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About The Home Buying Process |
| Financing Your New Home | ||
| Setting Up Good Resale & Other Buying Goals | ||
| Inspections, Warranties and Safeguards | ||
| Home |
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This outline of the home-purchase process is provided to acquaint you with local practices, and show how we relate to the procedures on your behalf. A related flow chart itemizes functions in the process, but we hope this summary helps make it all more comfortable.
If properly planned, the search, negotiating and contracting on a typical home-finding trip is scheduled to occur within a 3-5 day period, and the first day is usually spent touring appropriate communities. It can take much longer if not properly organized, if the targeted property is scarce, or if a lot of physical geography must be covered. Relocating buyers usually need to plan for a compact purchase period, selecting from a cross section of available inventory. Local buyers have more latitude, viewing a stream of inventory over a period of time. The time from loan application to closing is usually from 40 to 60 days. Careful planning can save time, especially starting the financing process and becoming familiar with local housing markets. "Pre-qualifying" gets some paper work started and out of the way and refines price targets. Pre-screening of the market starts building the context for later decisions and can be initiated by phone and by mail. It is supported by sorts from the MLS computer, our local market experience and some actual previewing by our counselors. |
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CONTRACTING:When the home is found and we approach the contract offer, we'll develop a negotiating strategy, anticipating seller goals, identifying your goals and determining how we best can achieve them. All offers must be written. We use standard Board of Realtor forms, modified to your benefit on important issues. (They were made more buyer-friendly just recently, and we further modify to your benefit.) With input from your lender, we'll write financing contingencies in the offer .... define the type of loan and terms you want, and set realistic dates for loan approval and closing ... (that's real important!) We'll use contingencies as necessary to protect you in 1) financing and appraisals, 2) sale of your present home, and 3) inspections. We may need special contingencies regarding employment certainty, (military orders or employment contracts,) and we will include any personalized necessity. All of the other "blanks" in the contract need to be filled out, balancing your needs and desires with the ambition of having the offer look good to the seller and hopefully accepted. Occupancy, closing dates and closing circumstances are some of the more important considerations. We want our offer to be error-free, simple and clear, controlling with our checklists. As we want to encourage its acceptance, we often point out, verbally or in writing, justification for terms in the offer, (depreciated perhaps with negatives we isolate), building a case for its acceptance. You're entitled to have legal review at this, or any other time. |
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THE OFFER:The contract along with the earnest deposit is then presented to the seller's (or "listing") agent, who presents it to the sellers. Your earnest money check will not be cashed until the offer is accepted and then will be held in escrow by the seller's agency, to be made available at closing. We rely on written contracts to seal the arrangement, but sometimes use oral or verbal negotiations if necessary for final tuneups, pending written acknowledgment of the final version. The offer may be accepted as presented, or "countered" with a counter offer. Sometimes, counter offers fly back and forth several times before an offer is finalized, (or in some instances, lost.) Let's assume we have an accepted offer. | |
FINANCING AND OTHER CONTINGENCIES:Financing, if not already started, is immediately pursued. We want our responsibilities for loan application to be satisfied in timely fashion, expecting the lender will discipline and complete the process. And we don't want to be responsible for delays. Here's where pre-qualifying helps, too. There will be requests for a stream of documentation from you. The lender orders the appraisal, often taking the most lead time. Attention is also immediately given to satisfaction of the other contingencies. Our whole house inspection is scheduled within a few days of contracting, to expedite completion and firm up the agreement. When the inspection report is available, we together determine what we are going to request of the sellers, again balancing your expectations with what we believe the seller should or would do. The age of the home affects these decisions, and safety factors are a high priority for repair. This is the last set of "negotiations", and it can get tense. The timing of these requests and responses is important. Of course we'll watch for critical times and events on your behalf. Then there is a waiting time while others are preparing for your closing ... the most difficult times! We'll get a copy of the title insurance commitment for you and review it, follow all events, watch for the satisfaction of contingencies, discipline responses and constantly guard your interests. Other inspection reports, (termite, municipal, etc.) are gathered for closing. Utilities for the new home are arranged. We'll help with names and numbers. |
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CLOSING:When formal loan approval occurs, we'll coordinate an actual closing time and the gathering of necessary documents. Always, we'll make sure your interests are protected and expectations met. We insist all closings are "insured closings", which requires closing at the title company. Now we can execute utility changes for a time certain. Warranties and insurance are arranged. You're entitled to a "walk-through" within the last 24 hours, to make sure of conditions and expectations. Of course, we'll accompany you. The submission of "final figures" to the buyer is always within the last 24 hours, and depending on circumstances, can be last minute. We'll have estimates much earlier, of course. (We have sample closing statements, too, that can help visualize the cash needs.) You'll need a cashier's check. The actual closing is almost anticlimactic, and usually represents plays out all of the previous plans. It usually takes about an hour. We insist on insured closings. We'll be there, of course.
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