When you’re buying a home…
Buying a home can be an exciting adventure. It’s less stressful when you know what to expect.
These are the steps that we’ll take together on your home-buying journey.
TEN STEPS IN THE HOME BUYING PROCESS
Obtain loan pre-approval. I’ll help you choose an excellent local lender and establish your maximum purchase price.
Find a home. You’ll create a realistic wish list including size, neighborhood, amenities, and price. We will tour homes meeting your criteria paying careful attention to the structure, systems, neighborhood and many other factors impacting the home’s value.
Make an offer. Drawing on experience and knowledge of the market, together we will craft the terms of your offer, including purchase price, down payment amount, closing date and all the other important details. I’ll submit your offer, and all communications with the seller(s) and other agent will come through me.
Deposit earnest money. Within three business days of an accepted offer, you’ll deposit earnest money, typically 1-2% of the purchase price, to demonstrate your serious intent to purchase the property. These funds are applied towards the down payment.
Home Inspections. The day after an offer is formally accepted, the home inspection contingency period, typically 7- 10 business days, begins. I’ll help you choose and arrange to have the property inspected by professionals. At minimum, the four recommended inspections are: home inspection, sewer scope, radon test, and underground storage tank search. These inspections are paid for by the buyer.
Negotiate repairs or credit. Generally, issues that arise from home inspection impacting the health or safety of the property are then negotiated between buyer and seller, and repairs or credit are mutually agreed upon within the home inspection contingency period. Without this agreement you may opt to terminate the transaction and receive a refund of your earnest money deposit.
Home Appraisal. Lenders typically require an appraisal before they issue a mortgage loan, which must be equal or above the purchase price unless the buyer is willing to bring cash to the table to cover the difference. Appraisals are ordered by the lender and paid for by the buyer.
Obtain Underwriter Approval. You will work with your lender to provide requested information to the underwriter. This information, along with the appraisal report, will be submitted for final underwriter approval. Once received, you will request a binder from your insurance company.
Sign Documents. Upon final underwriter approval, your lender will send all loan disclosures and loan documents to the title company. I’ll arrange a document signing appointment with the escrow officer at the title company. You will also make arrangements for the remittance of the remainder of your down payment.
Transaction Closing. The transaction is officially closed when; 1) Both buyer and seller have signed all documents with the title company, 2) Funds have been successfully transferred from the buyer to the seller, and 3) The title to the home has been transferred and recorded at the county office. Upon successful closing I will call you with the good news and will arrange to get the keys to you on closing day, or as outlined in your agreement!