This helps you identify how much you can afford to purchase, don’t go off of what you think, you may waste valuable time looking at the wrong properties
As about closing costs, payments, etc.
Do not make any changes in finances, such as
Moving money around
Find one you trust and can work with
Any concerns or issues
Don’t be afraid to be open and honest with them about any issues or problems you may have, they have a responsibility to maintain privacy
FIND A HOME
You may look at one or several before finding the one you want. The process of looking at properties will help you lay out the things that are most important to you and your family.
You will need to make sacrifices, so identify the needs and wants that are most important
Do not rush into a decision you will regret later, let your Realtor help you with the decision
Listen to your realtor, if the market is hot, you may not have time to wait on your decision. But know that if you do lose on one property, you will find another.
Find the Home you want to purchase
Look at all disclosures and ask questions before hand
Make sure your realtor knows if you want to do something specific that needs to be in the contract (ie horses, business, add buildings, etc.)
MAKE AN OFFER
Agent draws up contract
Earnest Money- 1% of Purchase Price (example $100,000.00 purchase price, the check will be for $1,000.00) this can be in the form of a check, a wire transfer to the title company or cash. There are app options with some title companies. Check with your realtor to see what option works best.
Option Money- usually $1.00 per day of Option Period, paid to the seller (example $100.00 for 10 days). This is basically paying the seller for taking the home off the market during the option period. See Option/Inspection section below.
Send Offer to Listing Agent-your realtor works with you on the offer and once it is signed, then the offer (on the contract form) is sent to the agent listing the home.
Offer submitted to Seller and reviews with their agent, then they have one of three options.
CONTRACT-when negotiations are complete, and everyone has signed, then it is considered a contract.
Goes to Title Company
Monies Accepted/Receipted by Title Company and Sellers
OPTION/INSPECTION PERIOD – during this time, the buyer hires an inspector to provide an inspection report on the property. The buyer pays the inspector directly for this report. If the inspection reveals major issues, the buyer can back out of the contract and get their earnest money back.
Inspection is scheduled and done during Option Period
Report Received, then based on what is identified in the report, the buyer can
Accept home, as is
Ask for a reduction in price
Once negotiated & signed
Must be completed and signed by 5:00 pm on last day of option period
Survey & Appraisal Ordered (sometimes these aren’t ordered until after option period ends)
Survey Ordered by Title Company (if needed)
Appraisal ordered by Mortgage Company
Original Survey Approved by Title Company
If Title Company doesn’t accept, new survey will be required
Title Commitment to Buyer
Agent and Buyer to review for any objections
PREPARE FOR CLOSING
Get homeowners Insurance
Agent schedules closing date/time
Cleared to close by Mortgage Company
Closing Statement sent to buyer
Outlining costs and monies needed to close (check or wire)
Buyers Final Walk Through and Acceptance
Funding Approved by Mtg. Co. (may not be immediate, could be following day)