1. Preliminary Consultation

We should meet face-to-face, to review your overall objectives in searching for a new home (i.e. time frame, desired features, etc.) and discuss the process. We will narrow down neighborhoods and types of properties so we have an efficient search. This is the time to ask ANY questions and determine if we have a good personality fit to work together. 

2. Obtain a Loan Approval from a Reputable Lender

In this market, you MUST have a lender Approval letter to write a contract. Therefore, it makes sense to start this process BEFORE looking at properties. The lender will review your income, asset and credit information to determine the maximum loan amount that you qualify for - but then it's important for you to determine the amount that you can comfortable afford. This number will guide our home search.

Based on this information, the lender will provide a pre-approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals. Fortunately, the rules have changed so that you can shop lenders and have them pull multiple credit reports within a 30 day period, without the inquiries affecting your credit score. 

3. Establish Home Search Criteria

A home is more than just a collection of bedrooms and bathrooms. It is important to consider things that are important to you (i.e. a love of cooking, or entertaining or art, etc.) which will help prioritize your house "wish list" (i.e. big kitchen for cooking, deck for entertaining, high ceilings for artwork, etc.). There will definitely be trade-offs - but our goal is to find a home that meets the majority of your requirements within a comfortable price range.

Once we establish the criteria for your search, I will email new listings to you every Tuesday and Friday, that meet the criteria. The listing will be sent from the MLS system which provides property details and photos or tours.

4. Tour Homes

Once we have completed a search and narrowed down the options, we will schedule a block of time to tour homes. Prior to our visit, I will ask you to review the virtual tours and drive around the neighborhoods, to determine if some of the properties can be ruled out or solidify them on our "Must see" list. Many properties will be on "lockbox" so we have flexibility visiting them-others may require an appointment, which I will arrange.

5. Make an Offer

When a property is listed FOR SALE, the list price is the Seller's asking or offer price for the property. As the Buyer, you have two choices: 1) Accept the Seller's offer price and terms and create a contract, or 2) suggest different price/terms and create a counter-offer. If you choose the latter option, the Seller may accept, reject or counter your counter-offer.

COMPONENTS OF AN OFFER

• Offer Price
• Settlement Date
• Earnest Money Deposit (typically $2-3% of the sales price held in escrow with the selling broker or title company) 
• Inspection Contingencies
• Financing Contingencies
• Appraisal Contingency
• Other Contingencies (i.e. Sale of Home, gift letter, etc.)
• Title Company

No aspect of the home buying process is more complex or personal than bargaining between buyers and sellers. This is the point where the value of an experienced REALTOR® is clearly evident because he or she can negotiate objectively on your behalf and has knowledge of local home values and trends which may positively influence the deal. 

6. Ratify a Contract - Accept an Offer

An offer is accepted or "officially ratified" when all parties agree to the terms in writing-and the contract has been delivered to the last party to sign off (via fax, email or hand-delivered).

7. Remove Contingencies

Typical contingencies may include any of the following:

Home Inspection - Typically conducted within 3 to 7 calendar days after a fully signed contract 

• Buyer and agent present
• Buyer pays inspection company directly
• You are looking for items that do not work or major defects versus aesthetic flaws

 
RESPONSE TO INSPECTION - Usually within 24 hours of inspection report 

• Provide notice of any issues that need to be addressed by the Seller
• Insure your comfort level with property
• The Seller may offer a closing credit, in lieu of making any repairs

OBTAIN CONDOMINIUM DOCUMENTS OR HOME OWNERS ASSOCIATION DOCUMENTS/INFORMATION 

• 3 days to review for resale properties
• 15 days to review for new developments

MORTGAGE APPLICATION
 

• Immediately following contract ratification, you should contact your lender to begin the full loan application process
• The Lender will order the appraisal immediately

8. Get Ready to Close & Move! 

• Obtain home insurance
• Arrange to connect utilities (phone, gas, electric, telephone and cable)
• Review HUD-1 prior to closing (The title company prepares the HUD once the Lender forwards the loan documents. Best case, the title company received the loan information 24 hrs in advance of closing - but many times the HUD is not available until a few hours before closing.) 
• The title company will include title insurance on the HUD for the Lender and Owner. 
• Lender coverage is required - however Owner coverage is optional but highly recommended. This one time fee protects you from title defects that could affect your ownership of the property. 
• Conduct walk thorugh of the property.