HOME BUYING 101

*I send you listings (or you find them and I'll get more info for you).
*You decide which houses you'd like to look at.
*Call me and tell me which ones you like and when is a good time to go look at them.
*I call the listing agents and the sellers to set up appointments to go and view the house(s).
*When we find a house that you like and want to buy, we sit down with all the paperwork and write the offer.
*We can do that anywhere---at my office, at a coffee shop, at church, etc.
*When we get to that point, I will explain to you what all the forms are. (if you want to read them ahead of time, I will get you copies of every page that we'd use.) (see earnest money down below)
*Once we write it up, I will fax it to the listing agent who will then present it to his/her seller. *They will read through the offer and if they agree with everything, then all they do is sign and fax back to me and I will give you a copy. OR if they don't agree with the terms, they will either reject it altogether or they will counter-offer back.
*If the sellers counter back, we will read through it and either accept the counter-offer or counter the counter-offer. Usually, it doesn't take long to reach a mutual acceptance.
Usually, the only reasons a seller would reject an offer is if the offering price is too low, or if there are other offers and they take a 'better' one-one in which the terms are better. We can talk more about this later.
*Once a mutual acceptance is reached, the buyer’s agent (me, in this case) will fax the whole offer to the title company of your choice.
*I will also need to get a pre-qual letter from your lender, and then fax the offer over to them.
*The lender will work to get all the necessary documents in order and will get them over to the title company as the closing date draws near.
*I will call the inspector of your choice (or I recommend someone) and set up a time with them and with you to have the inspection done. It's always best to have the buyer there so that the inspector can explain things. The price of an inspection depends on the square footage of the home—usually around $300. Sometimes, this can be paid at closing, depending on the inspector.
*We view the inspection report and if all looks good, we will sign the inspection form of the deal and send it over to the listing agent. If we need some items to be repaired or replaced, we can request that from the seller. (similar to the offer negotiations--they could counter back)
OR in some extreme cases, we see some major things wrong with the home and we pull out altogether and rescind the offer. (Earnest money will be returned to you.) And then we're back to square one of finding a house.
*Most buyers need 30 days to close, so the deal should close usually within a month. After all parties have signed, the house will record usually by the next day and at 9 pm the night of recording, the house then belongs to the buyer.

FINANCIAL INFORMATION:

I have several lenders I can refer you to, and it’s always a good idea to talk to one of your choice, before actively searching for a home. That way, you will know how much house you can afford, and how much your monthly payments will be. Make sure you discuss with them how the property taxes will be figured out, as well as homeowners insurance. Most people add it into their loan---(no interest on that)---you pay it each money and it goes into an “escrow” account, and those things will be paid by the bank when due.
CLOSING COSTS: Make sure you speak with your lender about this. Sometimes, it can be worked into the price of a home, but it’s something that has to be discussed with your agent and your lender.
EARNEST MONEY: Earnest money is usually between $500-1000. That’s money that will be deposited into a trust account through our office (or at the title company) and it shows the sellers that you are serious about buying their home. That money will be applied towards your closing costs/purchase price of the home at closing. (EM can be returned to you in some cases—and we can talk more about that)

Have more questions?
Christina Armstrong
Sundin Realty
Cell: 360-606-6804