This is the typical
Buyer gets pre-qualified for a home loan, to see
if they’re eligible. This does not
guarantee you a loan. Buyer gets pre-approval letter from Lender. In this step
your debt, income and credit are all verified and you are approved for a loan.
2. The search: Buyer now searches for their
Now that you’ve had Lender run credit and check
documents, please do NOT do anything that will affect your credit negatively!
The lenders have approved you for your budget and the night before closing they
will run a new credit inquiry on you – if you’ve bought a new car or purchased
anything using financing or credit cards, it could knock you out of being able to
purchase your home!
You have found your future home, and worked with
your me to submit an offer. Purchase
& Sale agreement: the terms of the sale are negotiated, including price,
move in date, earnest money, etc. Once
offer and terms are accepted by both parties and contract is bound, proof of
funds or pre-approval letter will be
submitted to Seller by Buyer Agent, as well as Buyer’s Earnest Money Check
submitted to Real Estate Brokerage and placed in escrow acct, to be credited to
Buyer at closing. Attaching your preapproval
letter to the offer sheds a more favorable light on you because it lets the
Sellers know you’re a ready, willing, serious, and able buyer.
Buyer orders and pays for all desired
inspections of the home/property. E.g. Home Inspection, Termite inspection / letter,
survey, roof inspectors, septic tank inspectors, etc. After inspections, Buyer may submit repair proposal
to Seller for review/negotiation (if applicable), or will fill out a form
stating they accept house as is. Buyer
to direct all questions to professional inspectors for clarification and
further details in order to fully understand what requests you may have for
Within 3 days after the Binding Agreement Date (BAD), Buyer shall make application for the loan and shall pay for the credit
report. Buyer will immediately notify Seller or Seller’s rep of having applied
for the loan and provide Lender’s name and contact information, and that Buyer
has instructed Lender to order credit report (via Notification form). Within 5 days of the BAD, Buyer must make
application for the loan and submit proof to Seller that Buyer has instructed
their lender to order appraisal.
Title search will be conducted on the home (the
Title company searches for any liens against the property)
The lender for Buyer will send all information
to the underwriter for review and approval.
The underwriter will make the final decision about loan approval. Once financing passes underwriting, the title
company completes the closing documents. In the meantime, Buyer to plan and
make arrangements for having utilities transferred to their name, any locks on
the home scheduled for replacement, etc.
Final Walk Thru will be scheduled, typically on
day before Closing. Buyer to show
Purchase and Sale contract to utility companies (that require it) for transfer
on day of closing.
Sit down to close the deal and take ownership of
your new home!
Broker, GRI, RENE, Knoxville Association of Realtors® Multi-Million Dollar
properties here: www.YourDreamMyGoal.com
/ Office 444-2400 / Email: email@example.com