The Process
Initial Agreement and Deposit
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. This includes verbal agreements, counter-offers, and addendums. We can assist drafting all written records and provide copies for each party.
- Keep up with the schedule. You and the seller will be given a timeline to seal every stage of the real estate closing contract.
As part of the contingencies outlined in the Purchase Agreement, you will schedule a licensed property inspector to come to the home within the time frame agreed upon by both parties. Inspectors will determine the condition of the property and alert you of any problems. You may wish to have multiple inspectors look at the property who specialize in certain areas (ie. roof or plumbing inspectors). If you are purchasing a commercial property, you might be required to complete an environmental audit or soil test on site for the lending institution. If the inspections reveal issues to the property not specified in the purchase agreement, you may request a renegotiation of the terms of contract (usually the price). Once you are satisfied with the inspections and terms of the purchase agreement, the contingencies will be removed.
Appraisals and Lending
Keep in contact with your lender so you are notified when new documents are required to approve your loan. If the Purchase Agreement is conditional upon financing, the lending institution will require a home appraisal by a third party licensed appraiser. The appraiser will confirm the investment in your property is accurate. Appraisers are experts in determining the value of property based on a variety of factors including building costs, square footage, operating income, and more. Double check with your lender two weeks prior to closing to confirm the loan will be approved on time.
Association Approval
Some properties might require an association’s certificate of approval prior to purchase. If so, make sure to request all rules, regulations, and necessary documents from the seller. In the Purchase Agreement, you and the seller will agree on a time frame for you to submit paperwork or set up any appointments required for the association’s approval. Once accepted, your closing agent will request the original copy of the approval letter, so it can be recorded with the deed in the county record books during the property closing.
Property Insurance
Basic property insurance plans will protect you from damages to your property including fire, theft, and certain weather events like wind or hail. While most states do not require a property owner to have coverage, most mortgage lenders will. Depending on your intentions for the property, you will be required to either purchase homeowners insurance if you plan to live in the home, or landlord insurance if you wish to rent out the property as an investment initiative.
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Tips For Buying The Perfect Home
Don’t Max Out Your Budget
Just because you’ve been approved for a max amount, doesn't mean you should spend it all on the home's sale price. You will want to set some of that aside for closing costs, taxes and potential home repairs or remodeling.
Get To Know The Area
Make sure the neighborhood works for you and your family - are you close to schools and is shopping conveniently located? Location is important because it’s the one feature that can’t be changed.
Don’t Skip The Inspection
Inspections are worth their weight in gold and will draw attention to problems you may not otherwise see, giving you peace of mind and letting you make more informed decisions about your purchase.
Get Pre-Approved
Getting pre-approved by a lender lets the seller know you are serious and ready to purchase a home and that you are not just window shopping. Check out our list of recommended lenders here.
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Areas We Serve
- Orange County
- Los Alamitos
- Rossmoor
- Seal Beach
- Cypress
- Garden Grove
- Fountain Valley
- Westminster
- Long Beach
- Huntington Beach