Steps To Buying

Steps To Buying Your Home

Buying a home, whether it is your first, second, third, or one in a long line of houses that you have called “home” can be a very exciting process. This process is not without its stress-inducing situations, however! The Collmer & Wilson group works to minimize or eliminate these stresses, so you can purchase a home that brings you security and happiness.

We strive to be a source of knowledge and information that serves as your fiduciary agent, holding your best interests in our hearts and minds. Every purchase is unique in some way. Here is a list of steps that may help you get a better idea of the process of purchasing a home.

If you are ready to buy, please fill out our “Ready to Buy survey” or, if you would like to look at currently listed homes, please check out our neighborhoods page and begin your search there!

20 Steps to a smooth home buy:

Step 1: Find a Realtor

This is the first and most important step in the process! Hiring the right realtor sets the stage for how the rest of the transaction will proceed. As of May 2020, there are over 300,000 real estate professionals active in California. How do you choose the right one?

Make sure they are qualified in your location and for your property type

Check reviews, check license status, and ask if they have any special certifications

Ask for references! Most agents are happy to connect you with their previous clients, so you can get the lowdown on how the agents have performed in the past

Make sure you get along with your agent! You don’t want to go through the process of selling your home with an agent that you can’t stand to be around! This may sound like a joke, but we have heard some stories from our clients’ previous experiences!

We would love to be the Brokers to help you achieve your real estate goals with maximum satisfaction!

Step 2: Get Pre-Approved

One question we hear a lot is “how much house can I afford?” The absolute best way to answer this question is to connect you to one of our fantastic mortgage brokers to walk you through this process. They will take into account your complete financial situation and give you your options. Once we figure out how much you can afford, you then decide where in that price range is your comfort level. These can be two different numbers based on your personal financial plans. Each buyer’s situation is unique, and we are here to honor your best path forward.

Step 3: The Search Begins!

Once we have figured out our price range, we can begin the search. We take into account many different variables including (but not limited to): location, amenities, home features, safety, ease of access (within and without the property), governmental influences (school districts, zoning, et cetera), natural hazard influences (flood plains, earthquake hazards, et cetera), and so much more. Our search for you does not begin and end on the MLS (although the MLS is a fantastic source for finding homes for sale).

We have over 53 years of experience on our team and throughout those years, we have made connections with other agents, buyers, and sellers. These connections often afford us “insider” information on properties that are available but either not on the market yet or are being sold off-market.

Step 4: Narrowing down the search for viewings

We narrow down our search to the properties most relevant. We make the home search as streamlined and efficient as possible so you aren’t wasting time seeing homes that you would never purchase but assuring we are seeing all of the potential homes that could be perfect for you.

Step 5: Submit an Offer (and get it accepted!)

We have found your perfect home! It is time to submit an offer! But, how do we make sure your offer will be accepted, especially in a seller’s market? In Our knowledge of real estate values and the fact that we are constantly in the field seeing properties come on (and go off) the market, we have a great understanding of what it takes to get an offer accepted in any market. We converse with listing agents and check sales prices of comparable properties to narrow down a purchase price that will have the highest probability of being accepted.

Step 6: Order Inspections

Congratulations…your offer has been accepted! This is a huge step and can often bring on a lot of joy and stress for buyers. We want to make sure you know as much as you can about the home you are purchasing. If the seller has not already completed inspections, now is the time for us to order those and make sure we find out anything about the property that could potentially cause a negative effect on the home’s value.

Some inspections commonly performed are: Home Inspection, Pest Inspection, Roof Inspection, Pool Inspection (if applicable), Foundation inspection (if applicable), an investigation into the natural hazards associated with any property, and we, as agents, do our own visual inspection of the property to see if there is anything we notice that could potentially because for concern. 

Step 7: The Earnest Money Deposit (EMD)

In conjunction with ordering inspections, another item to check off the list at this point is getting your EMD into the escrow account. The EMD is your first deposit towards the purchase of your home and it counts as part of your down payment.  It is also your good faith deposit to essentially prove to the seller that you seriously intend to close the sale. One thing to note is that this deposit is subject to forfeiture by the buyer if the buyer does not perform his or her duties laid out in the purchase agreement.

However, this money is fully refundable to you (less any fees incurred) if you decide to not purchase the home as long as this decision is made before removing all contingencies (see Step 11). We make sure that our buyers are 100% ready to move forward with the purchase based on the applicability of each contingency.

Step 8: Watch your spending!

One thing that you will also hear from your loan officer or mortgage broker is to limit your spending during the home purchase process…especially for large purchases, like a car. This could cause some serious concerns or delays in regard to the loan process as the lender will verify, throughout the process, your purchasing power and this includes how much money you have in your accounts and what other debt you incur.

