A Roadmap to Home Ownership
Lost, nervous or overwhelmed? These are very common feelings when thinking about home ownership. Each person is unique in their circumstances and pace. By aligning with 360 Real Estate Professionals, you are assured a personalized experience with clear direction to your goal, while keeping the journey fun!
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1. Prequalification – Know your purchase power
- This is the time to connect with a lender and know your purchase power.
- Begin to visualize your dream home; make a list. Begin searching homes within your price point.
2. Make An Offer – Items typically expected with your offer
- Provide proof of funds: Proof of cash down payment and closing costs. Or “Net Sheet” (provided from Title Company; If buyers are selling property to obtain new property).
- A pre-approval letter of your loan: Your lender will provide a pre-approval letter that shows you are a solid buyer and your loan will fund. This gives the seller(s) assurance that the transaction will close.
- Earnest Money Deposit: It is customary to offer a 3% initial deposit of purchase price within three business days, especially in a competitive market.
3. Time Frames & Terminology When An Offer Gets Accepted
- 3 Days to provide Earnest Money Deposit (EMD) in escrow: Standard amount is 3%, but can be adjusted depending on your situation.
- 17 Days or less to complete physical contingency period: This is your opportunity to investigate the property and ensure there’s a clean title, conduct a home inspection, pest inspection, talk to neighbors, get HOA docs, etc. You have the opportunity to request for repairs or back out of contract free and clear without jeopardizing your EMD.
- 17 Days or less to complete appraisal contingency period: If appraisal is less than purchase price of home, we may need to renegotiate price or come up with difference in funds.
- 21 Days or less to complete loan contingency period: After your loan has been through underwriting approval and closing disclosures (CD’s) are complete, loan contingency can be removed. Lender will advise and confirm.
- Close of escrow and “On Record”: This timeframe depends on how quickly you, or sellers need to move. This is adjusted according to each situation.
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