How to buy a home - some details
Contact Alex now -- call (480) 767-3619
Meet with a mortgage lender, apply for a loan and secure loan approval. Alex can refer you to reputable mortgage lenders with competitive rates and fees and excellent service. The lender will ask the buyer to bring some financial information when the buyer meets to apply for the loan.
Typically the items required are: tax returns for the past two years, copies of bank statements and or investments accounts for the past three months, and the buyers latest pay stub.
Also be prepared with the buyers social security number and name and address of the buyers employer.
Loan approval usually only takes a matter of a day or two, and typically the lender can give the buyer a pre qualification on the spot. With this loan approval in hand, the buyer is now ready to go shopping...
Call Alex -- to research all properties available that meet the buyers requirements and budget.
Alex will take the buyer to look at all of these properties to find that perfect home. All pertinent information regarding schools, community services, shopping, and neighborhood amenities will be reviewed to assist in determining which home best suits the buyer. Sometimes it only takes one day of looking to find the right property, other times it may take several trips to find a home that satisfies the buyers needs.
Once the buyer has decided on a property, Alex will write an offer on the multi page Arizona Board of Realtors contract. Additionally the buyer will write a check for an earnest money deposit which will accompany the offer. This earnest deposit is for an amount that is relative to the price of the property, and shows the buyers good faith when making the offer. This earnest deposit, when the offer is accepted, is money held by a title company that applies to the buyers down payment and or closing costs. With this written contract and earnest money in hand, Alex will present the offer to the seller and negotiate the best possible price and terms in your behalf. This process usually takes no more than a day, but sometime may take longer if the seller cannot be reached, or if the seller and or buyer initiates counter offers to the original purchase contract.
Once the offer is accepted, and all signatures of the parties have been secured Alex will open escrow and deposit the buyers earnest money with the title company specified on the contract. The tile company, acts as an independent third party that will insure free and clear title to the property you purchase after a thorough search of all ownership records. Additionally the title company will assist in collecting all signatures on the necessary paperwork that transfers ownership of the property to the buyer and works with the buyers lender to assure a smooth and orderly handling of your mortgage documents and monies to pay for the buyers new home.
A buyer has the right to a home inspection. Alex strongly believes that every buyer should retain the services of a professional home inspector to thoroughly review all of the systems of the property the buyer intends to purchase. Alex can provide you with a list of reputable home inspectors, who are certified by the American Society of Home Inspectors. Typically the buyer has several days to conduct this home inspection, along with any other inspections the buyer deems necessary. Other inspections may include environmental, lead paint, radon etc.
The results of the home inspection and any other inspections are usually given to the buyer no later than 24 hours from the time of inspection. The buyer and Alex will evaluate these reports, and determine whether or not there are items the buyer will ask the seller to replace and or repair. If there is a list of items the buyer feels need to be replaced or repaired, Alex will prepare a list that will be delivered to the sellers agent asking for these repair items. Within the inspection period, a wood infestation report (termite inspection) will be conducted to determine whether or not the property has termites or conditions that are conduce to termite. The home inspection and wood infestation report and delivery of the list of any repairs usually must be handled within 10 days of the acceptance of the offer to purchase the property. Remember the seller is under no obligation to repair or replace any items that the buyer requests, therefore if the buyer and seller cannot come to terms with this repair list, the buyer can cancel the contract and have their earnest money returned to them.
When the buyer secures a mortgage loan, the lender will require an appraisal. Typically Alex will write into the contact that the property must appraise for at least the purchase price. The appraiser will check all comparable sales in the subdivision that have sold within the last six months. A comparable property will be one that is within 200 square feet larger or smaller that the subject property. An appraiser will analyze what amenities and upgrades the subject property has versus the comparable sale and will determine the value. Most lenders will require the appraisal to be for at least the purchase price, but under certain circumstances that may not be the case.
Once the appraisal has been completed, the lender will present the file to the underwriter for final underwriting approval. This process usually takes from 24 to 72 hours, depending on the lender. Once the final approval has been secured, the lender will generate loan documents which includes the note and deed of trust, and any other documents that the lender utilizes to protect their interest in the property. The rate, and terms of the loan will be specified in these documents.
When the loan documents have been delivered to the title company, Alex will make an appointment for the buyer to sign these documents( also known as a
signing). When the appointment is made with the title company, Alex will be given a copy of the preliminary settlement statement, called a HUD 1, which will identify all costs associated with the transaction.
This will reflect fees and costs payable by the buyer and the seller. Once Alex has reviewed the HUD 1, he will contact the title company to have them make any changes that are necessary and then the buyer will be called with a figure so that they can bring a cashiers check in the correct amount to the signing. Alex and the buyer will meet at the title company and the escrow officer at the title company will carefully review all of the documents with the buyer. Alex will be there to be certain that all of the paperwork is in order and to answer any questions the buyer may have relative to the closing of the transaction.
At the signing, which usually occurs a few days before the close of escrow designated in the contract, the buyer will review the loan documents, ask any questions they feel appropriate, sign the loan documents, give their cashiers check to the title company for the down payment and closing costs and if the buyer is paying cash a cashiers check for the balance of the purchase price.
After the documents have been signed, and the monies have been given to the title company, the escrow officer will send the loan package back to the lender for what is called funding. Funding is when the lender reviews the documents and approves them and then generates a wire transfer to the title company for the amount of the loan. Funding will occur usually the day before the close of escrow date specified in the contract or the day of close of escrow depending on when the loan documents have been signed by the buyer. When the wire transfer has been executed and received by the title company, the package of documents the buyer previously signed are now ready to be recorded with the county.
Close of escrow (closing) is in fact the moment that the documents have been recorded with the County Assessors Office transferring ownership of the property from the seller to the buyer. It is at this time that the buyer is then the new legal owner of the property. Typically possession is the day of recording, but sometimes buyers and sellers agree to a different date at the time the initial purchase contract is signed.Upon confirmation of recording with the county, Alex will deliver the keys to the buyer on the day specified as the date of possession.