Buyers Guide and Tips
If financing is required, the first recommended step would be to get pre-qualified for a loan. We have a list of approved and recommended lenders for you to choose from. You will then have a better understanding of the types of loans available to you and which one will work best for your individual circumstances. This will help you determine the price range of the home you can afford, determine your monthly payments, and estimate closing costs and your down payment amount.
The Loan Process
Once you select a lender, you will be required to submit a loan application along with relevant financial documentation, such as income statements, W2’s and bank statements. During this process, you will receive a Good Faith Estimate (GFE) and a Truth-in-Lending statement (TIL), which will itemize the costs and rates associated with your loan.
Finding the Right Home
Numerous factors play a role in searching for your perfect home. These might include location, size, school district, and amenities. We will discuss all these factors with you and determine what is of importance to you in a new home. We can then browse this website using our “search like a realtor” section and visit those you think will best meet your needs.
Making An Offer
Once you have found a home that you would like to buy, we can provide you with price comparisons of similar homes that have sold in the area, advise you of protective contingencies and local regulations, and assist you in structuring an offer.
When you make an offer, the seller has three options: accepting the offer, rejecting the offer, or countering the offer. We will work closely with you to negotiate the best possible terms during this process, taking into consideration the real estate market in general, the condition of the property and the seller’s motivation. Ultimately, the decision as to the price and terms you decide on will be yours.
Understanding the Escrow Process
Typically, when a buyer makes an offer on a property, the buyer includes with the offer a good faith deposit; and usually a second escrow deposit will be made up to 15 days after the contract is signed if the process is going forward. We will open escrow with these funds and deposit all the earnest money with a neutral third party, who will be in charge of receiving, holding and distributing all funds related to this transaction.
Removal of Contingencies
During the next phase of the process, all contingencies of the purchase agreement will need to be removed. Such contingencies may include some or all of the following:
- Approval of the Seller’s Disclosure statement
- Physical inspection of the property including wind mitigation and pest inspection
- Homeowner’s Association approval
- Approval of the preliminary title report
- Appraisal of the property
- Acquisition of homeowner’s insurance
- Loan approval.
Once all the conditions of the purchase agreement have been satisfied, a closing date will be agreed upon, and you will sign the loan documents and closing papers. At this time, you will have to pay the balance of your down payment and any closing costs to the title agency or attorney conducting the closing; and the lender will deposit the balance of the purchase price. You will then take ownership of your new home.