Buying a home for the first time can be a very confusing process. Make sure you fully understand the entire home buying and escrow process before buying a home to make sure you are investing in the right property.
The first step in buying a home is getting approved for a mortgage. This can be a lengthy process, so it is important to start as early as possible. Most of the time, you have to get pre-approved before getting just approved. In order to get pre-approved, you have to provide your lender with a number of different documents, including proof of income, bank records, expense verification, and tax returns.
Once you are pre-approved for a mortgage, you then know how much you can spend, and can start looking for houses. When you find a home that you like, you then have to make an offer on the home. Your real estate agent will prepare all of your paperwork, which is made up of 5 items. These items include:
- The purchase contract
- A pre-approval letter from your lender
- A letter of introduction
- Earnest money deposit
- Verification of your funds that will cover your full down payment, as well as closing costs
It is them time to wait for the seller to accept or reject your offer, which typically takes 24 to 72 hours. It is not uncommon for seller to reject your first offer and reply with a counter offer. Once an offer is accepted, you should always schedule a home inspection with an inspector of your choice. The inspector will inspect the house and property and let you know of any problems that need to be fixed. If there are many problems that need to be fixed, you can complete a Request for Repairs, asking the seller to fix problems that were found during the inspection.
You will also have to call an insurance company to make sure that the property is insurable, and to get quotes for the insurance policy. You will the sign the loan documents from your lender, and pay the rest of the down payment, and celebrate your new home!
For all of your real estate needs in Southern California, contact Eastland Escrows.