WELCOME TO THE HOME BUYING PROCESS!
Congratulations on taking the first steps in making your home buying dreams a reality! We know it seems like a lot, a little bit confusing and overwhelming, but that is why we am here! Mandowa Real Estate is here to make this a smooth transaction for you! Our strongest belief is God. Family. Business. In that Order.
We focus on making every transaction a Win-Win for all of our clients. In order to make the home buying process a successful one for each family we serve, we like to focus on educating our clients on the market as well as the home buying process from start to finish. No question is a dumb question! We encourage open communication!
We know it is crucial to break down the steps of this process for all buyers because, it makes more sense to have a leg up on your competition when you start putting in offers rather than to go into a transaction blind and lose due to lack of education. Knowledge is power!
The first step in the home buying process is to establish how you will finance the property of your dreams. Will you need financing from an institution? Or will you be using cash to finance your purchase. If you will need financing, we pride ourselves on the relationships we have established with our preferred lenders. The reason we have such strong relationships with specific lenders is because, we know these are the individuals who can get the deal done. We have worked closely with these individuals in many different transactions so we’ve built an understanding, a bond you could call it, of how one another works. The lender (aside from yourself) is going to be the most important person in this process. The Lender is going to be the one that you need to be as transparent as you can be with.
The lenders initial first steps with you as the buyer start with the lender typically having a initial introduction phone conversation with you. During this time, they will be pre-approving you. If they can not reach you at first try they will typically follow up with an e-mail or text with their link to the loan application they use.
In this process they will pull your credit. When they pull your credit, it is called a “Soft run” meaning it is only going to affect your credit by a few points. Once they pull your credit, get your annual income, w2’s and a few other credentials they will then be able to qualify you with a loan amount and also a interest rate specific to you. Remember, you are more than welcome to “Shop” around for different interest rates. However, limit your shopping within 2 weeks of your first credit pull, it will not affect your credit score due to the inquiries being specific to real estate.
Once you get pre-approved, the lender will send something called a pre-approval letter. We will need to have this document before we go house hunting so when you do find “the one” we can go ahead and write an offer! Your pre-approval letter typically lasts 90 days.
Throughout the process, the lender will require documents from you. They will need tax returns, pay stubs etc. The faster you get them the documents, the faster the process will be! This can not be stressed enough. Seriously, Time is of the essence! There are a lot of working parts in order to get a loan cleared and ready to close, and it heavily relies on the borrower and us to send in all the required documentation in a timely manner. We will need to stay ahead of the clock in order for us to get you cleared and ready to close in 28-30 days after your offer is accepted. Any questions that you may have about the financing aspect of things, feel free to always ask the lender. They are your best friend.
House hunting time!! Once we find your home, we will submit an offer. The information I will need to know from you in order to submit an offer is:
How much would we like to make an offer for? We will always discuss this with comps before we shoot the offer to the agent on the other side.
How much closing cost (CC) we want the seller to contribute ? Remember CC are the buyers responsibility so any money the seller decides to give is a nice gesture. Sellers have a net number they are expecting to make off of every transaction so, we will always keep that in mind along with what the market trends are doing.
What date do we want to close on?
Usually the closer to the end of the month is a little bit better so you don’t pay as much in prepaid interest. How much earnest money (EM) would you like to put up? EM can be defined as “good faith money” or “deposit” money.
How many due diligence days (DD) would you like to have? Due diligence is the time period that we ask the seller to take their home off the market. This is also the time period that we have to get an inspection done. Inspections are the buyers responsibility. After the inspection the inspector will issue an inspection report. We will at that time negotiate repairs that we find necessary for the seller to make in order to move forward with the sale. During this time period it gives you the buyer the option to walk away from the house for any reason without having your earnest money forfeited. If you decide to walk after DD ends, you can lose your EM to the seller. There are always exceptions to the rules which you will continually be aware of throughout this transaction!
Once we get through the Due Diligence process the home will officially be Pending! This is when the lender will start working to get your loan to the closing table. We will then choose an attorney and get the ball rolling.
The next thing for us to look out for is the appraisal! The lender will order the appraisal and we will wait for them to receive it shoot it through underwriting and prepare to get the Clear to Close Letter!
Once we get the Clear to Close we will get ready to meet at the closing table and swap keys!
We are so excited for you in this new investment in your future and we want to thank you for choosing us to help make your dreams a reality!
We can be reached 24/7 at: email@example.com