Services For Buyers

The very first step in the home buying process will be determining your financial ability to purchase; more specifically if you’ll need to obtain a loan or will be paying cash. You should begin the home search process by obtaining a pre-qualification with a mortgage lender. This often includes some level of review of your debt-to-income ratio and an estimate of what you can afford on a monthly basis.

Important Notes

• There are many types of loans. It’s important to meet with a reputable lender who can provide detailed insight and guidance as to which loan product is best for your specific needs.
• Sometimes it’s necessary to improve your credit score before searching for a home. Know your credit score and resolve any outstanding credit issues prior to beginning the home search process.
• If you intend to purchase with all cash you will need to provide proof of funds, this is usually a bank statement showing sufficient funds to close escrow (including the purchase price and any closing costs).

The home search is often described as the most exciting part of the home buying process. Before starting your search it’s important to decide what you must have and what you would like to have in a home. Some factors to consider are location, architectural style, number of bedrooms and bathrooms, outdoor space, and proximity to neighbors. Using specialized tools, I will search and identify homes meeting your requirements.

Important Notes

• Are you open to spending a little less for a fixer-upper or are you looking for a home completely ready to move in? Knowing your situation in advance will greatly enhance the search process.
• Remember your home is also an investment, it’s not just important to focus on the initial buy, but also consider that one day you might eventually want to sell.
• The Client Preference Sheet will help you get started with the most common search related questions.

We found a home you can see yourself and family living in! Now begins the process of writing an offer. In California, the offer is written using the Residential Purchase Agreement (RPA). The RPA is lengthy and can be intimidating to the buyer. I am trained to provide detailed explanations of each component of the RPA so that no question is left unanswered.

Important Notes

• Now is the time to lean on your REALTOR® to ensure you are making a fair offer that’s not too high but also provides the best opportunity for the offer to be accepted.
• Ensure you include any fixtures and other property that you want included with the purchase of the home.
• The purchase contract includes provisions called “contingencies” that allow the buyer to cancel the contract based upon specific conditions that do not meet the buyers expectations.
• As the buyer, you have the right to investigate all conditions of the property–I will assist with identifying and coordinating inspections.

As the buyer, you have the right to investigate all conditions of the property. I will assist with identifying and coordinating inspections to ensure you are protected as the buyer and help ensure you avoid any costly mistakes.

Common Inspections, Reports, and Contigencies

1. Property Inspection – This inspection will identify a home’s systems and components are in working order. The purchase contract can be modified to include repairs for identified deficiencies.
2. Title Report (prelim) – The title report is generally paid for by the seller and includes any encumbrances, easements, and/or legal matters that may affect the property.
3. Seller Disclosures – There are a few reports that fall within this category including a seller questionnaire that requires the seller to disclose known issues or concerns. This is also where natural hazards and lead-paint disclosures are made as well as any notification of HOAs.
4. Appraisal Contingency – A qualified appraisal will be performed if you required a loan as part of the offer. Often the appraised value is at or above the agreed upon price; however, sometimes the appraised value is less than the agreed upon price. In this case, the buyer has a few options including asking the seller to renegotiate the purchase price, the buyer can cancel the agreement or pay the difference and move to close.
5. Loan Contingency – If you are unable to secure a loan or the loan terms exceed the interest rate specified in the contract you may withdrawal your offer.
6. Buyer’s contingencies remain in place until the are actively removed by the buyer–they do not expire unless otherwise specified.

Other Specialized Inspections

As your REALTOR® I will guide you through other important more specialized inspections when recommended.

• Geologic Inspection
• Roof Inspection
• Mold and Asbestos Inspection
• Sewer/septic Inspection
• Fireplace/chimney Inspection
• HVAC Inspection
• Drainage Inspection

The escrow company is a third party who will oversee the purchase contract to make sure all parties interests are protected. The escrow process ensures that no funds or property will change hands until all provisions of the purchase contract have been met.

Important Notes

• The escrow company is usually agreed upon between the seller and buyer (although sometimes escrow is opened early by the seller)
• An earnest money deposit (EMD) is required within three business days from purchase contract acceptance.

The closing date is the date both buyer and seller agree to transfer ownership and is determined when the parties agreed to the terms of the RPA (purchase agreement). During closing the escrow officer will verify the following has been completed:

1. All documents have been signed, notarized (when required), and delivered.
2. The buyer has removed all remaining contingencies.
3. A “clear title” has been verified.
4. The buyer has signed all applicable loan documents (when required)
5. Seller has signed, notarized, and delivered all applicable documents.
6. Closing statements have been approved.
7. The buyers closing funds have been received by the escrow officer/office.

Once complete the escrow officer will:

1. Order title insurance (as applicable in the purchase contract)
2. Request recording at the county recorders office.

Once the recorders office has verified recording then keys are exchanged.

Congratulations, you are now an official homeowner!