The Home Buying Process
1. Meet with a mortgage broker or lender and pre-qualified
a. Provide information about your income and down payment abilities
b. Will tell you how much of a home you can afford at that moment
2. Start the loan pre-approval process ($$)
3. Meet with a realtor
a. Discuss what areas/neighborhoods will fit your housing needs and affordability
b. Discuss time frame
c. Put together your list of your priorities
4. Begin viewing homes
a. Attend open houses
b. Drive the neighborhood on the weekends
c. Have your realtor show you homes that fit your parameters
5. Identification
a. Inform your realtor that you would like to make an offer on a particular home
b. The realtor will then obtain a disclosure package and do a comparable market analysis of that´s home´s value
c. You will determine what price and terms to offer. In general if you want to offer less money, you will need to offer better terms (i.e. shorter contingencies, "as is" etc)
d. Your realtor will contact the seller´s agent and try to get as much information as possible about the property and the seller´s. ($$)
6. Offer presentation
a. The realtor shall prepare the offer and at the appointed time present the offer to the seller. It is usually advisable that you be present during the presentation but not in the room. Your offer should be accompanied by the following items ($$)
i. A deposit check for 3% of the purchase price
ii. A loan pre-approval letter
iii. Proof of you down payment
b. The realtor will tell the sellers a little about you and go over the highlights of your offer
c. The seller then has the choice to accept, reject, or counter your offer
d. In the case of multiple offers, generally you will make your best offer first.
7. Escrow and Title Insurance ? Neutral Third Party
a. If your offer is ultimately accepted, your deposit check will be deposited into escrow which typically lasts 30-45 days
b. You must obtain final approval for your loan within 10-20 days and then remove the financing contingency
c. You must conduct all inspections and review all disclosures within 1-10 days and then remove all inspection contingencies. Typical inspections include
i. Property inspection ($350-$450)
ii. Roof Inspections ($100-$150)
iii. Termite Inspections ($125-$200)
d. The seller must complete all required repairs before the close of escrow unless offer is "AS IS"
e. Arrange to have a home warranty purchased ($350)
f. Conduct a final walk through of the property just prior to the close of escrow
g. Your loan documents arrive at the escrow office
h. Fund the balance of your downpayment
i. The sign off at the escrow company
j. Title is recorded in your name at the
If you would like to discuss how I can help you get the best home for the best price, please contact me at 408-861-2440 or email me at brian.chew@cbnorcal.com
