About the Buying Process

The buying process can be rather confusing, if one isn't using the services of a Real Estate Agent. As an Agent, I like my customers to be as informed as possible of what is happening, that way there is no confusion, and no anxiety for my clients. While the order and specifics of the buying process may vary from situation to situation, a rough sketch of the process is shown here:

	1) Prequalification - Your Agent will most likely ask you what amount you are pre-qualified to purchase for your home. If you have not yet met with a lender, your Agent can certainly refer you to one that he or she uses. This will help determine how much home you can afford to purchase. This way, you won't waste your time finding that perfect home, only to discover that it is not within your price range.
	2) Shopping - This is the fun part! You and your Agent will discover together what it is that makes the perfect home for you, and then do your best to find it. You will go look at houses, most likely over the course of several weeks, to find a home that is to your liking.
	3) The "Purchase Offer" - Here is where you actually sit down to write an offer with your Agent to purchase a home. You will need to know things like: how much you plan to offer, what are you willing to pay for (escrow fees, title insurance, etc), and what extra, if anything, you want included with the house (does the hot tub in the backyard stay or go?)
	4) Counteroffers - Frequently a seller may not agree to all of the terms as proposed by the buyer. Perhaps they want to keep something that the buyer has suggested to stay (what about the satellite dish on the roof?). Maybe they want a higher price. Whatever terms the seller wants to change, they will propose in the "counteroffer". This may go back and forth for several times, until agreement is reached. At that point, escrow can be opened.
	5) Escrow - Escrow is a third party, commissioned by a contract, to perform a set of specified actions. They are responsible for handling the funds deposited until the contract is complete. They are compelled to have everything in writing, and to do only what is specified in the contract you have signed, nothing more and nothing less. They help to insure that the terms of the contract are met, as a neutral party.
	6) Disclosures - According to the law, certain sets of disclosures need to be made by the Seller. While these may vary from region to region, there is normally a core set required to insure the legality of the transaction. Your Agent will be familiar with these and can help you through this maze of paperwork.
	7) Physical Inspection - You, as a buyer, have a right to enter and make inspections on the home you are purchasing. Most lenders will require a "physical inspection", performed by a professional, to insure that there is nothing wrong with the home before they will issue a loan. Your Agent will help you to set this up.
	8) Termite Inspection - Lenders will also require a termite inspection, to insure that there is no termite damage, and that if there is any, that it is dealt with before escrow closes. Again, your Agent will help with this.
	9) Request for Repairs - If there are any repairs to be done on the home (possibly found as the result of the Physical Inspection), then your Agent will help you with the appropriate forms to legally request for the repairs to be performed by the seller. At this point the seller can agree to all, none, or some of the repairs. You must decide if you are willing to accept what they offer to repair or not.
	10) Appraisal - Your lender will most likely want an appraisal on the property. This is to insure that the property is actually worth what is being offered. You do not need to be present for this process.
	11) Loan Funding - Once all conditions are met, disclosures are signed, and the lender is satisfied that this is a deal worth their investment, you will sign forms agreeing to pay back the loan that is being given to you (called "drawing loan docs"). The lender will then deposit the funds into escrow.
	12) Disbursement and Closing - Now that all of the conditions have been met, the escrow company will "close escrow". This means, in effect, that they will give all of the monies to the persons who are to receive them (such as the seller), and file the appropriate paperwork with the County Recorder's Office to officially change ownership of the home to your name (called "recording"). After that, you receive a key, and the home is now officially yours.

The home buying process can be exhilarating and exhausting at the same time. Hopefully this information will give you some general insight into this process. Should you have further questions, or would like more information about how I can be of service to you as an Agent, please do not hesitate to contact me for more information.

Jane Scrima
Stirling International Realty
201 E. Central Boulevard
Orlando, FL 32801
Phone:
407.581.5550
Cell Phone:
407.718.3358
Fax:
407.581.5551

jscrima@stirlingrealty.com