In order to show a seller that you are willing and able to purchase a property, you must be pre-approved for a mortgage. To get pre-approved, you simply call a lender and provide them with information about your salary, assets, and credit score. They will then send you a written commitment stating that you’re approved for a specific loan amount.

NOTE: Finding a mortgage lender does not have to be scary or overwhelming. If you need help finding a trustworthy mortgage broker, I am happy to provide you with a list of several trusted lenders with excellent reputations.

Based on the criteria we discuss in your needs assessment, I’ll set up an automated search in the MLS so that any present listings that fit your criteria (or any listings as they become available) will automatically be emailed to you. Additionally, I will utilize internal networks to discover any pre-market properties within your criteria that may be coming soon for you to view before they are even listed. Any property that you’re interested in and wish to view, I will arrange for us to see at your convenience within the showing availability set by the seller.

Once we have found you the perfect home, it’s time to make an offer. I will draw up a sales contract for you, and we will discuss various contingencies in the contract such as home inspection, appraisal, and financing. This is also when you write a check for the Earnest Money Deposit (EMD), typically 1% of the sale price. In a hot market where homes sell very quickly, you may be more likely to win a contract with a larger EMD, around 2-3%. Once the contract is ready, I will submit the contract to the listing agent, along with your lender’s pre-approval letter and EMD.

Once the seller has accepted and signed the contract, we have what is called a ratified contract and your EMD check is deposited into the title company’s escrow account. I then send the ratified contract to your selected lender and title company which sets in motion the lending and title processes. A mortgage application must be submitted to your lender within seven days of ratification to ensure compliance with the financing contingency in the contract.

Congratulations! Now that you’re “under contract” on a home you will need to complete several things to keep the process flowing smoothly.

• Home Inspection. We will set up an appointment for a home inspection approximately 10 days after ratification and ask the seller to make repairs for any conditions you find unsatisfactory, such as roof, electrical, or foundation issues. The seller will either agree to complete the repairs prior to closing, or we will negotiate until all parties can agree to which items will be repaired. If for some reason we do not reach an agreement, you as the buyer can void the contract.
• Home Owner’s Documents. Many homes are in a Home Owner’s Association or Condo Owner’s Association. If this is the case, the seller will provide a disclosure package from the association with pertinent information regarding the financial and legal status of the association. You have three days after receiving the HOA or condo documents to void the contract without penalty if you find anything in the HOA documents that are unsuitable.
• Home Owner’s Insurance. Most lenders require buyers to purchase homeowner’s insurance in order to close a sale. Because certain types of homeowner’s insurance can take a while to process, it is a good idea to secure this insurance relatively soon after the contract is ratified.
• Termite inspection. It is negotiable which party conducts and pays for termite inspection, however because the cost is relatively low, I usually recommend that the buyer pay for this in order to choose a reputable company. It is the seller’s responsibility to perform any necessary treatments or repairs if the inspection turns up evidence of termite damage.
• I will structure your contract to include an appraisal contingency. If for some reason the property does not appraise for the sales price, you have four options. 1) you can pay the difference in cash 2) The seller can lower the sales price to the appraised value 3) The buyer and seller can negotiate a middle ground. 4) You can void the contract without penalty.
• Final Walkthrough. The week before closing, we will conduct a walk-through (or several, if necessary) of the property to ensure that everything is in working order, check that items agreed upon in the home inspection addendum have been addressed, and make sure that all fixtures, appliances, and utilities remain as specified in the contract. Any outstanding issues we discover during the walk-through may either be resolved by a seller credit at closing or through escrow.