Buyer's Guide

MORTGAGE PRE-APPROVAL
Determine what you can afford and work with a lender to get pre-approved for a mortgage. Be prepared with a down payment, which varies depending on the type of loan, anywhere between 3.5%-20% down. Being pre-approved will indicate to sellers that you’re serious about home buying and allow you to make offers on homes.

HOUSE HUNTING
Work with your Real Estate Agent to compile a list of homes that fit both your budget and your ideal features. Your agent will arrange viewings so you can find the right home for you.

FUNDS TO HAVE READILY AVAILABLE
Earnest Money is a deposit that accompanies an offer to show the seller "good faith". This deposit is held safely in escrow and put towards buyers' money due at closing. This dollar amount is typically 1% of the sales price but is negotiable.

Option Fee is a dollar amount agreed upon by both parties that the buyer will pay up to 10 days for seller to take the home off the market for buyer to fulfill all and any inspections. This will allow buyers to decide whether they want to proceed with the home or not. In the event the buyer decides to back out of the contract during this period, earnest money is then refunded to the buyer and the option fee is delivered to seller.

BIDS & NEGOTIATIONS
When you find the right home for you, your agent will present a fair offer on your behalf. Be prepared to negotiate to determine the price that works best for you and the seller. Don’t feel put out if your offer is rejected or countered; this is all a normal part of the home buying process. Trust your experienced agent to facilitate negotiations.

TITLE SEARCH
This examination covers all city records of the property’s title history, including deeds, court records, indexes, and
other documents. The purpose of this search is to confirm the seller has the legal right to sell the property in question, and that there are no hindrances that may prevent the buyer from taking full possession.

APPRAISAL
An appraisal is required by the lender to ensure the value of the property meets the value of the loan. Although this is in their best interest, it also confirms you won’t be over-paying for your new home! Typically, the
lender contracts the appraiser and incorporates the fee into the closing cost, or some may require payment upfront.

FINAL COMMITMENT FROM LENDER
Once these steps are completed to satisfaction, your lender will issue a Final Commitment Letter. This letter covers all loan terms and agreements for the mortgage they are granting for this purchase. It will also outline all mortgage fees and any stipulations prior to closing.

UTILITIES
Prior to closing (week of), you should schedule all utilities to be changed to your name in time for when you take possession of your new home.

FINAL WALK THROUGH
This is your opportunity to make sure it’s in the same condition as the inspection, and to review any outstanding items negotiated during the contract. It’s an opportunity to have peace of mind before the sale finalizes. Although this step is not mandatory, it is highly recommended.

CLOSE OF SALE
This is the process that finalizes your purchase! Now that everything is official, you will receive the deed and keys.