I thought it might be useful to provide a summary of the home buying process here in California (some of the general activities will be similar in other states, but check with your agent on the specifics). I've talked about most of these issues at one time or another so this is really an overview/summary.

PRE-APPROVAL

• Done BEFORE you start looking so you know your budget
• NOT just pre-qualification - this really has no value to you
• Lender will review income, assets, debt and credit scores to determine how much you can borrow
• Review types of programs, rates, etc.

HOME SEARCH

• Identifying WHAT you want and need
• Searching in your price range on the Internet, attending Open Houses, driving around neighborhoods
• Select your REALTOR
• Tours with your REALTOR (house hunting trips if you are out of state)
• THE DECISION

MAKING AN OFFER

• Offer to Purchase in CA is 10 pages and includes a Buyer Advisory - verbal offer is meaningless
• Accompanied by a deposit ( talk with your agent about amount) - often up to 3%; goes to Escrow once agreement is reached
• Offer present to listing agent; sellers review and respond
• Any counter offers must be in writing; finals signed copies of agreement and counters provided to all parties

CONTINGENCY PERIOD

• Deadline date agreed on by buyer and seller
• Receive, review, approve and sign all disclosures; check on insurability; approve Preliminary Title Report
• Conduct home inspection (and any other desired inspections), request any repairs, if applicable, and resolve with seller
• Apply for loan; appraisal done by licensed appraiser; loan commitment issued
• All contingencies must be removed by due date unless extension agreed on in writing

PREPARING FOR CLOSING

• Make plans to move (obtain estimates); pack
• Set up utilities in new home; arrange to stop utilities in current home
• Provide any final documents to Escrow Company
• Arrange wiring of any funds to escrow
• Set-up and complete final walk-through before closing
• meet with escrow to sign all documents (or if remote, meet with their representative)
• Once everything received and approved by escrow. transfer of property is complete and docs will be recorded
• CONGRATULATIONS ON YOUR NEW HOME - BUY A BOTTLE OF CHAMPAGNE AND CELEBRATE!