Buyer Education
Home Design & Realty — Buying Process Guide
This explains the buying process step-by-step: what happens, what decisions you’ll face, what timelines look like, and where buyers accidentally create delays or risk their approval. No fluff. Just clarity.
How the buying process actually works
Most buyers think the process is: pick a house → get a loan → close. The real process has multiple “gates” where timing, documents, and inspections can shift the deal. Knowing the gates ahead of time keeps you calm and keeps your leverage.
1) Pre-Approval + Budget (Set the ceiling, not just the payment)
Step 1
A pre-approval tells you what a lender may allow, but your real budget is what fits your life.
- Get pre-approved early: it strengthens your offer and narrows your search.
- Budget for ownership: taxes, insurance, utilities, maintenance, HOA (if applicable).
- Plan cash needs: earnest money, inspection, appraisal, and any out-of-pocket closing items.
2) Search Strategy (What matters vs what “looks nice”)
Step 2
The best buys usually come from clarity: needs, non-negotiables, and location priority.
- Must-haves: beds/baths, layout, commute, school zones, acreage, etc.
- Deal-breakers: foundation issues, flood zones, major repairs, zoning, etc.
- Reality: no home is perfect—your goal is the best overall fit and value.
3) Touring + Shortlist (How to evaluate quickly)
Step 3
When you tour, you're looking for big-ticket risk and long-term livability.
- Major systems: roof age, HVAC condition, windows, plumbing signs.
- Layout flow: how you actually live (not just how it photographs).
- Neighborhood: noise, traffic, surroundings, and future resale factors.
4) Offer + Negotiation (Price is only one lever)
Step 4
Offers are a bundle: price + terms + risk. Good terms can beat a higher number.
- Earnest money: shows seriousness and can strengthen your offer.
- Contingencies: inspection, appraisal, financing, and timing.
- Closing timeline: speed can win in competitive situations.
- Concessions: closing cost help, repairs, credits—negotiated based on leverage.
5) Under Contract: Inspection (Know what’s “real” vs “normal”)
Step 5
Inspections are where buyers protect themselves—and where deals can stall if expectations are unrealistic.
- Inspection findings: nearly every home has items—prioritize safety and major function.
- Negotiation options: repairs, credits, partial agreements, or walking away (rare, but real).
- Focus: protect your future costs without turning the process into a fight.
6) Appraisal + Underwriting (Loan approval is a process, not a moment)
Step 6
Your lender verifies documents, employment, and assets, and orders an appraisal.
- Appraisal: confirms value for the lender; low appraisals can trigger renegotiation.
- Underwriting: be ready for document requests—fast responses keep the timeline tight.
- Don’t change anything: large purchases or new debt can impact approval.
7) Final Walkthrough + Closing (Finish clean)
Step 7
You verify the property condition matches the contract and agreed repairs.
- Walkthrough: confirm repairs, systems, and that nothing changed unexpectedly.
- Closing: documents signed, funds transferred, title recorded.
- Keys + possession: per the contract terms and closing timing.
Want a realistic plan for your search?
If you want the best path based on your budget, timeline, and Arkansas market conditions—call us.
Call Home Design & Realty
(501) 217-9909
Educational page only. Actual steps and timelines depend on your contract, property condition, and lender requirements.
Buyer FAQ + Loan Tips
These are the questions that matter. Read this before you write an offer so you know what’s normal, what’s a red flag, and how to protect your approval.
How much do I need for a down payment?
It depends on your loan type, credit profile, and goals. Many buyers use low down payment options,
but you should also plan for closing costs and inspections.
- Conventional: can be low down payment for qualified buyers.
- FHA: often used by first-time buyers due to flexible requirements.
- USDA/VA: may allow zero down for eligible buyers (area/eligibility dependent).
What should I avoid once I’m under contract?
This is where buyers accidentally hurt their approval. Until you close:
- Do not finance big purchases: cars, furniture, appliances, etc.
- Do not open new credit: new cards or “store accounts” can change your ratios.
- Do not change jobs: even positive changes can trigger lender re-verification delays.
- Do not move money around: undocumented transfers can create underwriting problems.
What happens if the appraisal is low?
A low appraisal can trigger renegotiation. Common outcomes:
- Seller adjusts price to appraised value.
- Buyer brings extra cash to cover the gap.
- Terms change (concessions adjusted, etc.).
- Deal cancels if no agreement is reached (less common, but possible).
Do I really need an inspection?
In most cases, yes. An inspection helps you understand major systems and potential future costs.
It also gives you a basis to negotiate if serious issues are discovered.
How long does the buying process take?
Typical financed closings often land around a month-ish, but it depends on lender speed, appraisal timing,
title work, and any negotiations needed after inspection.
What are closing costs and who pays them?
Closing costs include lender fees, title/settlement fees, escrow setup, and other items.
Some costs are buyer-paid, some are seller-paid, and some can be negotiated depending on your offer and leverage.
How do I know if a home is “a good deal”?
A good deal is a mix of price, condition, location, and future resale. We compare:
- Recent sold comps (not just active listings).
- Condition and repair risk.
- Neighborhood demand and long-term value stability.
If you want the simplest next step:
call us. We’ll map out a plan, talk through loan realities, and help you avoid the common traps.
Call Home Design & Realty
(501) 217-9909
Educational guidance only. Loan programs and requirements can change; your lender is the source of final underwriting decisions.