Today we wanted to touch base on the THREE loan types every first-time home buyer should know and a little bit about them. FHA loans are great tools for first-time home buyers. Credit scores can be lower than for conventional…
Step 1: Find Your Dream Home
Step 2: We discuss ideal terms, closing date & how to have the best offer.
Step 3: I'll email you offer docs for review/signing and forward to the listing agent.
Step 4: Wait (anxiously) for a response. Normal response time is 24-48 hours.
Step 5: We receive Seller's response (acceptance, counter) and respond if needed.
Step 6: Reach mutual acceptance- Congrats!
You did it! The seller has accepted your offer. The next phase of the home buying process begins now:
Deposit Earnest Money
Usually within two days of mutual acceptance. it goes to the escrow company, check made out to the same. Normal earnest money amounts are $500-$1000 but depends on the purchase price.
Schedule a home inspection
We will want to contact a home inspector within the first couple days to get them scheduled. They're usually a few days out. Here's a list of recommended inspectors and defer to you on the selection. THey usually run $400-$450. You are encouraged to attend the home inspection and we will always be there.
Inspection findings review
After we received the home inspector's findings, we have a few options. If we still wish to proceed, we may do so as-is, request a price reduction, or make a repair request. The negotiation may go back and forth a couple of times with the seller(s) until we reach agreement. Sometimes the findings need further evaluation, so we have relevant contractors come and give their determination on work needed and costs involved before negotiating with the seller(s).
After reaching agreement on the inspection findings, the lender will order the appraisal. It may be 2-4 weeks before the appraisal is submitted, and this part is generally the longest wait- and the reason closings are 30-45 days!
The lender will tell us when the appraisal is received. The majority come in "at value" with no work conditions. If there are a few conditions, like replacing a piece of rotten wood, touching up peeling paint, etc., we work with the seller(s) to have them addressed before closing. If the appraisal comes in below value (aka below agreed-upon purchase price), there are a few options (this rarely happens):
The seller comes down to the appraised value.
The buyer bridges the gap by putting more cash down.
The seller and buyer meet somewhere in the middle.
Closing, Recording, & Keys
When do you get the keys? That's always th most exciting and much-anticipated part of the home buying process. The answer: when the sale records. On the contract, we have, we have a closing date. A few days prior to that date, the escrow company will call to coordinate a signing appointment. During signing, the escrow officer will give you an idea on the recording time for the sale. As soon as it records, we can give you the keys!
For the rest of our lives
We've successfully closed! The moving/transition process is stressful, but once that's done, you'll be in your new home loving it! We ask for your hand in real estate marriage. To love and to hold whenever you have a real estate question, good ones and bad. For ever and for always. Ok, that's a bit dramatic - but the premise is true: we wish to be your real estate resource forever. We appreciate all feedback, which we use to perfect our service and your experience. We live and breath real estate. Whether in two years or ten, we will be here. From where we started the process today, there have been ups and downs, fire to put out, and lots of early morning and late-night conversations about your new home. We've really enjoyed working with you, and can't wait to do it again!