The Buying Process
3.) Make an Offer
    The offer is much more complicated than simply coming up
    with a price and saying, “This is what I'll pay.” Because of the
    large dollar amounts involved, both you and the seller want
    to build in protections and contingencies to protect your
    investment and limit your risk. In an offer to purchase real
    estate, you include not only the price you are willing to pay,
    but other details of the purchase as well. This includes how
    you intend to finance the home, your down payment, who
    pays what closing costs, what inspections are performed,
    timetables, whether personal property is included in the
    purchase, term of cancellation, any repairs you want
    performed, which professional services will be used, when
    you get physical possession of the property, and how to
    settle disputes should they occur.
4.) Determine Earnest Money
    After you have come up with an offer price, you have to determine how
    large a deposit you want to make with your offer. You want the
    “earnest money deposit” to be large enough to show the seller you
    are serious, but not so large you are placing significant funds at risk.
5.) Open Escrow
    Once seller accepts your offer, both parties deliver documents and money to the impartial escrow office. We say the documents
    are held “ in escrow”.The common use of an escrow is to enable the parties in a real estate transaction to deal with each other
    with less risk.
6.) Contingency Period
    Basically, contingencies included in your offer protect you in case you cannot perform or choose not to perform on a promise to
    buy a home.
    A. TDS—Transfer Disclosure Statement.
    This would include any problems with the house, whether the property is in a flood zone, a noise zone, or any other kind of
    hazardous area. If you are not satisfied with any fact that disclosed, you can back out the transaction.
    B. Home Inspection.
    As part of the negotiation in your purchase contract, you and seller will mutually agree upon the amount of time needed to
    complete all the home inspection procedures that are required.
    You should have a professional go through the house and seek out potential problems. Once you receive the inspection , you will
    want to carefully review and approve the report. You may negotiate with the seller on which repairs should be performed and who
    should pay for those repairs.
    C. Loan Contingency
    Usually you have 17 days to let the seller know whether you can get your loan approved. If lender disapprove your loan, you can
    be out of the transaction without any penalty. Otherwise, you have to remove your loan contingency and move forward.
    D. Appraisal.
    Lenders require an appraisal on all home sales. Bu knowing the true value of the home, the borrower is protected from
    overpaying. That means the house must appraise for the price you've offered.
    E. Preliminary title report.
    The preliminary report contains vital information which may affect the willingness and the ability of the parties to close the
    escrow. The buyer and Realtor should review th preliminary report as soon as it arrives. You must approve the preliminary title
    report, otherwise you can cancel the transaction.
7.) Signing
    During this step, final loan and escrow documents are signed.
8.) Funding
    At this point, the lender will send a wire or check for the amount of the loan to the title company.
9.) Confirmation of Funding.
    The lender authorizes the disbursement of loan proceeds.
10.) Closing Escrow
    Documents transferring title will now be officially recorded by the County Recorder.
Congratulations, you are now a homeowner!
Helen's Real Estate
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