Buying

BUYING A HOME

Of all the decisions you'll face when buying a home, there's none more important than the person you choose to represent you.

The job of your Realtor® is to support you in finding the right home with the best possible terms, and to aid you through the entire process. Your real estate professional will explain the process of buying a home, and familiarize you with the various activities, documents and procedures that you will experience throughout the transaction.

Tips For Selecting A Realtor

Your Real Estate Professional should be:

= Knowledgeable about the communities of interest to you.
= Aware of the complicated local and state requirements affecting your transaction.
= Effective in multi-party, face-to-face negotiations.
= Highly-trained, with access to programs for continued learning and additional certifications.
= Technology-focused.
= Assisted by a fully-staffed marketing department.
= Supported by professional legal counsel.

FINANCING

Most real estate professionals and mortgage lenders recommend pre-qualifying for a loan before selecting a home to purchase. This process will help you:

= Determine the price range you can afford.
= Understand the types of loans you qualify for.
= Determine what your monthly payment will be.
= Estimate the down payment and closing costs.

The Loan Process
Your Realtor® will help you to select a mortgage lender. Once you have made your decision, these are the steps of the process:

= Application - All pertinent documentation is obtained. Fees and down payments are discussed, and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-lending statement (TIL), itemizing the rates and associated costs for the loan.

= Documentation - If not already completed in the pre-qualification stage, your Realtor ® will order all necessary supporting documentation. Once inspections are completed, your Associate will order an appraisal on the property. As it comes in, documentation is checked for any irregularities.

= Loan Submission - Once all the necessary documentation is in, your completed file is submitted to a lender for approval.

= Loan Approval (Underwriting) - Loan approval, or underwriting, generally takes 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close.

= Closing - Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.

FINDING & CHOOSING THE RIGHT HOME

Based on criteria that you and your Realtor® establish together, your real estate professional will help you find the perfect home. There are many factors to consider in selecting a property, including location, bedroom and bath count, schools and amenities.

Your Realtor ® will apply their extensive community knowledge and professional resources to research available properties, and show you the homes that best meet your needs. If you find a property that interests you through the Internet or your own research, let your real estate professional know so that a showing can be arranged.

As you view different properties, your criteria may change. Open and direct communication with your Realtor® is a key element of a successful property search.

MAKING YOUR OFFER

Once you have found the home that you wish to purchase, your Realtor® will apply their professional training and do all the necessary research to help you structure an effective offer.
This is where your real estate professional's negotiation skills come into play. When an offer is made, the seller will have the option of accepting, rejecting or counter-offering. Your real estate professional will negotiate the best possible terms for you.

Your Realtor® will draft the purchase agreement, advising you of protective contingencies, customary practices, and local regulations. Home warranty, title and escrow arrangements will be detailed in the offer. Although your real estate professional will give you advice and information, it is your decision as to the exact price and terms that you wish to offer.

ESCROW & TITLE

When the purchase agreement is accepted and signed by all parties, your Century 21 Realtor® will open escrow at a title company for you and your earnest money will be deposited. Your Century 21 Realtor® can help you choose a title company that is right for you. The title company is in charge of making sure that the seller can convey the deed without any problems. The title company is also a neutral party that has no vested interest in any party, real estate company or attorney. They simply help facilitate the legal aspect of transferring ownership and make sure the contract is followed. The Title Company holds the earnest money in a neutral account, disburses funds, collects invoices, works with the lenders, principles in the contract, as well as the Realtors® and coordinates the timing of processes.

INSPECTIONS, APPRAISALS, CONTINGENCIES

After the contract is signed and delivered to all parties, the behind the scenes work begins. This work is crucial to making sure the property you are buying is one that you will be satisfied with. During the inspection period, which ranges from 17 days to however long the parties agree upon, the buyer is responsible for getting any inspections done that need to be completed.

Inspections:

Your Century 21 Realtor® will help you through this process and recommend proven professionals to assist you. The most basic inspection that should be done is by a home inspector. This person will spend about 4 hours in the home testing everything and give you a full report (usually 20-30 pages) on the results of each item. This home report can be a spring board for additional specialists you may want to bring in to investigate specific items. This inspection is optional but highly recommended.

Termite Inspection:

The termite inspection should be ordered as soon as the home has an approved and accepted contract. Your Century 21 Realtor® will help you decide on the best company for you. The termite inspection is a state regulated process, and a company must be certified for it. The termite inspection will be on a standard form and submitted to the title company upon completion. In California , the seller traditionally pays for the termite inspection unless otherwise specified in the contract.

Appraisals:

Appraisals are typically ordered by your lender from an approved list of appraisers.

Septic Inspections:

Septic inspections are usually ordered after the regular inspection period comes to a close and the seller knows that spending the money on this inspection is a safe investment.
Prior to closing escrow, all of the contingencies of the Purchase Agreement must be met. Your Realtor ® will coordinate this process. Typical contingencies include:

= Approval of the seller's transfer disclosure statement.
= Approval of the preliminary title support.
= Loan approval, including an appraisal of the property.
= Physical inspections of the property.
= Pest inspection and certification.
= Acquisition of homeowner's insurance.

CLOSING & MOVING IN!

When all of the conditions of the purchase agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs to escrow and your lender will deposit the balance of the purchase price. The deed will then be recorded at the County Recorder 's office and you will take ownership of your home.