Step 1. Pre- Approval

Obtain a pre-approval to determine your price range.  When obtaining a pre-approval, discuss with the loan officer the estimated % of down payment AND closing costs, and make sure you will have this money available to complete the purchase process, which normally takes 45 – 90 days.

Step 2. Prepare for your Closing Costs

Closing Costs consist of the following (there may be others):

• Attorney fees
• Mortgage application fees, points, and escrow points
• Home inspection, termite inspection, radon test, septic/well test
• Title search and survey
• Homeowner’s/property insurance

Step 3. Submit an offer with a $1,000 Initial deposit.

When you find the home you’d like to make an offer on, Bev and Bob will:

• Draw up a contract for you to sign.
• Review all disclosures with you and have you sign.
• Present your offer, a copy of your $1,000 initial deposit check (made out to the “Towne Realty Group Trust Account”), and a copy of your pre-approval.

If your offer is rejected or you cancel the contract before attorney review, the Initial deposit is refunded to you within 10 business days or it can be held in the Trust Account to use with your next offer. 

Step 4.  Choose an attorney

If your offer is accepted you will need to immediately get the contract to the attorney that represents you; there’s a three-business day minimum attorney review. Attorney representation normally costs between $700 – $1,000. We will provide a list of attorneys you can use, if you so choose.

Step 5.  Pay balance of down payment

Normally within 7-10 days after the attorney review period ends you will need to pay the balance of (or 50% of) your down payment to whatever account is decided upon during attorney review.

Your $1,000 Initial deposit is deducted from this amount.

Step 6. Begin your mortgage commitment application

Immediately after your attorney review period ends, schedule to meet with your loan officer to complete the mortgage application.  The various costs during this process should be explained in a good faith estimate from your mortgage company.

You will normally need at least the following to complete an application:

• Two (2) most recent pay stubs
• Two (2) current bank statements showing evidence of funds
• W2’s and tax returns for the previous two years
• IRS Tax returns (1040’s) , if self-employed
• Valid driver’s license
• Valid Social Security number and card

Step 7. Choose an Inspector

During attorney review, start interviewing for a home inspector. Choose an inspector to perform the necessary tests: general home inspection, termite, radon, lead paint, etc. It can cost between $400 – $900 for a general home inspection and termite inspection. A lead paint and oil tank inspection are extra charges. For names, check with your friends or online; and, of course Bob and I can also provide you a list. This is normally done within 5-14 days after the end of the attorney review. Review your inspection report with Bob and I, and your attorney to determine what you would like to negotiate with the seller to fix, replace or give credit towards. This is your next negotiation step.

Step 8. Obtain your mortgage commitment

You should obtain your mortgage commitment within 30-50 days of beginning the process.

 Step 9. Order title search and survey

The title search and survey is normally ordered by your attorney after your mortgage commitment is received.  It insures you are purchasing a property/home with a clear title. This can cost between $450 – $1,000.

Step 10.  Start to obtain insurance and find a moving company

Check with your auto insurance company or local insurance companies to obtain the appropriate homeowner’s insurance for your dwelling. Find a moving company. Each can cost between $500 – $1,500 or more, depending on how much you have to move. As usual, Bob and I can help.

Step 11.  Get ready to close

The initial closing date on the contract is always a target closing date. Do not give notice to a landlord until your lawyer can commit to a closing date or give 30 days past the date the lawyer gives you because things can happen. Your mortgage company will run another credit check a day or two before closing so do not make any large purchases until after you close.

Step 12.  Take care of all utilities

When you are sure about your closing date, call all the necessary utility companies, phone, gas/electric, etc.  Of course, Towne Realty Group can do all of this for you at no charge.

Final Step.

BEGIN YOUR NEW LIFE.

WHEW!

We did it!