Although every deal is a bit different, below is a sample of the highlights when purchasing a home.
Evaluate your Budget. Know what you want your monthly payment to be. Remember… you live with the payment, not the price. Interest rates, taxes, HOA and other factors determine your payment. Your lending partner will guide you through this process and analyze your potential buying power!
Partnerwith a great local lender. Work closely with your lender and obtain a Pre-Approval letter. This will strengthen your offer and will be required when a contract is submitted. Your lending partner will guide you through this process and analyze your potential buying power.
Find the perfect property. Work with your agent to identify location, style, amenities and other wants and needs. Depending on what you are looking for, your search timeframe will vary. Internet savvy buyers save time by doing their homework before their search. An average number of properties viewed before buying by our internet savvy buyers is typically greatly reduced.
Make an Offer. Working with your agent, you will help craft the offer you would like to submit. Offer will include: Price, terms, contingencies, inspection, financing, appraisal, HOA etc. Everything is negotiable so inquire about Inclusions and Exclusions.
Executed Contractand Next Steps. Once a contract is negotiated and signed by both Buyer and Seller, earnest money will be collected and held in escrow until closing where it appears as a credit on your Buyers Settlement Statement. Other items that typically follow are the Home Inspection (which can include Radon testing and Sewer Scope) at the Buyer’s expense. Cost of inspection, scope of inspection and inspectors’ practices vary so interview several and determine your best fit.
Loan Process. Continue to work diligently with your lender partner to provide all documentation requested.
Title Commitment. You will receive a Title Commitment from the title company chosen to provide that service. Review it carefully and bring any concerns to your agent or the title company. Home Owners Association (HOA) documents will be provided as well for your review.
Appraisal. If you are utilizing a loan for the purchase of the property, an appraisal will be required by the lender. This appraisal is necessary prior to closing and will determine for the lender the value of the home.
Settlement Statement. Prior to Closing Day your lender will provide you with your final closing figures. Review the numbers on your Settlement Statement with your agent making sure you understand everything that appears on that document.
Closing Day. Documents will be reviewed and signed by both Buyer and Seller. Congratulations!