Buyer Timeline
The world of real estate financing can be confusing and complex. A buyers agent can hlep you navigate through the various financing options and help you decide which type of mortgage is best.
Interior Design
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Interior Design ✳︎ New Construction ✳︎ Renovations ✳︎ Buyers ✳︎ New Home ✳︎
01. Mortgage Pre-Approval
Unless you are paying cash for your home, you’ll need to talk to a good local lender about obtaining a pre-approval letter for financing. The lender can provide answers to questions about interest rates, closing costs, loan products, down payment requirements, and montly payments expectations. We can provide referrals for mortgage lenders if needed.
02. Buyer Consultation
We’ll sit down with you to discuss your search criteria in detail, review available inventory, and answer any questions about the home-buying process. This will maximize the efficiency of your time looking at properties that meet your criteria, and we can all be on the same page with your time frame and home ownership goals.
04. Make an Offer
Once you have found The One, we will review the comparable sales data to analyze the list price and come up with an offer strategy. We will review the sales contract and offer terms and present the offer in writing to the list agent. You will be guided through the negotiation process, and once terms are mutually agreed by buyer and seller, the offer will be revised for the seller to sign. Once the contract is signed by all parties, you will be officially under contract, and the initial earnest money of typically 1% will be due for deposit with the Title Company. Also, any Option Money due, the seller must deliver within three days.
03. Home Search
After the available properties are narrowed down to your list of favorites, we will schedule a buyer tour to see homes that not only fit your criteria but also have great resale potential. Navigating the search process to help you make a smart investment is our priority.
05. Inspection
You will have an Option Period, typically 10 days, to conduct property inspections after the contract is signed. We can provide referrals for professional home inspectors if needed. If any serious issues are uncovered, you can negotiate seller repairs or credits at closing to have the repairs done yourself. You will pay the inspector upon having the inspection.
06. Loan Application & Appraisal
If you are obtaining financing, your lender will let you know the list of financial documents necessary to provide to the lender, including a couple of months of bank statements, tax records, pay stubs, etc. Following this, your lender will have an appraisal done on the property.
07. Clear Mortgage Contigencies
If you are obtaining financing, you will have a mortgage contingency of typically 21 days to obtain a mortgage commitment. Once your lender has all of your documents, they will send it to underwriting to review. Once underwriting has issued a Clear-to-Close, your loan is complete and the file will be sent to the title company for closing.
08. Final Wlak-Through
Before we head to the closing table, we’ll have a final walk-through of your future home. This is your chance to make sure the sellers made any repairs agreed to, all appliances and fixtures negotiated were left behind, and that the sellers didn’t accidentally damage the home when moving out.
09. Closing
We will attend your closing together at the office of the seller’s title company. The escrow officer closing your sale will explain each form you need to sign and will review the numbers on the settlement statement. Closings typically take a couple of hours on average. When closing is complete, you’ll receive the keys to your new home!
Key Terms
Debt-to-Income Ratio
The percentage of an individual’s monthly gross income relative to the amount of debt owed.
Financial Statement
A formal record of all your financial assets, debts, and liabilities.
Maintenance Fee
Fees paid by co-op shareholders that contribute to building operations.
Settlement Company
The settlement company, also called a title company, ensures the contract is fair to all parties and manages the money throughout the process. Working with your agent, the buyer hires the settlement company, which is paid through the closing costs.
Specific Tests
Tests like radon and termites require separate contingencies in your offer. Your agent can walk you through your options.
Appraisal
Assessment of the property’s market value, typically done for the purpose of obtaining a mortgage.
Loan Officer
The loan officer represents a financial institution and provides a loan to the buyer.
Private Attorney
You can seek outside legal counsel on the contract. In our area, most buyers don’t hire their own legal counsel; however, you are always welcome to do so.
Appraiser
The lender will hire an appraiser to place a value on the property before approving your loan.
Earnest Money Deposit (EMD)
A good-faith deposit the buyer makes with an offer to show that you are serious about buying the property. In exchange, the seller agrees to stop marketing the property.
Inspection
An expert conducts a formal review of the property to find visible issues that need to be repaired. You can make your offer contingent on an inspection or conduct a pre-offer inspection to make your offer stronger.