Typical Home
Purchase Procedure
STEP 1:
Sit down with your real estate agent and discuss your new home requirements. Select a few homes to view and your agent will give you a guided tour.
STEP 2:
Negotiating the purchase of your new home. The initial step will be to instruct your real estate agent to make an offer to purchase. This offer should be in writing and accompanied by a check to show "good faith". The offer should include:
- The amount you are willing to pay.
- Closing and occupancy dates.
- Any contingencies including obtaining a mortgage. Often times it's a good negotiating tool to be pre-approved for a mortgage so the sellers know you are serious and if they accept your offer they will have the house sold without having to worry about the buyer getting financing.
- Any personal property specifically included or excluded.
If the offer is not acceptable, further negotiations are necessary to reach terms agreeable to both buyer and seller.
STEP 3:
When the buyer and seller agree on terms:
The buyer applies for financing.
The seller typically provides the updated title work to the buyer.
STEP 4:
The closing:
Prior to closing, you should "walk through" the house with the agent.
Everyone involved will meet to sign the paper work & transfer title of the property.
Now it's time to move in and enjoy your new home.
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Typical Home
Purchase Costs
- POINTS or Loan Origination fee.
- INTEREST ON THE LOAN. Interest covering the period from the date of closing until the end of the month.
- TITLE INSURANCE. Often the banks require this insurance.
- ATTORNEY'S FEES.
- SURVEY FEES. If not recently surveyed, the lender or Title Insurance Company may require a registered survey or simply a map showing the location of the house and the boundaries of the property, as well easements and rights of way. (Even if it's not required by the lender or title company you may want to have the land surveyed so you have the information on file and that you are aware of such boundaries and/or easements.)
- RECORDING FEES. The buyer usually pays the fee for legally recording the mortgage.
- HOMEOWNER'S INSURANCE. Proof of current policy is necessary at the closing.
- ADJUSTMENTS COSTS. Paid to the seller at closing (where applicable):
Buyer's share of pre-paid property taxes. Heating oil remaining in tank.
- BUILDING INSPECTIONS. When necessary.
- HOME WARRANTY INSURANCE
- Remember, many of the up-front costs involved in a house purchase can be "gifted" or built into the sales price and included in the mortgage. Check with your lender.
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