On Real Estate & More – May 2018

With spring in full swing, you may be thinking about buying a home but are not sure where to start. Here’s a list of the main items that typically occur when purchasing a home.

  1. Create a list of items that are most important to you and which are nonnegotiable, such as the number of bedrooms, a specific school district, etc.
  2. A mortgage lender can help you determine how much of a mortgage you can qualify for and how much money you need for a down payment, monthly mortgage payments, property taxes, etc., and if there are any financial issues you need to resolve before moving forward on purchasing a home.
  3. There’s no reason to try to buy a home alone; a real estate broker can make the whole process much easier, will know the local real estate market, and be able to negotiate the best deal for you.
  4. Once you enter a sales agreement, your broker opens escrow by sending a copy of the sales contract to the title company, as well as the lender (if applicable).
  5. If making a cash purchase, you provide your broker proof of sufficient funds. If you are obtaining a loan, you typically have 3 business days to formally apply for the loan.
  6. Your broker will order inspections, including a home inspection, pest report, and in rural areas, septic and well tests and water flow and quality tests.
  7. Your broker attends inspections and reviews the reports with you. Based upon the results of the inspections, further negotiations and/or repairs may be necessary between you & the seller.
  8. A seller disclosure form, in which the seller discloses any known issues about the property, is provided. You typically have 5 business days to review the seller disclosure and find it to your satisfaction.
  9. After the title report is received, you typically have 5 business days to determine if it’s to your satisfaction.
  10. If obtaining a loan for the purchase, your lender orders an appraisal of the property.
  11. Once these items have been satisfactorily completed, your broker will remind you to look into obtaining homeowner’s insurance.
  12. If not already completed, your broker will transfer your earnest money to the title company.
  13. Once all repairs are completed and all parties are ready to close, your broker prepares a receipt of reports and removal of contingencies for signature.
  14. Your broker works with the title company and lender, to coordinate the timing of closing.
  15. Your broker will provide you with a list of utility numbers so you can set up utilities in your name upon closing.
  16. Your broker shall review the estimated settlement statement and let you know how much money is required to close.
  17. Your broker goes with you to the title company while you sign your closing documents.
  18. Once the property records into your name, your broker contacts you about the transfer of ownership. Your broker also arranges to get you keys to the property.

Congratulations! You are now a homeowner!