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Home Buyer's Frequently Asked
Questions
Why should I work
with a Real Estate Professional?
Of all the decisions you'll face when
buying a home, there's none more important
than the person you choose to represent you.
The job of your Sales Associate is
to support you in finding the right home
with the best possible terms, and to aid you
through the entire process. Your Associate
will explain the process of buying a home,
and familiarize you with the various
activities, documents and procedures that
you will experience throughout the
transaction.
What should I look
for in a Real Estate Professional?
You should look for someone who is
knowledgeable about the communities of
interest to you and aware of the complicated
local and state requirements affecting your
transaction. Your Real Estate Professional
should be effective in multi-party,
face-to-face negotiations, highly-trained,
with access to programs for continued
learning and additional certifications,
technology-focused. In addition it is
helpful to work with someone who is assisted
by a fully-staffed marketing department and
supported by professional legal counsel.
Do I need to be
pre-qualified for a loan before contact a
Real Estate Professional?
Most real estate professionals and
mortgage lenders recommend pre-qualifying
for a loan before selecting a home to
purchase. This process will help you:
- Determine the price
range you can afford.
- Understand the
types of loans you qualify for.
- Determine what your
monthly payment will be.
- Estimate the down
payment and closing costs.
What are the steps in
the Loan Process?
Your Sales Associate will help you to
select a mortgage lender. Once you have made
your decision, these are the steps of the
process:
Application - All
pertinent documentation is obtained. Fees
and down payments are discussed, and the
borrower will receive a Good Faith Estimate
(GFE) and a Truth-in-lending statement
(TIL), itemizing the rates and associated
costs for the loan.
Documentation
- If not already completed in the
pre-qualification stage, your Sales
Associate will order all necessary
supporting documentation. Once inspections
are completed, your Associate will order an
appraisal on the property. As it comes in,
documentation is checked for any
irregularities.
Loan Submission -
Once all the necessary documentation is in,
your completed file is submitted to a lender
for approval.
Loan Approval (Underwriting)
- Loan approval, or underwriting, generally
takes 24 to 72 hours. All parties are
notified of the approval and any loan
conditions that must be received before the
loan can close.
Closing - Once all
parties have signed the loan documents, they
are returned to the lender. If all the forms
have been properly executed, the lender
sends the loan funds by wire transfer. At
this point, the borrower finishes the loan
process and actually buys the house.
How do I look for and choose the right home
for me?
Based on criteria that you and your
Sales Associate establish together, your
Associate will help you find the perfect
home. There are many factors to consider in
selecting a property, including location,
bedroom and bath count, schools and
amenities.
Your Associate will apply
their extensive community knowledge and
professional resources to research available
properties, and show you the homes that best
meet your needs. If you find a property that
interests you through the Internet or your
own research, let your Associate know so
that a showing can be arranged.
As
you view different properties, your criteria
may change. Open and direct communication
with your Associate is a key element of a
successful property search.
I've
found my dream home! Now what?
Once you have found the home that you
wish to purchase, your Sales Associate will
apply their professional training and do all
the necessary research to help you structure
an effective offer.
This is where
your Associate's negotiation skills come
into play. When an offer is made, the seller
will have the option of accepting, rejecting
or counter-offering. Your Associate will
negotiate the best possible terms for you.
Your Associate will draft the
purchase agreement, advising you of
protective contingencies, customary
practices, and local regulations. Home
warranty, title and escrow arrangements will
be detailed in the offer. Although your
Associate will give you advice and
information, it is your decision as to the
exact price and terms that you wish to
offer.
Our offer was
accepted! Now what?
When the purchase agreement is
accepted and signed by all parties, your
Sales Associate will open escrow for you and
your earnest money will be deposited. The
escrow is neutral third party that will
receive, hold, and distribute all funds
associated with your transaction.
Prior
to closing escrow, all of the contingencies
of the Purchase Agreement must be met. Your
Sales Associate will coordinate this
process. Typical contingencies include:
- Approval of the
seller's transfer disclosure statement.
- Approval of the
preliminary title support.
- Loan approval,
including an appraisal of the property.
- Physical
inspections of the property.
- Pest inspection and
certification.
- Acquisition of
homeowner's insurance.
When all of the
conditions of the purchase agreement have
been met, you will sign your loan documents
and closing papers. You will deposit the
balance of your down payment and closing
costs to escrow, and your lender will
deposit the balance of the purchase price.
The deed will then be recorded at the Cape
May County Clerk's office and you will take
ownership of your new home.
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