How Do I Purchase a Home? 

Congratulations!!  You picked the perfect time to purchase, the market is in your favor.  The following information will clarify the steps  towards your new home purchase.

First step is to get a pre approval from a lender.  You will furnish a lender (bank, mortgage company) your financial information and based on that information the lender will calculate how much money  a lender is willing to lend you.  A pre approval indicates what price range to search for a property and will be submitted with the paperwork when you make an offer on a home.  Pre approvals help make your offer more appealing to a seller.  It's easy to do and takes about 20 minutes.  Your real estate agent can recommend a lender to get a pre approval.

So you know your price range, it's time to determine what you want in your home.  Maybe it's a 3 bedroom, 2 bathroom, 2 car garage, pool home, beach front.  May not.  Do you have to be close to the interstate  for work or is this a vacation home and you want to be on the Island or golf course?   If you have children which schools  do you prefer to be near? Do you want a clubhouse, community pool, gated community, maintenance free or a condo with expansive views of the beach?   Or possibly this is the time in your life to enjoy a boating community?  Have fun, shoot for the moon and put the features in order of importance to you.   Prior to your arrival and based on your information  I'll be sending you properties to review through e-mails  and then I can preview the properties that you selected.  Together we will find you the perfect place in paradise.  

Once you find the home you love, you make an offer to the owner.  We write up a contract with a price, deposit, closing date, all the contingencies ( ex. financing, home inspection, condo documents, title search etc.), review sellers disclosures and other pertinent information.   Your offer may be accepted or the seller may counter your offer with different terms.   Once an agreement on the price and terms are acceptable to both you and the seller, you are under contract.  

Immediately, the clock starts ticking on your contingencies and we abide by the time lines in the contract. Your lender provided you a pre approval on the information you supplied, now the lender will verify your information when you make a mortgage application. The lender will provide you a "good faith estimate"  with your costs to purchase a home, monthly payments, loan rate, etc.   Credit checks will be completed and the lender will have an appraisal of the property to verify its value.  Then a mortgage commitment is issued.   A mortgage commitment is an agreement indicating the lender will provide you the money to purchase the home.  During this time all the remaining contingencies will be satisfied.  Home inspection will be completed and if necessary quotes for repairs, insurance quotes  will be obtained and secured.  This whole process takes about 45 days if financed.  Two weeks if it is a cash purchase.  Short sales can vary from a 45 days to months.  Bank/Reo sales have been moving quickly from two weeks to two months.  

 A week prior to your closing date  you will be provided a list of utilities  and contact numbers to have the services switched into your name. This avoids unnecessary charges.   You will also receive a HUD-1 statement explaining  all charges for the purchase.  Your real estate agent, lender and title agent are able to answer your questions, if any.  The day before or day of closing you will have a walk thru to verify the condition of the property and check repairs if any were completed. Closing usually  takes place at the title company.  Once papers are signed, the lenders wire the monies and you are now a homeowner.

This provides you a basic summary of a typical home purchase.  If you have any questions, please feel free to e-mail me.

Hope to hear from you, Alice Salaices