Buying a Home in the Olympia WA area?
How Does This Process Work Anyway? Well, we will start out with a chance to talk over your criteria for the home you are buying, including a lot of other important stuff - are you going to live in the house or is it an investment property? Are you renting now or do you need to sell another home before you can buy? Is our search going to include short sales, bank owned properties, for sale by owner homes? (we will chat a little about the opportunities and challenges with each of those so you can decide).
Getting preapproved for a home loan - unless you are paying all cash, this is an absolutely essential step before we actually go look at homes. The loan approval process is a little more complex than in years past, so plan on being asked to provide LOTS of info, and then being asked for still more along the way.
Looking at homes! Yes, this is probably the most fun of all - next to actually getting the keys to your new home! We will look at the best matches for your criteria and you can make notes on each house we see. It often is easiest to compare house 2 to house 1 and eliminate as we go so you aren't trying to mentally juggle any homes that really are not likely to be "the one". Going back to look at the favorite few can be a great way to really scrutinize the home and refresh your memory about details that matter to you.
Writing an offer! Once you know you have found a winner, there is a LOT of paperwork for us to do to capture all the details of the offer you would like to make. If you are into detail, I will give you copies of blank forms before we get to this step, so you are familiar with what we will be filling out. There will be a main Purchase and Sales agreement that captures details of buyer and seller names, property address, offer price, closing date, etc. Also a number of addendums will be included to capture the pertinent contingencies we want to include - is the purchase contingent on you actually getting your financing? On having a home inspection and either accepting the condition, negotiating for repairs, or cancelling the agreement? Some addendums are almost always going to be used and others depend on the particulars of the property - do we need a well to be tested, a septic to be pumped?
Negotiating the offer - we may go back and forth a number of times with counteroffers, changing details of the agreement until we reach a point of mutual agreement (or realize that no, we are just not going to come to an agreement).
First round of celebrating that we have an agreement for you to buy the house you want!!
Next, a number of things begin happening somewhat simultaneously. The purchase and sales agreement goes to your lender and the escrow company that will handle the closing. Your earnest money gets turned in and deposited in the indicated trust account. The lender starts processing your loan for this home. We schedule the inspection and see what issues that reveals. The title company begins researching the title for the property, what liens must be cleared at closing and any issues to be resolved so you can have clear title. You contact the insurance company you choose to provide insurance on the home. Our purchase & sales agreement establishes deadlines for many of these things, so timing is important!
We negotiate about any repairs that the inspection brought to light and that you want the seller to have done.
The seller works on having any agreed to repairs completed. The lender orders the appraisal and it happens (hopefully without creating any hitches!). The lender's underwriter reviews the loan package and appraisal report and issues final approval for the loan.
Final steps include the loan paperwork getting to escrow; escrow preparing some more paperwork and scheduling buyers and sellers to sign; you go sign your part of the paperwork and arrange for any funds you are bringing in for down payment/closing costs (typically either a cashier's check or a wire transfer will be required). Call the utility companies to get service set up in your name; arrange for moving help (you've already been packing right??). Your lender gives their release for the change of ownership to be recorded at the county and wires the funds from your new loan. The escrow company records the ownership paperwork and notifies buyers and sellers that the sale is now complete!!
Whew....happy dance, happy dance! And I coordinate with the listing agent to get keys to give to you for your new home!! Yes, it is a huge process - but the end result is you moving into your new home and celebrating this big step in your life!!
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