Buyer

In this meeting, you will meet with me via a Teams call to understand your goals and to determine if you are ready to buy a home. If you are not, we will make a plan to get you where you need to be by the time you are ready.

We will also:

1. Establish your home search criteria

2. Explain the necessary steps you need to take if you have not consulted with a lender (non-cash buyers),

3. Discuss liquid assets (down payment and closing costs)

Work with a trusted lender to learn about the many types of loans available and advice you about the best option for you according to your buying power (debt-to-income ratio, credit score, down payment, job history, if you are a first-time or investor, etc.).

A lender will collect data from you and assess how much you qualify to purchase a home according to your down payment. The down payment will be dependent on your loan to finance a home. In this step, you will obtain a pre-approval letter that you or your lender will provide me to submit it with a written offer.

We will set a time and day to tour homes that meet most of your criteria (sqft., condition, access to public transportation, backyard, local school district, real estate taxes, resale or new construction) we established in our initial meeting. As your agent, we will hunt for houses within your budget.

It is time to make an offer and submit it in writing. Your offer will have the price you are willing to pay for the home, important deadlines for both parties to meet and other terms.

Congrats! Your offer is accepted. After acceptance, you will deposit a small amount of money about 1% to 2% of the sale price in escrow. You will receive wire instructions from your escrow company and receive a receipt as proof of your deposit. A buyer makes a deposit that represents a buyer's good faith to make a purchase. 

This is where the contingency periods outlined in a binding contract come into play to protect you. A contingency is a clause in a purchase agreement specifying that condition(s) must be met for the contract to become legally binding. This clause buys you time to secure financing, conduct title search, appraise the property and inspect the property/disclosures. If you are not satisfied with your findings, you have the option to back out without forfeiting your deposit or negotiate new terms with the seller before removing your contingencies.

The lender approves your loan after meeting all the conditions. 

Three days before closing, your lender is required to provide you a closing disclosure, which will outline how much you will need to bring at closing (this will be the balance left after your deposit). Your closing will consist of your down payment and closing costs combined. The closing disclosure summarizes your loan. This is the best time to review any big discrepancies from your loan estimate (three days after your loan application).

At signing, you will meet with a notary to sign the loan documents. Within your loan documents, you will sign the mortgage note. This note is your promise to repay your lender according to agreed terms. You will sign the mortgage or deed of trust to secure the mortgage note.

Bring with you at closing the following:

• State Identification

• All borrowers on the loan

• Closing Disclosure

• Proof of funds

The notary will deliver the signed documents to the escrow for review. 

When the loan funds, the lender who is financing your loan has sent the money to purchase the property to the title or escrow company. The responsible third party will pass it on to the seller of the house known as seller proceeds. 

At this point, title has recorded your deed/mortgage with the county where the property sits. Recording can happen same day or can take a few days depending on the day of signing.

Pack your bags because you are a new homeowner!