In the spirit of contribution, collaboration and community, I am pleased to bring you this, the first of many partnership interviews with experts I love and trust to improve the value of your home.
Steps In The Home Buying Process
1. Buyer Applies for Loan – You will need to begin this whole process by applying for a loan with a South Jersey lender. The loan application process confirms the price range you are in when searching for your new home. There is nothing worse than falling in love with a home, only to find out it is more house than you can comfortably afford right now.
2. Seller & Buyer Sign the Earnest Money Contract – Once you have found the home that you LOVE you will need to put your money down to prove your love. Earnest money shows the Seller that you are very serious about purchasing the home.
3. Title Company receipts Contract with Earnest Money Check – The earnest money starts the home buying process. The title company holds the check and starts the ball rolling. (I can recommend a great Moorestown title company if you need a recommendation!)
4. Title Company Opens File & Begins Examining Title – The title company will make sure there are no blemishes on the title which can keep a property from closing on time. Blemishes on the title can be liens, a right-of-way you are unaware of, if the mineral rights have been sold away from the property, and so much more.
5. Buyer Orders Inspections While in the Option Period – One of the most important things is to make sure you get a home inspection before you close. It is well worth the money spent, since it ensures the property's structural soundness and good condition.
6. Reports on the property are ordered – These are things like the Survey and Appraisal. The title company also obtains the payoff information from the Seller’s lender.
7. Title Company Reviews Commitment & Cures Any Title Defects – If any problems are found during the Title search, this is the point where those issues are solved.
8. Title Company Issues Title Commitments to Lender & Buyer - The Title search is complete and the process can move forward.
9. Buyer Receives Loan Approval – The loan is approved and you have just made one of the biggest financial commitments of your life.
10. Title Company Coordinates the Date and Time of Closing – The Buyer and Seller meet, possibly for the first time, to sign a mountain of paper work. There is a lot of effort here, but it is well worth it. Buyer and Seller each have achieved their goal.
11. Buyer Orders Homeowner’s Insurance Policy – When buying your homeowner’s insurance be sure that you are insuring your new home and contents for replacement value and really examine how much it would cost to replace everything you own, plus your new house.
12. Lender sends Title Company the Closing Instructions for the Buyer’s new loan. Title Company prepares Settlement Statement (the HUD) and documents such as the Deed from the Seller and a Release for the Seller’s old mortgage company.
13. Closing Happens! - Seller and Buyer go to the title company to sign papers.
14. The Lender funds the loan and the Buyer gets the keys. – You have your mortgage, have closed the deal and now it's time to move in! Now all you have to do is start unpacking.
Congratulations, you have purchased your South Jersey dream home. Don’t forget to have the cable and utilities hooked up!
Sam Lepore is a Realtor with Keller Williams in Moorestown, NJ. Call him today at 856.297.6827 ....