The Buying Process
Buying a home can be an exciting and emotional experience. As local experts, you can rely on us to guide you through the process so you can feel comfortable and confident each step of the way.
The first step to buying a home is to understand your buying power and establish a price range. A licensed lender can help evaluate your financial standing and provide a pre-approval. They will review your income and credit history to determine how much the bank will lend you, which will help you determine the price range for your search. Having a pre-approval letter in-hand can also increase the attractiveness of your offer, particularly when a seller has multiple offers to choose from.
Concerned you might not be able to move quickly on an offer because you need to sell your current home first? Compass Bridge Loans is the simple solution to bridge the gap between the home you have and the home you want.
Making An Offer
When you're ready to move forward with a purchase, we will advise you on constructing the strongest offer possible. Then we will draw up the necessary paperwork on your behalf. There is a lot to consider when making an offer. We'll discuss the purchase price, the closing date, sale contingencies and any special stipulations for your particular purchase. Once an offer is submitted, the seller may accept, reject or counter the offer. If the seller returns a counter, we will enter a negotiation period until an agreement is reached, or the offer is rejected by either party.
Once you have an accepted offer (CONGRATS!) it is strongly advised you schedule your inspection as soon as possible (within the first 3 days), as nothing is binding until you have a fully executed contract. A seller can continue to show their home and accept another offer.
Inspecting the physical condition of your next home is a vital part of the home-buying process. A licensed home inspector will conduct a comprehensive evaluation of the entire property and report any problems with the condition of the home's structure or systems. The inspector will also investigate potential issues such as pest infestations or mold. Depending on the purchase agreement, we may enter additional rounds of negotiation to resolve any problems discovered during the inspection.
Going Under Contract
Once your offer is accepted and you have completed your home inspection, a memorandum of agreement of both sides of the deal is sent to attorneys to initiate the draft contract to be sent to your attorney. Once you sign, put down your deposit, and the sellers sign, you will have a fully executed binding contract. The purchase will not be complete until closing, but the home cannot be sold to anyone else while the contract remains in effect. At this point, unless you are making a cash purchase, it will be time to shop rates and secure your mortgage loan locking in your rate. Lenders offer a wide range of loan programs, so it's important to work with a lender you trust to help you determine the best loan for your specific circumstances.
Your lender will arrange a professional appraisal of the home. An appraisal is an unbiased estimate of the true (or fair market) value of a home and is conducted by an independent third party. The appraiser will confirm the appraisal value of the property for all parties involved. If the home appraised at less than the expected value, you may have the option to renegotiate the purchase agreement, pay the difference, or terminate the contract.
The Final Walkthrough
Prior to closing, we will conduct a final walkthrough of the home to ensure that all negotiated repairs have been completed, and that the home is in the same (or better) condition as when the original offer was made. This is the final opportunity to call out any problems identified with the home before closing. Depending on the purchase agreement, you may sign a formal contract addendum confirming that the walkthrough is complete, and the condition of the home is acceptable.
Time to celebrate! Your lender will provide a final closing disclosure that summarizes the loan terms, monthly payments, taxes, and other costs associated with the closing. They will also confirm that you are clear to close, and you will sign all of the paperwork required to complete your purchase and loan agreement. Once the paperwork is signed by all parties and your loan is funded, you will receive keys, and you'll be ready to move into your new home!
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