The Buying Process
Prior to Making An Offer
Determine what areas you want to live in
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Figuring out expenses
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Viewing the homes
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Getting a pre-qualification/approval
Things needed for making an offer
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Written offer
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Proof of funds/bank statement
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Pre-approval letter
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Copy of earnest money check (not required)
Financing Your Home
Prequalification
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Establishes what you can afford to borrow
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Is not an assurance of mortgage approval
Pre-approval
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Is a much more complete approval
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Most sellers want to see this at the time an offer is made
Applying for a Mortgage
The first step after your purchase offer is accepted
The lender may request
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Current pay stubs
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Bank statements
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Credit card statements
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Investment/brokerage firm statements
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Loan statements
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Tax returns, usually for two years
The Escrow Process
An independent imperial 3rd party to facilitate the transaction
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Handles deposits and documents
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Coordinates with Title and Mortgage
Continue...
Inspection/Home Warranty
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Home warranty provides repair-or-replace coverage
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Provides peace of mind
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Can be purchased by you or by the seller, as agreed upon in the contract.
Appraisal
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Compares the value of the home to others of similar size, features and location.
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Usually required by lenders
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An opinion of the property’s value by an independent appraiser.
Title Insurance Policy
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Based on a search of public records that discloses whether any others have a legal claim to the property.
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Insures you against loss due to certain title defects
Prior to Closing
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A thorough walk-through and verification of condition will take place prior to closing
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As your real-estate agent, I will accompany you should a concern arise during the walk-through. I will assist you in resolving it.
Closing The Deal...
The Financing and Closing Process
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Loan application is completed and submitted to lender
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Lender orders appraisal, credit report, verification of your employment and assets
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Lender provides a good faith estimate of closing and related costs, plus initial Truth In Lending disclosures
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Lender evaluates application and support documents, approves loan and issues letter of commitment
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Loan documents are signed and notarized in Escrow
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Lender disburses/wires funds to the Escrow or Title Company
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Required documents are recorded at the County Recorder’s office transferring title into your name
Congratulations! You Bought Your Home!