The Buying Process – In a Nutshell
Once you find your dream home
Once we have reached a mutual agreement ( between buyer and seller) on the home of your dreams, the “clock starts ticking”.
Some important tips to keep in mind to streamline the process:
- Keep records of everything. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
- Stick to the schedule. Now that you have an accepted offer, you and the seller will be given a timeline to mark every stage in the process of closing the real estate contract. We will make sure we are always in compliance with the contract and track every single detail. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements. During the process, we will keep you constantly updated, so you will always be prepared for the next step.
The Closing Agent – Escrow
An escrow and title company will be selected as a closing agent. The closing agent will hold the deposit in escrow and will 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 that all new encumbrances are properly added to the title. Some properties are subject to restrictions that limit various activities such as building or parking restrictions. There may be recorded easements and encroachments, which limit the rights to use your property. We will review the title report with you once available and make sure everything is clear.
Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within the time frame that was agreed upon in the effective contract to purchase. If you are not familiar with any inspectors in the area, we can recommend several different inspectors.
Depending on the outcome of these inspections, one of two things may happen:
1. Either the inspection is satisfactory to you and the inspection contingency will be removed, bringing you one step closer to the close
2. After reviewing the property report, you request the items of concern to be fixed or a renegotiation of the price.
Appraisal and Lending.
It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their 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, double-check with your lender to be sure the loan will go through smoothly and on time.