What Happens After Your Offer Is Accepted

For home buyers, finding the right home is a big deal.

In fact, most buyers begin to look forward to closing escrow and moving into their new home when their offer is accepted.

But, for agents, the work begins when the seller accepts your offer.

Here’s what typically happens after your offer is accepted.

Escrow Opened

The first thing your agent will do after your offer is accepted is to open escrow.

This is a simple matter of sending a copy of the accepted offer to the designated escrow officer.

The title and escrow company will then complete a title search and process the transaction.

Home Inspection

The home inspection is usually completed before ordering the appraisal to ensure that there are no serious issues with the home that could cause the transaction to fail.

Appraisal

The lender orders the appraisal from an independent 3rd party appraisal management company.

The lender is not allowed to select the appraiser or influence the outcome of the appraisal.

The purpose of the appraisal is to justify the value of the property for the loan; not to determine fair market value.

Loan Processing

The lender processes your loan, including credit confirmation, employment verification, and collecting (lots of) documentation required for the loan.

Sign Final Closing Documents

After your lender has processed your loan, they will send your loan documents to escrow.

Your escrow officer will use those documents to prepare your final closing documents.

Both buyer and the seller will then sign your respective final closing documents.

Close Escrow

After both buyer and seller have signed off, your lender will wire your loan funds into escrow.

When all funds required to close have been deposited into escrow, and your lender has authorized closing, the escrow officer will record the deed at the County Recorder’s Office, which constitutes “closing”.

Then, your agent will deliver the keys to your new home to you!

For more information on how to buy a home, please call me at (208)938-5533 or e-mail me.

I love helping homeless people!  :lol:

 

How To Buy A Home In Boise: Part II

This is Part II of a two-part post

When your offer to purchase has been accepted by the seller, you will then go “into escrow”, during which time the following steps will be completed:

  • You may elect to have a home inspection completed. In the Boise Area, the cost of this inspection is usually paid by the buyer. After the inspection is done, you will be given a copy of the home inspection report. At that point, if there are items needing repairs, you can ask the seller to make the needed repairs. The seller has the option of making the repairs or refusing to do so. If the seller refuses to make the repairs, you then have the option of not proceeding with the transaction.
    Note: There is specific language in the Idaho RE-21 purchase and sale agreement that most Realtors® use that explains these provisions in full detail.
  • If you will be obtaining financing for your purchase, your lender will require that an appraisal be completed by a licensed real estate appraiser. The appraiser will be selected by the lender to avoid any third party influence. It’s customary in the Boise Area that the cost of the appraisal is paid by the seller, and the cost is usually around $400 to $450 for an owner-occupied property. Appraisals for non-owner occupied properties cost more due to additional economic analysis required by the lender.
  • The title company will perform a title search to determine the legal status of the property and verify any existing liens, encumbrances, easements, etc. for the property. When they have completed their search, they will prepare a preliminary title report or “title commitment” and deliver it to the lender and the Realtors® involved in the transaction. You should receive a copy of this document and review it carefully prior to closing.
  • The title company will obtain payoff amount(s) for any existing loan(s) on the property, in order that the title company can pay those loan(s) off and insure clear title for you at closing.
  • Your lender will prepare your loan documents and deliver them to the title company.
  • The title company will incorporate the loan documents into its final escrow instructions for both you and seller, which will then need to be signed by both parties in order to prepare for the actual closing of the transaction.
  • The sellers will sign their final closing papers.
  • You will sign your final closing papers and submit cashier’s funds necessary to close to the title company.
  • When both buyers and sellers have signed their respective closing papers, and all of your funds have been submitted to the title company, the title company will order your new loan funds from the lender. These funds are usually wired from the lender to the title company, a process which usually takes a few hours.
  • Upon receipt of the new loan funds from the lender, the title company will deliver the Warranty Deed to the county recorder’s office and “record” the deed. This is the final act of “closing”, at which time title to the property transfers to the buyers.
  • You will get your keys, garage door controllers, and garage keypad when escrow has closed.

