ALLOW ME TO HELP MAKE YOUR DREAMS COME TRUE

Congratulations on being Pre-Approved to purchase your home!
Here are the next steps

1. Time to Shop for Your home!

Once we know what your budget is we will find the home that is right for you. You have full access to vital information because I research the history of the homes and reach out to the selling agents to schedule appointments to view.

2. Let’s write an Offer!

When you find a home that you like and fits you and your family’s needs; I will need to write an offer. I draw up the legal document (Residential Purchase Agreement) and will have you read each page to sign before submitting. In the current market, it is typical for 1 home to have 10+ offers. My goal is to make our offer strong & I will stay in direct contact with the other agent. This strengthens the trust between both parties which in return strengthens our chances of getting the home. In some cases, people have sentimental value to their homes and would prefer a family over an investor.

3. EMD (earnest money deposit)

Escrow will likely already be opened with a local title company. The sellers typically select the Title company. The EMD is normally 1% - 3% of the purchase price, and is due 3 days after your offer is accepted. The pest inspection can be billed directly to escrow which deducts from the EMD funds. Closing costs and other non-recurring costs are deducted from the EMD. Once escrow is closed, the remaining funds will be returned to you. If there is a credit to you, those funds will be sent immediately after close of escrow. The Escrow Officer is a mutual party who handles the flow of the transaction. To sum it up bluntly, they are ultimately in charge of cutting everyone their checks. This is where you will take or wire your EMD funds. These funds are made payable to the Title company.

4. All needed Inspections are ordered

Once the offer is accepted and your EMD is with the Title Office, I immediately order the necessary inspections for the home to ensure the safety and well-being of the overall property. The home, roof, and pest inspections are non-refundable and usually costs no more than $800. This way you will know intricate details of the home. Inside and out!

5. Appraisal

The Lender will have the appraisal ordered. The appraisal is approximately $500 - $600 and is also non-refundable. This is a process that the loan company needs to determine the value of the home. Once the home is appraised, we compare it to the purchase price. Normally the home appraises to value and the loan goes to the next stage. In a case when these numbers are too far apart, I work to negotiate on your behalf. You are NOT legally tied to buying if the home does NOT appraise. This is also stated in your contract under Appraisal Contingency and there is a safety clause for FHA and VA buyers which you also have a copy with your original contract.

6. Removal of Loan Contingency

The contract will state how many days we have for the loan to be done. I like to make sure we are less than 21 days because that is the maximum time. This is a process that is 100% out of my control but this is a very IMPORTANT process to pay attention to because this is the very stage where you can lose your EMD.

Pay attention PLEASE;

Your EMD is technically for liquidated damages to the seller. Imagine the sellers thinking they are selling their home, and you happen to change your mind after we remove ALL CONTINGENCIES, your entire EMD will be given to the Sellers for liquidated damages. They will have to place their home back on the market and possibly lose value and must pay an additional mortgage payment while moving into another home. Harsh scenario but these things happen. Fortunately for us, I will NOT remove LOAN CONTINGENCIES until I have written confirmation from the lender. You will also have that same confirmation and will have to sign off on it.

Signing the Loan Removal Contingency means that the Loan is guaranteed, and we are indeed moving forward to signing Loan Documents for the loan to be complete. Which means we are about to close escrow.

7. Signing Loan Documents

This will take place at the Title Office (where you took your EMD check), or if you prefer you can opt to have a mobile notary sent to you. You will be signing your loan documents. After this process, we have a 3-day waiting period. This is a time to get excited!

What are CLOSING COSTS? escrow is anywhere from 21 - 30 days. At the end of closing there are title fees, taxes, insurance. Closing costs are usually 1 ½ - 2% of the purchase price, but your lender will explain ALL of the financials with you ahead of time.

8. Close of escrow

The loan is funded, the county records that you are the owner of the home, and I hand you the keys!

We celebrate!!!

Sheila Jefferson DRE # 02101582

Sterling Royal Real Estate

Email: SheilaRJRealtor@gmail.com

Cell: (916) 707-9175