The Process of Buying a home Start to Finish

Purchasing a home should be an exciting and enjoyable process. Although Buyers can purchase a home without utilizing the services of a local real estate professional, or real estate attorney, it is not advised for many reasons. Throughout the buying process, Buyers can expect to encounter extensive negotiations, transaction details, disclosures and documents that they may or may not be familiar with. Therefore, having the right real estate professionals and/or real estate attorney's on your side to oversee the transaction through and protect your interests can keep the transaction under control and save a lot of frustration.

The first step in purchasing a home is to decide that you want to be a homeowner. After confirming that purchasing a home is right for you, it is recommended to seek the services of a local real estate professional (Realtor®) who knows the marketplace, neighborhoods, school systems, community, etc. where you are deciding to purchase. There is a significant difference between working with a local Realtor® vs. an out of area Realtor® who might not be familiar with where you want to live. As a Buyer it is in your best interest to find an agent you trust and feel comfortable with to guide you through the purchase process and represent you.

If you have not done so already, Get Pre-Qualified or better yet Pre-Approved. Many Buyers do not understand what a mortgage payment consists of, and/or what is needed to obtain financing to purchase a home. There should be no hesitation or embarrassment with regard to speaking with a reputable lender. *Taking the time to speak with a reputable lender will help to clarify the documentation lender's/Banks are requiring from you as the Buyer in order to issue a home loan, and assure that the price of the home you are wishing to purchase does not exceed comfortable living standards for your family. Furthermore, it is important to know that with today's market conditions and the heavy lending restrictions placed on borrowers wishing to purchase a home, virtually all Home Buyers are required to be Pre-Approved before an offer will be presented to a seller. (If Buyers are looking into purchasing REO or Foreclosure properties, there is a possibility that sellers or Banks will require full Pre-Approval from their preferred lending institutions. This is an effort to assure a Prospective Buyer is fully capable of purchasing said home as sometimes inaccurate or false pre-approvals are given by other lenders).

Prior to and while looking at properties, it is strongly advised that you and your Realtor® communicate and give feedback to one another. This will help to ensure there is a mutual understanding with regard to what you are looking for and want in your new home - Many problems and/or frustrations arise when prospective Home Buyers and their Agents are not on the same page. In addition, your Real Estate Agent should keep you abreast of what is happening in your desired marketplace, as a Buyer it is important to not only ask your agent, but fully understand the following: 1) How much inventory is available; 2) which homes are selling and after how man Days on Market; 3) Why these homes are SOLD so quickly; 4) Are homes selling for more or less than list price. Knowing this information is crucial for prospective Buyers as it allows for educated decision making, and thus it should reduce the time and energy spent looking for and securing the right home.

Once you find a home that fits your needs, wants and desires the first step is to write and submit an offer to purchase. Your real estate agent will prepare this package upon your execution and approval and submit on your behalf. After submission of offer, negotiations will transpire; your agent should educate you on how the process works and what possible responses and/or outcomes you should be prepared for. If you offer is accepted, the purchase process and timeframes begin, Escrow is opened and you will be required to deposit "Earnest Money Deposit" into Escrow account within 72 hours.

Throughout the purchase transaction Buyers need to be prepared to encounter numerous hurdles prior to the close of escrow. Therefore, having the proper professionals in place can reduce confusion and stress, thus making the purchase process comfortable and enjoyable. The initial seventeen (17) days (this can differ depending on terms of the purchase agreement mutually agreed upon by Buyer and Seller) of escrow Buyer is required to exercise and complete their "Due Diligence". "Due Diligence" is where Buyer proceeds with home inspections, investigations, review of disclosures, mandated documentation and other investigations/reports concerning Buyer and satisfy themselves with all material aspects of subject property and secure financing if needed. At the end of the seventeen (17) days (or timeframe specified in purchase agreement and agreed to by Buyer and Seller), Buyer will be required to either remove contingencies and proceed with transaction or cancel the agreement if buyer is not fully satisfied with property condition, and/or financing cannot be obtained. Typically, if Buyer chooses to proceed with transaction and remove contingencies, it is very possible that Buyer's Earnest Money Deposit may be retained by Seller should Buyer Default and not close escrow. However, should Buyer choose to cancel agreement and not proceed with transaction, Earnest Money Deposit should be returned to Buyer. (Every purchase agreement and terms are different and it is advised that you consult your real estate agent and/or real estate attorney making sure terms, conditions and potential ramifications are understood).

If Buyer chooses to proceed with purchase of property, the remainder of the escrow period will is used to finalize loan requirements and conditions prior to issuance of loan document and prepare Buyer for signing. Buyer will sign loan documents, these documents explain in detail the terms of your new mortgage loan(s). It is advised that Buyer read and fully understands the documents being signed; furthermore, these loan documents need to be signed in front of and recognized by a Notary. Upon signing and execution of Loan Documents, Buyer will be notified of any additional funds to be deposited into escrow prior to closing. Once remainder of funds are deposited with escrow and executed loan documents are returned to lender, escrow will prepare "Prior to Funding" conditions which are required by lender, once these conditions are satisfied the new loan is set up for funding, once loan funds it is set to record the following business day. Once recording is confirmed, property now legally belongs to purchaser and keys are delivered. *In the state of California, legal transfer of Real Property Ownership is recognized by the recording of new deed*

This is a brief overview of the purchase process, and does not contain all details involved. Transactions vary depending on location therefore it is important that you consult your proper professionals for correct advice.