Simple, isn’t it?  :roll:

How To Buy A Home In Boise: Part I

This is Part I of a two-part post

There are many ways to approach buying a home.

As you might imagine, some methods work better than others.

Here’s how you can smoothly navigate your way and buy a home in Boise (or Meridian, Eagle, Kuna, Star, or Nampa!)

  • Meet with a lender and get pre-approved for your financing before you start looking at homes. Note that I said “pre-approved”; not “pre-qualified”. The difference lies in the fact that pre-approval means that your lender will actually underwrite your loan application and issue a letter indicating that you are fully approved for your loan vs. pre-qualification usually means that your lender has given only a cursory glance at your qualifications and provided only a tentative indication of your borrowing ability. It is vitally important that you be pre-approved so you can attach your loan commitment letter to your offer to purchase and thereby strengthen your negotiating position.
  • Make two lists of features for your intended home: a list of the “must have” features, and a list of “features wanted”. Your must haves will be things like the number of bedrooms, baths, garage size, square footage, school district, etc. Your want list will be things like the color of carpet, fireplace, large patio, etc. – things you would like to have, but can live without.
  • Find a Realtor® you trust and respect, and hire them to represent you. Doing so will allow you to make the best use of your time, and will assure your Realtor® that he/she has your written commitment of loyalty. Absent this written understanding, you are merely a “customer” instead of a “client” of the Realtor®. Few experienced, successful Realtors® will devote serious time and energy to you without that written agreement.
  • Explain your circumstances, needs, and wants with your Realtor® and work in partnership with your Realtor® to find a workable solution to your real estate needs. Finding and buying the right house often takes a lot of work, and you will doubtless encounter some obstacles along the way. For this reason, it is vitally important that you be able to develop a good working relationship with your Realtor® and that you can both be open and honest with each other.
  • Narrow your property search to a few areas that will meet your needs and be realistic in your expectations. Few homes will have 100% of the elements you are hoping to find, and you will probably find it necessary to compromise to get most of what you want. Work with your Realtor® and screen the properties that are initially of interest to you to narrow the field down to the final few best candidates.
  • When you finally get down to the final 2-3 homes that appear to be your final possibilities, have your Realtor® do a market analysis of the neighborhood to determine if the homes are properly priced for current market conditions. If possible, try to find out why the sellers are selling. Successful negotiations always include both buyer and seller getting enough of what they need from the transaction to make it work. If you can find out what the seller needs, you can often incorporate those needs into your offer and also get what you want.

(see you tomorrow for Part II)

 

Boise Singles: Buy A House Without A Spouse!

In the past, people often waited until they got married to buy a home.

Times have changed.

According to a 2014 National Association of Realtors® survey, singles now comprise 25% of all home buyers.

Of those single buyers, 16% were single women and 9% were single men.

The logic is really pretty simple.

Rents, in many instances, equal or exceed the monthly payment for a comparable home.

If you can afford the rent, you can afford the house payment.

But, then, there’s that little matter of a down payment.

Many buyers think they need 10% or 20% down to buy a home.

That’s a popular myth, but simply not true.

FHA loans require a 3.5% down payment.

Some IHFA loan programs are available with as little as $500 down.

Numerous conventional loan programs require 10% or less down.

VA loans (for military veterans) require zero down payment.

What about closing costs?

In many instances, buyers can negotiate for the buyer’s closing costs to be paid by the seller as part of the purchase price.

I have helped many Boise singles buy their own home with as little as $500 out of pocket and payments less than rent for a comparable home.

Are you single and tired of paying for your landlord’s home?

Would you like to own your home and be building equity for yourself vs. your landlord?

Gee, maybe you could even have a dog!  :lol:

Give me a call at (208)938-5533 or e-mail me with your questions.

I love helping homeless people become homeowners!