Residential Home Buying Process
Purchasing a home in California can be a stressful process for the buyer and seller’s, bringing a mixture of emotions – excitement, nervousness, and uncertainty. We know, because we have helped many just like you to purchase a home. The key is to understand the basic steps in the home buying process. Our site is designed to help you know exactly what to expect. With RICODEAL’s help, before you know it, you will be holding the keys to your new home!
Loan Calculators – Our loan calculators are a great place to start when you are considering purchasing a home. These calculators are designed to help you determine if purchasing a home is the right financial decision for you and your family. Once you are comfortable with your analysis, the following steps will guide you to realizing home ownership:
Get Pre-approved – Before you begin your home search, you will want to get pre-approved. In the pre-approval process you will work with a Mortgage broker or Loan Originators to review your income, assets and credit worthiness. They will pre-underwrite the proposed loan and determine exactly how much home you can afford. You will receive a preapproval letter to submit with all purchase contracts.
Select a Professional – A real estate agent helps you find a home, negotiate a successful offer and generally represents your interests throughout the real estate sales process. An agent with good knowledge of the area you wish to purchase in is ideal.
Make Offers – Your real estate agent will make offers to purchase the properties that meet your requirements. The preapproval letter will convey to the seller of these properties that you are a qualified buyer who is able to perform on the proposed contract
Accepted Offers – When you have one of your offers accepted, you will receive a signed purchase agreement from the seller.
Loan Processing and Final Approval – Once you have made an offer on a home and the seller accepts it, your loan will go into the “processing and final underwriting” stages. Here, with the help of your real estate agent, you will supply the purchase contract and title company information for the transaction.
Contingency Period – The contingency period allows you time in contract to collect more information without forfeiting your deposit. The time frame ranges from between 10 to 18 calendar days and is typical in most purchase contracts. During this period, your real estate agent will help you:
- Review and approve the Seller’s Real Estate Transfer Disclosure Statement
- Review and approve the Preliminary Title Report
- Contract for physical inspections
- Order, review, and approve requested or required inspections
Signing Documents – The escrow agent will call you when the documents are ready to sign and appointments are available. The signing process requires both the buyer and seller to sign separate packages. The escrow agent should guide you smoothly through this process. You will receive copies of all the documents you sign from the escrow company. You are almost done.
Funding – The escrow company will send your signed loan documents, along with any other outstanding loan condition documentation, complete a final review
Close of Escrow – Once the escrow company verifies receipt of the funds, they will arrange for all documents to transfer title.
