Congratulations on your decision to purchase a home!!
NOW here are a few facts that you will need to consider while working with your Agent
when entering a Purchase Contract.
First and Foremost – How will you fund your purchase? Cash or Financing?
For Cash – Must show proof of FUNDS, this can be a receipt from your Banks ATM or Bank Statement. The important information on the proof must be your name and the name of the Banking Institution and the amount of $money you have for the transaction. (All account numbers should be redacted from view!)
If Financing, have you spoken to a Lender? A Pre-Qualification must be sent with an offer!! Here a few you can check in with. It is free to see if you qualify!
Tina Arnold – Mission Bank: TArnold@missionbankaz.com
Chad Jenkins – Nova Home Loans: firstname.lastname@example.org
Mary Vrana – Sun American: email@example.com
ASK QUESTIONS: Do I have to come up with money out of my own pocket? Are there other costs for this loan (APPRAISALS!)? How long does this take?
Once you have passed those hurdles then it is time to find that HOME ???? And MAKE AN OFFER!
Whew – so now what.
Well, if the Seller has accepted your offer, then the ball really begins to role
Once you have entered an Executed Contract it is time to really buckle down and determine if you really want this home!! The Contract will be presented to a Title Company of your choice (unless specified by seller in the listing) and you will be responsible for providing the Earnest Funds to the Title Company within THREE DAYS.
Local Title Companys:
You have a limited time to change your mind, so it is imperative that a review of the home is done immediately. It is Highly Suggested to seek the services of a qualified Home Inspection Company to look at the Home from TOP to BOTTOM!
A standard period of time for a home inspection is 10 days (a longer or shorter period of time can be elected when you are writing the offer) from the date of contract acceptance by the Seller.
Depending on the Home you have selected there may be other professionals needed. Such as if the property is on Well Water or Water Haul. The Well should be tested for Quality and Quantity. Water Haul Properties must be identified as Potable Water!
Mohave Environmental Laboratory - Water Testing: Serving Arizona & Nevada since 1992 - Home (mohavelabs.com)
Brown Drilling Company - Well Quantity Testing: Brown Drilling - Home
Also Verify if the property is in a flood zone and the necessary Insurance – Especially if you are applying for funding/a loan.
What if the property is a Mobile or Manufactured Home? Depending on your financing you may also be responsible for getting extra certifications!! SPEAK WITH YOUR LENDER. They should always be in the know! Get them a copy of the Listing!!!!!
To Order Permits on the property you are interested in you may email as follows:
County - firstname.lastname@example.org
Kingman City – email@example.com
If the property is in a POA (Property Owners Association) or HOA (Home Owners Association) what if, if any are the restrictions? Is the property under any Covenants, Constraints, and Restrictions (CC&R’s)? Must READ!
The listing of the property should identify if the property is on a Sewer System or is on a Septic – AGAIN PERMITS!!. Please note that the Seller is responsible for having the Septic inspected prior to the close of the Sale. This action generally takes place closer to the end of the Escrow period however as long as it has been done within six months of your escrow and did not fail when it is inspected then all should be good.
SOOOOO – What if you find this is not the home for you???? Immediately and it must be prior to the end of your inspection period you can cancel the deal. If you decided after the date, then you are TOO LATE!!! That is a nightmare that you do not want to incur. You are subject to losing your earnest money as well as could be sued for a breach in the contract!!!
Let’s Talk TITLE!
While you are feverishly working on making sure this is the home that you want your ESCROW OFFICER at the Title Company is fast and furiously working on the legal side of the property. They identify who is current on Title and makes sure that the Seller is the Legal party to sell as well as makes sure no one else can come along after you own it can lay claim to your new investment. They will be in communication with you throughout the transaction. A BIGGIE is to read whatever they send you and respond quickly. Especially the ‘Title Commitment’! This packet will give you direction and possibly homework that you will need to perform in order to reach a clean closing. Your Escrow Officer will also be in communication with your Loan Officer to coordinate funding the Seller. STAY IN TOUCH AND ASK QUESTIONS WITH YOUR ESCROW OFFICER!
Let’s Talk FUNDING!
If you are relying on a Loan to purchase then this is like BIGGER THAN BIG: Cause now you are knee deep in your home purchase and you have to, have to have to stay in touch with your LOAN OFFICER!! It is imperative that you follow their directions and respond quickly. No matter how much you want that new cell phone or even more so a new car – Just hang tight. Don’t change jobs either. These factors could yank you right out of being approved for your loan purchase!! These actions could throw you into that BREACH OF CONTRACT I mentioned earlier. Once again, you would face losing your earnest money and possibly face a lawsuit by the seller.
Getting the KEYS!
Now All Said and Done: Once all of the conditions of the contract have been met it is time for your Escrow Officer to make it so ????
You will be given a date and time mutually agreed upon with your Escrow Officer to sign on the dotted line, in some cases the virtual dotted line. Seller will be doing the same to relinquish the property. Once all parties have signed then your Escrow Officer will be submitting the signed documents to the COUNTY as well if your funding was a loan, your Loan Officer will send a wire to the Title Company. The Seller will receive your funds (now his money) once the funds are transferred from Title to their account or in some cases by check. The COUNTY will then make it public record of the transaction – RECORDED then the KEYS BECOME YOURS!
And that’s how you buy a house!