Menu
Menu
The Homebuying Journey, Broken Down
The Initial Contract and Down Payment:
A well-crafted agreement is a binding contract between you, the potential buyer, and the property's seller.
To make the process smooth:
- Document Everything: Keep written records of all agreements, including counter-offers and amendments. This makes everything explicit and legally binding. We will help you with all the paperwork, ensuring you have copies of every document.
- Follow the Timeline: Both you and the seller will receive a schedule outlining each stage of the closing process. Meeting these deadlines helps the negotiations proceed smoothly and ensures that neither party violates the terms. We’ll keep you continually updated so you’re prepared for each subsequent step.
The Settlement Agent:
A title company or an attorney usually serves as the settlement agent. This party holds the down payment in escrow and conducts a comprehensive title search to make sure the property title is free from issues by the closing date. Be aware that some properties might come with limitations, such as building or parking restrictions, easements, or encroachments.
Ownership Structure:
Consult a legal or tax advisor on the most advantageous way for you to hold the title, as different options have unique legal, tax, and estate implications.
Inspections:
Upon offer acceptance, engage a licensed inspector to evaluate the property within the agreed timeframe. You may opt for specialized inspectors for specific areas, like roofing or HVAC. For commercial properties, an environmental audit may be necessary. We can recommend qualified inspectors. Depending on the inspection outcomes:
1. Either you'll successfully close each stage, remove contingencies, and move closer to finalizing the purchase, or
2. You'll renegotiate terms, often the purchase price, based on the inspection results.
Appraisal and Financing:
Maintain open lines of communication with your lender, who will inform you of any additional documentation required for loan approval. If the contract is dependent on financing, an appraisal will be done for the lender's benefit. Ensure everything is on track with your loan approval two weeks before closing.
Insurance:
If you're financing the property, your lender will require you to obtain property insurance. The amount required will depend on the lender and property's purchase price. You can save on insurance by shopping around and considering the following:
- A higher deductible can significantly reduce your premium.
- Ask about discounts for safety features like deadbolts, smoke detectors, or alarm systems. Some providers offer discounts for long-term clients or those over 55.
- Insure the building, not the land, to avoid overpaying.
