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What are the steps to buying
a home in Today's Market?
Call, Text or Email me
Pre-Approved by a good lender.
your dream home
Review Market Trends and Activity
Order home inspection
Review and sign disclosures
Get keys and take possession!
Get Pre-Approved. Often, when an agent tells a buyer this,
they respond with "But I haven't even found the house yet!".
The fact is, the best properties may have multiple offers from
preapproved buyers. Please be aware that it is best to use a lender
referred by your Realtor or someone who has had a positive
experience. Internet lenders can be problematic. Mortgage loans are
more complex and uncertain than other loans and not all lenders are
To show you the reality
of the market, here are some excerpts copied and pasted straight
from the MLS showing offer requirements. They are found in the area
that only Realtors can see:
offers with desk top underwritten approval, fico scores, and
proof of funds to both the listing agent and (lender)"
Note: Some agents require buyers to cross qualify with
agent's lender. This is because the primary reason sales
fall apart is that the buyer ultimately does not get the
loan. Not all lenders are knowledgeable or experienced
enough to deliver on their promises so the agent is seeking
reassurance that the buyers pre-approval is solid and they
have a viable sale.
REVIEW ALL OFFERS MONDAY OCT 8th PM. Please, email offer's
along with POF, EMD and Pre-Approval, Thank you for showing
my listing. :) Note: EMD
is "Earnest Money Deposit"-the deposit check written when
the offer is made. It is held un-cashed until acceptance,
then deposited in escrow. POF is "Proof Of Funds"; a
bank statement or other proof that buyer has funds to close
Please, email offers w/
POF, EMD & Pre-Approval. . :)
RPA, POF, and Pre-qual. Note: AD
is "Agency Disclosure"-a mandatory disclosure required of
every agent before writing any contracts with a client.
RPA is Residential Purchase Agreement-the offer.
As you can see, if
you're serious about purchasing a home, you need to be prepared
with a pre-approval before your find the home. Otherwise, you'll
lose it to someone else while you're getting your loan
The other reason
for getting pre-approved first is that 95% of the time, what a
person thinks they can afford doesn't line up with what a lender
is willing to loan. Looking at homes in the wrong price range is
both a time waster and a heartbreaker.
Call, Text or Email me:
Elise Timpe (E
Find your Dream Home: When you contact me, we can go
over what you are looking for. I will set you up to receive an
email the instant a property fitting your parameters comes on
the market, complete with map and payment information.
You can also
browse the active MLS right
It's usually more
effective for you to review the homes for sale online and decide
which ones we'll go see. After all, nobody knows what you like
better than you do. I can assist you with understanding the pros
and cons of different areas and home types.
Trends and Activity:
I will help you with this. Any good
agent will make sure that you are aware of what kind of market
you are in and make sure that you are aware of the market value
of the home you are making an offer on.
At First Team, we
have a proprietary Market Trends report showing some "inside
information" on the current market.
I'll also do a
brief Comparative Market Analysis on the home to determine
current market value.
will assist you in making the best offer.
We'll sit down and write
up the offer on your new home. IWe can also do it electronically
on the internet, unless the home is owned by an investor or bank
that doesn't allow electronic signatures.
negotiation takes place. Once you make the offer, the seller can
either accept, reject or counter offer. If they accept, we open
escrow and proceed to closing.
If they counter
offer, we now have the decision to accept, reject or counter
offer back. Sometimes, we'll receive a "multiple counter offer".
This means that the seller is sending a counter offer to more
than one buyer. The counter offers don't have to be identical
and we won't know the details of the other counter offer(s).
If you accept a
multiple counter offer, it is now up to the seller to accept
yours or another accepted counter offer, reject, or make another
counter offer on one, some or all accepted counter offers. It
usually doesn't go this far. There is a place in the multiple
counter offer for the seller to sign signifying acceptance.
The thing to know
is that until both parties have fully accepted an offer with all
of it's related counter offers, the property is still on the
market. This means that during the negotiation phase, anyone can
still make an offer and get it accepted over any other offers
being negotiated. We don't have an accepted offer until both
parties have signed in full agreement. The legal term is
a "meeting of the minds".
We've all heard of
"opening escrow", "fell out of escrow", etc. but what is
"escrow"? An escrow company is a "neutral 3rd party" who handles
the transfer of funds in a sale. They don't have authority to do
anything unless signed instruction from both parties are in
When we open
escrow, usually the listing agent or selling agent will contact
an Escrow Company and give them copies of the sale agreement and
names and numbers of all parties involved in the sale. They will
get to work ordering demand statements from the current lender
on the property, Homeowner associations, etc. They will also
print up escrow instructions for buyers & sellers to sign
clarifying what the terms of the sale are and what the escrow
company needs to do and that they are authorized by all parties
to handle the escrow.
HERE is a Q&A.
Order Home Inspection:
A home inspection is an important
part of the purchase. An inspector will inspect all accessible
areas of the home and give you a report outlining any problem
brokers, appraisers, and termite inspectors do not have the
training or knowledge to do a home inspection or advise you as
to the condition of a property. You may have a termite
inspection, an appraisal inspection, etc., but that is not a
Inspectors aren't licensed in California, but those that are
undergo continuing education and adherence
to certain codes. Also important is to check on their insurance
coverage. More on
Review and sign
are many disclosures the seller and other companies will give
you to sign. The sale is contingent on it, as outlined in the
escrow, the thing that takes so long is getting the loan
processed. Cash buyers can sometimes close inside of a week.
Every Real Estate
loan has conditions. Your lender will be working with the
underwriter to get all the documents required by the underwriter
from you, escrow, title, etc. As it proceeds, there may be more
items that are demanded. Eventually, all the conditions will be
met, you'll get final loan approval and the lender will be ready
to "draw loan docs". They are written up and usually emailed to
escrow, where you will go in and sign them. Once signed and
returned to lender, they will be reviewed and if everything is
correct and a final review is good, the loan will be funded.
BUT, it's not officially yours yet.....
Sale Records: Once escrow gets notice from the title
company that the loan has funded, they set the sale up to
record. This may happen on the same afternoon or the next
business day. Once escrow gets "notice of recording", everyone
gets notified that the home is now yours! This is the official
If you are from
another state, you may be anticipating an appointment to go to a
closing table. In California, this doesn't happen. Your last
appointment to meet somewhere will be when signing loan docs.
Everything else is coordinated by escrow and everyone is
notified when it is done.
Get Keys and Take
Possession: It's done....time to celebrate!!!
PMI is only for less than 20% down payment
Adjust the interest
rate according to the
THE dance we were going to was formal. Elegantly dressed, I headed
downstairs, picking up in passing a wastebasket that needed to be
emptied and a mop that had to be put away. The door bell rang. I
answered it, still clutching mop and wastebasket
The young man gave me a startled look.
"My wife and I were interested in
home in this neighborhood," he began, "but if this is the way everyone
dresses to clean house, I'm not sure we want to live here."