The Buying Process
It’s not uncommon for buyers to say to me, “Gosh, just last week I called you about buying a home and now I’m just waiting on the loan! How did this happen so fast?” Here’s what you can expect from your home shopping experience:
Financing
First, we need to make sure you are all set. The worst thing is getting all excited and finding the perfect home but not being able to buy it. We need to make sure you have a great lender who will work out any problems up front No surprises! Call or email me (or comment) if you want to know which lenders I love.
Finding the Right Home
I can email you lots and lots of listings. Just tell me what you are interested in and I will do my best to find your perfect home.
I love walking through homes. Sometimes we find the right one on the first time out, but sometimes it takes a bit longer. I don’t mind walking through as many homes as you want or need. I had one client look at 150 homes – she was ready and he took longer to find what he loved. I don’t mind – I love it!!!
How Long Will It Take to Buy My Home?
This question has a lot of possible answers. It depends on the home you are buying.
1. Regular Sale: When we make an offer, we will put a close date of about 30 days.
2. Short Sale: Anything can, will, and does happen with a short sale. Short sales can be as short as 60 days or longer than a year. Most of my clients who have waited for a short sale wait about 6-8 months for the bank to approve the price. Once you get the bank approved price, it is rush and push to get the loan and close on your new home.
3. Bank owned/Foreclosure: I love foreclosures. If the bank is ready to dump the home and you can get a deal. It usually takes the bank about 2-5 days to respond to an offer, but then you close on the home like a regular sale. The home is yours!
4. New construction: This depends on the builder. Most builders are 90-160 days from start to completion. I have worked with lots of builders. I grew up in a construction family and understand the construction process.
When do I get to move in?
Waiting is the hardest part of real estate. You get to move in – FINALLY – when the home is recorded in your name. Most loans take 3-4 weeks and then the home becomes yours!
I am a Seller Representative Specialist!
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What is escrow?During the process of purchasing a home, escrow is the time in between when your offer was accepted and when you close on the home and take ownership. In Utah, escrow is often referred to as being Under Contract.
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What is Earnest money?Earnest money is a really important part of every real estate transaction, but most people don’t know what it is. To prove that a buyer is serious about a home purchase, earnest money is given as security of the promise to purchase. The amount of money put as earnest money varies on the size of the home, the seriousness of the buyer and the agreement in the real estate purchase contract. Earnest money is usually held by a third-party (either a title company or a real estate brokerage) in a trust account. Having the third-party hold earnest money helps to ensure the contract is correctly followed. Earnest money counts toward the down payment. This money may be refunded to the buyer or paid to the seller based on the contract deadlines and if the contract is ended properly. Protecting earnest money is a big deal and a priority of good realtors. In short, earnest money can be the punishment for breaking the real estate contract. If a buyer backs out after the contact deadline, the earnest money is lost. If a seller breaks the contract, the earnest money is returned and the seller matches the earnest money. Comment or tell me if you have more questions about earnest money!
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What are some of the basic real estate term and definitions?What is Settlement? Settlement is when the buyer and seller go to the title company (escrow/closing office) to sign and deliver all documents required by the real estate purchase contract, by the Lender, by the title insurance and escrow/closing offices, or by applicable law. It includes having any and all monies required to be paid by Buyer or Seller under these documents to be delivered by Buyer or Seller to the title company. It is usually through the title company that all funds are delivered. Lenders and title companies may be restrictive on how the funds are delivered. Often, we do not use this term and refer to closing as signing the documents. Technically, this is incorrect. What is Closing? Closing means that settlement has been completed; the proceeds of any new Loan have been delivered by the Lender to Seller or to the escrow/closing office; and the applicable Closing documents have been recorded in the office of the county recorder. This sometimes occurs the same day as settlement, but typically it is the next day.
I am a Real Estate Negotiation Expert!
