Most homes are purchased with financing, and with the historically low interest rates today, even buyers with cash may be better served by financing their home. Sherry can recommend you to a lender that provides a wide variety of options that can assist you in financing your home purchase.
Working with a lender will help you:
• Determine the price range that you can afford.
• Understand the different types of loans available and the types of programs you may qualify for (particularly if you are a first-time home buyer).
• Determine what your monthly housing payment will be.
• Estimate the downpayment and closing costs on a house you are interested in.
• Get prequalified so that your offer is more attractive to sellers and you are able to move quickly.
OBTAINING A LOAN
The Application - All pertinent documentation is obtained. Fees and down payments are discussed, and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-Lending disclosure statement (TIL), itemizing the rates and associated costs for the loan. You will be asked to provide certain documents to your lender in order that your loan can be processed in a timely manner.
Loan Submission - Once all the necessary documentation is in, your completed file is submitted to a lender for approval.
Loan Approval (Underwriting) - Loan approval, or underwriting, requires that all documents have been submitted and generally takes 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close.
Closing - Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.
MAKING AN OFFER
Once you have found the home that you wish to purchase, Sherry will apply her professional training and do all the necessary research to help you structure an effective offer.
This is where negotiation skills come into play. When an offer is made, the seller will have the option of accepting, rejecting or counter-offering. Sherry will negotiate the best possible terms for you. In the case of multiple bids, she will work with you to structure the best offer you are comfortable with.
Your Sales Associate will draft the purchase agreement, advising you of protective contingencies, customary practices, and local regulations. Home warranty, title and escrow arrangements will be detailed in the offer. Although your Sales Associate will give you advice and information, it is your decision as to the exact price and terms that you wish to offer.
MANAGING THE ESCROW
When the purchase agreement is accepted and signed by all parties, Sherry Ramzi, Golden Gate Sotheby’s International Realty will open escrow for you and your earnest money will be deposited. The escrow company is a neutral third party that will receive, hold, and distribute all funds associated with your transaction.
INSPECTIONS & DISCLOSURES
Sherry can assist you in finding resources for inspections of all types as well as a company that can provide you with Natural Hazard Inspection Reports. The findings and reports can be reviewed by you as well as any disclosures or documents provided by the sellers or recommended for the transaction based on current real estate practices.
Prior to closing escrow, all contingencies of a Purchase Agreement must be met. Your Sales Associate will help you understand each contingency and will help coordinate this process.
When all conditions of the purchase agreement have been met, loan documents and closing papers can be signed. You will deposit the balance of down payments and closing costs to escrow and your lender will deposit the balance of the purchase price. Once these steps are complete, the deed can be released for recording. In the state of California, an escrow is considered “closed” on the date that the Grant Deed, transferring title from seller to buyer, is recorded at the County Hall of Records. When the deed is date-stamped and recorded and you will take ownership of the home.