Buying — The Process

SELECT A REAL ESTATE AGENT

Your Real Estate Professional Should Be:

• Aware of the complicated local and state requirements affecting your transaction.
• Effective in multi-party, face-to-face negotiation.
• Highly trained, with access to programs for continued learning and additional certifications.
• Knowledgeable in technology resources to facilitate the transaction.
• Assisted by a marketing professional with available marketing tools.
• Supported by a team of trusted professionals available for mortgage origination, Title/Escrow, home inspection and home repair cost analysis.
• Well-respected in the community with a thorough understanding of the local area, economy, current home values and appreciation rates.

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 achieve the following:

• Determine the price range you can afford.

• Understand the type of loan you qualify for i.e., Conventional, FHA, and VA etc.

• Determine what your monthly payment will be.

• Estimate the down payment and closing costs.

• Provide a pre-approval letter (used to add weight/seriousness at the time you make an offer!)

FINDING THE RIGHT HOME
Your real estate agent will assess the criteria you provide in selecting homes for viewing. There are many factors to consider including, location, how many bedrooms you need, number of baths, schools, home styles etc.

Your agent will utilize their knowledge of the surrounding community and research resources of available properties to most closely match your criteria. There are a number of websites which buyers can also research – try our search link from this site! If you find properties that interest you – feel free to e-mail us with the listing number for the current property status and potential viewing.

As you view different properties, your criteria may change. Be sure and provide your real estate agent with this information, as it is critical to the search process. Note that your agent can and should set research queues on the type of home you are searching, since new properties will become available for viewing within hours of being posted for sale.

MAKING THE OFFER
You’ve found the ‘right’ home and you want to purchase it! Your real estate agent is the key to making it happen at the best possible price with the least difficulty. You will work directly with your agent to layout the format of the offer. The terms and conditions of the offer are yours to decide, but a good agent will make recommendations based on experience. The offer will be drafted in the form of a Purchase and Sale Agreement. The agreement will lay out contingencies, title and escrow instructions, warranty details, possession, earnest money, etc. Your agents’ negotiation skills are critical to the process moving forward and encouraging the seller to accept a fair offer. After the offer is made, the seller has the option of accepting, rejecting or counter-offering. When the purchase agreement is accepted and signed by all parties, your real estate agent will open escrow for you and your earnest money will be deposited.

CONTINGENCIES

• The purchase and sale agreement you signed likely will contain contingencies that will need to be removed prior to closing the sale. Pest inspections, building inspections, insurance binders and financing contingencies are most common. Your agent will coordinate this process with you and the other professionals on your team.

THE LOAN PROCESS
Your real estate agent will help you select the appropriate mortgage lender or broker. The process includes the following steps:

• APPLICATION – All pertinent documentation is obtained. Fees and down payments are then discussed and the borrower will receive a “Good Faith Estimate” and a Truth-in-Lending statement that itemizes all rates and associated costs for the loan.

• DOCUMENTATION – Usually completed in the pre-qualification phase, your agent will order the necessary supporting documentation. Once inspections are completed, your agent will order an appraisal on the property.

• LOAN SUBMISSION – At this phase – your completed loan file is submitted to the lender for approval.

• LOAN APPROVAL (UNDERWRITING) – Loan approval and underwriting is the critical point of review for the lender. Documents are checked for lender compliance and approval or conditioned approval. This process timeline is variable depending on many factors, but usually occurs from 24 hours to 2 weeks. All parties are then notified of approval and loan conditions that must be met before the loan can close.

• CLOSING – After all parties have signed the loan documents and conditions of the purchase agreement have been met, you will sign your documents and closing papers with the assistance of an escrow/closing agent. 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 possession based on the terms of your purchase and sale agreement.

• Move in and enjoy your new home and investment!

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