Making the Offer
The amount you offer for the purchase of a home depends on a number of factors, including condition, length of time on the market, sales in the area and the urgency of the seller. While some buyers want to make a low offer just to see if the seller accepts, this often isn’t the best choice because the seller may be insulted and decide not to negotiate at all.
Proof of Funds
Prior to presenting an offer, usually your Realtor will need a “proof of funds letter.” If you are paying cash for the property, you’ll need a letter from your bank or wherever the funds are deposited and available showing the amount of money on deposit necessary to cover the purchase price. If you are financing the purchase you will need a proof of funds letter showing sufficient money to cover the down payment and a pre-approval letter from the lender showing they are ready to make a mortgage loan.
Once you have determined the price you are willing to pay for the property, you Realtor will present the offer. The seller will then do one of the following:
• Accept the offer
• Reject the offer
• Counter the offer with changes
By far the most common is the counteroffer. When a counteroffer is presented, your Realtor will work with you to review each specific area of the offer with the concept of making sure that the best possible price and terms are considered.
Offer Accepted – What Next?
The Home Inspection – Determines if the home has any issues. Inspections aren’t always required, but you should absolutely get one even if you’re not getting a loan. Go over the inspection report in detail with the inspector to make sure you’re familiar with any problems, their severity, and the estimated cost to fix them.
Get Your Funds Ready – Make sure the funds you need for closing are accessible. If you need to move money from an investment or trust, do it right away and have the money ready to be placed in escrow for closing.
Homeowners Insurance – Buyers are expected to pay for homeowner’s insurance, before closing so the house is covered in case of fire or natural disasters. Depending on where you live, you might need extra insurance, like flood coverage. Ask you current insurance company if they offer homeowners insurance or ask your Realtor for a recommendation.
Final walk-through – You will be allowed to do a final walk-through of your new home 24 hours before closing. This allows you to make sure any items that should be there, as per your contract, remain. It also lets you check the condition of the home to make sure no extra damage has occurred. If some repairs were required after inspection, don’t be afraid to bring your home inspector back to your walk-through, Typically the inspector charges for revisit is usually 25 to 50 percent of the original fee, which is worth it if you want to make sure everything has been repaired to your satisfaction.”
It’s important that you catch every issue during the final walk-through. If you spot them after closing, they’re going to be your problem. If you find anything different from what you agreed upon, you may postpone the closing to give the seller time to fix the problem.
The Closing – Prepare for It
Closing day marks the end of your home-buying process. To make sure your closing goes smoothly, you should bring the following:
Your Social Security card or number
Anything else required by the title company/closing agent
Transfer of Title
Transfer of title moves ownership of the property from the seller to you. There are two primary events that make this happen:
Delivery of the Buyers Funds
This is the wired funds provided by you for the purchase.
The Closing Package – Signing the Documents
There will be a number of documents for you to sign on closing day and this is normally done at the Title Agency office. The title agency runs title to the property and makes sure you receive clear title. The prepare the closing documents and conduct the closing and disburse all money required to the seller or other parties to the transaction.
Delivery of the Deed
A deed is the document that transfers ownership of real estate. The deed names the seller and buyer, gives a legal description of the property, and contains the notarized signatures of the seller and witnesses. At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing.
You Own the Property – Congratulations!
Once the closing is done, all documents are signed, all money is disbursed you own the property and will receive the keys. This information is provided for general knowledge of the home buying process and is not intended to cover every eventuality when purchasing a home.
This is general information and there usually are more steps that may be necessary when purchasing a home. You can find more information here:https://www.thehaighgroup.com/buyer-info/