First Steps
What to know as you’re preparing to buy a house
How to Tour Properties
Contact Us To Schedule a Showing
You’ll come across houses you’re interested in one of two ways. Either we’ll send them to you as a part of our home search, or you’ll come across them yourself. This could happen by searching online, driving around, or any other number of ways. However you find the house you want to tour, the process is the same: Call, text, or email your agent and let us know that you're interested. We'll do some digging first and if the house still makes the cut, then we’ll schedule a tour at a time that works for you, and accompany you to the property. Open houses are another great way to see properties that you’re interested in. All open houses are hosted by real estate agents who are there, primarily, to try and recruit clients. Just let them know that you’re already working with someone else and they won’t pester you. Feel free to ask them questions about the house, but we advise that you do not put your name or contact info on a sign in sheet or anything similar.
Open Houses
Open houses are another great way to see properties that you’re interested in. All open houses are hosted by real estate agents who are there, primarily, to try and recruit clients. Just let them know that you’re already working with someone else and they won’t pester you. Feel free to ask them questions about the house, but we advise that you do not put your name or contact info on a sign in sheet or anything similar.
The Five Pieces of Money
Earnest Money is typically 1-3% of the purchase price and is payable either with a cashiers check or via wire transfer. This good faith deposit proves to the seller that a buyer is serious about the purchase. It's held in escrow until closing and then applied towards the closing costs or down payment.
If using financing, an Appraisal usually costs around $900 and is typically paid directly to the financial institution if a mortgage is involved. This is not a thorough inspection. The appraiser works for the bank, and is tasked with ensuring that the property meets the requirements for the specific loan type being used and that the home is worth the amount you have promised to pay.
Inspections can range from $250-$1,000 depending on the size, age, and location of the home, how in-depth you want to go, as well as the home's features.
If using financing, the down payment is a percentage of the purchase price paid out-of-pocket at closing. The amount will vary by loan type. Some loans offer 100% financing, meaning no down payment is required.
Closing Costs typically range from 2-5% of the purchase price and are fees associated with the mortgage as well as the transfer of title from the seller to the buyer (loan origination fee, title insurance, attorney examination, survey, recording fee, tax and HOA prorations, etc.). Sometimes a buyer can negotiate to have the seller cover a portion of the buyer's closing costs, however, this is a case by case situation.
Get Pre-Approved If Not Using Cash
Lenders are not created equal and using one of our recommended lenders greatly increases the chances that you will have a positive experience. Our team only refers local lenders who have been in the industry for years with a proven track record. You have the right to use anyone you like, but we have a few trusted lenders we work with often. Let us know if you need a recommendation.
Your Credit Score and Income Are Crucial
Friendly reminder if you're using financing, do not make any large purchases, like a new car, open any new lines of credit, or change jobs or employment status. Please consult with your lender before making any decisions that might affect your finances or credit score.
Credit Do’s
✓Pay your mortgage or rent on time.
✓Stay current on all outstanding accounts.
✓Continue working for the same employer.
✓Stay with your current insurance company.
✓Notify your Lender immediately if any situation arises that could possibly affect your income, assets, or credit.
Credit Don’ts
✘Don’t switch bank accounts.
✘Don’t transfer balances between accounts.
✘Don’t increase the balance of any credit cards.
✘Don’t consolidate debt, including credit card debt.
✘Don’t close any accounts, including credit card accounts.
✘Don’t apply for ANY credit (new vehicle, furniture, appliances, etc).
✘Don’t change your job, employer, the way you are paid, or become self‐employed.
✘Don’t pay off any collection accounts before consulting with your lender.
✘Don’t make large deposits without the ability to document the source of the funds.
Avoid Zillow's "Contact Agent" Button
Submitting your contact information to sites like Zillow, Realtor.com, & Homes.com will only ensure your phone number and email address are being sold to multiple real estate agents and lending institutions. Contrary to popular belief, these sites will not connect you with the seller or listing representative, and honestly, this is for your protection. You deserve someone who is looking out for your best interest, so anytime you have a question about a property, contact us directly! Please don't think for a second that you're "bugging" or "bothering" us. It's our job, and we would much rather you ask us anything!
