BUYER CONSULTATION: This meeting takes place at my office and we will discuss your goals, concerns and fears in as much detail as you would like so that you understand and are comfortable with the entire process. HOME LOAN APPROVAL: Next, you will need to obtain a home loan approval from a qualified lender. While you may use any lender you wish, I also have a lender whom I would like to recommend and his name is Rick Thurston with Apollo Home Mortgage. I have formed a close working relationship with Rick and feel confident that he will do a great job for you. If you would like other recommendations, please feel free to ask...I have several competant loan officers I can also suggest. SEARCH FOR HOMES: Once you have been pre-approved and are comfortable with a price range, we begin searching for a home. I will utilize the MLS system to search for all properties that fit your criteria and schedule showings of properties that you are interested in. If you are interested, I can set up an automatic email that will forward new listings to you as they come on the market. (Visit the Search Saver tab of my website if you would like to set this up yourself.) The number of properties you view before making a purchase decision is up to you and will depend on the market, the neighborhood and your specific requirements. Tips for viewing homes: wear comfortable shoes, try not to bring small children so you can focus on the task at hand, plan to allow 30 minutes per property, and relax and have fun! OPEN HOUSES: While you are searching for your new home, it might become tempting to attend a few open houses. If you are interested in doing this, please let me know. In order for me to fully represent you, the other agent needs to be aware that you are working with me right from the start. I will be happy to supply you with some of my business cards that you can give the agent who is hosting the open house. This applies to model homes as well. So see a list of open houses currently being offered by the Woodbury office of Keller Williams, click here. FOR SALE BY OWNER HOMES: If you are interested in viewing a home that is being sold directly by the owner and you want to utilize my services for that, please allow me to contact the owner first to set up an appointment. Most times the homeowner will work with an agent, even though their home is not listed. THE PURCHASE AGREEMENT: Once you have found the home you wish to purchase, we wiill write a purchase agreement. This is an "offer" to the seller and is a legal agreement which, if accepted by both you and the seller, binds the sale and begins the closing process. Once completed, the purchase agreement will be delivered or faxed to the seller’s agent and the seller’s agent will arrange to present the offer to the Sellers. Normally, this will be done at the real estate office the property is listed by, although it occasionally can take place at the sellers home, by fax, telephone or any other way that allows it to be presented in a timely fashion. Following are a few considerations for you to think about before the Purchase Agreement is prepared. · What Price to Offer—The typical belief of buyers is that they can buy a home for less than the asking price, however, this is not always true. It may depend on several things such as number of showings and/or previous offers the property has had, urgency for the home to be sold, whether the home is priced at fair market value, and how long the home has been on the market. · What Factors Influence the Seller—The purchase price is only one consideration for the seller and many factors can influence the final dollar amount the seller ends up with. Things that could affect this dollar amount are: the type of financing you will be using, competing offers, what personal items you are asking for, the risk (if any) involved in selling their home to you (ie., whether you will qualify for a loan and/or if you are selling your current home before buying theirs). · Earnest Money—Earnest money is money paid by you when the offer is presented (normally 1% of the sale price). It is typically paid in the form of a personal check made out to the listing broker. It represents a sincere offer from you to purchase their home. If the offer is accepted, the check is cashed within 48 hours of the acceptance and placed in a trust account of either the listing broker or the builder. At the closing, the money is used as part o your down payment or closing costs. If there is legal reason why the sale does not take place, the earnest money will be returned to you. However, if you change your mind about buying the home, the earnest money may be given to the sellers for personal losses and you may risk further liability (refer to the purchase agreement for further specifics). · Personal Property—You have the right to ask for any personal property in the home and the seller has the right to say no. It is in your best interest to be reasonable when asking for their personal property. Typical negotiable items are: refrigerator, stove/range, dishwasher, draperies, fireplace equipment, washer/dryer and other built-in items. · Home Inspections—We highly recommend you make your purchase offer subject to getting a private home inspection. It will help protect you by bringing potential issues to your attention. Typically, you will have between 3 to 5 business days after signing the offer to have this inspection completed. An experienced, outside professional home inspector is worth every penny and the cost is usually between $325 to $400. We have a list of qualified home inspectors for you to choose from. SO YOU BOUGHT A HOUSE...WHAT HAPPENS NEXT? Once all of the details of the offer have been agreed to and signed, you are on your way to Closing. This will take place anywhere from a month to three months after signing, depending upon the terms of the Purchase Agreement. This normally takes place at a Title Insurance Office and while you are making arrangements for your move (ie. packing your belongings and/or selecting a moving company), we will handle the flow of events between all parties involved including the seller, seller’s agent, mortgage and title companies. You are entitled to select any title company of your choice, however, for a smooth, trouble free closing, we recommend using our in-house title company, Partners Title. During the weeks prior to closing you will need to make arrangements with all of the Utility Companies to transfer them into you name(s) as of the possession date or closing date, whichever comes first. Be sure you advise the telephone company at least one week prior to possession. We will be sending you a closing letter with telephone numbers for the utility companies you will need to contact. OWNER'S TITLE INSURANCE: For many people, the purchase of a home represents the single greatest investment in your lifetime. To protect your interest in the property, you will be given an opportunity to purchase an Owners’ Policy of Title Insurance. This is highly recommended and Partners Title will make sure you get the right one to suit your needs. A title is the document that verifies your legal right to your new home. To make sure there are no past errors or legal entanglements that might affect your ownership rights, all properties are subjected to a title search before closing. Sometimes, however, a title problem will unexpectedly surface days or years later. If a problem does occur, you’ll be glad to have the protection of title insurance. There are two kinds of title insurance: one that protects the lender (required) and one that protects you (optional). Don’t underestimate the importance of this coverage. HOMEOWNER PROPERTY INSURANCE: You will also need an Homeowner’s Policy (property insurance) to cover, at minimum, the mortgage you will owe. By closing time, you will need a paid receipt and a one-year binder from your insurance agent. (Note, this policy is not needed if you will be covered by a townhome association.) We recommend you contact your insurance agent shortly after you clear the home inspection process to avoid delays. CLOSING COSTS: Your mortgage lender should give you an estimate of your Closing Costs at loan application. You will know the exact amount of funds you will need just before closing and they must be paid by a certified check. These costs will cover:
WHAT TO BRING TO CLOSING: You will receive a letter from the closing company about two weeks prior to closing telling you the time, date and location of closing and also what to bring to closing. In most cases, this letter will request the following:
FINAL WALKTHROUGH ON THE PROPERTY: Prior to the closing, we will contact you to do a Final Walkthrough on the property you are purchasing. This is done to ensure that the property is in the same condition it was in when you first saw it. It is not the time to make request of the seller to fix items that were not in working order at the time of the offer. Those items should have been addressed during the negotiation process. However, the sellers are obligated to have mechanical items and appliances in proper working order unless disclosed at time of purchase agreement. The final walkthrough is intended to ensure that all negotiated items have been taken care of and that there is not any added damage to the home since the offer. The final walkthrough is done as close to the closing date as possible, normally the night before or day of closing. FINALLY...CLOSING ON YOUR NEW HOME: The Closing usually takes about one hour. The buyer and seller and their agents, plus a title company representative for both sides will be present. At the closing, you will be given keys and garage door openers as well as copies of all closing paperwork and instructions on how to homestead your property. MESSAGE FROM STEVE: I hope you found this information useful. Please don't hesitate at any time to ask for clarification of any of the steps involved. I am always available to help you through the process. |
Steve Mollner.com
Homes of All Shapes & Sizes Since 1978!
Homes of All Shapes & Sizes Since 1978!
