The Process of buying Real Estate in Big Bear
by Becki Wheeler
January 2012
So, you want to buy a home. Where do you get started? Do you look first? Do you speak to a lender first? What do you do and what is the process?
Over the past 10 years the real estate industry has changed dramatically. When a buyer asks me the above questions, I first have to ask, will you be buying with cash or a loan? If you will be buying with a loan, but you have some cash for a down payment then speaking to a local lender would be the first place to start. In Big Bear, I recommend using a local lender because they are familiar with the different things that can happen during the loan process with buying a second home or investment property. The lender will have to pull your credit and look at your debt to income ratio. If all goes well, then the lender will give you a preapproval letter with an amount that they will lend you and that is what you will need to proceed with purchasing a home.
Once you get preapproved, you can start looking for a home in the price range that you have been preapproved for. If you choose a great agent like myself, your agent can help you by sending you homes that meet the criteria that you are looking for. Your agent can also go look at the homes for you and answer any questions you may have. When you find homes you like and are ready to come to Big Bear to take a look, then you make an appointment to look at property with your agent. When you find the perfect home for you, your agent will write an offer on the home with the terms you and your lender specify. Unless you offer full price for the home, there could be negotiating. Expect at least 3 days between each negotiation before a final price is agreed upon between both buyer and seller. If your offer is accepted then escrow is opened. Typically escrow isn't opened until all parties have signed the purchase agreement and any counter offers.
This is the process after escrow is opened:
1) Send in good faith deposit or have agent give it to escrow within 3 days of opening escrow.
2) Your agent will gather all the seller disclosures for you to sign, order any inspections agreed upon and make sure you get the Preliminary Title Report and Natural Hazard Disclosure Report to review within 17 days of accepted offer. If this is a bank owned property, you will have a 10 day inspection period instead of 17 days.
3) Your lender orders an appraisal
4) Escrow sends you Escrow Instructions to sign and send back.
5) If the appraisal comes in at or above offer price then we have the green light and the ball is in your lenders court to get all his or her paperwork to the underwriter for final loan approval. You may need to provide documentation your lender needs during this process.
6) 5 days prior to close of escrow you have the option to do a final walkthrough. We recommend a final walkthrough so you can be sure the property is in the same condition as it was when you made the offer or that repairs have been made that were promised.
7) 3 days prior to close of escrow Contact utility companies and start the process of applications to get utilities transferred to your name.
8) Escrow closes and the agents get all keys to you. Contact the utility companies and notify them of escrow closing.
With any sale, there could be bumps in the road. With a great agent and lender, those bumps can be handled with as little stress to you as possible and you will be enjoying your new home in no time! Be prepared to keep in touch with your agent :) We love referrals!
If you are ready to buy now, give me a call!
January 2012
So, you want to buy a home. Where do you get started? Do you look first? Do you speak to a lender first? What do you do and what is the process?
Over the past 10 years the real estate industry has changed dramatically. When a buyer asks me the above questions, I first have to ask, will you be buying with cash or a loan? If you will be buying with a loan, but you have some cash for a down payment then speaking to a local lender would be the first place to start. In Big Bear, I recommend using a local lender because they are familiar with the different things that can happen during the loan process with buying a second home or investment property. The lender will have to pull your credit and look at your debt to income ratio. If all goes well, then the lender will give you a preapproval letter with an amount that they will lend you and that is what you will need to proceed with purchasing a home.
Once you get preapproved, you can start looking for a home in the price range that you have been preapproved for. If you choose a great agent like myself, your agent can help you by sending you homes that meet the criteria that you are looking for. Your agent can also go look at the homes for you and answer any questions you may have. When you find homes you like and are ready to come to Big Bear to take a look, then you make an appointment to look at property with your agent. When you find the perfect home for you, your agent will write an offer on the home with the terms you and your lender specify. Unless you offer full price for the home, there could be negotiating. Expect at least 3 days between each negotiation before a final price is agreed upon between both buyer and seller. If your offer is accepted then escrow is opened. Typically escrow isn't opened until all parties have signed the purchase agreement and any counter offers.
This is the process after escrow is opened:
1) Send in good faith deposit or have agent give it to escrow within 3 days of opening escrow.
2) Your agent will gather all the seller disclosures for you to sign, order any inspections agreed upon and make sure you get the Preliminary Title Report and Natural Hazard Disclosure Report to review within 17 days of accepted offer. If this is a bank owned property, you will have a 10 day inspection period instead of 17 days.
3) Your lender orders an appraisal
4) Escrow sends you Escrow Instructions to sign and send back.
5) If the appraisal comes in at or above offer price then we have the green light and the ball is in your lenders court to get all his or her paperwork to the underwriter for final loan approval. You may need to provide documentation your lender needs during this process.
6) 5 days prior to close of escrow you have the option to do a final walkthrough. We recommend a final walkthrough so you can be sure the property is in the same condition as it was when you made the offer or that repairs have been made that were promised.
7) 3 days prior to close of escrow Contact utility companies and start the process of applications to get utilities transferred to your name.
8) Escrow closes and the agents get all keys to you. Contact the utility companies and notify them of escrow closing.
With any sale, there could be bumps in the road. With a great agent and lender, those bumps can be handled with as little stress to you as possible and you will be enjoying your new home in no time! Be prepared to keep in touch with your agent :) We love referrals!
If you are ready to buy now, give me a call!
