Home Buying Process
Buying a home involves several stages. The following is a list of the more common steps during a residential transaction. Your situation may vary, so please contact me for your personalized information.
Contact me for more information regarding your Home Buying Process.
Common Steps for Buying a Home:
Initial Meeting
- I meet with the Buyer to implement a personalized plan for the Buyer’s home purchase
- Determine needs and wants
- Determine financial eligibility
Loan Qualification
- Buyer reviews finances with Lender
- Buyer submits a loan application to their Lender and obtains prequalification
- Buyer deposits funds for appraisal and credit check to Lender, if required
Find a Home
- Buyer selects the desired property
- Buyer and I discuss their desired contract terms
- Buyer reviews and signs contract that I have prepared upon their behalf
Present and Negotiate Offer
- Offer is presented to Seller, which will be accepted, rejected, or countered
- Realtors communicate negotiations with clients until contract is mutually agreed upon
- Buyer submits “earnest money” deposit (typically, 1 to 3% of purchase price)
Open Escrow
- Realtors to supply contract documentation to escrow
- Buyer to deposit “earnest money” into escrow
- Escrow will open file and order Preliminary Title Report
Loan Processing
- I will supply contract documentation to Lender
- Buyer to supply ongoing documentation as requested by Lender for loan processing
Contingency Period
- Buyer orders physical Inspections of property conducted by qualified inspectors (Buyer may accept the property as is, negotiate repairs to mutual acceptance, or terminate transaction)
- Buyer reviews Seller’s Property Disclosure (Buyer may request more information if necessary, then approve disclosure or terminate transaction)
- Buyer reviews Preliminary Report and CC&R’s (Buyer may approve report or terminate transaction)
- Lender to conduct property appraisal
- Lender to obtain final loan approval
- Buyer to transfer property utilities into their name as of their possession date
Obtain Homeowners Insurance
- Buyer selects insurance company and coverage and provides to Lender
- Insurance will be in effect at close of escrow
Cash Reserves
- Buyer prepares cashier’s check or wire transfer for down payment and closing costs (escrow will inform you of required amount)
The Closing Process
- Buyer attends escrow to sign documents and submits payment for remaining down payment and closing costs
- Lender sends balance of purchase price to escrow
- Deed is recorded with County Recorder’s office
- I will provide keys to Buyer upon the possession date
- Time to move!
