Step 1: Make the decision to buy
Consider the reasons you want a new house, and put the pen to the paper. Write down the characteristics of a home that meets your needs, and prioritize them. Determine how long you’ll want to live in your new home, the highest payment you can manage, and how much cash you have.
Step 2: Get formally pre-qualified
Before you waste one gallon of gas, you need to find out the details of getting a home loan. In a matter of minutes we can determine how much of a home loan you can afford, and what “price range” you should be shopping in. We’ll ask you questions regarding income, debt, assets and credit. We will give you all of the information that you need to make clear, realistic decisions about your future. ALL options will be discussed. Frankly, meeting your needs is something that we do very, very, well, and it starts with the right loan.
Step 3: Do your homework
The goal is to become an expert in the area you’re targeting. What are the most important criteria for you? Location? School district? Downtown? These are only questions that you can answer. Once you tell us what you want, we’ll really go to work for you! We can create you a customized list of homes that meet your needs in the neighborhoods you want. You can then perform “drive-bys” to scrutinize the homes currently for sale, and get a feel for the neighborhood. We will make appointments (when needed) and show you the homes you want to see.
Step 4: Get a formal loan approval
When you are within 45 days of making an offer, it’s time to get serious about your loan. Have you turned in everything needed for your approval? Are all of your credit issues and cash needed to close issues dealt with? In today’s market, most sellers will not accept an offer without a pre-approval letter. If we are looking at a bank owned property, they often won’t even look at your offer without pre-approval! We will work very hard together to negotiate the best contract on your behalf.
Step 5: Make the offer
Once you’ve found the home that meets your needs, we’ll help you structure an offer aimed at securing the best terms possible. It’s at this point that you’ll have to open your wallet for the first time. When making an offer, you’ll need to provide an earnest money deposit, usually $1000-$2000 to be held by the escrow company. If your offer is not accepted your deposit check will be returned immediately. In our local market, especially in the $200,000 price range or less, it is common to make several offers before we get one accepted. Competition is fierce and multiple bids are typical. You will really need our expertise more than ever during this period.
Step 6: The escrow period
Once your offer is accepted, you’re “in escrow” and that check you wrote for the earnest money deposit will be cashed. Escrow usually last about 30-40 days, and you will be busy this entire time. There will be various home inspections done, including the appraisal. There may be repairs completed on the property. Your loan is moving “full speed ahead” and you are now busy packing boxes. There is never enough time.
Step 7: Signing your loan documents
Once your loan is formally approved, the Lender will deliver your closing documents to the escrow company for you and the seller to both sign. At this time, you’ll bring any funds that may be due (if applicable) and notify the escrow officer of your insurance agents selection. Hopefully, those boxes are all packed!!!
Step 8: Funding & Recording
The signed documents are then couriered back to the Lender, and once all is in order, the lender “funds” your loan. Funding typically takes 2 to 4 days after you sign your closing documents. The title company will then record the deed to the property into your name, and
you fire up the moving van!!