"Love Letters"
You've probably heard of the idea of sending a seller a "love letter" with your offer to help tug on the heartstrings and get your offer accepted. While this is a nice idea in theory, it opens the doors to potential discrimination on the seller's part. Oftentimes sellers will refuse to look at the letter for that very reason. If you choose to write one, focus on the features of the property and avoid anything that could potentially be discriminatory like familial status, ethnicity, military status, etc. So if you do send one over to us and ask us to include it in your offer, we will, but we don't recommend it.
Zestimates
Zestimates should be viewed as a guess, from someone who has never stepped foot inside of the property. It's simply a computer algorithm providing a starting point.
Pending Properties
When you see the wording "Pending," this means the seller has accepted an offer but has not yet closed on the property. A seller in this position cannot accept another offer, even if it's better. The accepted price is kept confidential until it's closed.
New Construction
If you are considering new construction, many communities require you to register your real estate agent before the first visit. If you show up without pre-registration, the builder often refuses to help you cover your buyer broker compensation amount! This doesn’t mean you get a deal on the house (they won’t charge you less for it), it just means the builder makes more money on the sale and you pay more out of pocket. If you’re curious about a new construction community, let us know before you go and we will take care of that pre-registration for you and gather all the information you need.
Making an Offer
Once you fall in love with a home, we will research the area for comparable properties, called "comps," to help determine the home's value and offer guidance on what to offer. It's important to note that even if the MLS or Zillow listing advertises an included item such as a refrigerator or play set, if it's not in the contract and agreed to in writing, the item might not be there at closing. Please be sure to discuss with us any advertisements you've seen or items you want to specifically ask for in the offer before signing the offer documents.
Terms we might talk about include, price, expiration date, close date, deposit amount and deadline, down-payment, closing costs, leased item review, HOA review, excluded items, lead paint, septic or well inspections, home inspection, escalation price, and so much more!
Pending
What happens now that we found a house and got an offer accepted?
Additional Documentation
There may be additional documentation to sign. If so, you will receive a signing invitation from us through Authentisign. We will also text you to let you know to check your email.
Mortgage Process (if using financing)
Do not make any large purchases, like a new car, open any new lines of credit such as a Best Buy credit card, or change jobs or employment status. Please consult with your lender before making any decisions that might affect your finances or credit score.
We are providing everything to your lender, and you should expect to hear from them within the next few days. It's imperative that you respond timely with anything they request to avoid delays in the closing process. PLEASE DO NOT send your lender a copy of any contracts, supplements, or inspection reports without discussing with us first.
Loan Pre-Approval Isn't Final Loan Commitment: Your financial institution will still need supporting documentation, your signature on loan disclosures, and your timely response in order to hit the closing date.
You will receive your final cash to close amount from your lender at least 3 days prior to closing. Do not wire funds without calling the number we have provided for you to confirm wiring instructions.
Earnest Money
Do not wire funds without calling the number we have provided for you to confirm wiring instructions.
*BEWARE OF WIRE FRAUD*
Due to an increase in wire fraud, please call and verify over the phone all wiring instructions to ensure you are sending your funds to the correct entity. You will receive your final cash to close amount from escrow when signing your closing documents. Do not respond to any emails requesting wiring your cash to close.
Inspection (if included in Purchase & Sale Agreement)
Good inspectors are typically booking 3-5 days out, so it is important we schedule these as soon as possible.
We recommend the following inspectors:
Rob Renfro Coastline Home Inspections (425) 330-4140
Pillar to Post The Jarquin Team (360) 919-6667
There are some loans that require you send a copy of your inspection invoice to your lender, so confirm with your lender if this is needed. When it’s time to schedule the inspection, we'll take care of that for you. We recommend you are present for the inspection. Secure childcare and take time off work. This part is very important.
*IMPORTANT - Inspection Reports Are Only For Your Knowledge*
Please don't give a copy of your home or structural inspection report(s) to the lender, appraiser, or anyone else without discussing it with us first.
What is a 35R Inspection Response?
The 35R is your written request for the items you would like to see repaired or replaced at the seller's expense before closing and has nothing to do with potential loan or appraisal requirements which could come at a later date.
