"Across the board, Realtors tend to close more deals and have more experience."
Keelan McCamey, CEO, Realtor, MBA, CDPE
Keelan McCamey, owner of Peak Realty, discusses the common steps in the process that buyers take on their way to home ownership.
- Making a decision to buy (or not) requires some self-analysis. A good Realtor will sit down with you to understand not only what you want, but why you want it. When an agent does this, they have a better chance of finding more properties that fit your situation
- It's wise to contact a lender to figure out if you have enough cash in the bank for a down payment and/or closing costs. It's also important for your Realtor to know this information, to negotiate the best terms for you!
- There's a difference between a loan pre-qualification (preliminary conversation & credit pull) and a full-blown loan pre-approval. Make certain you find a lender you're comfortable with and who has competitive rates
- Pick a Realtor, and have that agent set up listing alerts for you that *come directly from the MLS*. This way, you may end up getting a jump ahead of other buyers who are using not-so-good 3rd party websites to get their listing information. Not all sites are created equal
- When it's time to submit an offer, you'll include a lender letter from one of the lenders you've talked to. After you're under contract, it's time to settle on a particular lender if you haven't already done so. This way, you can begin working toward a full pre-approval with that lender, providing requested documentation. All lenders require more documentation leading up to closing, so be ready for this!
- After going under contract, your agent will deliver earnest $ within 2-3 days of going under contract, and you'll call a home inspector right away (or your agent can provide this info). The inspector will find everything wrong with the property, yet for negotiation purposes your agent will be looking for the MAJOR items (ex. structural, mechanical, electrical, safety, plumbing, roof, sewer, etc.) that may be deal-killers. The inspection process is a second negotiation, and all agreed-on fixes/repairs are documented on the Inspection Resolution form, which will go to the lender as part of the contract
- Assuming all fixes have been made and there are no other items holding back the closing (like an appraisal condition or other loan condition), the closing is just around the corner!
- It's time to do a walk-through roughly a week prior to the closing, WELL AHEAD of the new closing document disclosure requirement that goes to all parties. Often times, lenders want to know with certainty there are no other inspection/repair items & everything has been fixed to the satisfaction of everyone BEFORE they'll issue the final closing document
- Even then, we recommend a second walk-through the day of closing
A lot of the new loan changes in the lending industry are now being policed by the Consumer Financial Protection Bureau (CFPB). You can do some of your own research on the CFPB Website, and take a look at the new Buyer Toolkit...it's a good resource.
Please consider downloading our Buyer Guide eBook to read more detailed information about the lending piece, which is where most of the frustrations occur for homebuyers. As always, feel free to reach out to us if you have any questions: 303-709-8778 or email@example.com