Prior to beginning your home buying journey, it is in your best interest to identify a mortgage lender and get pre-approved (better yet, pre-qualified) for a mortgage loan. This help you determine the amount of mortgage that you may qualify for. In today’s hot real estate market, you will be in an even stronger negotiations position if you are already pre-qualified by a lending institution prior to extending a purchase offer. When home sellers compare offers, there is a lot of value to the homeowner to not have a contingency relating to loan qualifications in the purchase agreement. This will also give you significant peace-of-mind in knowing exactly how much you’ve been pre-approved for. In addition to the peace-of-mind, being pre-approved can shorten the time required to close on your new home. For more information about this process, please read the following article:
SELECTING ME AS YOUR REALTOR
I am a full-time, professional REALTOR® with an M.B.A, prior corporate experience in a variety of executive level positions, extensive experience in the negotiations process and extensive market knowledge. My real estate designations include; GRI, ePRO, and PSA.
INITIAL CONSULTATION WITH ME TO EVALUATE YOUR NEEDS, PREFERENCES AND RESOURCES
We will meet to discuss your needs, prioritize your preferences and analyze your resources. If you don’t yet have a letter of pre-approval or pre-qualification, I can provide you with a variety of options to meet with some mortgage loan officers so that you can get the best financing available.
FINDING YOU THE PERFECT HOME
I will show you homes based upon the criteria that we have established together. The more precise and direct you are with me, the more successful our search will be. Once we get into a regular cadence, you’ll find that only those homes that specifically meet your defined criteria will be sent to you for preview. This will save you considerable time so that you only focus on those homes which match your criteria.
DETERMINE THE SELLER’S MOTIVATION
Once we have found the home that you want to purchase, I will do the necessary market research to help structure a competitive and successful offer price. The more we know about the seller’s motivation for selling, the better your chances of acquiring the property at the right price and terms acceptable to the seller.
WRITE THE PURCHASE OFFER
I will draft the “Purchase Agreement” for you, advising you on protective contingencies, customary practices, and local regulations. At this time you will need to provide a check for “earnest money”. The amount of deposit can vary depending on circumstances. We will discuss an appropriate strategy when an offer to purchase is made. Your deposit check is not cashed until your offer has been accepted by the seller.
PRESENT THE OFFER
I will present your offer to the seller’s real estate agent. The sellers have four options; (1) they can accept your offer, (2) they can counter your offer, (3) they can reject your offer, or (4) No response – Do nothing (this is essentially rejecting your offer). My knowledge of your needs, resources and qualifications will enable me to represent you in the best way possible to the sellers and the seller’s real estate agent.
I will work closely with the seller’s real estate agent to fully understand the seller’s response and will review the seller’s response with you. My keen negotiating skills and knowledge will benefit you in reaching a final agreement.
When the purchase agreement is accepted and signed by all parties, I will open escrow for you. At this time your earnest money will be deposited. The escrow company will receive, hold and disburse all funds associated with your transaction.
(Escrow is a procedure in which a third-party acts as a stakeholder for both the buyer and the seller, carrying out both parties’ instructions and assuming responsibility for handling all the paperwork and distribution of funds)
THE CONTINGENCY PERIOD
This is the time allowed per your purchase agreement to obtain financing, perform inspections, and satisfy any other contingencies to which your purchase is subject. It is critical to ensure we understand all of the contingency dates and perform to the requirements of the Purchase Agreement. I’ll stay on top of these dates to ensure we don’t miss any of these critical dates.
TYPICAL CONTINGENCIES INCLUDE:
- Approval of the seller’s transfer disclosure statement.
- Approval of the preliminary report from the title company.
- Loan approval, including an appraisal of the property.
- Physical inspections of the property.
- Pest inspection and certification.
OBTAIN HOMEOWNER’S INSURANCE
I will work with your insurance agent and escrow office to make sure your policy is in effect at the close of escrow.
MAKING YOUR DOWN PAYMENT
You will need a cashier’s check or money wire transfer for your down payment several days prior to the closing date of escrow.
When all of the conditions of the purchase agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs into escrow and your lender will deposit the balance of the purchase price. The deed will then be recorded at the County Records office and you will take ownership of your new home!