by Cindi LaSalle-Shanks, GRI
Listing and selling residential real estate in the greater Prescott area is, and has been, my passion for many years. Working with and for buyers of all ages and lifestyles provides a great opportunity to experience the joy of making real estate dreams come true for so many people.
The one critical skill needed by all real estate agents is the ability to listen closely to the needs of buyers and adjust accordingly in helping them find that perfect home in the Prescott area, which includes Prescott Valley, Chino Valley and Dewey/Humboldt, sometimes referred to as the Quad Cities.
Along with listening abilities, the agent must have a thorough working knowledge of the process.
It is important to insure all buyers prequalify before they begin looking for a home. By prequalifying ahead of time, the buyer will know what they can afford and the type of loan that will work best for them.
A conditional loan approval document provided by a lender must be presented to the sellers with the purchase contract signifying they can purchase a home. An experienced lender can prequalify a buyer for a certain price range and help avoid possible disappointments later when an offer is made on that perfect home. Many sources exist for home loans including banks, credit unions, mortgage companies and mortgage brokers.
So, what’s needed for a loan application?
The loan application requires personal and financial information. Requirements may vary, but a buyer must be prepared for the lender to request the following: names and addresses of employers for the last two years, addresses for all residences for the last two years, Social Security account numbers and driver’s licenses or other valid identifications. The lender may request two recent pay stubs showing year-to-date earnings; W-2s and federal tax returns for the last two years; and names, addresses and account numbers for checking and savings accounts on all loans, including real estate. The lender will mail out verification requests based on the data provided.
When the buyers find the home they want, they will work with their real estate agent to write a purchase contract. The purchase contract includes many documents including the actual purchase contract, buyers agency, buyers advisory, wire fraud alert, the prequalification document from the lender plus any addendums required by the broker of the real estate firm or that specifically address the property (homeowner association information, septic, well, etc.).
When the buyers and the sellers come to a final agreement on the terms of purchase, the real estate agent will arrange to have escrow opened and give the lender a copy of the purchase contract. Escrow and title is completed by a neutral third party that handles all of the purchase paperwork, creating the documents needed to finalize the sale, disburse all of the funds and record the title of the property.
The purchase contract allows buyers a specific amount of time to have any and all home inspections performed on the property. This time period begins the day after contract acceptance. It is critical that any and all inspections be done prior to the end of the inspection period and the results of any repairs or other issues be addressed on the Buyers Inspection Notice and Sellers Response (BINSR) document and given to the listing agent.
If this timeline is missed, the buyer no longer has the right to ask for repairs or reject the property if items disapproved of cannot be corrected or changed. For example, these items could include the Covenants, Conditions and Restrictions (CCR’s) covering the property, floodplain issues or the property not being insurable.
The lender usually waits for notification that the inspections are complete before ordering the appraisal.
This is just a brief introduction to the initial process of buying a home. There is more after the appraisal process, so if you would like additional information on the complete process regarding buying a home, give me a call at 928-533-1012. I am here for you!