Who you hire to find your dream home matters.
With over 44 years of combined real estate experience guiding over 400 clients to their perfect home and through the complex process of purchasing a home, our skills are unmatched. From buying your first home to finding your legacy property, we have the expertise to help you realize your dreams. Give us a call to discuss your unique wants and needs. Until then, we have mapped out a few things to give you an overview of the process.
The Purchase Process
How to prepare?
Gather your important documents:
- Financial statements
- Bank accounts
- Investments (401K, stocks, bonds, mutual funds)
- Recent pay stubs
- Tax returns for two years
- Copies of leases for investment properties
- Credit card
- Auto loan
Check Your Credit Rating and Get Pre-Approved
Your credit score will impact what you can buy and at what price. We recommend doing some independent research and comparing mortgage rates and lender fees with a few different qualified brokers. Once you’ve done your research and compared what each of them have to offer you are ready to move forward with securing your pre-approval with the lender that’s right for you. If you have questions about the process or would like recommendations to experienced residential lenders please call or email us.
Be Careful With Your Finances
Now that you’ve secured your pre-approval you want to be cautious with purchases or career changes. You want to approach your property purchase from a position of financial stability.
Buying a property requires making many important financial decisions, understanding complex issues and completing a lot of paperwork. It helps to have an expert in your corner when undertaking such a large purchase. We can guide you through this process, and also provide you with access to property listings before they hit the general market.
Purchase Agreement and Deposit
The purchase agreement is a legal arrangement between you, the potential buyer, and the property's seller. This agreement is the single most important tool in the success of getting the home you want at the price you want. Our experience and ability to help you negotiate this agreement can save you tens of thousands of dollars by using the Seven Strategies to be smarter than any other buyer.
Title and Escrow
The title and escrow agent will hold the deposit in escrow and research the complete recorded history of the property to ensure that the title is free and clear of encumbrances by the date of closing and ensure any new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities such as building or parking restrictions. There may be recorded easements and encroachments, which limit the rights to use your property.
Once your offer is accepted by the seller, a licensed property inspector will review the property within the agreed upon time frame. Once the inspector sends his report and we review it, we will either remove all contingencies to the contract or renegotiate the terms of the contract by requesting repairs or financial compensation in lieu of repairs.
Appraisal and Lending
During this process it’s important to stay in close communication with your lender. Your lender will keep you informed on what documents are required in order for your loan application to be approved and funded. If the purchase agreement is conditional upon financing, then a licensed, third party, appraiser will determine the value for the lending institution, by appraising the property. This is done to confirm the lending institutions investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, it’s important to double-check with your lender to be sure the loan will go through smoothly and on time.
Home Owners Associations
If the property that you are purchasing is conditional upon an association approval, here are some steps we will need to take:
- Request the rules, regulations, and other important documents from the seller as soon as we have an effective agreement to purchase.
- Submit the application documents and processing fees
- Possibly schedule an appointment to meet with the association for approval
- Request a copy of the approval for the closing agent so that it can be recoded with the deed in the county public records.
If you obtain a loan, your lender will require you to purchase insurance on your property. The value will depend on the lending institution and the purchase price of the property. To save money, here are some things to think about when shopping for insurance:
- Consider a higher deductible. Increasing your deductible can make a big difference in your monthly premium.
- Ask about discounts.
- Insure your house not the land under it. After a disaster, the land will still be there.
The Final Inspection
The final walk through inspection usually takes place near your closing date. At this time, you visit the property to verify that everything is still in working order, nothing has been left behind, and that everything included in your purchase is still at the property.
The Closing Appointment and Beyond
The closing agent will give all parties involved a settlement statement, which summarizes and details the financial transactions created in the process.
- Review and sign the closing settlement statement
- Electronically wire the funds into the closing agent’s escrow account or bring a certified bank check to closing in the amount stated on the closing statement.
- If you are financing the purchase then you will need to sign all loan documents required by the lending institution
- At closing, the seller should have all property keys and important information related to the property prepared for you to receive at the appointment.
We love maintaining our relationships with past clients. Once your purchase is complete, we are happy give you recommendations on contractors, repairmen, or answer any of your design related questions. We are always just a phone, text, or email away.