Our Proven Process Produces Results
1. CHOOSE A REALTOR
Your realtor is responsible for helping you find and view homes, for being knowledgable about the area, for advising you on pricing and condition and estimated values, for writing offers and contracts, for negotiating and for protecting your interests. An experienced realtor is an invaluable asset during your home buying process. And they work for you for FREE! (typically).
2. CONTACT A LENDER
Your realtor can recommend several lenders to you. Some lenders specialize in certain loan types and in certain areas, so take your realtor’s advice when it comes to narrowing down your lender! Once you’ve chosen a lender, you will contact them to get a pre-qualification, so you know how much home you can afford.
3. FIND A HOUSE
Your realtor will work diligently and provide you tools to use to find your next home. This could happen on the first visit or could take months depending on inventory and budget.
4. NEGOTIATE
Your realtor will run a Comparative Market Analysis to estimate a good purchase price for your home. Your realtor will recommend a purchase price, requested costs paid by the sellers, repairs to the home, and special circumstances for you.
5. CLOSE!
After your lender has reviewed your credit file, employment history, and other important parts of your underwriting, and after we have had the property inspected and negotiated for the seller to make any necessary repairs, you will close 30-45 days after contract (typically). You get to move in right away!
Here’s a generalized idea of how the process works
1. Get Prequalified for a mortgage.
2. Meet with your agent to discuss your needs and qualifications.
3. Research Homes / have your agent send you listings, and have your agent advise you about the particular details of properties that you like.
4. Make a list of properties to view, share them with your realtor and they will set up showings (ideally, all within a few hours).
5. View Properties and take good notes. Properties tend to run together if you view several.
6. Rinse and Repeat, view more properties until you decide on one.
7. Discuss an offer for your agent to write-up. Your agent will discuss the parts of the contract. Your agent can estimate your payment very accurately.
8. Negotiate back and forth with the seller, through your agent.
9. Once all parties agree to the terms, you are officially Under Contract. From this point until closing is about 30-40 days, in a normal situation.
10. Your Lender and Real Estate Attorney are sent the contract immediately. Your lender will contact you within 24 hours, normally.
11. Have your agent schedule inspections.
12. Perform home inspection and termite inspection. We typically have 10-14 days to do so. The cost of this can run from $275-500, and must be paid at time of inspection.
13. Discuss inspection findings with your agent, and have your agent type up a request for repairs to send to seller’s agent, if necessary.
14. At the same time as inspection period, your Lender will be requesting documents. DO NOT DELAY ON GETTING THEM WHAT THEY NEED!!!!!
15. Once we come to agreement with seller on repairs (if needed), your Lender will order an Appraisal. Some lenders require you to pay for the appraisal up front ($400-550). This takes about 7-10 business days to complete.
16. Should the house not appraise for the purchase price, we will have the right (in most cases) to either ask the seller to reduce the price, or to terminate our contract.
17. The last 2 weeks of the waiting period prior to closing is called Underwriting. This is where the bank issuing the loan (and then the 3rd party insuring the loan, ie: USDA, VA) is looking through your credit file, financials, employment record, housing records, etc. to determine a final approval or denial. AGAIN, IT IS IMPERATIVE THAT YOU GET THE LENDER ANYTHING SHE NEEDS ASAP DURING THIS TIME. This period can become quite frustrating. Stay patient. Often, the underwriter will ask for additional documents, or new bank statements or pay stubs.
18. Once we have a clear to close, or final approval, you will receive a Closing Disclosure Statement (CD, for short) from your lender for you to look over the final numbers in the transaction and sign off.
19. A day or two before closing, we will do a final walkthrough on the property to check the condition.
20. At the same time, you should go ahead and contact the Power and Water Utility companies to schedule service. Keep in mind, some water companies need your closing documents, so you have to go in person after closing to get service started. Also, some require deposits.
21. Get moving.