Home Buyers Information
Home Buyers Information buying a home can one of the most significant investments of your life. Not only are you choosing your dwelling place. And the place in which you will bring up your family. You are most likely investing a large portion of your savings. And assets into this venture. The more prepared you are at the outset. The less overwhelming and chaotic the buying process will . The goal of this page is to provide you with details and helpful information to assist you in making an intelligent and inform decision. Remember, if you have any questions about the process, Your realtor is only a phone call or email away!
Starting The Home Search Process
The realtor may work with you as a Buyer’s Agent or as a Sub-agent of the Seller; Home Buyers Information sure to discuss these agency relationships with your agent at your first substantive meeting as you will require by law to sign an Agency Disclosure Agreement at that time.
Know how much you can spend. Determine how much you want to pay for a new home.
If financing will require, it is recommended that you obtain mortgage pre-approval from a qualified lender prior to beginning your home search. Often attach with a written offer, a pre-approval letter will give your offer merit in the eyes of a seller and may allow you to more flexible if a quick closing is in both parties’ best interest.
Choosing legal counsel You should also select an attorney at this time.
It is recommended that you choose an attorney who is experienced in representing purchasers of real estate. If you don’t have an attorney already for this purpose, your agent can usually give you names of several highly regard real estate attorneys that you can interview.
Now that you have found the home you want, how do you structure and offer to purchase?
Once you have found a home you wish to purchase, Home Buyers Information your agent will submit an offer on your behalf. Offers and counter-offers may submit verbally or in writing. The initial offer is usually submitted in writing (especially in a multiple-offer situation) as an “Offer to Purchase” prepare your agent.
Terms of your offer usually include:
- purchase price,
- personal property to include,
- project closing date,
- conditions and contingencies (inspections, financing, etc.)
Subsequent counter-offers are often present verbally. When you have reached an agreement with the seller on all terms you now have an Acceptable Offer (A.O.).
What happens after you have an Acceptable Offer?
Once an A.O. is reaching, a written memorandum of Agreement is usually draft to the seller’s agent, stating the terms of the agreement; copies are distributed to the seller, the seller’s attorney, the buyer, the buyer’s attorney, and both real estate agents. No earnest money deposit is exchange at this time. The typical time frame from agreement to closing is approximately 60 days. Of course, many factors can affect this time frame, including the specific needs of the buyer and/or seller.
From an Acceptable Offer to Contract
After reaching an A.O., you (the buyer) are given a limit time period during which to conduct an engineer’s inspection and other desire and/or require inspections (assuming that an inspection contingency is part of the agree-upon offer). This period is usually 10 days or less. During this period, the seller has only a verbal, non-binding agreement to sell the property to the buyer; the seller.
In the meantime, Home Buyers Information is free to listen to, negotiate, and/or accept other offers. It is, therefore, imperative that you (the buyer) conduct all inspections in good faith and in a timely fashion. A binding contract will generally not written until after inspections have complete.
Home Inspections do you need them?
An engineer’s inspection is very strongly recommend for every home purchase. The purpose of an inspection is to identify the condition of the home and allow the buyer to make inform decisions. Even with newly construct homes and with condominiums, it is possible that something could have overlooking or poorly design. An engineer’s inspection will typically take 2-4 hours. If at all possible, you should plan to there with the engineer during the inspection. This is an opportunity for you to learn a lot about your new home, ask questions of the engineer, and receive suggestions. Subsequent to the inspection.
The engineer will provide you with a detail written report covering his/her findings. Most mortgage lenders require a termite inspection and stipulate that it’s to done by a license termite inspector. Your engineer may or may not license to do termite inspections; if not, you will need to hire a termite inspector. Other optional inspections you may wish to perform include a fuel oil tank test (for oil tanks buried in the ground), a radon test, a septic dye test (if applicable), a water portability test and water recovery test (for private wells), asbestos testing, and lead paint tests.
From Contract to Closing
Once inspections are complete and deem satisfactory, the seller’s attorney will draft a contract of sale and deliver it, along with the seller’s title insurance policy and copy of any existing survey, to your (the purchaser’s) attorney. You should review and discuss the contract with your attorney. If any changes are request, the seller must agree to these changes.
Sign contracts are then return to the seller’s attorney with a 10% contract deposit, also call a “down payment” (this down payment amount can negotiable but is typically 10%). The contract deposit check is made payable to the seller’s attorney who holds it in Home Buyers Information an escrow account until the closing. Once the contract is sign by the seller, your attorney will receive two fully execute copies of the contract, one of which will give to you for submission with your mortgage loan application.
Your complete mortgage loan application with all supporting documentation should submit to your chosen lender promptly upon receipt of the fully sign contracts. Your attorney will also provide you with an estimate of closing costs at this time.
Prior to closing, your attorney will arrange for a title search of the property. The title company will issue a title report certifying clear title, and a title insurance policy to protect the lender (require) and the buyer (optional) in the event a title problem arises in the future. The title company will also perform a property tax search and a violations search (require the lender), and a survey inspection. If the existing survey is Home Buyers Information unacceptable, or if no survey exists, it is typically the buyer’s responsibility to pay for a new survey.
From contracts to the closing table
Once all conditions of the contract have satisfying, the closing date is schedul. This involves getting together all parties including the seller, the seller’s attorney, the buyer, the buyer’s attorney, the lender’s attorney, the title company representative, and usually one or both real estate agents. Once the closing is schedul.
- calls should made to confirm with your movers,
- to contact utility companies to transfer service accounts,
- to arrange for a homeowners insurance policy (proof of an insurance policy and paid receipt for one year’s premium paid in advance must brought to the closing),
- and to transfer any funds necessary for closing.
Your attorney will advise you in advance as to the amount of any certify checks require at closing. You will also require to bring a supply of blank personal checks for assort closing costs, as well as two forms of identification, one of which must be a photo I.D.
Inspecting the property for the final walk-thru
A final “walk-through” of the property is performing just prior to closing, usually within a few hours or not sooner than the previous day. This is schedule with your real estate agent or the seller’s agent.
The purpose of the walk-through is threefold:
- to confirm that no damage has done to the home since the time of the engineering inspection;
- to confirm that the major systems and appliances are in working order; and
- to confirm that the home is “vacant and broom clean”, as stipulate in every sales contract.
Please keep in mind that this is not intend to a comprehensive discussion of the home purchase process. It is intende to give the reader a general overview of the process and to allow a prospective purchaser to plan ahead. Information containe herein should not take the place of the expert advice of professional advisors such as an attorney, a real estate agent, an engineer, a mortgage counselor, an accountant, and an insurance agent, all of whom you may have to consult with and rely upon in connection with your home purchase.