First Steps: Buyer Consultation, Home Loan Approval
BUYER CONSULTATION: This meeting takes place at my office and we will discuss your goals, concerns and fears in as much detail as you would like so that you understand and are comfortable with the entire process.
HOME LOAN APPROVAL: Next, you will need to obtain a home loan approval from a qualified lender. While you may use any lender you wish, I have several competant loan officers I can also suggest.
CLOSING COSTS: Your mortgage lender should give you an estimate of your Closing Costs at loan application. You will know the exact amount of funds you will need just before closing and they must be paid by a certified check. These costs will cover:
- Down payment (shown on the purchase agreement)
- Interest due on present mortgage (if any) from the date of closing until the end of the month
- Two to eight months taxes to be put into the banks escrow account depending on which month you close
- Two months insurance to be put into the banks escrow account
- All closing costs involved with the mortgage company
WHAT TO BRING TO CLOSING: You will receive a letter from the closing company about two weeks prior to closing telling you the time, date and location of closing and also what to bring to closing. In most cases, this letter will request the following:
- A certified check for closing costs and down payment (make the check payable to yourself and you will then endorse it to the title company at closing.)
- Insurance binder and paid receipt (if applicable)
- Photo ID (s)
- Social Security Numbers(s)
- Addresses for the past 10 years (please have this available in advance of closing)
FINAL WALKTHROUGH ON THE PROPERTY: Prior to the closing, we will contact you to do a Final Walkthrough on the property you are purchasing. This is done to ensure that the property is in the same condition it was in when you first saw it. It is not the time to make request of the seller to fix items that were not in working order at the time of the offer. Those items should have been addressed during the negotiation process. However, the sellers are obligated to have mechanical items and appliances in proper working order unless disclosed at time of purchase agreement. The final walkthrough is intended to ensure that all negotiated items have been taken care of and that there is not any added damage to the home since the offer. The final walkthrough is done as close to the closing date as possible, normally the night before or day of closing. FINALLY…CLOSING ON YOUR NEW HOME: The Closing usually takes about one hour. The buyer and seller and their agents, plus a title company representative for both sides will be present. At the closing, you will be given keys and garage door openers as well as copies of all closing paperwork and instructions on how to homestead your property. MESSAGE FROM STEVE: I hope you found this information useful. Please don’t hesitate at any time to ask for clarification of any of the steps involved. I am always available to help you through the process.