Step 9: Review all disclosures and inspections

Once all the inspection reports are received, we review them all with you to make sure there aren’t any questions or serious concerns. If there are concerns, we make sure they are addressed. Steps to remedy issues that arise vary from transaction to transaction, but the general process is that either you accept the reports and move forward, or you request the seller to remedy some or all of the items in the disclosures and reports prior to the close of escrow (or sometimes money is credited back to you so you can make the changes you desire post-closing). You can also cancel the agreement to purchase.

Step 10: The Appraisal Process

Concurrently, and as part of the loan process (if applicable), the appraisal is completed to confirm with the lender that the purchase price is representative of the actual value of the property. Additionally, it informs you of the true market value of the home as compared to your purchase price. Both of these functions are very important. If there is a discrepancy between appraised price and purchase price, there are a few options to facilitate the completion of the purchase.

If the appraisal comes in low, the purchase price can either be negotiated down (this usually occurs more in a buyers’ market than a sellers’ market) or you can come up with the additional funds to cover the difference between purchase price and appraised value (this usually occurs more in a sellers’ market). When considering the latter, it should be noted that this may cause a negative effect on the loan process and should be discussed with the loan officer or mortgage broker.

If the appraisal comes in above the sale price (this happens very rarely). It is usually a benefit to the buyer.

Step 11: Remove Contingencies

There are three main contingency releases that occur during the escrow process. The first is usually the buyer investigation contingency. This is the contingency time frame in which the buyer needs to satisfy themselves in regard to the condition of the property and any material facts that may affect the value of the property. The second is usually the appraisal contingency. The last contingency to be removed is the loan contingency.

There are various reasons why one or more of these contingencies would not apply to a transaction. The Collmer & Wilson Group will make sure you are well-informed of the process and able to make the right decisions to protect yourselves and feel satisfied and secure in the purchase.

Step 12: Set up movers and start packing

We are getting close to handing you the keys to your new home! We have to get you ready to leave your current place, first! Once all the contingencies are removed, it is time to start packing (if you haven’t already) and planning the moving process. Will movers be needed? If so, we have connections with movers to help make the process “move” along smoothly!

Step 13: Manage utilities and insurance

Cancelling or transferring your utility services and home insurance is an important part of the purchase process. You want to make sure that you aren’t still paying bills on your old home when you move to your new one. Additionally, you want to have utilities and insurance set up in your new home, so you aren’t left without power or water!

Step 14: The down payment

Are the funds for your down payment (or for the entire purchase, if you are not getting a loan) readily available to transfer to the escrow account when the time comes? Now is the time to prepare those funds, so there aren’t delays in closing waiting for funds to transfer accounts.

Step 15: Finalize the loan process

As stated above, the loan process is usually the last hurdle in the home purchase process. Once the lender has given us the “clear to close” we can set up the signing appointment (see Step 18)

Step 16: Final Walkthrough

Every once in a while, the final walkthrough (which is done within 5 days of the estimated close of escrow date) turns up an unforeseen issue. Maybe there was damage done to the property with the seller’s move out, or a painting was covering up a large hole in the drywall that was not disclosed by the seller.

This final walkthrough gives the buyer peace of mind in knowing that the house, prior to the closing date, is in a condition that was expected by the buyer. There should not be any unknown damage to the property discovered during the final walkthrough. If there is, steps must be taken by one or more parties.

Step 17: Transfer the down payment (but be careful!) and fully fund the purchase

Your EMD is still waiting comfortably in the escrow account. Any remainder down payment will need to be transferred within 1-3 days of closing. One very important thing to consider is that wire fraud is a very real, prevalent, and life-changing crime. The Collmer & Wilson Group ALWAYS recommends the hand-delivery of a cashier’s check to the title company to transfer the funds. If this is not feasible, when making a wire transfer, do not proceed until all account numbers are triple checked with the escrow officer involved in the transaction. There are many criminals working out there pretending to be escrow or title officers, so one must take great care in making sure they are speaking to the correct person.

Concurrently, with the transfer of the remainder of the down payment, the lender will also transfer funds (if you are obtaining a loan to purchase the property).

Step 18: The Signing Appointment

The title company will prepare all the transfer paperwork and schedule a time with the buyers and the sellers to sign. Either a notary public will come to meet you at a place of your choice, or an appointment can be scheduled at the title company, whichever is more convenient for you.

Step 19: Recording of the purchase and moving in!

After all funds are received and all signatures collected, the final step is the recording of the sale and officially registering your name as the owner of the home. This is usually done by the title company the next morning after all signatures and monies have been collected.

The keys are now in your hand! Congratulations on the purchase of your new home. We strive to make this process as smooth and efficient as possible and thrive on the happiness and satisfaction of our clients. Welcome home!

Step 20: Review us!

Assuming you have decided to work with the most experienced and knowledgeable real estate team to purchase your next home, we are happy that you chose us. The reason why our service is of the highest quality is that we want happy clients. Happy clients make us happy. We would love for our clients to submit a review for us, so others can get a small taste of what it is like to purchase their home with The Collmer & Wilson Group. We follow up with links to our favorite review sites to facilitate this. We really appreciate your referrals!

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