Pre-approval – This is the very first step you need to complete even before you begin to look at homes. In order to make an offer, most sellers require a letter from a lender stating that you can afford the home. This is called a pre-qualification letter. If you are paying cash, you must show the available funds in order for your offer to be considered. This step also determines how much you can afford.
The Search – Determine the criteria for the home you want. This includes the major search criteria of price, number of bedrooms/bathroom, and location. This search can go as fast or as short as you want/need.
The Offer – Using a comparative market analysis (CMA), we will together determine a range of value for the property and where you want to begin with your offer.
Negotiation – This is the process of determining the lowest the seller will go and the highest that you, the buyer, will go. Hopefully we meet somewhere in the middle where both parties are satisfied. This is what we call a “Win, Win” situation and what we hope for in negotiation.
Earnest Monday Deposit (EMD) – Once all parties have signed, you will have three days to get your deposit to the title company.
Inspections – Once a price has been agreed upon, a licensed inspector will be hired to inspect every aspect of the home with a focus on the roof, plumbing, HVAC system and electrical system. You normally have 10 – 14 days to complete inspections but, you will want to complete them as soon as possible. Review seller’s disclosures and any other HOA documents.
Financing – Once you are satisfied with the inspection, if you are financing, the lender will begin to do their part. This can take several weeks and the appraisal and survey will be ordered. If you are paying cash, it can move pretty quickly from here. You do not need an appraisal unless you would like one.
Title Work – Title Company will give a full report to ensure there are no legal encumbrances. They will also make sure all conditions of the contract have been met.
Closing – Funds wired to Title Company and all necessary paperwork will be signed.
Keys – YOU get the keys to your new home. CONTRATULATIONS!
Posted on January 30, 2015 at 4:47 am by Jason Howell