When purchasing a home, explaining the methodology of the purchase to the buyer is frequently overlooked by the Realtor. This can be very frustrating to the buyer, not knowing what to expect next, especially to the first time home buyer. If the Realtor would simply take a few minutes to enlighten the buyer on the process of the purchase, a significant amount of stress would be removed from the buyer. The time taken by the realtor to reply to many inquiries from the buyer would be alleviated as well, freeing up more time for the Realtor to devote their attention to other more productive forms of business.
Here Jeffrey will explain the buying process in a simple dialog, easily understood by anyone who is not familiar with the buying process. Starting with the offer and working its way through to the closing, Jeffrey will uncover the pertinent details of the purchase.
You found the home of your dreams and you're ready to move on to the next phase of your life. Now is the time to make an offer.
The expertise of your Realtor is now your greatest asset. Our exceptional negotiating experience is sure to get you the best possible deal.
Upon acceptance of the offer your Realtor will prepare the binder which is the formal written offer to purchase. The key points in the binder will be that the offer is subject to a home inspection and review by the purchaser's attorney. It will also state the amount of the down-payment and at what time it will be due and payable. There may also be a small down-payment upon signing the binder.
The Home Inspection
The home inspection is a complete, top to bottom inspection of the home including the foundation, roof, plumbing, heating, etc. You can be present for the inspection which should be scheduled before signing the contract and no more than 3 days after signing the binder.
Termites
Now is the time for the purchaser to arrange for the termite inspection. This can be done in conjunction with your home inspection or any other company of your choosing. If the results of the inspection show damage and/or infestation, the purchaser’s attorney will negotiate a resolution with the seller’s attorney.
The Contract
The contract of sale will be prepared by the sellers attorney upon receipt of the home inspection report (also known as the engineers report). Upon completion it will be delivered to the purchaser's attorney for review and negotiations of the terms and conditions.
Once the terms and conditions are agreed upon, the purchaser's attorney will meet with the purchaser to review both the home inspection report, termite report and contract of sale. The purchaser's will sign the contract and provide a check for the down-payment as stipulated in the binder.
The signed contract and down-payment check are then delivered to the seller's attorney at which time the attorney will review the terms and conditions with the seller. The seller will sign the contract and the seller's attorney will deposit the down-payment into their Attorney Escrow Account. The purchaser's attorney can now order the title report.
The Title Report
The purchaser's attorney will order the title report which summarizes the ownership of the property as well as any liens or encumbrances against the property. The title report is reviewed by the purchaser's, seller's and lender's attorney. The purchaser's attorney will advise the seller's attorney of any objections of title and the seller's will work on a resolution.
At closing the title company will deliver to the purchaser the Owners Policy of Title Insurance and to the lender the Lenders Policy of Title Insurance.
The Mortgage
The purchaser will typically have 45-60 days from execution of the contract to obtain a mortgage commitment from a lender of their choosing. During that time the purchaser will have the opportunity to "lock" the interest rate (be sure to speak with your mortgage banker prior to making this decision so that they may review all of your options).
Clear to Close!
The mortgage has been approved and the title is clear of any issues. It's time to schedule the closing date!
Once the closing appointment is scheduled the purchaser will have the opportunity to conduct a final "walk-through". The walk-through will typically be in the morning of the scheduled closing date and will afford the purchaser the opportunity to ensure that the home is in the proper condition.
The Closing
The purchaser's attorney will advise the purchaser if certified checks will be needed for the closing. The purchaser should also bring their personal checkbook for funds that are not required to be certified. At the closing, the deed, mortgage, settlement statement, etc. will be signed and the final conditions of the contract of sale will be met.
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Now that you are familiar with “The Home Buying Experience" you are ready to go out and find your dream home or investment property. But don’t stop here, there is plenty of useful information all over the internet that can help you with finding your home, making an offer, and researching a school district among many other features and tips.
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Jeffrey Hopkins is currently working through Coach Realtors in New York. His articles can frequently be found peppered throughout the Internet. 631-581-7979
You can find more useful information at http://HomesbyHopkins.com or http://jeffreyhopkins.coachrealtors.com
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