Buyer

Regardless of how times change, owning a home remains the cornerstone of the American dream.

Home buying is probably the biggest financial commitment you’ll ever make. Buying a home is not just a dollars-and-cents investment; it’s an investment in your life. It will create a sense of stability and identity for you and your family.

Start with a realistic idea of the property you’d like to buy. What features are the most important to you? Make two lists with one of the items that you can’t live without and the other of features you would enjoy having. Refine the lists as we house hunt. Next, you’ll be ready to visit houses. I will arrange showings, and keep track of the properties you’ve seen.

Financing – Most real estate professionals and mortgage lenders recommend pre-qualifying for a loan before selecting a home to purchase. This process will help you understand the types of loans you qualify for. You will be able to determine what your monthly payment will be and estimate the down payment and closing costs.

The Loan Process – Your Sales Associate will help you to select a mortgage lender. Once you have made your decision, these are the steps of the process:

Application – All pertinent documentation is obtained. Fees and down payments are discussed, and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-lending statement (TIL), itemizing the rates and associated costs for the loan. You will be asked to provide certain documents to your lender in order that your loan can be processed in a timely manner. 

Loan Submission – Once all the necessary documentation is in, your completed file is submitted to a lender for approval.

Loan Approval (Underwriting) – Loan approval, or underwriting, generally takes 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close.

Closing – Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.

Finding and Choosing the Right Home

Making an offer once you have found the home that you wish to purchase, your Sales Associate will apply their professional training and do all the necessary research to help you structure an effective offer.

This is where your Sales Associate’s negotiation skills come into play. When an offer is made, the seller will have the option of accepting, rejecting, or counter-offering. Your Sales Associate will negotiate the best possible terms for you.

Your Sales Associate will draft the purchase agreement, advising you of protective contingencies, customary practices, and local regulations. A home warranty, title, and escrow arrangements will be detailed in the offer. Although your Sales Associate will give you advice and information, it is your decision as to the exact price and terms that you wish to offer.

Managing the Escrow

When the purchase agreement is accepted and signed by all parties, your Sales Associate will open escrow for you and your earnest money will be deposited. The escrow is a neutral third party that will receive, hold, and distribute all funds associated with your transaction.

Removing Contingencies

Prior to closing escrow, all of the contingencies of the Purchase Agreement must be met. Your Sales Associate will coordinate this process.

Typical contingencies include:

• Approval of the Seller’s Property Disclosure Statement.

• Approval of the preliminary title report.

• Loan approval, including an appraisal of the property.

• Physical inspections of the property.Pest inspection and certification.

• Acquisition of homeowner’s insurance.

Closing Escrow and Moving In!

When all of the conditions of the purchase agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs to escrow, and your lender will deposit the balance of the purchase price. The deed will then be recorded at the County Recorder’s office and you will take ownership of your home.

If you are thinking about or considering buying a home, short sale or foreclosure please give me a call, I can assist you with all your Real Estate needs at 760-845-1262.