As a Buyer’s Agent I will work for you during the home search and purchase process at no charge to you! The following are the 10 steps to the American Dream……
Step 1
Mortgage Pre-Approval: The first step in the home search process is Mortgage pre-approval from a local Bank, Credit Union or other Financial Institution. Meeting with a mortgage lender helps the buyer understand the different types of mortgage programs available, as well as how much house you can afford. It is also important to discuss interest rates and closing costs as these vary from bank to bank. A pre-approval letter is required when submitting an offer on a home.
Step 2
HOME SEARCH: I will send e-mails with properties that match your criteria. When you receive these listings, please take time to review all details. Select properties that look interesting on the computer and print them out. Please take the time to drive by the properties of interest. (Ideal time is between 5-7 p.m. in the evening, or weekends during the day, by doing this you will get a flavor of the activity in the neighborhood). After you drive by, e-mail the MLS numbers of properties you would like to see. I will then immediately schedule an appointment with the listing agent.
Step 3
PURCHASE OFFER: When you find a house that you would like to purchase, we will prepare and submit a purchase offer to the seller. The purchase offer is an official contract between you and the seller with all terms and conditions necessary for the purchase to be completed. The following conditions must be met when submitting a purchase offer:
· You will be required to provide a good faith deposit to the seller within 2 days of accepted purchase offer. The deposit will indicate to the seller your level of interest and ability to purchase the property. Generally a minimum of $1,000 is expected. The deposit will be subtracted from your closing costs.
· A real estate attorney will also have to review and approve the purchase contract as well as oversee the entire purchase process. Attorney approval is required no later than 5 days after the purchase offer is accepted. I will provide both attorneys and the bank a copy of the purchase contract.
Step 4
Apply for mortgage: Once the terms of the purchase offer are agreed upon by you and the seller, you will need to meet with your bank loan officer to apply for a loan. They will also need a copy of the purchase contract and a check for the mortgage application. ($300-$350). Most banks charge a fee to apply for a mortgage.
Step 5
PROPERTY INSPECTION: In most cases, it will be necessary to hire a property inspector at your cost. This is an option available to you as the buyer but is not required. Inspections cost an average of $250 – $300 and can take up to two hours to complete. That fee is due on the day of inspection. The inspection in most cases will reveal any problems or repairs that are needed. A radon and/or chimney inspection can also be conducted. The inspection should be conducted within 7 days of the accepted purchase offer. Once the inspection has been completed, we will have 3 days to notify the seller of any request for repairs.
Step 6
MORTGAGE COMMITMENT: A mortgage commitment is a document that will be issued by your bank. It is the official notice that your application for financing has been approved for the house that you have decided to buy. Upon receipt of this document, I ask that you please call me. We will need to review the document together. It may include some conditions that have to be met prior to closing. You will need to sign all necessary forms and return them to the bank.
Step 7
HOMEOWNER’S INSURANCE: One of the requirements of the mortgage commitment will be for you to obtain homeowner/hazard insurance. This will need to be prepaid prior to closing. Your insurance agent will ask for specific information on the home, i.e.: square footage, price, etc.
Step 8
FINAL WALKTHROUGH: Approximately 2 weeks after receiving your mortgage commitment, (1-2 days prior to closing) we will need to do a final walkthrough of your new home! At this point you should start calling your local utility companies and refuse company to make arrangements to transfer your services.
Step 9
FINAL CLOSING COST FIGURES: A few days before closing, your attorney will call you with the ‘final figures’. This is the dollar amount needed to close on your new home. Your attorney will request that you bring a certified bank check for this amount.
Step 10
CLOSING: This is what you have been waiting for! You will be required to appear at a designated attorney’s office. Your attorney will advise you on exactly what you will need to bring in exchange for keys to your new home!
