Buy a house online: A quick guide

It’s possible to purchase almost anything you can imagine online, including homes. While some might shy away from making such a major purchase online, others are happy to take advantage of the convenience that comes with buying a house online.

For some home buyers, purchasing a home online makes perfect sense, especially if you are buying a house far away from your current home. Instead of trekking back and forth to your new location, you can handle the legwork from the comfort of your couch.

This guide will walk you through the process of online house buying.

Online house buying: Where to start your search

The internet has transformed many areas of our lives, including how we search for homes. When starting your home search, diving into an online platform that showcases houses for sale in your target area might be your first step.

While you can start looking for homes online, this won’t replace the role of a real estate agent. Instead, it’s helpful to lean on the expertise of a seasoned real estate agent as you wade deeper into the home purchase process. Luckily, many real estate agents are willing to work with long-distance buyers and can act as your boots on the ground during the house search process.

As you start to look for homes online, the following tools can help.

Redfin^®

Redfin offers very accurate and up-to-date listings with detailed information about homes and neighborhoods within each listing. With detailed search criteria, you can filter for homes that meet your exacting criteria.

As you explore different listings, you’ll find plenty of supporting information about the property. For example, Redfin provides some details on potential climate risks, like flooding and wind, and school zone information, all of which can help you find the right home for your situation.

How to buy a house online

Looking at home listings online is a great place to start your search. But unlike most online purchases, you can’t simply add this item to your cart. If you want to finalize a house purchase online, use the following steps as a guide.

Step 1: Get mortgage preapproval

The first step to getting a mortgage is to get preapproved by a lender.

A mortgage preapproval is an official letter from a lender that outlines how much they may be willing to lend you for your home purchase. Although it’s not a guaranteed loan offer, it can give you a good idea of what you can spend on a home purchase. Plus, it indicates to sellers and agents that you are a serious buyer. 

If you want to stick to online home buying, it’s important to find a lender willing to provide digital document submission and accept e-signatures. Luckily, many online lenders are willing to work with buyers remotely.

Many online lenders offer quick preapproval. In contrast, in-person preapprovals could mean a drawn-out process involving appointments and manually reviewed documents.

Rocket Mortgage® makes online preapproval seamless through the mobile app or online. With the lender’s automatic document sharing feature, you can sign documents directly within the app.

Step 2: Find a real estate agent

A real estate agent or REALTOR^® is absolutely indispensable for online home buyers. Real estate agents are housing market professionals, and each one specializes in a different area. Your agent can help you navigate the market and learn about different neighborhoods, school ratings, property taxes, and other vital information. Plus, an agent can help you find local homes for sale that might not be listed on popular online platforms.

Your agent can also act as your “eyes and ears” on the ground. They can tour homes on your behalf and send you pictures or show you homes via video calls to fill in the gaps left by online listings.

In addition to help with home tours from a distance, working with an agent can be crucial in the real estate transaction process. Many agents have access to remote online notarizations or are able to arrange an in-home notary visit to sign closing documents.

Step 3: Shop for homes

With a preapproval letter in hand and a real estate agent on call, you can start to shop for homes in earnest. Consider creating a house shopping list to help you filter for homes that meet your needs. Some qualities you may want to consider include:

• The house style and type
• The number of bedrooms
• The types of appliances
• Local school district ratings
• Local property taxes
• The home’s distance to public transportation (if you don’t drive) or available parking (if you do)
• Whether the home has a pool, jacuzzi or spa
• The home’s overall condition (Do you need a turnkey property or are you open to making repairs?)

Online home shopping platforms make it relatively easy to quickly compare homes through filters like price, location, and amenities. As you find real contenders that might work for you, consider setting up a live video tour with the help of your agent.

Step 4: Submit an offer letter

After finding a home that you want to buy, the next step is to submit an offer letter. Essentially, an offer letter lays out your intentions to the seller, including the fact that you want to buy the home and under what conditions you’ll agree to the sale. Within this document, you can include details on any repairs that you want the seller to make, and if you’ll need any concessions for closing costs.

Though you can write your offer letter yourself, it’s wise to let your real estate agent handle this for you. Your agent knows how to communicate with the seller in a way that puts your interests first. They also know when they need to use legal terminology that makes the contract binding. Work alongside your agent and submit an offer letter that fits your needs.

From here, the seller has three options:

• Accept your offer: The seller can accept the offer as is with no changes to the sale terms.
• Reject your offer: The seller can outright reject your offer. In this case, you’ll need to submit a new offer or move on to a different property.
• Give you a counteroffer: The seller can counter your offer with a new one. Then, it’s up to you to continue negotiations, accept the offer, or move on.

Negotiating your home price can be a stressful and emotional process. Consult with your agent regularly for assistance and advice on how to negotiate.

Step 5: Prepare to close

Once the seller has accepted an offer, it’s time to move into the closing stages. Here’s what you can expect.

• Appraisal: An appraisal is a professional estimate of how much your home is worth. Appraisals are important because they confirm for the mortgage company that they aren’t loaning you more money than your home is worth. Generally, your mortgage company will assist you in scheduling an appraisal.
• Underwriting: Your mortgage company will also finish underwriting your loan and verifying your financial information. Throughout the underwriting process, your lender might occasionally need to contact you for more information or documentation. Respond to these inquiries as quickly as possible to keep your closing on track.
• Home inspection: You should schedule a home inspection before you commit to closing. A home inspection is not the same thing as an appraisal. An inspection tells you specifically what’s wrong with the home and what needs to be repaired. The inspection is crucial for online buyers because it tells you exactly what you’re getting into when you move in. While the inspector must review the house in person, you can review the results remotely.

Step 6: Close on your loan

Once everything is ready, it’s time to close on your home loan. You’ll receive a Closing Disclosure document to review the final details of the loan before closing.

When closing online, you might be able to e-sign the necessary documents. But some lenders might require you to work with a notary to sign the documents. Since online closing processes vary from lender to lender, reach out to your specific lender to understand how it will work for you.

The bottom line: Use the right tools to buy a house online

Buying a home online might start with using online listing platforms, but continues by working with a trusted agent to walk you through the purchase process. Depending on your situation, it might be easier and faster to buy a house online than slogging through the process in person. Just remember that you can’t return a home, like you easily can with other online purchases.

If you are ready to purchase a home from afar, start a Rocket Mortgage^® application online today.