A Complete Guide to the Home-Buying Process


Important Steps in the Process of Purchasing a Home

  • Obtain Financial Pre-Approval through Bank or Credit Union
  • Select/View Properties
  • Make Offer with copy of Earnest Money $500.00 to $1,000.00
  • Negotiations and Counter Offers
  • Offer Accepted = schedule Home Inspection
  • Repair Addendum if necessary or contingency removed
  • Appraisal -  scheduled by lender
  • Title Search and Examination
  • Seller schedules termite inspection/wood infestation report
  • Loan to Underwriting- Clear to Close
  • Final Walk Through- usually day before or same day of closing
  • Close on the Property
  • Take Possession
  • File deed at courthouse and file for Homestead Exemption which reduces your tax amount in half in the state of Alabama if you are using the home as your primary residence.

Money paid for upfront by the buyer: after signed contract

  • Earnest Money- goes toward purchase.. (usually $500 to $1,000)
  • Home Inspection and any other inspections $250 to $600
  • Appraisal – $425-$525 (some lenders include in closing costs)


Closing Costs, storage buildings, washers, dryers, and refrigerators can be negotiated with the seller.

 Stoves/Ranges, ceiling fans, built in microwaves, light fixtures and most window treatments all stay with the property after closing.