What Homebuyers Should Expect: Step-by-Step, Including Brokerage Compensation Forms

Buying a home is a major milestone, and understanding every step can help you feel more confident and prepared. Here’s a clear roadmap of what to expect on your journey to homeownership—plus a look at the important brokerage compensation forms you’ll encounter in New Mexico.

1. Prequalification & Preapproval

Before you look at homes, meet with a lender to get prequalified or preapproved for a mortgage. This step gives you a realistic budget and shows sellers you’re a serious contender.

2. Understanding Brokerage Compensation (RANM Form 1100 & 1206)

In New Mexico, before you can preview any property, your REALTOR® will provide you with the RANM Form 1100 (Information Sheet Brokerage Compensation) and the RANM 1206 (Buyer Brokerage Compensation). These forms explain how your agent is compensated and clarify that, under current practice, the buyer pays for the REALTOR’s services. It’s important to review and understand these documents before touring homes, so you know exactly what to expect regarding fees and representation.

3. House Hunting & Making an Offer

With your preapproval and compensation forms signed, you’re ready to start touring homes! Once you find a property you love, your agent will help you craft a competitive offer, outlining your price, contingencies, and any terms important to you.

4. Inspections

After your offer is accepted, you’ll schedule a home inspection. This step helps uncover any hidden issues. Depending on the results, you may request repairs or negotiate credits with the seller.

5. Appraisal

Your lender will order an appraisal to confirm the home’s value matches the purchase price. If it appraises lower, you may need to renegotiate or cover the difference.

6. Objections & Negotiations

If the inspection or appraisal reveals concerns, you have the right to make objections. This is your opportunity to work with the seller on repairs, price adjustments, or walk away if needed.

7. Home Insurance

Securing homeowner’s insurance is a must—your lender will require proof before closing. Shop for coverage that fits your needs and budget.

8. Final Loan Approval

After the paperwork, inspections, and insurance are complete, your lender will give final approval—often called “clear to close.” This is the last green light before you officially become a homeowner.

9. Final Walk-Through

Just before closing, you’ll do a final walk-through to ensure the home is in the agreed-upon condition and any repairs were completed.

10. Closing

On closing day, you’ll sign all the necessary documents, pay any closing costs (including your REALTOR’s compensation, as disclosed in the RANM forms), and finally receive the keys to your new home. Welcome to homeownership!