Buying a Home

Initial Consultation with me, Your Buyer's Agent

Offer to Purchase

As a Buyer, once you have selected the house you wish to buy, you must submit an Offer to Purchase stating the price that you are willing to pay for the property and the terms and conditions, such as:

          a)  Mortgage financing

          b)  Satisfactory home inspection

          c)  Satisfactory termite/pests inspection

          d)  Good and clear record marketable title

          e)  Total amount of deposit (usually 5-10% of purchase price)

          f)   Time of execution of Purchase and Sale Agreement

          g)  Time for closing

The Offer to Purchase is accompanied by an earnest money deposit, usually $1,000.

Home Inspection Contingency

In addition to the terms found in a standard offer, it is common for a Buyer to make a purchase conditional upon a property inspection(s) to be conducted within 5-7 days after the Offer is accepted.  Seller and Buyer should understand the purpose of inspections and the actions which may follow an inspection.  

          *  The Buyer has the right to withdraw for agreed to reasons stated as purchase contingencies

          *  The Seller is under no obligation to renegotiate

Purchase and Sale Agreement

When the offer and the terms thereof have been accepted by the Seller, the Seller has a Purchase and Sale Agreement prepared which includes the terms of the Offer and becomes the Agreement between the Buyer and Seller.

          *  The Buyer and the Seller should each consult a real estate attorney as early as possible to insure

             that the Purchase and Sale clearly represents the agreed upon terms and conditions of the sale.

          *  At the execution of the Purchase and Sale Agreement, the Buyer must increase the deposit.  All

             deposit money is held in escrow until the Purchase and Sale Agreement is either performed or 

             terminated.

Mortgage Application

The Buyer should discuss mortgage financing with a lender prior to looking for a new home.  This is important so that the Buyer knows, in advance, the amount and cost of mortgage financing that will be available to the Buyer.  Immediately upon executing the Purchase and Sale Agreement, the Buyer should file an application (s) for mortgage financing.  The mortgage contingency clause in the Purchase and Sale Agreement usually gives the Buyer only 21-30 days within which to terminate the Purchase and Sale Agreement if the Buyer is unable to obtain the required financing.

Title Examination

Once a mortgage commitment is issued and is accepted by the Buyer, the Bank's attorneys examine the record title, obtain a mortgage survey plan, a statement with regard to real estate taxes and other municipal liens, and a title insurance commitment.  All of these items are paid for by the Buyer.  The approximate cost of these services is usually about 1% of the mortgage amount.  Points and other bank fees are additional costs which are paid for by the Buyer.

Walk-Through Inspection of the Property

Just prior to closing, the Buyer should conduct a final walk-through inspection of the property with the Seller's Real Estate Broker and the Buyer's Agent to be assured that the condition of the property conforms to the  terms of the Purchase and Sale Agreement.

Closing

Assuming that all of the contingencies set forth in the Purchase and Sale Agreement have been met or waived, the closing is held at the time agreed upon and indicated in the Agreement.  At the closing:

          a)  the deed is delivered

          b)  the balance of the purchase price is paid

          c)  adjustments for taxes and other matters are made

          d)  the mortgage papers are signed

The Buyer must have the following items at the closing:

          a)  Prepaid Homeowner's Insurance Policy

          b)  Certified check for the balance of the monies due under the Agreement and other closing costs

          c)  Other matters as either the bank attorney or Buyer's attorney require.