The Pathway to Your New Home**

There are many steps to take on your way to buying a home. This brief guide will help you through the major events while going through the home buying process.

The first time to buying a home is getting Pre-Approved by a Mortgage Lender.

This will allow you to act quickly when you find the home you want to purchase and puts you in the best position from the seller’s point of view. It also eliminates any surprises later on. It is important to work with a lender who can keep you up to date on your loan status.

Getting Pre-Approved sets you up for success when looking for homes. You know what you are able to purchase, so you are not touring homes out of the price range.

We will then work together to find you the perfect home! This is the fun part, we will look at homes until we find the one for you. There is no average number of homes before finding the one, when you know, you know!

Once you find a home that perfect home, I will provide you with facts and information you need to make the purchase decision. In addition to the standard terms of the sales contract, there are a variety of contingencies which may be included. Some might be presented as optional clauses in the contract, while separate riders are available for the others.

Your contract will be written on an earnest money agreement form. I will fill out the earnest money agreement with you and discuss each entry. In addition, we will talk about our negotiation strategy.  Remember, we are working for you and have your best interests in mind.

Your Offer Is Accepted! Now What?
I will open Title & Escrow with the Title Company of the Sellers choice.
Escrow is a neutral third party who hold funds in a protected account until the subject home is officially closed & changed ownership. The Title Company where Escrow is held will also provide valuable title information on the subject property. Your Escrow Officer will provide you with a Title Report to ensure the home is being conveyed with a clear title.

This is the time where you will deposit your Earnest Money. You have 72 hours to deposit the agreed Earnest Money Amount into the escrow account for your transaction. Your earnest money is part of your downpayment, and is usually 1% of the purchase price.
*Do Not Wire Funds With Out Speaking To Your Title Rep!*

Now you have found a home, made an offer, and agreed on price and terms. It’s time to quickly complete the loan process. If you are pre-approved, you will need to follow the lender’s instructions to close the loan. If you’re pre-qualified but not approved, you will need to complete a few more steps.

Either way, final approval is required by the date specified in the sales contract. Once the agreement has been reached, the seller will sign the sales contract and addenda.  The sales contract will include specific dates as to when certain contingencies must be met. Such as, home inspections, financing approval and attorney’s approval.

At this point, you will immediately need to hire an inspector. I will help you make the arrangements.  

It's generally a good idea to get a home inspection even if you are purchasing a new home.  If nothing else, you will have peace of mind knowing the condition of your home. Some contracts are made contingent upon a satisfactory home inspection.

The inspection needs to be completed within the specified number of days from the date of acceptance.  The inspector may describe the home’s condition, report any major problems and may suggest a way to repair the problems.  In the event of major problems, you might have to renegotiate the terms of your contract. Keep in mind that failure to complete the inspection and submit any resulting requests, if any, by the date specified in the sales contract waives any rights under the inspection clause.

Next you will need to choose an Insurance Agent to lock down Home Owners Insurance. It is common for home owners to bundle their current insurance, either way, it is up to you to decide who you use.

What Is Home Owner’s Insurance?

Your mortgage lender requires you to have minimum insurance coverage to insure their investment and yours. One year’s prepaid homeowner’s insurance must be obtained prior to closing. The original copy of the policy and the paid receipt must be presented at or before closing. Many people choose to buy broader coverage than the minimum. You will want to investigate additional coverage with your insurance agent.

Your Lender is going to be hustling through a lot of work for these next few steps.

They will arrange to have the property appraised, a service for which you may be charged in your loan application fee.  A professional appraiser will estimate the market value of the property. This information is required because the lender will not loan you more money than the value of the property.  If the appraised value is less than the purchase price you have agreed upon, the amount of your mortgage will be smaller, and you will have to come up with a larger down payment.  If any of the terms of the loan, as specified in the loan contingency cannot be met, you have the right to withdraw the contract, and have your earnest money refunded.

Now that the docs are completed on the Lenders Side, they will be sent to the Escrow Officer to prep for signature. The Escrow officer will schedule a time to sign with you - I will be there! Your hand will hurt by the end of the hour as you sign multiple documents. 3 days prior to this meeting, you will receive a statement with the final numbers.  

Your loan will now fund after all parties have signed. This means the title has been transferred to your name and the funds have been disbursed to the seller.

When Do I Arrange For Utilities?

About two weeks before closing you will need to call the utility companies to have the gas, electric, water and sewer, garbage, telephone services, etc. turned on as of the closing date. The seller usually will have turned some utilities off by the closing date, and you will want hot water, heat and electricity when you move in.

Now I will hand over your keys & you can get to moving!

Buying Expenses

The costs to buy a home include the down payment and any lender fees.  Such as, loan application fee (covers the appraisal and credit report), loan origination fee (or assumption fee if the loan is going to be assumed) and loan discount fee or points.

You will also pay for any inspections done to the home. There are many different inspections you can do on a home. The most common is a general home inspection where everything is reviewed. There are more specific inspections such as Radon, Sewer Scope, Well Test, Septic Inspection, Mold, Pest.

When you work with a buyers agent, the agent is getting compensated from the seller. The commission from the seller pays for the buyer agent. This does not necessarily mean Buyers Agents work for free, we are paid at closing by the seller.