A well planned and informed approach to any investment will insure that the very best results are achieved. Whether re-entering the market or purchasing a home for the first time, the process can be a little daunting. By refreshing the experienced buyer, or starting from square one with the first-time buyer, I strive to ensure that my clients become familiar and comfortable with all aspects of the home purchasing procedure.
Our first appointment will begin with a meeting to introduce or review the home buying procedure, including the home search, financing options, home inspections, the Offer to Purchase, the Purchase and Sale Agreement, and the importance of good mortgage and legal representation.
Special care will be afforded the first-time buyer, with an introduction to mortgage qualification and the role of credit. I encourage future buyers to meet and discuss this process ahead of purchasing, many buyers need to get their credit in order for a period of time prior to being able to purchase a home. We are happy to help the young buyer in this process, and will gladly take the time to meet with prospective purchasers to plan for the future.
There are numerous mortgage products available, and the importance of choosing the right mortgage for your needs can ultimately add thousands of dollars to your investment, or cost you thousands.
When You Are Ready to Purchase
The first step when you are ready to purchase is to determine your mortgage qualifications. There is an ever fluctuating mortgage process, and your credit score is the “key ingredient” in negotiating a satisfactory home loan. After we have determined the price range where you are most comfortable, it is time to begin the home search. Your real estate agent will arrange a home tour and help you through that process.
Negotiating a property is one of the most important and valuable services that I as a professional agent can offer. Taking into consideration the many variables that surround the property and participants in the sale, my objective is to obtain the best price with the most favorable conditions for my client.
Offer to Purchase
The Agent and the Buyer will prepare an Offer to Purchase outlining the details of the purchase price and conditions of sale. This Offer to Purchase is accompanied by a binder check in the amount of $100.00. A Letter of Qualification from a lending source is required at this time. The offer is then submitted to the Listing Broker and negotiations continue until a satisfactory Agreement is reached between the Buyer and Seller. This document when executed may become a legal binding Agreement. It is recommended that an Attorney review this document. There are several significant contingencies within the Offer to Purchase and Purchase and Sale Agreement. Two of these are the Mortgage Contingency and the Home Inspection Contingency (briefly outlined below).
MORTGAGE CONTINGENCY. Allows the Buyer and adequate amount of time to obtain a mortgage. Should the Buyer be unable to obtain a mortgage loan commitment within the specified period of time, the Buyer’s deposit is returned in full.
INSPECTION CONTINGENCY. Allows the Buyer a sufficient amount of time to conduct a full inspection of the premises satisfactory to the Buyer and Buyer’s expense. Should the Buyer not be satisfied with the results of the inspection, the Buyer’s deposit is returned in full.
Purchase and Sale Agreement
It is advised that Buyer have Purchase and Sale Agreement reviewed by an Attorney of their own choosing.
The Listing Broker will then prepare a more formal written document outlining in more detail the terms outlined in the Offer to Purchase. Attorneys for both parties will review and incorporate any protective clauses/contingencies they feel are necessary to protect their client’s interest. Once the Purchase and Sale Agreement is complete and approved by all parties, the Buyer will sign the Agreement. A Bank Check made payable to the Listing Broker in the amount of 5 percent of the purchase price is submitted with the signed Purchase and Sale Agreement. The Agent for the Buyer will then submit the Agreements to the Listing Broker for Seller Signature.
Within the framework of the Purchase and Sale is the inspection contingency allowing the Buyer to inspect the home and all its components to be sure that it meets their expectations for condition and safety. See Home Inspectors Facts for Consumers.
Completion of Sale
Following the successful completion of the Home Inspection, and obtaining a final mortgage commitment, we will proceed with the final steps of the sale process.
At this time the Attorney will complete the legal aspects for a successful transfer of title, including obtaining adequate title insurance policies, a property survey, and the arrangement of a mutually agreeable closing date and time.
We will obtain a homeowners insurance policy, the transfer of utilities, and arrange for a final walk-through of the property.