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Summary
of the Purchasing Process
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1.Pre-Qualify
for a Loan
Set up an
appointment with a lender and find out the price range of
homes you can purchase. Find out what monthly payments you can afford.
Receive a ‘Pre-Qual’ letter from you lender to present with your
purchase offer. This shows the Seller you are serious and have been
pre-approved for a loan.
2.
Select
Your Real Estate Agent
Find
someone who listens to your wants and needs, responds to you in a
timely manner, and does their homework for you. You should not settle
for an agent that shows you only their or their office’s listings. You
will be asked to sign a couple of documents:
a.
Relationship - This is so you understand your agent’s
responsibilities and that she/he may also be representing other
buyers/sellers.
b.
Buyer/Broker Agreement - This entrusts you to working with
your
agent. If you are not serious about working with your agent, why should
your agent be serious about helping you? A Buyer/Broker Agreement, in
general, says you will be working with that agent and agree to pay a
commission upon purchasing your real estate. It does not commit you to
having to buy something. What is important to know here, is that most
of the time your agent is paid a commission from the broker who has
listed the property and there is no additional cash out or your pocket.
Should you purchase from a homeowner who has their home up for sale
themselves (For Sale By Owner – FSBO), check to make sure that seller
is offering a commission to agents. If not, you may be responsible for
paying your agent’s commission. If you have an exclusive Buyer/Broker
Agreement with one agent and then purchase through another agent or no
agent at all, you may still be responsible for paying your first
agent’s commission. Any professional agent that knows their business
will have you sign a Buyer/Broker Agreement.
3.
Shop for
Your New Home
4.
Purchasing Your New Home
A. I will
write up and present a purchase offer to the Seller’s agent
along with a check for ‘earnest money.’ In addition to the price you
are offering to purchase the property at, this will include such
information as:
- when you need to start and finish your loan process
- any negotiating items
- any contingencies or reasons you may be allowed to back out of your
offer
- closing date
B. The
Seller may accept your offer as is, or may return a Counter
Offer.
C. Once an
offer is accepted by both parties you will need to
start your loan process and inspections. Typically the Buyer pays for
any inspections, though this could be negotiated in the offer. Should
your home inspection reveal concerns, we will write up a proposed
repair or action list for the Seller. They may or may not agree to
repairs and the negotiating process may begin again. Or, you may even
have the legal option to retract your purchase offer.
D. A
walk through will be scheduled prior to closing to ensure all
repairs, fixtures, items, etc. are as you expect.
E. A
closing date will be set for you and your loan officer with the
title company. The Seller may meet separately with the title company to
sign their share of the documents.
5. Plan you
Housewarming Party and
Invite your Real Estate Agent!
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