Overview Home Buying Process
For an offer we need the following:
Pre Approval Letter : This is provided by the lender stating how much you are approved for.
Proof Of Funds: A screenshot of your bank account (with account numbers redacted) to show that you have sufficient funds for the EMD (down payment to secure the offer on the home). This is typically 1-5% of the home’s asking price.
The Offer: Written by your agent after you have reviewed the comps, discussed current market conditions, and have come to a conclusion on the best price and terms to offer. This may, or may not be, the asking price.
Find A Good Agent. Luckily you found Ghio Panissidi & Associates !
Get Pre Approved For A Mortgage. If you haven’t already done this, we can connect you with a Loan Officers. Once you’re Pre Approved, it’s time to go shopping
You Found A Home! You found a home you’d like to purchase, now it’s time to submit an offer, negotiate, and get it accepted. This is the most crucial part, but that’s why Ghio Panissidi & Associates are here to assist and advise and make sure you have the best chance of getting your offer accepted.
Once The Offer Is Accepted, Escrow Opens Up. Escrow is a neutral third party that handles the receipt, exchange, and distribution of all the items needed to transfer or finance real estate for both sides of the transaction.
Earnest Money Deposit (EMD). Deliver your Earnest Money Deposit (EMD) to Escrow by day 3 of the escrow process. For security reasons, we recommend you do this by dropping off a check at the escrow office. If the distance is a problem, please ask for specific instructions on how to do a wire transfer.
Get Your Home Inspection Completed. This is not a requirement but highly advised. The inspector will need to be paid by the buyer at the time the service is performed. We can recommend a great inspector if you don’t know one. The cost is typically around $400-600 depending on the size of the home. Be advised, there will be quite a bit noted on these reports regardless of the home’s condition and it always looks scary, but don’t worry this is normal. We’ll review the inspector’s report together.
We Submit A Request For Repairs. Homes are sold as-is in CA, but sellers are almost always willing to do “health and safety” repairs. In a seller’s market, they may not be willing to do much, though!
Receive And Review The Seller’s Disclosures The seller is required to fill out a form disclosing any known facts about the home (damages, leaks, deaths, crime, etc.).
Your Lender Orders The Appraisal. You will need to reimburse the lender for this expense (typically around $400-$800 depending on the property type), but they handle the process. The appraisal is a requirement for financing to assure the bank that they aren’t lending you more money than the home is actually worth. This needs to be ordered as soon as possible.
Inspection Contingency Removal. By now the inspection is done, the request for repairs has been negotiated, and we should be able to remove the Inspection
Contingency. Occasionally, negotiations are not complete until the appraisal results are in.
Appraisal Contingency Removal. Once the appraisal report is received, reviewed, and has been signed off, we can remove the Appraisal Contingency. If the appraisal doesn’t come in “at value” or the price we offered, don’t worry, we will design a strategy to move forward.
Loan Contingency Removal. Your lender has confirmed that all your conditions have been met in order to satisfy the Underwriters and we remove the Loan Contingency. Once all of the contingencies have been removed, your opportunity to cancel the process has passed. If you cancel after this point, you could lose your deposit and/ or be held liable for “damages”.
Final Walkthrough. “Final Walkthrough” or “Verification of Property”. 2-3 days before escrow is scheduled to close, we’ll do a final inspection of the property. We want to make sure any requested repairs have been completed, and aside from those repairs, that the home looks exactly as it did on the day we wrote the offer.
Document Signing. You will meet with a Notary to sign the loan documents, either at your home, or at Escrow, or wherever it is convenient. Once signed, the docs then go back to the lender for a final review. In the meantime, you’ll wire your remaining funds to Escrow. After the lender has reviewed the signed loan docs they will wire their funds to Escrow. Your loan has now FUNDED!
Receive Keys To Your New Home! Once funded, Escrow notifies the Title company, and then Title has the deed sent to the county to record. FYI - the county doesn’t work weekends, holidays, and is usually 9-5. Once it records...BAM! You now own the home and can get the keys!
What You Can Do To Help Your Loan Close In A Timely Manner:
Provide accurate information during your initial consultation, avoid any additional debt during the loan process, and inform your mortgage banker of any changes in employment or income. Contact us today to work with a winning team!
Information provided by Stephen Ennis