Signed in as:
Signed in as:
INTERESTED IN BUYING?
PRE-APPROVAL OR PROOF OF FUNDS- This is required to place an offer on a home. A pre-approval is obtained through a lender and shows the seller the buyer(s) has adequate funds to purchase the home. The lender will need a few documents to get this but it is a very easy/quick process. If the buyer(s) is purchasing the home with cash, they will need to provide proof of the funds, normally with a letter or statement from their bank/accountant/lawyer.
OFFER - Once the buyer(s) has identified a home that they are interested in, the agent will write a sale agreement with the terms the buyer(s) would like to offer and present, along with the pre-approval letter, to the listing agent.
OPEN ESCROW - Once the buyer(s) has received an accepted offer, the agent will open escrow. The escrow company acts as a neutral third party to collect the required funds and documents involved in the closing process, including the initial earnest money check, the loan documents, and all documents from your real estate agent.
DEPOSIT EARNEST MONTH WITH ESCROW - Earnest money is a deposit made to the seller that represents a buyer(s) good faith to purchase a home. The amount is traditionally 1-2% of the sales price and is typically due within 3 days of an accepted offer.
SELLER'S PROPERTY DISCLOSURE - This is a document the seller’s fill out to explain known material facts, conditions and/or any defects of the home. Once it is received, the buyer(s) will typically have 5 business days to review and either approve or disapprove of the property. If the buyer(s) does not approve of the disclosures they may terminate the transaction and have earnest money returned.
INSPECTION - The sales agreement has an “inspection contingency,” meaning that the buyer(s) may have an inspection completed on the home. After the inspection, they can either approve of the findings or negotiate needed repairs with the seller. The agent will use a document called a “Buyer Repair Addendum” to present any requested repairs. However, sellers are not obligated to complete these repair requests. If repairs cannot be negotiated, the buyer(s) will have the ability to terminate the transaction and have their earnest money returned, as long it is still within the inspection timeline that was agreed upon between parties.
The inspection normally costs between $500-800 (this can vary depending on company and add-ons) and is an out-of-pocket cost to the buyer(s). After the inspector completes their inspection, the buyer's agent will meet the buyer(s) at the home to go over their findings.
APPRAISAL- An appraisal is required and set up by the lender. It is used to determine the value of the home. The appraiser will do a visual inspection of the property, run comparables, and determine the home’s value. This process usually takes a few weeks and normally won’t require action on the buyer(s) or their agent’s behalf. An appraisal is an additional out-of-pocket cost to the buyer(s) (this price varies and is handled by the lender).
FINAL WALKTHROUGH - This generally happens the day before signing, and is the final opportunity the buyer(s) will have to walk through the home before the close of escrow. The purpose is to confirm the home’s condition is unchanged from the date of contract, and that all agreed upon repairs were completed.
SIGNING APPOINTMENT - At this appointment all final documents will be signed with the assigned escrow officer. This appointment generally happens the day before funding and recording.
FUNDING AND RECORDING - This is when the loan (or cash) is officially funded. After funding the buyer(s) name is recorded on the deed with the county. Once recording is completed with the county, possession of the home generally occurs at 5pm of that business day.