The Initial Agreement and Deposit.
Choosing the right agent to write an offer for you will be the difference between getting your offer accepted or having it filed along with all of the other “Undesirable Offers”. Half the battle to getting the home of your dreams is your agent presenting your offer to the listing agent in an effective and professional manner. Once your agent wins that battle and gets your offer accepted here are some important tips to keep in mind to streamline the process:
Keep written records of everything. Chad and his Team will assist you in drafting all the paperwork for your purchase. At the close of escrow you will receive a Thumb Drive with all of the fully executed legal documents for your file.
Stick to the schedule. Chad and his Team are very organized and efficient and will help you to work within the guidelines of the purchase contract. This is important since you don’t want to have to be warned by the Seller or the Listing Agent for lack of performance.
The Escrow Agent as a 3rd party to the agreement will hold the deposit in escrow and will research the complete recorded Title history of the property to ensure that the title is free and clear of encumbrances.
How to Hold Title. You may wish to consult an attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.
Inspections. Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within the timeframe that was agreed upon.
Depending on the outcome of these inspections, one of two things may happen:
Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close, or the buyer, after reviewing the Home Inspection, Appraisal, and all disclosures may ask for more information or request a renegotiation of the terms of contract.
Appraisal and Lending. It’s very important for you to keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Chad and his Team will act as a laison between you and the lender to insure a smooth closing.
Association Approval. The Escrow Agent will send you the HOA rules, regulations, and other important documents from the seller as soon as you have an effective agreement to purchase.
Property Insurance. If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You will want to get this ordered early in the escrow process to protect against and delays at the close of escrow.