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Monday, February 25, 2013

Why is the home purchase process so confusing?

I was speaking with someone recently about the home purchase process - specifically about the steps after the contract is signed.

Although most steps after the offer is accepted are similar there are some variations based on the type of sale (short sale, foreclosure, standard sale).

So assuming you have the finances in order, have defined your requirements, successfully located your purchase target and have a signed offer.

What's next?

First and foremost - FREEZE.  If you will be financing your home purchase do not do anything that affects your credit or employment/income.  Do not apply for a new credit card or run up charges on a current card.  Do not make a major purchase that diminishes your cash reserves. Do not change jobs.  Lenders likely will do another credit and employment check prior to closing.

Now that you are protecting your mortgage application, your real estate agent will guide you along the process to the closing table.

First will be your home inspection and termite inspection   The results may be a clean bill of health or there may be repair issues to be resolved.

Once the inspection contingencies are cleared then there is the appraisal.  This is key if you are obtaining a mortgage and a good idea even if it is a cash offer.

With the inspections and appraisal hurdles cleared the next steps involve having a completed survey to make sure property lines and setbacks, are identified.  And while this is going on it is a good idea to get that insurance binder in place.

As you get closer to the closing date the nerves will start to get on edge as you review the final closing statement, obtain your certified funds for closing, do a final walk through of your home and sit down and sign your purchase documents.  This does not include all steps like review of association documents or finances, etc.

The home purchase process is really an orderly process.  The key is having a competent real estate professional to guide you though the process.

If you are looking for a Brevard County real estate professional to guide you through the home purchase process, call me at 321-693-3850 or email me.

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