Buyer's Guide

Getting Pre-Approved:

This is the first step toward buying your home! A mortgage originator will run your credit and let you know what price range you will be approved for, therefore you should only be looking at properties within this price range. Be sure to notify me of who you have chosen as a lender, and have them send the pre-approval to me as I will need it to make an offer.

House Hunting:

I will set you up on an automated search that will send you new listings that match your criteria as soon as they come onto the market. I will also provide you with my personal Sierra Interactive Website that you can search from anywhere! You may search websites yourself such as Trulia, Zillow, New England Moves, Coldwell Banker, etc. However, those sites are anywhere from 10-30 days behind, therefore, if you see a property on one of those sites, please send it to me right away so I may check the status.

Negotiations:

Once the offer is submitted, the sellers agent should let us know if it has been accepted, if there are any questions, counter-offer or further negotiations.

Highest & Best Offer/Offer Deadline

• In most cases because there is such little inventory, homes are getting upwards of 10 offers per listing, therefore most days of negotiating are over, we will have a deadline to submit our offer and we need to come with the best offer possible.

Counter Offer

• The seller has received your offer, however they are going to request some changes to your initial offer, such as a different price, closing date, etc.

Denied Offer

• The seller felt that the offer was not good enough, and did not want to counteroffer. At this point, you may submit another offer, which should be your “highest and best” (your strongest offer).

Accepted Offer

• Both parties sign a Purchase and Sales Agreement, and the Earnest Money Deposit is due within 24-48 hours (wired is best when possible) which means both parties are now officially under contract. Once we receive the executed contract, your inspection period begins and we need to start scheduling.

Inspections:

Inspections must be completed 10 business days (exclusive of weekends and holidays) from the date of the sign Purchase and Sales Agreement. There are a few different kinds of inspections you might be required to have on your property:

Home Inspection:

• This is the standard home inspection every buyer should complete to make you aware of any issues with the house, large or small.

Well Inspection:

• If you have a well on your property you will want to have this inspected and your water tested

Septic Inspection:

• If you have a septic system, you will want to have this inspected, ensure it is working properly, and has been properly maintained.

Radon Inspection:

• This inspection is optional, it will test to see if you have high radon levels in your home. Elevated radon levels may cause health issues, but this problem may be rectified by installing a depressurization system.

Lead Paint Inspection:

• This inspection is optional, there is a good chance that if your home was built before 1978 that you will have lead paint in your home. I will be providing you with an informational pamphlet required by law, it will help you decide if you would like this.

Appraisal:

Once inspections are complete, we will notify the lender, the fee is approximately $600. The bank will then send a licensed appraiser to complete an appraisal report of the property. If the property does not appraise to the purchase price, you and the seller must re-negotiate the price. Sometimes this is discussed during the initial negotiation of the sale price, for example, “buyers will contribute $5000 towards the sale price should the property not appraise at the contract price.” If buyer and seller are unable to come to an agreement, this could cause the sale to terminate.

Secure Mortgage Commitment Letter:

Once inspections and inspections repairs have been completed, I will send the final negotiated terms to your mortgage lender, and they must provide me with a mortgage commitment letter by the date outlined in the Purchase & Sales Agreement.

This is a vital step, if the commitment letter is not completed and sent to the seller, you could lose your deposit. The most important thing you can do as the buyer is to make sure you are submitting any requested documentation to your lender as soon as possible.

What Can I Do as the Buyer to Ensure We Make It to the Closing Table?

• If you have a question, ASK!
• Do not open any new lines of credit once your pre-approval has been completed, and stay up to date on all debt payments. Failure to do any of these could result in your mortgage not being approved. For example, don’t go buy all new furniture or a new car until AFTER your closing.
• Provide your mortgage lender, underwriter, or attorney with all requested documents as soon as possible. Prolonged turnaround time may result in having your closing date pushed back.

Here are a few things you will receive at closing:

• House keys
• Garage door opener(s)
• Deed to your home
• Closing Packet

What can you expect?

The closing agent will look over the purchase contract and identify what payments are owed and by whom; prepare documents for the closing; conduct the closing; make sure taxes, title searches, real estate commissions and other closing costs are paid; ensure that the buyer's title is recorded; and ensure that you receive any monies due to you.

After the closing, make sure you keep the following for tax purposes:

• Copies of all closing documents