United States — Property: Buying Process

Why this matters

A relocating person should care about the buying process for property in the United States because it can significantly impact their cost of living and quality of life, especially in areas with high real estate prices or complex regulatory environments.

Key facts

• Lenders must give the Closing Disclosure at least three business days before the scheduled closing.
• Buyers should compare it with the Loan Estimate: loan amount, loan type, term, interest rate, monthly payment and any prepayment penalty.
• Charges for services you can shop for may rise at closing but generally by no more than 10% of the Loan Estimate.
• If an appraisal was done for the loan, the lender must give a copy at no cost at least 3 days before closing.
• A settlement agent (title or escrow company, or a closing attorney in some eastern states) prepares and records the transfer documents; buyers bring the cash-to-close amount by wire or cashier check.

Steps

1. Step 1: Find a Real Estate Agent — Contact a local real estate agency or individual agent to find someone who can guide you through the buying process. Look for agents with experience in your desired area and type of property.
2. Step 2: Get Pre-Approved for a Mortgage — Contact a lender or mortgage broker to get pre-approved for a mortgage. This will give you an idea of how much you can afford and will also make your offer more attractive to sellers.
3. Step 3: Inspect and Appraise the Property — Work with your agent to arrange for a home inspection and appraisal. These will help you identify any potential issues with the property and ensure that its value is accurate.
4. Step 4: Close the Deal — Meet with the seller, your agent, and other relevant parties to sign the final documents and transfer ownership of the property.