35R Negotiations
After gathering bids, sellers can respond to the 35R in any of the following manners:
1) Accept all requests with no changes
2) Reject all requests
3) Accept some items, while rejecting others
4) Offer something valuable in lieu of repairs such as dollars towards the buyer's closing costs, the kitchen fridge, or the zero turn mower.
At the end of the day, buyers and sellers must come to a written agreement within our agreed upon timeframe. In the event a written agreement is not reached within the specified time frame, the contract shall terminate and the earnest money shall be returned to the buyer.
Repairs & Re-inspections
Once the 35R has been signed by all parties, sellers are responsible for having the agreed upon items completed prior to closing. Per the Agreement, you have the right to enter the property to re-inspect any items which a seller agreed to repair or replace prior to closing. This happens a few days before closing. We’ll conduct a final walk through of the property to ensure it is in the same condition as it was when we first toured it.
Appraisal (if financed)
The appraiser works for the bank and is there to protect the bank’s interests. Their job is to determine if property is worth at least as much as you promised to pay. We want to hear “at value” and “as-is”. This means the appraiser believes the value of the home supports the purchase price and that no repairs are needed to satisfy the bank’s requirements. If the value comes in below the purchase price, we will need to provide a copy of the appraisal to the seller and round 2 of negotiations begins. If the value comes in above the purchase price, congrats! You have instant equity in your new home!
Insurance
Your annual premium makes a big difference on your monthly payment. We highly encourage all buyers to shop different insurance companies for the best rates & coverage. Once you’ve made your selection, you will provide the policy to your lender (if not paying cash).
Re-Inspection & Final Walk Through
Per the Agreement, you have the right to enter the property to re-inspect any items which a seller agreed to repair or replace prior to closing. Usually a few days before closing, we’ll conduct a final walk through of the property to ensure it is in the same condition as it was when we first toured it. We will coordinate the exact day and time as we get closer to closing day.
Utility Transfers
We recommend you transfer all utilities into your name the week of closing (2-3 days prior). We’ll provide you with a Utility and Change of Address Checklist about a week before closing as a reminder to make those calls.
Propane Tank
If there is a propane tank on the property, escrow will prorate the cost of the remaining fuel to refund back to the seller.
Septic
If your new home is on septic, the seller will schedule your septic inspection ASAP if not already completed. If the company finds it needs to be pumped, they will have it pumped. You have a contractual right to attend the inspection if you choose to do so. The agreement states they need to give us a 3 day notice of the inspection time. Read more about your new septic system here.
Signing Closing Documents
Typically, you will "pre-sign" with the title company 1-3 days before the official closing. If the final settlement statement is not ready or numbers change after, the title company will e-mail the updated information. Don't forget your valid ID. If you’d rather sign at your home, you can request a mobile notary for a fee (usually around $125).
Closing Funds
*BEWARE OF WIRE FRAUD*
Due to an increase in wire fraud, please call and verify over the phone all wiring instructions to ensure you are sending your funds to the correct entity. You will receive your final cash to close amount from your lender at least 3 days prior to closing.
Closing Day
After escrow has all the funds and documents, they will release the documents to the county recording office. The recording office has until 5pm to process those documents and provide a receipt of the recording (also called recoding numbers). It’s not until we hear confirmation of recording that the home is officially closed.
You'll hear from us twice on closing day. Once in the morning to let you know that the documents have been released to the county. The second time letting you know that we have recording numbers and the house is officially sold! In the event the county does not file before close of business, they will record the following business day, but the title and escrow company will insure the property as closed as of our contracted close date.
Possession of the Home
Moving into your new home occurs after closing. It is extremely rare to be granted early access. Per the Agreement, the seller has until 9pm on closing day to get the last of their things out. Don’t plan on closing day to be your moving day.
Change the Locks
You never know who has a key to your new home. We recommend hiring a locksmith or grabbing some new door knobs from the hardware store. Better safe, than sorry. If you need a good locksmith, let us know!
What about the real estate sign?
The seller will schedule for a sign installer to come remove the sign. Please leave it where it is. If it’s not gone in a week after you’ve moved in, let us know and we’ll pester them to remove it.