Updated: Dec 28, 2019
1. Get Pre-Qualified - This is super important, you drop about 2-4 credit points, but it tells you your budget, and if you can even afford a house/condo. Also It tells you where to improve for a better interest rate. (Debt to Income, Credit score, Down payment)
2. Viewing homes - Sometime you can get in same day sometimes you need day notice for the seller. What you see on home search sites is not always accurate.
- Pending/contingent means in Contract and not available. If falls through we can try again.
- Accepted Offer - means seller accepted offer; sometimes we can put in a back up offer if the seller allows it. It is usually not worth it.
- Pre-Forclosure it is not on market, takes a little more work, but can get a hold of seller and/or buy from auction this takes time because not on market yet.
3. Accepted Offer - This can take a little negotiating and you realtor will help; it will layout the terms of the contract.
4. Home Inspection - Not required but recommended, spend $400-$700 to protect a long term investment and save thousands of dollars if something wrong. They check appliances, electric, plumbing, if they notice anything wrong they will put it in the report. For any major items they will Recommend further inspection from an expert in that field. We will use this as a negotiating tactic and decide if we want to proceed forward. Also ask if they include home warranty, will have another post about Home Warranty and what it is. Upfront Cost.
5. Contracts - You pay Earnest Money Deposit (EDM) which is down payment of a down payment at contract signing with your lawyer. You lose this if you back out for any reason that is not justified. Think of it as a little skin in the game so you don't flip flop. Till this point seller can take another deal without repercussions. Once you and seller both sign contracts you can take a breather. As an Agent your lawyer will already have the purchase offer so they know what goes in the contract. You can take a breather at this point. Depending on the lawyer you either pay them half at contract and half at closing or all at closing, this usually cost between $700-1200. depending on location.
6. Appraisal - The bank does an appraisal to make sure they are not lending more money then what the house is worth, they want to make sure if you default on your home and they reclaim the home; that they can get their money back. If it doesn't appraise we negotiate and try to save the deal. Pay difference, Split difference, Lower to appraised value. There are options and no need to panic if it doesn't appraise. Upfront Cost around $100-150
7. Title Search - Lawyer does this, it checks violations and makes sure the owners are the owners. There could be violations which seller needs to fix to make it a Clear and Marketable Title; meaning there are no issues. If no survey is found a bank may require it and that is a buyers. Lawyers usually recommend it but not always required and this usually come out of buyers pocket.
8. Clear to Close - Title Search is Clear and Marketable, you are are officially approved for a loan. Lawyer approves, bank approves, and it is home stretch.
9. Walk through- This happens within a few days of closing date, But we do a final walk through of the property to make sure it is the same as it is was when you first saw it.
10. Closing - You sign paper work, in NY you still do everything hard copy and your hand might cramp after signing all the pages; A few days beforehand, your lawyer will tell you how many bank check you need and for what amounts to pay for everything. After closing you can enter your BRAND NEW HOME!!!