STEPS TO BUYING A HOME
Welcome to Matthews Real Estate Group - Your Trusted Real Estate Partner
- Phase 1: The Financial Foundation (Before You Look)
- Step 1: The Preliminary Budget Check The client looks at their monthly income, debts, and savings to estimate what they comfortably want to spend.
- Step 2: The Lender Conversation & Pre-Approval (Where they are now) The client talks to a mortgage loan officer and submits paperwork (tax returns, W-2s, pay stubs, bank statements). The lender verifies their credit and assets, then issues a Pre-Approval Letter. This tells everyone exactly what the maximum purchase price is and ensures they are looking at the right inventory.
Phase 2: The House Hunt & The Offer
- Step 3: The Needs vs. Wants Consultation Now that you have a hard budget, you sit down to map out their criteria (neighborhoods, bedrooms, school districts, layout).
- Step 4: Home Shopping You take them to view properties that fit their pre-approved budget.
- Step 5: Writing and Submitting an Offer When they find "the one," you pull comparable market data, help them decide on an offer price and terms (earnest money, contingencies, closing date), and submit the formal purchase agreement.
- Step 6: Negotiation & Mutual Acceptance The seller accepts, rejects, or counters. Once both parties sign and agree to all terms, you are officially under contract.
Phase 3: Under Contract & Due Diligence
- Earnest Money Deposit (EMD): Typically 1-3 days after acceptance.The client deposits "good faith" money (usually 1% to 3% of the purchase price) into an escrow account to show the seller they are serious.
- Home Inspection:Typically 5-10 days after acceptance.The buyer hires a licensed home inspector to check the property’s structure, roof, plumbing, HVAC, and electrical systems. Based on the report, you negotiate any major repairs or price reductions.
- Full Loan Application: Parallel to inspection.The buyer sends the finalized executed contract to their lender to transition the pre-approval into a formal loan application and lock in an interest rate.
- The Home Appraisal: Ordered by the lender.The lender hires an independent third-party appraiser to determine the fair market value of the home. This ensures the lender isn't loaning more money than the property is actually worth.
- Title Search & Homeowners Insurance: Before closing.A title company checks the property's history to ensure there are no liens or ownership disputes. Simultaneously, the buyer secures a homeowners insurance policy, which lenders require.
Phase 4: Closing the Deal
- Step 7: Final Underwriting & "Clear to Close "The lender’s underwriting team reviews all final financial documents and conditions. Once satisfied, they issue the glorious Clear to Close (CTC).
- Step 8: Reviewing the Closing Disclosure (CD) At least 3 days before closing, the buyer receives a CD breaking down every single fee, loan term, and the exact dollar amount they need to bring to the table.
- Step 9: The Final Walk-Through Usually the morning of or the day before closing, you and the client walk through the house one last time to make sure agreed-upon repairs were made and the home is in the same condition as when they made the offer.
- Step 10: Wiring the Down Payment & Closing Costs The buyer works with the closing attorney or escrow company to securely wire their funds (down payment + closing costs) to the closing account. Pro-Tip for your clients: Remind them to always verbally verify wire instructions over the phone with the title company before sending money to prevent wire fraud.
- Step 11: Closing Day (Signing & Funding)Everyone sits down at the closing table. The buyer signs a mountain of loan documents, the lender funds the loan, the deed is recorded with the county, and you get to hand over the keys!
Buyers and Sellers Next steps
Buyer Next Steps
Here are next steps.
Turn in paperwork to your lender of choice. You can lock your rate or float the rate and try to get something better. If you are shopping lenders now is the time to choose because you will want to order appraisal once we complete inspection. If you have not talked to Naveed Bhurgri 678-343-5987 https://atlantichm.com please call him today for updated rate and loan.
Due Diligence time. This is your “free look” period. You need to get inspection completed, get insurance quote, check neighborhood HOA docs, check neighborhood sex offender list, crime reports, radon/air quality reports etc. We can back out without penalty during this time. After this period, you could be subject to losing your earnest money if you back out. We do have appraisal clause, but that is different.
Call to get a quote on Home Insurance
You can choose any provider, but usually your best option is the same company as your car insurance. I am a big insurance shopper and constantly update my policy to save the MAXIMUM amount of money. I have never had to use insurance, so I like to keep my premium low. I personally have a $5,000 deductible.
I like AllState in Sandy Springs (ask for Kevin) 770-405-0713 tell them Steve sent you and you will get great service.
Next step.
We will need your earnest money of $xxxx payable to Matthews Real Estate Group according to contract timeframe.
This can be a personal check, or you can wire the money. Over $10,000 must be a wire.
