How To Buy A House Online: The Complete Process

You can buy virtually anything online these days – and houses are no different. From finding a mortgage lender to closing on the home, you can complete the entire process of buying a house online. However, there are upsides and downsides to this process as well, so your decision to make an online house purchase can depend on your personal preferences.

For any prospective homeowners who may be inclined to buy a house online, we’ve put together this step-by-step guide to help you along your journey.

Can You Buy A House Online?

Yes, and buying a house online is easier now than ever before. The COVID-19 pandemic has led businesses to become more flexible in their operations in order to continue servicing their customers. Because of this, real estate agents and mortgage lenders alike have started offering online services to help potential buyers find their new home.

Additionally, real estate technology, such as virtual reality, is more widely available today than ever before to help home buyers in their search. With such reliable real estate technology in place, buyers have successfully used these tools to their advantage.

Where You Can Buy Homes Online

Companies like Zillow, Trulia, Redfin and Rocket Homes℠ act as online real estate marketplaces where you can view home listings in various locations and narrow down your search based on home price, number of rooms and type of home.

Depending on where you search, you may also be able to find foreclosures to purchase online, as well as new constructions.

How To Buy A House Online

The process of online home buying might look a little different than buying a house the traditional way. Overall, though, the core steps and their importance remain the same.

Let’s break down those steps you’ll need to take to buy the home of your dreams online.

1. Find A Mortgage Lender

When it comes to finding a mortgage lender, you’ll want one that has a reputation for providing their customers with a great online experience. Thankfully, many have made their processes more adaptable to the needs of online clients. You can also work with a real estate brokerage to help you find the lender with the best home loan offering.

Once you’ve chosen a lender that can conduct business with you virtually, you’ll want to apply for a mortgage preapproval. The preapproval process helps you identify how much home you can afford, see what interest rate you qualify for and prove that your intentions to buy are serious. Having this completed before searching for a home can give you an edge over the competition by making a faster offer than those who haven’t been preapproved.

2. Get A Real Estate Agent

Finding a real estate agent or REALTOR^® who can help you through the process virtually is another step you’ll need to take. Above all else, you’ll need to find one you can trust and who has a good reputation. Completing your home search online requires more dependency on a real estate agent than the traditional process. You’ll be trusting the agent to choose a home that fits your needs, because you’ll likely be buying the house before seeing it in person.

Before choosing your real estate agent, ask them about their experience with remote home purchases to get a feel for how comfortable you’d be working with them. An agent can also be a great resource for inside knowledge of the area where you’re looking to move and can access the multiple listing service (MLS) to view homes not yet listed.

3. Look For Your New Home

Thanks to the services of many real estate database websites, finding your new home can be as easy as typing in a ZIP code and applying a few search filters.

Each online listing should feature photos and a full description of the property. The description should include square footage, property, age, number of rooms and bathrooms, and other noteworthy features. Your real estate agent can also send you recommendations for homes based on any of your must-haves.

Once you’ve identified a few houses that you’re interested in, your real estate agent will walk you through the home via virtual tour or video call. It’s critical that you ask as many questions as possible during this stage. If you’re unsure about the property due to poor video quality or a lack of questions being answered, don’t be afraid to ask for a second virtual tour. Buying a house is a big deal, and you want to be sure you’re going to be satisfied with the house you choose.

4. Make An Offer

Once you’ve selected the home you want to make an offer on, your agent will prepare and submit the offer. Having a local expert on your side will help you make an informed decision on how much you should offer.

Your real estate agent will be able to send your offer letter and any contingencies via email to the listing agent, and your agent will then let you know if your offer has been accepted, counteroffered or rejected.

5. Prepare For Closing

Once your offer is accepted, it’s time to move into the closing process. There are a few steps that you must complete before closing on your new home. These include getting an appraisal, an inspection and going through the underwriting process.

Appraisal

The appraisal is often conducted by a third party, and the buyer isn’t typically present regardless of whether you’re buying a house online or the traditional way. Once the appraisal is completed, your lender will notify you.

Inspection

A virtual home inspection might be slightly different from what you get with a traditional real estate transaction. In a traditional home inspection, the inspector will walk you through their findings as they are identified to give you a clear profile of the house you’re buying. However, this isn’t always possible with an online house purchase.

You may want to ask your agent if they can be at the house at the time of the inspection to take notes, photos or videos of the call. Be sure to have the inspector provide you with a detailed report via email. This way you can know exactly what you’re buying and have no unpleasant surprises when you move in.

Underwriting

Your mortgage lender will handle the underwriting stage, assessing all of your financial records and finalizing all of the paperwork you’ll need to complete for closing. Be sure to stay on top of your emails or messages in an online portal to verify that everything is up to date and being processed as needed.

6. Close On The House

Closing day is when you will sign all the necessary paperwork and hand over your down payment, as well as pay all closing costs. After this, you can officially call the house yours.

At your closing, a notary agent will likely be present. In some areas, you may be able to use the services of a remote notary agent that will meet with you to complete the paperwork. After this is completed, the title company will receive it in the mail.

Pros And Cons Of Online House Buying

Buying a house on the internet has its pros and cons, and for some home buyers it may be their only option. No matter your reason for buying a house online, it’s important to know the benefits and drawbacks of this approach.

Here’s an at-a-glance list of the pros and cons of online home buying, which we’ll cover in more detail below.

Pros

Buying a house online could be perfect for you if you want:

• To save time and money: Rather than spend time and money traveling to view prospective homes or attending open houses, you can search for and view homes from where you currently live. This can save you money on gas or plane tickets, as well as speed up the house hunting process.
• Convenience: Buying a house on the internet lets you perform every step of the home buying process from the comfort of your current home. This is especially useful if you’re unable to travel to the location of your prospective home.
• More options: Searching online can greatly expand your options for both homes and mortgage lenders. While you should still work with a real estate agent, you should research on your own as well to learn more about certain neighborhoods, schools and read customer reviews for prospective lenders.

Cons

Buying a house online can also have its pitfalls, such as:

• You’re buying sight unseen. The biggest disadvantage of buying online is the inability to see a property in person. On a proper walkthrough, home buyers get a full view of the house, including what works and what might need to be repaired or updated, which can be difficult to judge when buying online.
• You don’t get a feel for the neighborhood. Home buyers visiting a house in person can get a sense of their surrounding neighborhood, but that’s harder to do when you’re buying completely online. It’s important when buying online to research your potential new neighborhood thoroughly.
• First-time home buyers may find it stressful. If it’s your first time buying a house, buying online could be a stressful experience with all of the unknowns. First-time home buyers will likely feel more comfortable shopping in person for their first home.

Should You Buy A House Online?

If you’re unable to travel or you’re familiar with the home buying process, online home buying could be a convenient way to buy a house. Second-time home buyers may find the process easier than first timers.

The most important thing you can do when buying online is find the right support system. Whether you’re buying the house alone or with someone else, the process can be overwhelming – especially when navigating it online. Lean on those around you for support and guidance. It’s also important to hire a real estate agent, lender and attorney whom you can trust. Having this team of professionals on your side will make the process go much smoother.

The Bottom Line

With the advancement of technology and increased flexibility of services, buying a house online is more convenient and reliable than ever before. If you can find an agent who’s trustworthy and knowledgeable, you can be one step closer to getting the keys to your dream home – all from the comfort of your current home.

Ready to begin your home search? Get a mortgage application started today!