Are you looking to purchase a home? Are you overwhelmed thinking about the process? Don't be! I've broken down the home buying process into seven easy steps to help you know what will be happening every step of the way.
1. Initial Consultation
Sit down and share with your licensee what you're looking for in a home. Phone your licensee's preferred Lender to determine budget, at no cost or obligation to you.
2. Pre-qualification
Most Sellers request a Pre-Qualification Letter to be submitted with an offer. Pre-qualification means the lender has reviewed and approved your credit, income, and asset documentation for financing within a given price range.
3. Searching for Your New Home
Your licensee supplies a list of available homes within your parameters. Drive by those homes at your leisure, judging houses from the outside. Eliminate the ones you do not want to see, and contact your licensee with those you want to view. They will arrange for viewing. Then, they will provide a new list, and you continue to search and view until you find the very best home!
4. Purchase Agreement & Negotiations
You should receive a copy of the disclosure statement completed by the Seller prior to writing an offer. Your licensee will help you prepare an offer, present the offer to the Sellers for you, represent your best interest, and negotiate on your behalf. The Sellers may counter your offer. Your licensee will discuss it with you and you will make the final decision. Contracts are finalized when "Mutual Agreement" is reached.
5. Contingencies, Home Inspection, Insurance, H.O.A., Title, & Appraisal
Following Mutual Agreement, you will schedule the structural inspection with one of your licensee's recommended Inspectors; plan to be present. Your licensee will negotiate on your behalf for any major repairs you request the Seller to make.You will arrange for homeowners' insurance. The Seller will provide the Resale Certificate from the H.O.A. The Preliminary Title Report will be sent to you, and a copy to your Lender. The Appraiser will inspect the property for value. He/she may require repairs even after you've negotiated the inspection. Throughout all of these contingencies, your licensee will negotiate on your behalf if you have concerns. If you elect to terminate the Purchase and Sale Agreement based on a contingency your full earnest money deposit will be returned.
6. Formal Loan Approval
After Formal Loan Approval has been received; the Lender will provide instructions to the Escrow Officer to prepare the official closing documents.
7. Escrow & Closing
A few days before closing, the Escrow Company will call to schedule an appointment to sign documents. The Escrow Officer will tell you the exact amount of money you will need to bring; via a cashier's check for your down payment and closing cost. The sale records with the municipality after signing has occurred. Once this happens, the home is yours!
Looking to buy a home in the Anchorage area? Lonnie Logan and Associates can help!
Click here to see homes for sale in Anchorage, AK.
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