The Home Buying Process
1. Select a Realtor/establish a relationship.
I am a full time, professional REALTOR with extensive market knowledge and lots of experience (over 21 years in selling real estate with hundreds of closed transactions.) If you select me as your Realtor we will work together to find you the right home, the home you desire.
2. Initial consultation with your REALTOR
We will meet or talk over the phone to discuss your needs and analyze your resources. Once we establish your needs, I will provide guidance to financial institutions where you can obtain information in order to get the best financing available.
3. Get pre-approved with the lender
It is important to get pre-approved first before you start looking at any homes. Why? Many unprepared buyers learn it the hard way that either they can’t get the house they found because it is above the amount they can qualify for or they couldn’t get the prefect house they just found because they lost it to another buyer whose offer was accepted by the seller only because there were smart enough to get the pre-approval letter from their lender.
4. Find the right home for you.
I will be showing you homes based upon your buying criteria that we will discuss together. The more precise and direct you are with me, the more successful our search will be.
5. Determine the seller’s motivation.
Once we have found the home that you wish to purchase, I will do the necessary research to help structure a successful offer.
6. Write the purchase offer.
I will draft the “Purchase Agreement” for you, advising you on protective contingencies, customary practices, and local regulations. At this time you will need to provide an “earnest money” deposit, usually from 3% to 5% of the purchase price. The deposit check is not cashed until your offer has been accepted by the seller. Earnest money is a deposit to a seller showing buyer’s good faith in a transaction. It is part of your down payment that usually is kept on a special escrow account by the selling real estate office until the closing day.
7. Present the offer.
I will present your offer to the seller through the seller’s agent. The sellers have three options; they can accept your offer, counter your offer, or reject your offer. My knowledge of your needs and qualifications will enable me to represent you in the best way possible.
8. Seller responds.
I will review the seller’s response with you. My negotiating skills and knowledge will benefit you in reaching a final agreement.
9. The contingency period.
This is the time allowed per contract agreement attorneys’ contract approval, to obtain financing, perform inspections, and satisfy any other contingencies to which your purchase is subject to.
Typical Contingencies include:
- Attorneys’ approval (typically 5 business days after seller signs the contract).
- Home inspection/s
- Loan approval, including an appraisal of the property.
10. Conduct home inspection
Hiring licensed home inspector will help you to protect your investment from spending thousands of $ in the future. There are typically 5 business days per contract for doing home inspection after it is signed by both parties.
11. Apply for a loan with your lender
Most contract agreements will ask you to apply for a loan with your lender within 5 business days after contract is signed by the buyer and the seller. It is good to find out from your loan officer what documentation is required at the time of applying for the loan so there will not be any delays.
12. Obtain homeowner’s insurance
Prior to closing your lender will require from you to purchase a homeowner’s insurance policy. Currently per contract agreement lenders require proof from the insurance company you will be purchasing insurance policy from that the house you are buying is insurable. Contact your insurance agent to get it (typically few weeks after contract is fully approved by both attorneys).
13. Getting ready for closing
Once your mortgage is clear to close both attorneys will be working on scheduling the closing date and time. You will need a cashier’s check or money transfer for your down payment usually 1-2 days prior to the closing date. Depending on the amount of your down payment you will be instructed to either bring the cashier’s check or wire money directly to the title company (typically if the amount is less than $50K they will ask you bring cashier’s check written in your name and if it is more than $50K they will give you wiring instructions where to send the money and how much).
14. Final walk through
Within 24 hours prior to closing you have the right to inspect the house to recheck if the condition of the house has not changed since the last time you saw it and if any issues that seller agreed upon after home inspections were actually done. I will be assisting you with the final walk through.
When all of the conditions per purchase contract agreement have been met, you will sign your loan documents and closing papers at the title company. Attorney who will be representing you in the purchase transaction would be explaining you all the documents before you sign them. The deed will then be recorded at the County Recorder’s office and you will take ownership of your new home!