll need to either negotiate a price reduction with the seller, make up the difference in cash, or potentially terminate the contract.
Title Search & Escrow
Title Search Process
A comprehensive examination of public records to:
Confirm the seller legally owns the property
Identify any existing liens, judgments, or claims
Discover easements or restrictions
Verify property boundaries and legal description
Timeline: Typically takes 1-2 weeks to complete
Title Insurance
Two policies are usually issued:
Lender's Policy: Required by mortgage companies to protect their interest (you pay for this)
Owner's Policy: Protects your investment against future claims (optional but strongly recommended)
Coverage lasts for as long as you own the property
Escrow Process
A neutral third party manages the transaction by:
Holding funds and documents securely
Ensuring all contractual conditions are met
Disbursing payments when appropriate
Facilitating the closing process
Full escrow period: Typically 30-60 days
Oklahoma-Specific Note: While some states use attorneys for title and escrow, in Oklahoma, I recommend having your buyer's broker handle these aspects for a smoother transaction and potentially better service.
Final Walkthrough
The final walkthrough is your last opportunity to verify the property's condition before legally taking ownership. Schedule this inspection 24-48 hours before closing to ensure everything is as expected.
What to Check During Your 30-60 Minute Walkthrough:
Negotiated Repairs
Verify all agreed-upon repairs have been properly completed and request documentation for any work done.
Property Condition
Confirm no new damage has occurred since inspection (check for water damage, moving-related wall/floor damage).
Systems Operation
Test all mechanical systems, appliances, plumbing fixtures, electrical outlets, and HVAC to ensure proper functioning.
Included Items
Verify all items included in the purchase agreement (appliances, window treatments, etc.) remain in the property.
Bring your inspection report and repair documentation to the walkthrough for reference.
If Issues Are Found: Immediately document with photos and have your agent notify the Seller's agent. Depending on severity, you may need to delay closing, request funds be held in escrow, or negotiate a last-minute credit.
Closing Day
What Happens at Closing
Review and sign mortgage documents
Sign property transfer and title documents
Pay closing costs via certified funds or wire transfer
Receive keys, garage door openers, and access codes
Deed and mortgage are recorded with county
The document signing process typically takes 1-2 hours, though you should allocate more time in case of delays.
What to Bring
Valid Government ID
Driver's license or passport for identity verification
Proof of Insurance
Documentation showing your homeowner's insurance policy is active
Certified Funds
Cashier's check or wire transfer confirmation for closing costs
Closing Disclosure
The final settlement statement received 3 days prior to closing
The entire home buying process from offer to closing typically takes 30-60 days depending on financing and market conditions.
After Closing: Possession & Setup
1
Before Move-In (1-2 weeks prior)
Transfer utilities to your name (electricity, water, gas)
Set up internet/cable service
Update address with USPS, financial institutions, employers
Arrange for professional cleaning if desired
2
Upon Moving In
Change all locks and garage door codes
Test smoke/carbon monoxide detectors
Locate main water shutoff valve and circuit breaker panel
Clean air filters and dryer vents
3
Within First Month
Apply for Homestead Exemption (if applicable)
File important documents (deed, Closing Disclosure, loan note)
Create a home maintenance schedule
Meet neighbors and learn about community resources
The county recorder's office will officially update property records within a few days of closing, though the process can sometimes take several weeks to appear in online records.
Taking Possession
In most transactions, you'll receive keys and take possession immediately after closing. However, some transactions may include a post-closing occupancy agreement allowing sellers to remain temporarily.
Always discuss possession timing clearly during negotiations to avoid misunderstandings.
Final Considerations & Resources
1
Remember These Key Points
The home buying process typically spans 2-4 months from pre-approval to closing
Each state has specific laws and customs that may modify this general process
Working with experienced professionals significantly reduces stress and complications
Document retention is crucial - keep all paperwork in a secure location
2
State-Specific Considerations
This guide covers standard U.S. practices, but always verify local requirements. For example:
Some states require attorney involvement in closings
Property tax assessments and exemptions vary by location
Disclosure requirements differ between states
Helpful Resources
Financial Guidance
Consumer Financial Protection Bureau (CFPB)
Department of Housing and Urban Development (HUD)
State-specific first-time homebuyer programs
Legal Assistance
Local real estate attorney referrals
State bar association resources
Title company educational materials
Congratulations on taking this important step toward homeownership! This guide will help you navigate the process with confidence.
You're Officially Ready to Buy a Home!
Whether you’re still researching or already touring properties, this guide has equipped you with a step-by-step understanding of what to expect — from pre-approval to closing day.
But no guide replaces real-world support.
If you have questions, want a local expert in your corner, or need help navigating your next move, I’m here to help.
📬 Reach out any time — I’d love to walk this journey with you.
Morgan Tipton
Realtor®, Keller Williams Advantage
📧 [email protected]
📱 (918) 857-0084
🌐 morgantipton.com