Buying A Home

Once you make the decision to buy a home, regardless of whether it is your first or one of many, you will want to take steps to ensure that your experience is a positive and pleasant one.

Talk with your realtor and let them know what type of home you want, the amenities you want, and where you want to live.

If you have not already been pre-approved, have your realtor make an appointment with a lender and have the lender pull your credit score as soon as possible.

Try to have a pre-approval letter issued to you before you even start looking because most realtors don't even want to present an offer unless the buyer can prove that he is qualified to make the purchase.

If it is a sellers market, homes may sell very fast so you would want to be ready to make an offer as soon as you find a home that you like.

But before you make the offer, take a good look at the property and ask questions, especially if there is something that catches your attention.

Feel free to ask about the roof, the plumbing, the electrical wiring and outlets, and if there is any problems with the neighbors or the neighborhood.

Ask the selling agent if he is aware of any defects in the property and have him or her provide you with a disclosure report.

Even if the realtor is working with both the seller and you, the law requires him or her to disclose any material fact about the property that he or she may be aware of.

Withholding this information may result in serious disciplinary actions against the realtor.

Once you have made an offer on a home and it has been accepted, the next step is to open escrow. In most cases, the seller reserves the right to chose the escrow and the title company, but they can be negotiated.

The escrow instructions are sent out to you for your signature and you are asked to return them along with any other documents the escrow officer may require to facilitate the transaction.

Your realtor should notify you that you have the right to hire a home inspection company to inspect the home.

This report should be independent of the seller and should be obtained by and paid for by the buyer.

The home inspection is not mandatory but it is highly recommended, even if the home is brand new.

This inspection should be done by a professional inspector to make sure that there is no existing damage or potential for future damage to the property.

An appraisal should be ordered immediately by your lender to determine an estimated value of the property.

Note: The home inspection and the appraisal are two totally different things so don't get them confused.

A termite report should be ordered by the seller or the realtor and if the termite inspector concludes that the home has termites or if there is dry rot, mold or fungus, the extermination and repair work should be done prior to the close of escrow and evidence of the report and completion should be placed in escrow and presented to you.

Once your loan has been approved, the lender draws your loan documents and sends them to escrow for your signature.

When all necessary documents have been received, signed, and reviewed by the escrow officer, and the escrow officer is satisfied that everything is in order, the funding of your loan is requested and the escrow is ready to close.

The deed, signed by the seller, is sent to the Title Company for recording and once that is done, the escrow is said "to be closed."

Once the escrow is closed, the escrow company gives you your closing statements and the seller turns the keys to the property over to you.

Congratulations! The sale is complete and the home belongs to you.

About the author

John M. Roberts is the owner of John Roberts Realty located in Long Beach, California. You may contact him at jrobertsrealty@yahoo.com.

Finance Topic of the Month: Facts About VA Loans