The Process, Step-by-Step
An effective agreement is a legal arrangement between a potential purchaser and the property’s seller. Some important tips to keep in mind to streamline the process:
- Keep written records of everything. For the sake of clarity, it will be extremely useful to transcribe all verbal agreements including counter-offers and addendum and to convert them into written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
- Stick to the schedule. Right after you choose your offer, to mark every stage in the process of closing the contract is a job for you and the seller. To avoid breaching both party’s agreements, it is best to meet the requirements on time. It helps ensure a smoother flow of negotiations. Preparing for what’s next is what you need to worry about. Constant updates are the key to be always ready for the next step.
The Closing Agent.
Researching the complete archive of the property and holding the deposit in escrow is a closing agent’s responsibility. The agent may be a title company or an attorney. He must ensure that the title is free and clear of encumbrances by the date of closing. Plus the add on of liabilities is his job too. Few properties are subject to restrictions that limit activities. There may be easements and encroachments records, which limit the rights to use your property.
How to Hold Title.
You may wish to consult an attorney or tax advisor on the best way to hold the title. The different methods of holding the title at odds legal, estate, and tax implications. On the subject of the death of the titleholder. And selling.
You may elect to have different inspectors to inspect the property if you wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). The inspection should take place within the timeframe that was agreed upon the effectivity of the contract to purchase. The inspection must be done by a property inspector with a license. Yet if you want to buy a commercial property and environmental audit should be done on-site for the lending institution. We can recommend several different inspectors.
Depending on the outcome of these inspections, one of two things may happen:
1. Either each milestone is successfully closed and was able to remove the contingencies, bringing you one step closer to the closing.
2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
Appraisal and Lending.
For the lending institution to confirm their investment in your property is accurate, the property will be appraised by a licensed appraiser. It is done for them to determine the value for the lending institution via a third party if the property is conditional upon financing. It is crucial to keep constant communication between you and your lender. Keeping in touch with them will make it easy for them to contact you. There might be a document they’re gonna need from you for the fast approval of your loan application. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. Be sure that your loan will go through smoothly and on time. Don’t forget to call your lender ahead of time.
If the property you are about to purchase is conditional upon an association approval, it is best to request the rules and regulations from the seller. Request for other important documents as well. These requests are after you made an effective agreement to purchase. Make sure to submit the application documents and processing fees to the appropriate person at the association by the required time. To guarantee that there are no delays in processing the application. Make an appointment for an interview ASAP if you are required to meet with the association for your approval. The request for the original copy of the certificate of approval is a call for your closing agent. This certificate is a requirement by most associations. It needs to be brought to the closing for the county public records documentation.
If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. HERE ARE TIPS TO HELP YOU SAVE CASH.
- Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
- Ask your insurance agent about discounts. It is possible for you to get yourself a lower premium if safety features like dead-bolt locks and smoke detectors. An alarm system, storm shutters, and/or fire-retardant roofing materials are installed in your home. Individuals whose ages range from 55 and above might be able to get some discounts. Those lifelong customers too.
- Insure your house NOT the land under it. If you are planning to acquire a homeowners insurance, make sure to debit the value of the land. You will pay less if you do this. Never forget that no matter what disaster comes and goes the land will never leave its location.
Make sure that before you move into your new home, the previous owner already made sure that the electricity, water, gas, cable, and phone are no longer under their name. And you yourself will make your own arrangements to transfer everything to your name.
Thank you for taking the time to read through this article. I sure wish you have learned something out of this. If you browse more on my web site, you will find articles similar to this. You will also find handy articles that will provide you the knowledge about the Real Estate Process. There are guides on what you need to have ready or what should be your first move. There are downloadable ebooks for you too.