The Process, Step-by-Step
Documents needed for the Mortgage Money Search:
- Financial statements
- Bank accounts
- Credit cards
- Auto loans
- Recent pay stubs or W-2
- Tax returns for two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Get Qualified for your Mortgage.
Best advice is, obtain a Qualification letter from a reliable lender. Many are available; pick one that suits your needs. It is important to choose local lenders because sometimes many problems arise before closing ,its much easier to correct them when the person processing your loan is local. With this letter attached to your Offer to Purchase, you are transmitting a message to the Seller that you will be approved for monies to buy their property.
Now you have, almost the same negotiating power as the Cash Buyer.
Be Careful With Your Finances.
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.
Choosing a Gordon & Long Real Estate agent.
Buying Property may be one of your largest purchases. We can guide you through this process, and also provide you with access to property listings thru-out Luzerne, Wyoming & Columbia Counties.
We would like to be your Buyers Agent!
Here are some reasons Why you should choose our agents:
- We will be available for you anytime by Mobile phone or Email, (we don’t ignore calls or transfer you to voice mail before you have a chance to speak) We try to work on your time schedule.
- We are all licensed Real Estate Agents, State of Pennsylvania and members of the local Multi-List system, Pa Association of Realtors and National Association of Realtors.
- We would like to represent you exclusively for any property For Sale, that interest you, no matter which real estate company is on the sign. Your advantage is the agent represents only You at the showing, presenting offers and negotiating price and details of the contract.
- We are paid a commission by the seller on the closing day as a shared agreement with Realtors statewide. This is a Win-Win position for everyone.
The Initial Agreement of Sale.
Offer to Purchase agreement is a legal document between a potential purchaser and the property’s seller.
With your interest in mind we will complete an agreement following your instructions and explain every page and answer all questions. An Earnest Money Deposit is needed (so bring your check book) agents don’t like cash for security reasons, plus the lender most likely needs a copy of the canceled deposit check for processing of your loan. We will complete an estimate of your costs you will need to complete the sale. Your signed contract will be submitted to the Seller or Seller’s agent for approval or counter-offers from the Seller.
Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within the timeframe that was agreed upon in the effective contract to purchase. You may elect to have different inspectors inspect the property, if you wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). If you are purchasing a commercial property, then you will need to have an environmental audit done on the site for the lending institution. We can recommend several different inspectors.
Depending on the outcome of these inspections, one of two things may happen:
- Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close, or
- The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
Appraisal and Lending.
It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.
If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.
- Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
- Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.
We will be happy to recommend experienced knowledgeable insurance agents for every property type.
Some important tips to keep in mind to streamline the process:
- Keep written records of everything. For the sake of clarity, it will be extremely useful to transcribe all verbal agreements including counter-offers and addendums and to convert them into written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
- During the process we will keep you constantly updated, so you will always be prepared for the next step.
The Closing Title Agent.
Either a title company or an attorney will be selected as a closing agent. (we can suggest reliable companies) The closing agent will research the complete recorded history of the property to ensure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities such as building or driveway restrictions. There may be recorded easements and encroachments, which limit the rights to use your property.
How to Hold Title.
You may wish to consult an attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.
We will provide a list of useful numbers for the activation of home services and utilities after the closing occurs.
We are ready to assist you should an unforeseen glitch pop up, even at this last stage. Something at the property breaks down, or some other minor detail – no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manor.
If you have come this far, then this means that it is almost time for a congratulations, but not yet. Do not forget to tie up these loose ends:
More of a formality than anything else, the final inspection takes place a day before, or the day of the closing. You will visit the property to verify that all is in working order, everything is the same as when you last viewed the property, that there are no extra items left behind, and that everything included in your purchase is still at the property.
The closing agent will furnish all parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. You and the seller(s) will sign this statement, as well as the closing agent, certifying its accuracy. If you are unable to attend the scheduled closing, arrangements can be made depending on the circumstances and the notice that we receive. If you are bringing funds to the transaction, you can elect to either have the funds wired electronically into the closing agent’s escrow account, or bring a certified bank check to the closing in the amount specified on the settlement statement. The seller should arrange to have all property keys and any other important information for you at the closing so that you may receive these items at this time.
Happy House Hunting