~ Kameron & Merissa Ourada
~ Josh & Sarah Rockwell
GETTING PRE-APPROVED FOR A LOAN
The first step in the home buying process is speaking with a lender about getting pre-approved
for a loan. The lender will help you determine what type of loan options you have and the costs
associated with the loan. This will help you get a clear picture of how much out of pocket
expenses you will have at closing and what your monthly payments will be. A pre-approval also
lets a seller know that you have taken the proper steps and are a ready, willing and able buyer.
Now that you’re pre-approved, it’s time to go find your New Home!
FINDING YOUR NEW HOME
After identifying your needs and wants in a home, you will be set up on an automatic home
search on the Multiple Listing Service. The MLS for short is an Exclusive Real Estate platform
that Realtors use to market their client’s homes. Once your search criteria is established, you
will begin to receive email notifications of Newly Listed, Price Change or Back on Market homes
once they hit the market. If any of the homes you are notified with interest you, let me know
and we can make arrangements to go have a look. If you find a home on your own and want
more info I am happy to research those details for you.
MAKING AN OFFER
Once we find the right home, it’s time to make an offer. I help you evaluate market data and
other factors to determine what type of offer to submit. There are many details to consider with
the offer and negotiations including; the offer amount, included items, closing date and
additional terms. Each home and seller scenarios are unique and need to be evaluated individually.
PURCHASE AND SALE AGREEMENT
The offer is drafted with a Purchase and Sale Agreement and there are also
other contingency documents included with the offer. These include but are not limited to the
Home Inspection, Financing, Title, Insurance, Property Disclosures and others depending on the
type of property and circumstances. These documents are put in place to help outline the terms,
conditions and details of the agreement.
other contingency documents included with the offer. These include but are not limited to the
Home Inspection, Financing, Title, Insurance, Property Disclosures and others depending on the
type of property and circumstances. These documents are put in place to help outline the terms,
conditions and details of the agreement.
EARNEST MONEY
The Earnest Money is submitted within the next business day of an accepted offer. The earnest
money is a portion of your down payment. 1% of the sales price is a reasonable Earnest Money
amount. ($200,000 x 1% = $2,000 Earnest Money) The Earnest Money is processed and held by
the closing agent until closing. The earnest money is a part of your down payment.
The Earnest Money is submitted within the next business day of an accepted offer. The earnest
money is a portion of your down payment. 1% of the sales price is a reasonable Earnest Money
amount. ($200,000 x 1% = $2,000 Earnest Money) The Earnest Money is processed and held by
the closing agent until closing. The earnest money is a part of your down payment.
HOME INSPECTION
Once your offer has been accepted and you have Mutual Acceptance it is time to schedule a home
inspection. A home inspection needs to be completed within 10 days of an accepted offer. A
typical home inspection costs $325-$375 depending on the size of the home. There could be
additional costs if a Well and/or Septic test are needed. A professional home inspector will
thoroughly evaluate every part of the home and provide a complete report by the following day
for review. Once received and reviewed we will discuss any concerns you have and establish a
plan to respond to the seller.
APPRAISAL
Once all parties agree on the inspection response your lender is notified to order the appraisal. The appraisal is to determine the value of the home you’re purchasing. The appraiser uses Active, Pending and Sold Comparables in the area of the home with the most similarities as possible. The appraisal process typically takes a week. Once completed, the appraisal is sent to your lender for review. Your lender then sends the appraisal and all your financial documents to the underwriting for review.
UNDERWRITING
The Lenders Underwriter reviews your file and double checks that all requirements have been met to fund the loan. Once the underwriter has approved everything your lender will deliver the loan documents to the closer and the closer will prepare your file for signing.
WALK THROUGH
Prior to signing it is a good idea to schedule a walkthrough of the home to make sure everything is like it should and any items requested in the home inspection are completed. After a satisfactory walk through of the home the next step is closing.
CLOSING/SIGNING
A Closing Statement will be sent to the lender for review and approval. Once the Closing Statement is approved, the closer will contact each buyer and seller to schedule a signing time. The lender and closer will let you know the exact amount you will need to bring to closing in the form of a Cashier’s check. In addition, you will want to bring a current Driver’s License, Passport or government issued identification with picture to the signing appointment. Signings typically take about 30-45 minutes to complete.
RECORDING
Now that you have signed the closer relays the signed documents back to your lender for approval. Once approved and cleared to close the deed is taken by the closer to the court house to be recorded. Once this process is complete, the closer will notify us that everything is all done.
KEYS AND POSSESSION
The purchase and sale contract typically states that the seller has until 9 p.m. the day of closing to vacate unless other negotiations are made. Once the listing agent notifies us that the home is vacated and the seller is all done cleaning up, the home is yours and we arrange a time to exchange the keys to you new home! :)
