1.ESCROW DEPOSIT
Congratulations! Your offer has been accepted. You will be required to make your initial escrow deposit reflecting your commitment to the transaction. These funds will be applied to your total amount needed at the time of closing. They are also refundable should you cancel within acceptable contract timelines.
2. MORTGAGE APPLICATION
Although you have already been pre-approved you will now make formal application with your lender. This will be specific to the property and accepted offer terms and begin the formal loan approval process and application disclosures to proceed.
3. INSPECTION
A thorough home inspection uncovers potential issues and provides crucial insights into a property's condition. This is also your final decision making and negotiation period should there be any updates, repairs or enhancements required prior to moving forward.
4. APPRAISAL
A home appraisal is a third party valuation that determines the fair market value of a home based on recent comparable sales. It can assure you and your lender that the price you’ve agreed to pay for a home is fair.
5. HOMEOWNER’S INSURANCE
Homeowner's insurance is a safeguard that protects your investment, ensuring coverage against unexpected damages or liabilities. Securing insurance not only shields your home but is crucial in meeting lender requirements for loan approval as it mitigates risks for both the buyer and the lender. It is important to start this process immediately as it will impact your monthly payments and loan approval terms.
6. LOAN PROCESSING
For most lenders the mortgage loan process takes approximately 30 days but it can vary quite a bit from one to the next. Banks and credit unions tend to take a bit longer than mortgage companies. A thorough pre-approval will ensure this is a smooth process by meeting qualification requirements upfront and simply validating final items prior to closing.
7. HOA APPROVAL (IF APPLICABLE)
The HOA process will vary per community and will educate you on the community standards, amenities and ongoing costs and responsibilities. The association approves each buyer. While generally a formality, the timing of this process is important to a successful closing.
8. UNDERWRITING
The final validation where the lender confirms the buyer’s qualification and documentation meet the program requirements. The loan will first be conditionally approved and it will be common for there to be some additional items needed to validate prior to completion. Depending on lender it can take from days to weeks to complete.
9. FINAL WALKTHROUGH
The final walkthrough is a crucial step as it ensures the property's condition aligns with the agreed-upon terms, allowing a last-minute check for any discrepancies or unresolved issues before closing. It provides you peace of mind, confirming that the home is as expected and ready for transfer of ownership, ensuring a smooth transition into your new property.
10. CLOSING!
Congratulations you made it! You will wire your final proceeds to the title company and sign your official loan documents, making you the proud owner of your new home! After funds are received and documents are signed you’ll be given the keys to your new home!
APPRAISAL
A determination of the value of something, in this case, the ouse you plan to buy. A professional appraiser makes an estimate by examining the property, looking at the initial purchase price, and comparing it with recent sales of similar property.
APPRECIATION
Increase in the value or worth of an asset or piece of the property that's caused by external economic factors occurring over time, rather than by the owner having made improvements or additions
CLOSING COSTS
The fees a seller and buyer pay to complete a real estate transaction.
CONCESSIONS
A determination of the value of something, in this case, the ouse you plan to buy. A professional appraiser makes an estimate by examining the property, looking at the initial purchase price, and comparing it with recent sales of similar property.
CONTINGENCY
A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurence of a specific event, usually by specific dates leading up to the close.
EARNEST MONEY
a deposit made to a seller that represents a buyer's good faith to buy a home.
ESCROW
The holding of funds or documents by a neutral third party prior to closing your home sale. This is typically done by a title company.
HOME INSPECTIONS
An examination of the condition of real estate property. A home inspector assesses the condition of a property, including it's heating, cooling systems, plumbing, electrical work, water and sewage.
MLS
A computer-based service that provides real estate professionals with detailed listings of most homes current on the market. The public can access much of the this kind of information through websites like Zillow
OFFER
A formal proposal by a potential buyer to purchase a property at a specified price and under outlined terms, initiating negotiations between the buyer and the seller.
TITLE
Ownership of real estate or personal property. A Title is evidence by a deed recorded in the county lound records office.
POST-OCCUPANCY
An agreement where the seller remains in the home for a specified duration after the closing, allowing them additional time to vacate the
property while the buyer assumes ownership.
CHANGE OF ADDRESS
MOVING DAY