What are the steps to buying... Negotiation, Offer Accepted,
Contingencies This time period is determined by your purchase agreement and is used to obtain and perform the following items:
•Your ability to secure financing
•Zoning clearance (if you want to add on to the property in the future, check local zoning regulations before you close)
•Closing costs (if you’re in a buyer’s market, a motivated seller may agree to pay for certain closing costs!)
• Physical Inspection of Property
• Property Pest Inspection
• Property Appraisals
• Secure a Lender
• Obtain Loan Approval
• Approval of Seller's Transfer Disclosure Statement
• Preliminary Report Approval from Title Company
• Satisfy Purchase Contingencies
A contingency also gives you a way out of the purchase agreement when your conditions are not met. Make sure your purchase agreement clearly states that the sale is contingent upon a successful inspection. For example, if problems were found, but you’re still interested in buying, you may negotiate with the seller to either lower the price or have the seller pay for repairs before you close. Or if the problems are more than you’re willing to handle, you can legally cancel the agreement.
Homeowner's Insurance We will work with your escrow officer and insurance agent to ensure your policy is in effect by the close of escrow.
Down Payment Funds Prior to the closing date of escrow you will need a cashier's check or wire transfer.
Close Escrow You will sign all loan documents and closing papers when all conditions of the purchase agreement have been met. After you deposit the balance of your down payment and closing costs to the escrow officer, your lender will deposit the balance of the purchase price. The County Recorder's office will record the deed, and you will take ownership of your home.
Importance of Home Inspection
As a buyer, you are entitled to know exactly what you are getting. Don't take for granted what you see and what the seller or the listing agent tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.
Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should go along with the inspector during inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully.
You have to demand an inspection when you present your offer. It must be written in as a contingency; if you do not approve the inspection report, then you don't buy. Most real estate contracts automatically provide an inspection contingency.