Steps to Purchasing
- Initial Consultation – Meet with your Realtor to discuss future purchase.
2.Mortgage Approval – Call a Mortgage Company or Bank to have your credit run. This process involves giving your social security number, employment information and income. This information will be kept confidential between you and the lender. Then within 24 to 48 hours a Mortgage Approval or Pre-Qualification letter may be issued, depending on your credit score and employment information.
3.Home Search Begins – An automated search through Trend MLS (Realtor program) is the best way to assure all homes on the market that fit your needs and will be sent to you as soon as they hit the market!
4.Find the Right Home – When you find the home that fits you best, we can sit down together and run a Comparable Market Analysis (CMA) of homes sold in the area with similar features to determine if the home is priced right.
5.Approval Letter & Estimate of Closing Cost – The lender will need to issue an approval letter to verify a loan is able to be obtained for the amount offered, along with reviewing with you the estimate of funds needed to purchase the home. At this time you should also discuss the monthly payment, taxes and insurance expenses.
6.Deposit Money – When placing an offer, a good faith deposit will need to be given as part of the offer. This can be in the form of a personal check as long as the agreement is written outside of 30 days before settlement. The amount is usually between $2,000-$5,000. These funds will go toward your closing costs at settlement.
7.Write an Offer – Write an offer to purchase. This offer is the starting point for negotiations. You will need to decide the Sales price, Seller Assist, Inspections, Settlement Date, and any other special clauses and/or addendums that would need to be included. Your Weichert, Realtors Neighborhood One Realtor will help you to write the offer, along with providing an Estimate of Closing Costs and will review additional costs that will occur on the Buying Side of your transaction.
8.Signed Offer – Once all negotiations have been completed and all terms have been agreed upon all parties need to sign the final agreement. Copies will be provided for your personal file.
9.Mortgage Application – After the offer has been accepted. You will need to call the lender and schedule a time to meet and complete your application. Also the lender will need a copy of the signed agreement of sale and tax information. Your Weichert, Realtors Neighborhood One Realtor will help you with this process and provide you with all the necessary documentation.
10.Buyer’s Due Diligence Period – If elected, the inspections will need to be ordered and completed within the first 15 days of the executed agreement. The Buyer pays for their own inspections, as per paragraph 13 of the Agreement of Sale, if using a PAR Agreement.
11.Seller’s Obligations During Inspections – According to the agreement of sale, the Seller will allow you, your contractors and inspection companies access to the home for all inspections. If a septic inspection is elected, the Seller must locate the tank and provide access, and pump the septic system at time of inspection, if required by the septic inspector.
12.Potential Inspection Issues – After inspections have been completed, if there are any items that need to be repaired or further evaluated a “Reply to Inspection” addendum can be written to negotiate repair items with the Seller. This can be further discussed at the time of inspections.
13.Other Buyer Contingencies – If the mortgage contingency has been elected by the buyer, the bank representing the Buyer will contract an appraiser to conduct an appraisal of the home to determine the value.
14.Condo & Homeowner Associations – If applicable, within 15 days after your agreement has been executed, the Seller will need to contact the association to order a resale certification. There will be a fee associated with this and according to paragraph 16 of the agreement of sale, will be ordered and paid for by the Seller/Owner.
15.Township Inspection – If required by your township, a township inspection will need to be ordered. As per paragraph 15 of the agreement of sale, this must be ordered by the Seller/Owner within 30 days of settlement and no later than 15 days prior to the settlement date and completed prior to settlement.
16.Mortgage Payoffs & Additional Liens – Part of our obligation to the Buyer is to give a “clear and marketable title”. The title company contracted to transfer the deed at settlement will also need to receive the Seller’s mortgage and lien payoffs, plus tax information from your local tax collector. The will be handled by the Title Company and Seller.
17.Utility Transfer – At least 7 days prior to settlement contact the utility companies to initiate new service so that no services are interrupted.
18.Pre-Settlement Walk Thru – At this point all of the Seller’s personal belongings will be packed up and moved out of the home. The Buyer has the right to conduct a final walk thru of the home.
19.Settlement Day – A day and time will have already been arranged, your attendance will be needed, unless you have made other arrangements with the title company to sign all documents for closing and transfer of ownership. You will be given a Settlement Notice prior to settlement with the settlement location and instructions. Please remember to bring your driver’s license.