Buying- (Home Search/Opening Escrow)
Searching for a home is an exciting part of the process. We are that much closer to home-ownership. When searching, we want to be as efficient as possible. Our goal is to know the target and work to hit it. This leads to our next topic:
- Pre-home search- Determine your home criteria:
- What type of home fits your needs? Single-family, condo, townhome, multi-unit?
- What area?
- How many beds/baths?
- Sqft?
- Yard space?
- Garage? Separated/Attached? 1 or 2 car?
- Kitchen?
- Pool?
- Front yard/backyard space?
- Street parking?
- Patio?
These are just a few items you’ll want to consider. Once we determine your exact home criteria, I’ll place my resources towards finding that home.
- Home Search
The home search stage is pretty straight-forward. This is the part of the process when we start identifying and visiting homes. Below are things we’ll do:
- I’ll create a drip email from the MLS. You’ll receive homes everyday that match your criteria.
- Feel free to search third party sites such as Trulia, Realtor, Redfin, etc. Send me addresses for homes that you like.
- Once we identify 5-6 favorite homes, I will contact the agents for showings.
- We’ll start visiting homes. I recommend taking notes on each home we visit. (Pros and Cons)
- After visits, we’ll review notes and determine which home(s) we’d like to submit an offer.
- Submitting Offers
We are that much closer to your dream home. Any one of these offers can be accepted. Drafting and submitting offers are my responsibilities. However, the buyer has to sign each agreement. Below are the items we’ll need to generate and/or sign when submitting offers:
- Residential Purchase Agreement
- Pre-Approval Letter
- Proof of funds (Copy of bank statement)
- FICO scores (rare but may be requested from seller)
We will work together to determine the following when submitting offers:
- Offer Price?
- Days to close escrow?
- Earnest money deposit amount? (Or good-faith deposit. This amount is applied to the down-payment and closing cost at escrow closing)
- Inspection Period?
- Appraisal Period?
- Loan Period?
- Items included in the sale?
- Home Warranty?
- Offer Accepted/Opening Escrow
Getting our offer accepted is a huge victory in the process. Escrow is opened when an offer is accepted. Escrow is the third party that will facilitate the transaction. Below is a summary of the escrow process:
- Open Escrow
- Submit EMD via escrow instructions
- Schedule the inspection of the property
- Ensure the appraisal is ordered with the lender
- Get a home insurance quote and send it to the lender (Some car insurance companies offer bundles. This is a good place to start)
- Get a list of all the document the lender need and complete
- Complete documents sent from escrow
- Review title report to ensure no issues
- Review and sign seller disclosures (the seller is required disclosure material facts about the home to the buyer)
- Inspect the property and request repairs as needed
- Ensure the appraisal value is at or above purchase price.
- Ensure the lender has CTC (clear-to-close)
- Remove contingencies
- Confirm that escrow has everything needed
- Complete final walk-through of the home (to ensure the home is in the same condition as last seen)
- Wire remaining funds to close
- Confirm closing with escrow
- Congratulations! You are now a home-owner. Get keys from seller