If you don’t have a relationship with a local mortgage lender, I have several that I highly recommend and can refer to you.
Note: A pre-qualification letter is required to submit an offer when you find the home you want to purchase. This is why I ask my buyers to have this conversation before we shop, that way you can confidently put in a offer on your home!
- Once I have a good understanding of what you’re looking for and what your budget is, I will set you up on a personalized home search through the MLS; this is the most up-to-date, accurate real estate data. This search will notify you via email as soon as a property that fits your needs hits the market.
- Now the fun part, home shopping! Once you find the home you want to purchase, we’ll write an offer and I will negotiate with the seller, on your behalf, to get the best possible terms for you. Once both parties agree in writing, the offer becomes a contract. Earnest and option fee checks will need to be given to me at this time.
Note: The option fee (usually $200-300) goes to the seller and earnest money (at least 1% of the sales price) goes to the title company. Both will be applied to the purchase price.
- After we are under contract, you will want to continue to work with your loan officer and submit any additional documents as soon as possible.
- The option period begins the day after the contract is executed. You should schedule your home inspection ($400-500) and the termite inspection (about $85) as early in the option period as possible so that we will have time to review the written reports and negotiate any repairs with the seller during the option period. It’s recommended to focus on the larger items that would be costly should they need to be repaired or replaced in the near future: HVAC, foundation, plumbing and electrical.
- The appraisal is ordered by the lender and is paid up front by you. It is about $450-500 and can be paid by credit card.
- Wait for the final approval from the lender. Expect additional paperwork and deliver these documents in a timely fashion. These are called ‘conditions’ and there is almost always something small that the underwriter requires before they can issue the ‘clear to close’.
- Once the conditions are taken care of, we wait for final approval from the lender. This is called the ‘clear to close’. Once we have that, the title company will provide you with the ‘Closing Disclosure’, which must be given to you 3 days before closing. If it is not delivered within the 3 days, closing will be extended to accommodate the 3-day rule. The Closing Disclosure presents the final lending and purchase details of the transaction. The title company will advise you how to provide the down payment and closing costs; typically a wire transfer or cashier’s check.
- Setup/transfer the utilities into your name.
- We will do a final walk through of the home a day or two before closing.
- Attend the closing! It takes about 1 hour and you will need to bring your photo IDs. You will receive the keys to your new home after the transaction funds, which can be a couple of hours or overnight, depending on how late in the day you close.