CRUCIAL!!!! Arrange your financing. Sellers are more likely to consider your offers seriously if you've secured pre-approval for a loan. Having a lender on board also helps us establish a budget while searching for your new home. If you need a lender, I can provide a list.
Quick Checklist:
Get signatures
Schedule home inspections
Iron out financing
Home gets appraised
Title work gets started
Transfer utilities
Closing process
I SUBMITTED AN OFFER... NOW WHAT??
1.
Signatures: THE OFFER IS Not a legal binding contract until both buyer and sellers sign the contract. Seller or buyer can back out until contract is signed
2.
Home Inspections: Home inspections focus on safety issues and the overall condition of the home, covering everything from the basement or crawl space to the roof. Inspections must be done within the timeframe set in the contract. If you don't have an inspector, I can help you find one; payment is due at the time of inspection. Additional inspections (e.g., termite) should also be done during this period. Afterward, we'll submit a request to the sellers for repairs of major issues (plumbing, electrical, structural). Cosmetic items like paint or carpet aren't included. Sellers aren't required to make repairs, but buyers may withdraw their offer if needed often leading to further negotiation.
3.
Financing: If the buyer is using a lender, they have the number of days specified in the contract to provide proof of financing to the seller. If the financing falls through, the buyer can withdraw from the contract. This process can be tedious, so it's crucial for the buyer to stay organized and promptly provide any requested information to the lender to ensure the transaction closes on time. Do not make any major purchases during this period! It's also highly recommended to work with a local lender — this usually makes the process go much more smoothly.
4.
Appraisal: After inspections and financing contingencies are settled, the lender orders an appraisal (the buyer can't choose the appraiser) If the home doesn't appraise at the contract price, the buyer can: Pay the difference out of pocket, or ask the seller to renegotiate the price (seller isn't obligated). If no agreement is reached, the buyer can walk away. Usually, the home appraises close to the purchase price.
5.
Title Work: If all goes well with the appraisal, title work is ordered from a local title company. The listing company will arrange this with the company chosen by the seller.
6.
Utilities: Have utilities transferred to your name for the day of closing.
7.
Closing: Do not expect to close on the exact date written in your contract, as closings are often extended. You should receive your settlement statement at least three days before closing. Please bring a valid driver's license or ID to the closing. Keep in mind, some lenders require two forms of ID. If you need to bring money to the table, it must be in the form of a cashiers check made payable to the closing company. Your lender will wire your purchase funds to the title company for dispersement to the seller.
