Tips on Becoming a Good Buyer (Part 3 of 3)

Here is the last post in my series on how to become a good buyer, whether you are looking for a Carlsbad home or searching elsewhere.

Now that your offer has been accepted, you are on to the mechanics of the transaction. This is what you have been waiting for, so do it well!

Here are Part 1 and Part 2 in case you missed them.

Conduct home inspection- This is the time to learn everything you can about the property and to determine if there are substantive mechanical, structural or other defects that might result in your changing your mind about proceeding with the purchase. This must be done by whatever agreed on period was negotiated following the offer acceptance (here in CA, this is the Contingency period, the default being 17 days but negotiable). While it is not required it is a prudent thing to do. If you want to back out of the deal, you will likely need documented deficiencies or the need for significant repairs from the inspection to do so. The terms of your contract spell out the conditions under which you may back out. Know your rights and obligations before you just decide to walk away.

Submit full loan application - If you are getting a loan, you will now need to formally apply for one for THIS PROPERTY. The bank may already have much information from you from the pre-approval process, but a formal application must be completed; make sure you have pay stubs and other financial documentation such as checking/saving account records and tax returns in case the bank requests them. Applying for a loan must be done during the time period agreed with the seller (e.g., contingency period here in CA). Part of the application process includes a bank appraisal, among other items. Failure to get your loan application completed in a timely manner may delay the process, and not getting the loan in time puts your transaction, and deposit, at risk.

Obtain mortgage commitment from lender - The lender will provide you with a letter stating their commitment to providing you a loan based on certain terms and conditions (e.g., a satisfactory appraisal). The letter outlines the interest rate and loan terms, among other information. The offer agreement stipulates the date by which this must be received, unless there is an agreed-upon extension, in writing. You may need to document your approval from the bank for the seller in accordance with the offer (this is done in different ways in various states) or at least remove the loan contingency in writing.

Moving preparations - Plan how you are going to move (by yourself, using a moving company) and obtain estimates from moving companies so you can decide who to use. You will need to start packing, unless you are paying the moving company to do that. Among other things to consider - make a list of all the address changes and notify the post office; arrange for utilities and telephone in your new home and to turn them off at your current residence when you are moved. Your agent can help you with the many items you need to consider. I have a free Moving Checklist on my website you can request.

Final walk through - You will want to tour the property with your agent before the day of the closing to check that the property has not undergone any changes, and the seller's personal property has been removed (there will likely be an agreed-upon period during which this should be done, e.g., 3 days before the close of escrow, the day of closing in some places). It doesn't hurt to take careful notes of any issues as well as digital photos of problems that were not addressed after the inspection (and agreed on) OR if new issues have come up. If there are problems, there will need to be some sort of agreement with the seller about how this is to be addressed before closing occurs, or closing might proceed with money withheld until the issues are addressed satisfactorily.

Close of escrow/closing/settlement -You will be asked to sign numerous forms and provide various documents to the escrow company, or an attorney or other official during the process (depending on how it is done in your state). You will also need to pay any final funds (apart from the mortgage, if any) that must be received in order to complete the transaction and provide you with the deed. Prior to closing stay in close contact with the person handling the process (escrow officer, attorney) to make sure everything is proceeding well and all documents are in so there are no surprises. Don't assume THEY will stay in touch with you. REMEMBER - you have the greatest vested interest in the closing happening. Also staying in touch with your agent is good protection to make sure everything is done in the time permitted. Failure to complete all the required tasks in the time permitted can put your transaction, and your deposit, at risk. Once everything is signed, you will be given the keys and you are a new homeowner. The deed may be recorded right away or not, depending on your state.

Please let me know if there are questions or if I can provide any assistance. You may contact me by PHONE or TEXT MESSAGE at (760) 840-1360, or email me at JDowler@remax.net.

And if you already have an agent, make sure you address any questions and concerns with him or her.

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MORE REAL ESTATE INFORMATION:

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Relocation A to Z - everything buyers and sellers need to know about relocation to Carlsbad, or anywhere else.

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