SUBMITTING AN OFFER

Once you have chosen a real estate professional they will guide you through the process of finding a property that fulfills your needs.  When you have chosen a property the real estate professional will draft a purchase agreement for you, advising you on protective contingencies, customary practices and local regulations.  At this time you will need to provide an "earnest money" deposit, usually form 1% to 3% of the purchase price (the deposit is not cashed until your offer has been accepted by the Seller).  The buyer will choose the title and escrow company.  The seller will then accept, counter or reject the offer.

 

OPENING ESCROW

Once the offer is accepted and sighed by all parties the buyers real estate professional will open escrow and the earnest money will get deposited into an escrow account.  All funds associated with the transaction will be handled through escrow.

 

THE CONTINGENCY PERIOD

This is the time allowed per your Purchase Agreement to obtain financing, perform inspections and satisfy any other contingencies to which your purchase is subject.  Typical contingencies include:

• Approval of the Seller's Transfer Disclosure Statement

• Approval of the Preliminary Report from the Title Company

• Loan Approval

• Appraisal of the property

• Physical inspection of the property

• Pest inspection and certification

• Satisfaction of any purchase contingencies & specific transaction requirements

 

HOMEOWNERS INSURANCE

Before the close of escrow the buyer must obtain homeowners insurance that is acceptable by the lender.  The real estate professional will coordinate between your insurance agent and the Escrow Officer to make sure your policy is in effect at close of escrow.

 

DOWN PAYMENT FUNDS

You will need a cashier's check or wire transfer several days prior to the closing date of escrow.  Escrow will provide a settlement statement with the required amount of funds needed to close including down payment and closing costs.

 

SIGNING LOAN DOCUMENTS

When all of the conditions of the Purchase Agreement have been met, you will sign your loan documents.  Escrow usually sets up the appointment for your final signing.

 

CLOSING ESCROW

After loan documents are signed, the buyer has deposited the remaining balance of funds needed to close and all of the purchase agreement requirements have been met the lender will review the loan documents.  If everything is satisfactory the lender will fund the loan.  The Deed will then be recorded at the County Recorder's office and the buyer will take ownership of the home.