Choosing a REALTOR®
Of all the decisions you’ll face when buying a home, there’s none more important than the
person you choose to represent you.
The job of your Sales Associate is to
support you in finding the right home with the best possible terms, and to aid you through the
entire process. Your Associate will explain the process of buying a home, and familiarize you
with the various activities, documents and procedures that you will experience throughout the
transaction.
Tips For Selecting A REALTOR®
Your Real Estate Professional should be:
● Knowledgeable about the communities of interest to you
● Aware of the complicated local and state requirements affecting your transaction
● Effective in multiparty, face-to-face negotiations
● Highlytrained, with access to programs for continued learning and additional certifications
● Technologyfocused
● Assisted by a fullystaffed marketing department
● Supported by professional legal counsel Financing
Most real estate professionals and mortgage lenders recommend prequalifying
for a loan before selecting a home to purchase. This process will help you:
● Determine the price range you can afford
● Understand the types of loans you qualify for
● Determine what your monthly payment will be
● Estimate the down payment and closing costs
The Loan Process
Your Sales Associate will help you to select a mortgage lender. Once you have made your
decision, these are the steps of the process:
Application. All pertinent documentation is obtained. Fees and down payments are discussed,
and the borrower will receive a Good Faith Estimate (GFE) and a Truthinlending
statement (TIL), itemizing the rates and associated costs for the loan.
Documentation. If not already completed in the prequalification
stage, your Sales Associate will order all necessary supporting documentation. Once inspections are completed, your Associate will order an appraisal on the property. As it comes in, documentation is checked for any
irregularities.
Loan Submission. Once all the necessary documentation is in, your completed file is submitted
to a lender for approval.
Loan Approval. (Underwriting) Loan approval, or underwriting, generally takes 24 to 72 hours.
All parties are notified of the approval and any loan conditions that must be received before the
loan can close.
Closing. Once all parties have signed the loan documents, they are returned to the lender. If all
the forms have been properly executed, the lender sends the loan funds by wire transfer. At this
point, the borrower finishes the loan process and actually buys the house.
Finding and Choosing the Right Home
Based on criteria that you and your Sales Associate establish together, your Associate will help
you find the perfect home. There are many factors to consider in selecting a property, including
location, bedroom and bath count, schools and amenities.
Your Associate will apply their extensive community knowledge and professional resources to
research available properties, and show you the homes that best meet your needs. If you find a
property that interests you through the Internet or your own research, let your Associate know so
that a showing can be arranged.
As you view different properties, your criteria may change. Open and direct communication with
your Associate is a key element of a successful property search.
Making an Offer
Once you have found the home that you wish to purchase, your Sales Associate will apply their
professional training and do all the necessary research to help you structure an effective offer.
This is where your Associate’s negotiation skills come into play. When an offer is made, the
seller will have the option of accepting, rejecting or counteroffering.
Your Associate will negotiate the best possible terms for you.
Your Associate will draft the purchase agreement, advising you of protective contingencies,
customary practices, and local regulations. Home warranty, title and escrow arrangements will
be detailed in the offer. Although your Associate will give you advice and information, it is your
decision as to the exact price and terms that you wish to offer.
Managing the Escrow
When the purchase agreement is accepted and signed by all parties, your Sales Associate will
open escrow for you and your earnest money will be deposited. The escrow is neutral third party
that will receive, hold, and distribute all funds associated with your transaction.
Removing Contingencies
Prior to closing escrow, all of the contingencies of the Purchase Agreement must be met. Your
Sales Associate will coordinate this process. Typical contingencies include:
● Approval of the seller’s transfer disclosure statement
● Approval of the preliminary title support
● Loan approval, including an appraisal of the property
● Physical inspections of the property
● Pest inspection and certification
● Acquisition of homeowner’s insurance
Closing Escrow and Moving In!
When all of the conditions of the purchase agreement have been met, you will sign your loan
documents and closing papers. You will deposit the balance of your down payment and closing
costs to escrow, and your lender will deposit the balance of the purchase price. The deed will
then be recorded at the County Recorder’s office and you will take ownership of your home.
Your Sales Associate is a valuable source of helpful tips for planning and coordinating your
move.
*Courtesy of c21mm.com