Schedule inspection. You can typically order air quality and radon with inspection. Ask about getting a free wood inspection report. Sometimes they offer, sometimes they don’t, but always good to ask. If you want a “termite” inspection the cost ranges from $55-$75
- ALPHA HOME SERVICES LLC
www.alphahomeservices.com 770.751.0737 scott@alphahomeservices.com - AmeriSpec - 770-935-4990
https://www.amerispec.com - BGP Inspections
https://www.bpginspections.com - Champia Real Estate Inspections 770.953.0767 www.champia.com
- David Van Vurst
Phoenix Real Estate Solutions
678-414-6380
david@phoenixresolutions.com
https://www.phoenixresolutions.com - LunsPro ($50 off with my referral code TRYUS)
https://lunsprogeorgia.com
770-483-2808
If you would like to get a survey now is a good time. Please remember this is not required and can sometimes take up to 4 weeks to schedule. Here are a few to consider.
Once you are completed with inspection and turned all your loan docs in you sit back and relax (or start packing). Once we are about a week from closing you will get a mad rush for updated paperwork to lender, schedule utilities, sign lender CD (closing disclosure), we will schedule walk through day of closing, wire down payment and head to closing. Closing lasts about an hour or less and you just need to bring your ID.
We will review each step as they happen but wanted to give you a general overview.
Seller Next Steps
Snapshot on offer
- Purchase price xxx,xxx.xx
- Seller paid closing costs xxxx
- Close date xxxx with possession xxx
- EM $xxxx due within xxx days - over $10,000 always must be wired
- xx-day inspection period ends at midnight no xx
- xx-day approval on loan
- xx days for the appraisal (keep in mind this can take about 2 weeks to get back then another week for review - order as soon as you have inspection completed or sooner)
Here are next steps.
During the due diligence period we do nothing, remember the buyer can back out for any reason. If they find something wrong during the inspection, they have 3 options. For inspection on the xx please be sure all areas are accessible. Also, it isn’t uncommon for the inspection to be completed and the buyer to ask for an extension to review items. If it is an investors they always play by their rules so just be patient.
- Terminate
- Renegotiate price
- Negotiate repairs
We will cross that bridge as it comes.
Once Due Diligence is completed the next hurdle is the appraisal. We really don’t have any control as this is ordered by the lender. I do my best to provide a justification for our sales price. Most appraisals are coming in at contract price.
After appraisal we will need to coordinate with the attorney on title and payoff. We will typically hear from the attorney requesting a “seller information sheet.” Please fill that out as soon as possible. If you don’t want to come to closing, we can either do a mailout or power of attorney. Not a big deal.
Please remember to continue to pay bills and keep utilities on, it is still your responsibility until we are finished with closing. After closing you can terminate insurance and utilities.
Not to worry I am involved every step of the way and will make sure everything goes smoothly.
Landlords
Looking for Attorney help with Property Management?
David J. Metzger
404-373-9304
Need a litigation attorney? hopefully not but if so these are attorneys recommend by our team.
James Craig
404-470-4950
https://craiglegal.law/people/
Jon David Huffman
404-373-4008
Carol Clark
(404) 250-3300
Thinking about 1031 exchange
The details on 1031
A 1031 exchange (named after Section 1031 of the Internal Revenue Code) is a powerful tax strategy that allows real estate investors to defer capital gains taxes when selling an investment or business property and reinvesting the proceeds into another "like-kind" property.
Instead of paying taxes on the profit (capital gains) from the sale right away, you can roll over the equity into a new property, postponing the tax bill—potentially indefinitely if you keep exchanging properties. Taxes are only due when you eventually sell a replacement property for cash (or otherwise cash out).
Key Requirements (as of 2026)
- Property must qualify — Both the sold ("relinquished") and acquired ("replacement") properties must be real estate held for investment or productive use in a trade/business. Personal residences, vacation homes (primarily personal use), or personal property don't qualify. "Like-kind" is interpreted broadly for real property—e.g., you can exchange an apartment building for raw land, a commercial office for farmland, or a rental house for industrial space.
- Strict timelines — You have 45 calendar days from the sale closing to identify potential replacement properties (in writing to a qualified intermediary). You then have 180 calendar days total from the sale to complete the purchase of the replacement property(ies).
- Equal or greater value — To fully defer taxes, the replacement property must be of equal or greater value, and you must reinvest all equity and replace any debt relief (or "boot" like cash received triggers partial taxation).
- Qualified intermediary — You can't touch the sale proceeds yourself; a neutral third-party facilitator (qualified intermediary) holds the funds to avoid constructive receipt.
Benefits
It helps investors upgrade portfolios, consolidate holdings, diversify, or relocate investments without an immediate tax hit—compounding wealth over time through deferred taxes.
Important Notes
The rules have remained stable following recent legislation (like the One Big Beautiful Bill Act in 2025), with no caps or major restrictions added to real property exchanges as of 2026. However, strict IRS compliance is critical—many exchanges fail due to timing, identification errors, or boot issues. Always consult a tax advisor or 1031 specialist for your situation, as state taxes (e.g., California's clawback rules) may still apply in some cases.
This tool has been part of the tax code since 1921 and remains a go-to strategy for active real estate investors.
Eleana Hickey
Atlanta Deferred Exchange, Inc.
Two Ballpark Center
800 Battery Ave SE
Suite 100
Atlanta, GA 30339-5107
