The Step-by-Step Process for Financing
Working with the top lenders, mortgage brokers, escrow officers and inspectors in our area, we have put together a plan that puts you at the best advantage when purchasing a home, rental, vacation retreat, land, business or building your dream home. We have developed the following plan for your next purchase:
Pre-Qualify for a Loan
You and one of our recommended lenders or mortgage brokers communicate by e-mail, telephone or in person. The loan application is completed and arrangements are made for obtaining a credit report. The emphasis here is to get Pre-Approved for a loan so that you know exactly what price range is workable. This eliminates disappointments and wasted time.
Sometimes you may be surprised to find that you comfortably qualify for more than you thought. Pre-Approval also will show you what your monthly payments will be and you receive a full disclosure at time of application of all other costs needed to close your sale. If there are any glitches in your qualifying for a loan, they can be cleared up ahead of time. You then have what could be considered cash sale. With a Pre-Approval you will be in an excellent negotiating position.
We will meet with you and discuss your time schedule, your needs and your desires. You will learn more about the buying process and what to expect and we will learn what I need to know to help you find the property that fits your needs and budget.
We will investigate and preview properties that potentially fulfill your needs. You will then tour these properties and narrow down the possibilities. When you decide on the property that meets your criteria, you are ready for the next step.
This step is where getting Pre-Approved is especially effective. When we write the offer of purchase, we can SHOW that you are Pre-Approved by enclosing the Pre-Approval letter with the offer. With the Pre-Approval letter, we are also able to let the seller know that a fast escrow is possible. These facts increase your opportunity to purchase the property for the very best price. We will also include the inspections, a time schedule, and all other conditions that are important to you in the offer to purchase.
Counter Offer and Other Considerations
We will help you negotiate a Win-Win result. The seller may counter your offer. You can accept or reject the counter offer or the process can go back and forth until you are satisfied. The day the agreement is reached is the day of acceptance.
Escrow is Opened
This is the beginning of the escrow timetable of inspections, loan processing, and other terms of the contract. The Lender, Escrow Officer, and we make sure the I’s are dotted and the T’s are crossed. Your deposit check will be cashed and the funds held by the escrow company. The escrow company has the job of ensuring that all of the necessary conditions of the contract are fulfilled before transfer of the title to the property takes place. In Northern California, the title research and escrow are done by the same company and escrow documents are signed just before the close of escrow.
We now begin the process of inspections including (but not limited to) a pest control inspection, a complete home inspection, a roof inspection, and chimney inspection. In rural areas — well and septic inspection and certification, and/or any other inspections that seem prudent to protect your interests. You will see the Homeowner’s Policies (CC&R’s) if you are moving into a condo or planned subdivision; a copy of the ownership responsibilities of private road maintenance, and a complete preliminary title report from the title company showing status of title on the property. A clear title will be obtained before close of escrow and you will see these documents at the time you sign your escrow papers.
Shortly before close of escrow, we will accompany you on a Walk Through inspection during which you will assure yourself that all of the items that were supposed to be done are complete and that all of the major systems of the property are in good working order.
Completing the Escrow
When all of the conditions of the escrow are complete, you will meet with the Escrow Officer and me and sign all of the papers. A few days before you are to sign, the Escrow Officer will tell you the exact amount of cash you need to put into the escrow. You will need to obtain a cashier’s check drawn on a local bank and have it made out to the title company. One other way to transfer the money into the escrow account is to make arrangements ahead of time for your bank to wire the funds to the escrow account.
The endorsed paperwork goes back to the lender for final review. The lender then funds the loan and send these funds to your title company.
The title company will have the Grant Deed recorded, which places the property in your name. Now it is YOUR PROPERTY — move on in.