The steps below are typical of those you'll follow from your initial contract to your closing:
1. LOAN APPLICATION: Immediately after they negotiate the contract, buyers should apply for any financing necessary to complete the purchase. The agent's advice can help them select a reputable lender whose products and service best meet their needs.
Notification of loan application is passed to the listing agent, who keeps the seller informed as the process progresses. During this process, buyers must furnish the lender pertinent information regarding their assets, income, debts and credit history.
2. HOME INSPECTION AND REPAIR RESOLUTION: The rise in the importance placed on home inspections is probably the most significant change that has occurred in the home selling process in recent years. Typically, the process involves a top-to-bottom inspection of the property, performed by an inspector who is chosen and paid by the buyers. After the buyers review the report, they have the right to ask the sellers to address any concerns they have about the property. This is done during the Due Diligence Period which is part of the Purchase & Sale Agreement.
1. LOAN APPLICATION: Immediately after they negotiate the contract, buyers should apply for any financing necessary to complete the purchase. The agent's advice can help them select a reputable lender whose products and service best meet their needs.
Notification of loan application is passed to the listing agent, who keeps the seller informed as the process progresses. During this process, buyers must furnish the lender pertinent information regarding their assets, income, debts and credit history.
2. HOME INSPECTION AND REPAIR RESOLUTION: The rise in the importance placed on home inspections is probably the most significant change that has occurred in the home selling process in recent years. Typically, the process involves a top-to-bottom inspection of the property, performed by an inspector who is chosen and paid by the buyers. After the buyers review the report, they have the right to ask the sellers to address any concerns they have about the property. This is done during the Due Diligence Period which is part of the Purchase & Sale Agreement.
3. DUE DILIGENCE: During this period,seller grants the buyer the option of terminating the agreement for any reason. Buyer may arrange financing, conduct evaluations, inspection, appraisals, examinations,surveys & testing. During this period the buyer may also inspect for active termite infestation.
This process can easily amount to a complete renegotiation of the contract. The role of the listing and selling sales people is critically important to successfully negotiating this often difficult process.
4. APPRAISAL: As a part of the loan approval process, the lender will require that the property be appraised to ensure that the value of the property is adequate to justify the loan. Although the buyer and seller have already agreed on a price, the appraiser's evaluation must support that price.
5. LOAN APPROVAL: When the appraisal has been satisfactorily completed and the lender has verified the buyer's income, credit, etc., the lender can then make a decision on loan approval. Both listing and selling agents will work to ensure that all necessary steps are taken to reach this point.
Read Full Article Here: 10 Steps of the Home Buying Process - Contract to Closing.
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