Orchestrates the stressful time, from contract to close.
The right house is only half the battle when you are buying a home. Before you start, your real estate agent should walk you through the whole process. After you get an accepted contract, because your real estate agent was able to construct a standout offer, you will then have an inspection, followed by repair request negotiations, then your loan officer will order an appraisal, and then waiting and waiting and waiting on the clear to close from your loan officer.
The first thing you will do after you are accepted is set up an inspection. When you are buying a home, you will negotiate an inspection period, typically for 10-15 days from the time you get an accepted contract. Your real estate agent will have several recommendations for you, regarding the provider they trust to inspect your home. You are always free to choose your own, and your real estate agent should not push – only offer. Remember, a good real estate agent will have great relationships with inspectors. NEVER buy a home without an inspection, and anyone who tells you different is someone to run from.
Once the inspection is complete, it is up to you and your real estate agent to develop a repair request. Trusting your real estate agent makes this part easy.
Two things to remember:
1. Anything can be repaired.
2. No house is perfect.
Your realtor should never push you into something you do not want but they must also manage your expectations. If there is foundation damage and the seller is refusing to repair it, thats one thing. If you don’t like the color of the light switch, thats another.
The appraisal is done after you and the selling party have agreed on repairs. The appraisal is done by a third party that is hired by the bank to ensure the purchase price of the home is comparable to the market value. If you are paying cash for a home, you may waive the right to an appraisal but if you are financing, whomever grants your loan will require this. Appraisal values are based on recent homes sold and the condition of the property.
Clear to Close
The last step is getting your loan clear to close. Your real estate agent will tell you this is the time to be on top of your game in regard to your loan. The loan officer will work hand and hand with your real estate agent to get everything in your loan file squared away. The loan officer will probably ask you for pay stubs, taxes, etc. and the quicker you deliver the items, the quicker you will close your house. The experience level of your real estate agent, during this process is worth millions but if they are good, you will probably never know about it. Returning to a previous point of having a local trust loan officer is important. I can cite a recent example when a loan officer had to inform a real estate agent their client was in jail. The particular agent called in a favor to a judge to go to the jail and get a document signed. Not sure the same would have happened with a big change mortgage company and a new agent. Having a lender in the Louisville and an Agent who has strong relations with lenders, inspectors, and closing companies (and maybe a judge) is very important to keeping your deal on track.