Buying property

Whether you are new to the idea of buying, in the process of pre-qualifying, or are pre-approved with a letter in hand, I am here to help. Don’t be shy, just reach out with any questions you may have. Hopefully you will find some helpful resources on this site to assist you in your home search as well.

What is the process of home buying?

  • decide to buy

  • choose an agent

  • get pre-approved

  • search for homes

  • submit an offer

  • terms are agreed upon by both seller and buyer - move to contract

  • contract to closing (see below for more details)

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make sure to compare lenders and get pre-qualified/pre-approved

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Pre-Qualification and Pre-Approval: 

These terms can be used interchangeably so please check with your financial institution on how they define them. For generalization let’s assume lenders use these terms differently.

Pre-qualification: A conversation with the buyers about their credit, income and monthly expenses with no verification of income or assets, no documentation.

Pre-approval: Loan application, credit check, income and asset verification. Bank statements, pay stubs, tax returns and miscellaneous items required.

Giving lenders details like debt, income and assets will give them a better financial picture of what you are qualified to borrow.

At this stage most home buyers will know if they are financially well positioned to purchase or they need to step back and work on their financial picture so can be in a better position to quality for a loan in the future. Either way it is good to know where you’re at so you have a starting point.

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Compare lenders and loan types:

It is smart to compare rates from at least three different lending institutions because doing so could save you thousands of dollars. There are also many loan types (Conventional, Portfolio, USDA, VA, FHA and more) to consider that may affect your rates and down payment.

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What you will need to qualify:

Clean credit history

Income documentation: two months of recent pay stub, 2 years income tax returns including W-2 forms

Asset Verification: Two months of bank statement, verification of down payment - funds must be seasoned, verification of reserves. Seasoned funds are money in your account for at least two months.

Certain loan types like conventional loan will want to see you in the same line of work for at least 2 years.

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from contract to closing

  • Accepted offer  

  • Initial deposit 

  • Order property inspection

  • Provide verification of cash funds

  • Seller’s Real Property Disclosure Statement (SRPD)

  • Preliminary Title Report

  • Seller delivers condominium/co-op/subdivision/planned unit development/homeowners association/association documents

  • Buyer accepts property inspection

  • Seller provides HARPTA/FIRPTA certificate

  • Buyer delivers vesting and tenancy to escrow

  • Buyer to deliver conditional loan commitment letter

  • Seller to deliver termite inspection report

  • Receive Estimated settlement statement

  • Buyer to arrange for Homeowner’s Insurance

  • Seller removes items from property

  • Seller completes termite treatment (if applicable)

  • Buyer approves property condition maintenance and final walk through

  • Seller completes cleaning

  • All documents and funds submitted to escrow

  • Closing / Recordation

  • Buyer gets the keys to their new home!

  • Congratulations!!!

 

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