BUYERS GUIDE:Benefit buyers for buyers agent to represent the buyers:
In most cases, the seller pays both the seller’s agent and the buyer’s agent after close of escrow for sale of a home. This benefit the buyers for having professional representation without the cost and focus on the buyers best interests. On the other hand, the sellers agent only represent the interest of the sellers not the buyers. How much down payment is best ? It depends on several factors such as how much cash reserve you have in the bank, how much can you afford to purchase a home, and your financial status. Just remember the more you put down on the purchase price the easier your loan will be approved, the better interest rate you will get and lower monthly payments. The typical down payment is between 20% to 10% down of the purchase price but other lower programs are available as well with higher interest rates. The Buying Process Step by Step: STEP 1 Getting a Pre-Approved Loan should be the first step before searching for a home. The loan officer will help you in determining how much you can afford based on your total income and financial documents. With the pre-approved loan attached when you start making an offer on a property, it will show to the sellers that your offer is stronger when compared to the offer without a pre-approved loan attached. STEP 2 Determine type of property that fits your budget ? To save you time and money, it is a good idea to know exactly what type of home, location of interest, number of bedrooms, bathrooms, square footage, and price range of your ideal home. With the help of an agent, the agent will guide you through the buying process, loan process, and help with the search for your perfect home. STEP 3 Buyers should be aware and have sufficient funds for a deposit and closing costs: A deposit of 1% to 3% of the purchase price is typical in California, it is to show the seller that the buyer is serious in making an offer to purchase the property. The deposit amount is typically held by the Escrow Company. The buyers needs to cancel a sales contract in a timely manner if buyers should decide not to go ahead with the purchase, since buyers deposit can be forfeited to the seller if the buyer does complete the purchase without legitimate reasons. In addition to the sales price of the home also closing costs about 3% or more of the sales price, some common third-party closing fees for buyers to be prepare for such as lender fees, escrow fees, home inspection, appraisal fees, property tax, credit report, mortgage insurance, and recording fees just to name a few. STEP 4 Making an Offer and counter-offer: The buyers should determine a fair offer for the property compared to recently sold homes in the specific community. The buyer's agent would help to draw up the purchase contract, present your offer and negotiate terms of your offer with the seller's agent to present to the seller for review whether to accept or come back with a counter-offer on additional sales price or terms. STEP 5 During Escrow Period: Once a fully executed purchase contract has been signed off and accepted by both parties, the contract including buyers deposit check gets forwarded to an independent third party escrow company (also called open escrow) which takes care of all the transferring of title and funds between the seller and the buyer according to terms of purchase contract. The process should take normally 30 days for residential and 90 days for commercial transactions to close.
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