You Found the Perfect Property: Now the Ten Steps to Closing on It
- By Juhlin Youlein
- Published 10/19/2011
- Real Estate
- Unrated
For some people, closing on a desired and great home can possibly prove to be one of the most difficult obstacles they will encounter in a decade of living. Focusing on figurative baby steps can greatly simplify the process.
The first step is to get pre-approved. Getting pre-approval from a mortgage broker does a number of things for the home buying process. One, it gives the buyer a pretty exact understanding of what their price range is. Second the seller has confidence to sell to the buyer knowing that there will not be any last minute difficulties getting approved.
The second step is to wisely offer a price to the seller. Sellers always have the opportunity to accept or reject a buyer’s offer. In a good market, a solid home might be sold quickly so it is wise to move quickly on a particular home that proves to be desired or promising. The buyer should usually offer an initial offering of about ten to eight percent less than what the seller is offering. Although these percentages are not full proof for all markets, sellers will expect to negotiate and ten percent leaves room for that. The buyer should predetermine what the maximum amount they are willing or able to pay will be and NEVER exceed that amount.
The third step is the deposit. The buyer will offer about one percent of the overall price to the seller as a token of good faith. The deposit is accounted for and held usually by a third party lawyer.
The fourth step is the contingencies. Contingencies are summed up as being a set of rules the buyer and seller agree to and are included in the contract. These include when the seller will mo
ve out and the buyer move in, what is left behind by the seller, etc.
The fifth step is to get a home inspection. A home inspection is when a qualified professional inspector will be dispatched to the home by the buyer. A buyer does not want to move into a home that could possibly have some serious defects. The inspector will qualify the home and bring up any additional defects the buyer does not catch.
The sixth step is to sign the actual contract itself. Once the contract is signed the buyer now has detailed legal obligations to the seller given the contingencies are met. The contract will pretty much finalize the already agreed upon contingencies.
The seventh step is to obtain or set up closing documentation. The title industry is complicated and confusing but basically the title needs to be clear, have insurance, and make sure that the former seller no longer has any claim on the property.
The eighth step is to take care of the closing costs. There are a myriad of closing costs. Closing costs can come anywhere from three to eight percent of the entire cost of the home. The list of different fees and costs could take up the entire page, but the many different types of insurance and agent fees add up quick.
The ninth step is to make the final arrangements. These are a simple set up of utility and early mortgage payments. The final arrangements are almost not worth mentioning but there are always final arrangements to be made soon before the buyer finally settles.
The last step is to make the final settlement. The final settlement takes place on the day the buyer takes possession of the property. All the payments, rights, and any lingering possessions the old seller had on the property become the buyers.
The first step is to get pre-approved. Getting pre-approval from a mortgage broker does a number of things for the home buying process. One, it gives the buyer a pretty exact understanding of what their price range is. Second the seller has confidence to sell to the buyer knowing that there will not be any last minute difficulties getting approved.
The second step is to wisely offer a price to the seller. Sellers always have the opportunity to accept or reject a buyer’s offer. In a good market, a solid home might be sold quickly so it is wise to move quickly on a particular home that proves to be desired or promising. The buyer should usually offer an initial offering of about ten to eight percent less than what the seller is offering. Although these percentages are not full proof for all markets, sellers will expect to negotiate and ten percent leaves room for that. The buyer should predetermine what the maximum amount they are willing or able to pay will be and NEVER exceed that amount.
The third step is the deposit. The buyer will offer about one percent of the overall price to the seller as a token of good faith. The deposit is accounted for and held usually by a third party lawyer.
The fourth step is the contingencies. Contingencies are summed up as being a set of rules the buyer and seller agree to and are included in the contract. These include when the seller will mo
The fifth step is to get a home inspection. A home inspection is when a qualified professional inspector will be dispatched to the home by the buyer. A buyer does not want to move into a home that could possibly have some serious defects. The inspector will qualify the home and bring up any additional defects the buyer does not catch.
The sixth step is to sign the actual contract itself. Once the contract is signed the buyer now has detailed legal obligations to the seller given the contingencies are met. The contract will pretty much finalize the already agreed upon contingencies.
The seventh step is to obtain or set up closing documentation. The title industry is complicated and confusing but basically the title needs to be clear, have insurance, and make sure that the former seller no longer has any claim on the property.
The eighth step is to take care of the closing costs. There are a myriad of closing costs. Closing costs can come anywhere from three to eight percent of the entire cost of the home. The list of different fees and costs could take up the entire page, but the many different types of insurance and agent fees add up quick.
The ninth step is to make the final arrangements. These are a simple set up of utility and early mortgage payments. The final arrangements are almost not worth mentioning but there are always final arrangements to be made soon before the buyer finally settles.
The last step is to make the final settlement. The final settlement takes place on the day the buyer takes possession of the property. All the payments, rights, and any lingering possessions the old seller had on the property become the buyers.
Juhlin Youlein
Juhlin Youlien is a source for details on how to get great Chandler AZ homes for sale, Gilbert real estate deals currently for sale, Scottsdale AZ homes for sale and Mesa AZ Homes for Sale.
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