Step 1: Get Your Deposit to Escrow
Ways to get your money: 1. Wire it 2. Write a Check 3. Have a Courier to Pickup Earnest money is a type of security deposit offered to show the sellers of a home that you’re serious about purchasing the property. Typically, only under specific circumstances will your earnest money deposit be refundable. Often confused with a good faith deposit, an earnest money deposit allots you a certain amount of time to secure your mortgage financing and complete the other steps in the home buying process, like ap
Step 2: Talk with Your Loan Officer
This will be the good time to talk to your loan officer to start to decide if: • 30–year-fixed • 15-year- fixed • arm program
Step 3: Order Inspections for the Property
One of the most important things you have to get done when you buy a home is schedule a home inspection. The home inspection is a chance for you to find out whether there are any problems with the property that the seller failed to disclose, as well as whether there are any impending problems that may lead to expensive fixes later on after you close. As the buyer, it’s your responsibility to hire a home inspector and set up a date for the inspection. But if you’ve never done it before it can be confusin
Step 4 - Order Appraisal
An appraisal is the estimated value of a home determined by an inspection of the property and its comparison to recently sold homes in the area to estimate the value. An appraisal answers the question, “How much is my house worth?” and protects the buyer from paying more than the home is worth. In both a purchase and a refinance, it prevents the lender from giving the homeowner more money than the home is worth.
STEP 6 - Renegotiation
RENEGOTIATION - Renegotiation happens when the original amount of the purchase or home was considerably understate, especially when there's an unexpected problems that was seen on the house after having an inspection of the house.
STEP 7 - Remove Contingencies
The contingency removal date is the date defined in the offer when the buyer will remove contingencies and commit to a firm intent to close escrow. Standard real estate contingencies typically include the right to review title, inspect the property and review the seller's disclosure packet.
STEP 8 - Signing Your Closing Documents
Real estate closing involves the finalization of all agreements made between the buyer, the seller, and your lender, for the purchase and financing of your new home. 1.Signing the closing documents legally transfers ownership from the seller, and you become the new owner of the property. 2. The closing is attended by your real estate agent, the sellers, the closing attorney or escrow officer, and potentially your mortgage lender (if your lender cannot attend in person, ask him or her to be available by ph

Escrow: Now What?

Congratulations, you are on your way to owning your very own home! Follow these suggestions (and the advice of your Realtors ®) so that escrow and settlement with go as smooth as possible.

You will be asked for a down payment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.

During this period of purchasing your home, you are going to need an escrow or settlement company to act as an independent third party so that you know when and who to give your money to get the deed to your new home. The escrow or settlement company will hold your deposit and coordinate much of the activity that goes on during the escrow period. This deposit check may also be held by an attorney or in the broker's trust account. Make sure that there are sufficient funds in your account to cover this check.

The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.

1. The period that you are "in escrow" is often 30 days, but may be longer or shorter. During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following: 1. Inspection contingency: this should be completed as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancel the contract.
2. Financing contingency: Once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan. You may choose to cancel the purchase contract.
3. A requirement that the seller must provide marketable title. With an attorney or title officer, review the title report. The title must be "clear" to ensure that you do not have legal issues regarding your ownership. Check into local and state ordinances regarding property transfer and make sure that you and/or the seller have complied with them.
4. Secure homeowner's insurance. This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.
5. Contact local utility companies to schedule to have service turned on when you close escrow.
6. Schedule the final walk-through inspection. At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a "permanently attached" chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

You've made it! Once the sale has closed, you're the proud owner of a new home. Congratulations!