Days 0-7
- Mortgage Loan Officer: Ask for lender referrals from friends or family and talk to several. When you do, they’ll run the numbers to determine how much you can spend on a home. Closely consider what your estimated monthly payment would be and whether you’re comfortable with that amount.
- Pre-Approval: After you’ve secured a lender, they’ll run a credit check and issue a pre-approval letter for a specific loan amount that’s good for a period of time. This letter is required when making an offer on a property.
- Offer to Purchase: Once we’ve found a property you want to buy, we’ll work together – strategically – to make a strong offer to purchase. That means we’ll consider comparable sales in the area, whether the market is a buyer’s or seller’s one, and your negotiating style. While it can be challenging, it’s important to keep your sights on the end goal and not quibble over an amount that could cost you the home.
Days 7-30
- Purchase & Sales Agreement: When you’re reached agreement on your offer to purchase, the purchase and sales agreement is the next document we’ll prepare that outlines the final sales price and terms of the transaction.
- Loan Application: As soon as your offer to purchase is accepted, you’ll complete a loan application with your selected lender. The document will ask about your property, employment, income and expenses, and other financial factors.
- Home Inspection: This step, at the buyer’s expense, typically includes a physical and mechanical inspection of the property as well as other tests for the septic system, water, radon or lead, as necessary. Depending on the results, we may have to go back to the negotiating table to discuss repairs or credits.
- Title Search: Whether you get a personal or lender recommendation, you’ll need an experienced attorney to help you complete your real estate transaction. One of the attorney’s most important roles is to perform a title search to ensure the seller has clear title to the property before closing.
Days 31-45
- Insurance Quote/Policy: Before closing on your home, your lender will require that you secure a homeowner’s policy or, if you’re purchasing a condo, renter’s insurance to protect your property and the possessions inside.
- Processing & Loan Commitment: Following a complete review of your file, your lender will issue a commitment letter stating that it will offer you a loan and confirmation that you’re “cleared to close.”
Closing
After conducting a final walk through, you’ll head to the closing. Your attorney will prepare the necessary closing documents, including your final financial settlement. Since you’ll likely need to bring a bank check to the table, be sure you establish a relationship with a local bank since it can take several days to receive a check from an online bank and the final figures typically aren’t available until the night before closing. After signing all the necessary paperwork, your attorney will handle recording the documents. And you’ll get the keys and be the proud owner of your new home!
Contact me to find out how we’ll reach your next destination step by step.