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Let Us Show You Home |
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PREA Signature Realty |
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A Full Service Real Estate Brokerage |
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Info Line: 314.621.5777 Brokerage: 314.397.3182 Display: 314.771.7171 MSilies@PREASignatureRealty.com
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1709 Park Avenue, St. Louis, Missouri 63104 |
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NAVIGATE OUR WEBSITE |
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Prea Signature Realty—Your Real Estate Partner in St. Louis, Missouri |
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At PREA Signature Realty, we strive to educate and inform our purchasers regarding the sales process and then guide them through the process so that they have a smooth closing. Here are the steps in the home purchase process:
STEP 1 — PREPARE FOR HOME OWNERSHIP. Before you start searching for homes, prepare for home ownership. Use a financial calculator to compare renting to home ownership. Prepare a monthly budget to determine what you can afford to pay on an on-going monthly basis. Save funds for down payment and closing costs. If you are a first-time homebuyer, adjust your withholding allowances to take advantage of the Federal First-Time Homebuyer Tax Credit.
STEP 2 — RESEARCH HOMES. Identify the minimum criteria for your home search including price range, housing type, housing style, number of bedrooms, number of bathrooms, square footage of living area, home features, lot size, parking, amenities and other criteria. Tour neighborhoods to narrow your search by geographic area. Search for homes on local multiple listing service, Realtor.com, and other internet websites.
STEP 3 — SELECT BUYER’S AGENT. Interview buyer’s agents. Employ buyer’s agent to represent you in the transaction.
STEP 4 — SELECT LENDER. Obtain referrals for lenders. Interview three lenders using written criteria for selection. Obtain interest rate quotation and good faith estimates from the lenders. Obtain a copy of your credit report. Address any negative items on your credit report. Use loan calculators to determine monthly principal and interest payments at current interest rates. Submit written loan application. Secure prequalification and/or preapproval letters from lender. Select a loan product. Lock-in interest rate, if appropriate. Review other loan programs such as local and state first-time homebuyer programs, local and state down payment and closing cost assistance programs, federal first-time homebuyer tax credit and corporate housing assistance programs.
STEP 5 — TOUR HOMES. Before you tour homes, meet with your buyer’s agent to review your housing criteria. Request your buyer’s agent to preview the homes prior to your tour. After your buyer’s agent has selected homes for a tour, review the MLS reports and view photographs and virtual tours of the selected homes. Narrow search to homes that meet your minimum criteria. Tour homes. Select a home for purchase.
STEP 6 — REVIEW THE SELLER’S DISCLOSURE STATEMENTS. Review seller’s disclosure statements. Look for inconsistencies between seller’s disclosure statement and observation made during your tour of the property. Request supporting documentation or written clarification of items of concern.
STEP 7 — NEGOTIATE PURCHASE OFFER. Obtain comparable sales data from your buyer’s agent to determine a range for a reasonable offer based on actual market data. Do not rely on national reports. Although it is a buyer’s market, local markets do not necessarily reflect national price trends. After reviewing the comparable sales dates, determine your offer price. Prepare and submit written offer for the purchase of your new home. Do not get emotionally attached to the home. It is a financial investment and should be based on considerations including price appreciation and future resale. When submitting the initial offer, attach the preapproval letter from your lender. If you are using a non-standard sales contract, submit for attorney review. If the initial offer is rejected or a counteroffer is made, review the counteroffer with your buyer’s agent and reply to the counteroffer. Docket deadlines for all contingency periods and other deadlines set forth in the sale contract.
STEP 8 — MAKE EARNEST MONEY DEPOSIT. Upon submission of the initial offer or upon acceptance of sales contract, deposit the earnest money with the listing agent’s brokerage, selling agent’s brokerage or the title company retained by you to close the sales transaction. If there earnest money is over $2,500 or if there is a short closing date (less than 10 days), use certified funds such as cashier’s check for deposit.
STEP 9 — SELECT TITLE COMPANY AND ORDER TITLE SEARCH. Before selecting a title company, obtain price quotation from three reputable title agencies. Identify the title insurance company used by the title agencies. Review the A.M. Best ratings for each title insurance company. Select the title agency to close the sales transaction and submit a written title order. Obtain the contact information for the processor and closer at the title agency and provide this information to your lender and insurance agent for your property insurance. Also, provide the contact information for your loan officer and loan processor and the contact information for your insurance agent to the processor at the title agency.
STEP 10 — SATISFY LENDER REQUIREMENTS AND ORDER APPRAISAL. The underwriter may request additional information such as tax returns, proof of funds, income verification, employment verification, etc. For each requirement, promptly obtain and submit the requested information. After your loan application is submitted, do not make any changes in your financial circumstances such obtaining new lines of credit or purchase major items such as an automobile as these changes may impact the approval of your loan. Obtain verification that lender has ordered appraisal. After the appraisal has been received by the lender, request a copy of the appraisal report. Upon receipt of items requested by the loan officer and the appraisal report, the loan officer will submit the loan to the lender’s underwriting department. Upon approval of loan, request the issuance of a written loan commitment or other documentation indicating unconditional loan approval. If the loan has not been formally approved, request an extension of the financing contingency deadline. If the loan is denied, request a written statement from the lender setting forth the reasons for the denial. Submit a copy of the written statement to the seller with written notice terminating the sales contract or, in the alternative, request an extension of the financing contingency to submit an application with a new lender.
STEP 11 — APPROVE SELLER’S DISCLOSURES. If you submitted an offer prior to receiving the seller’s disclosures and if your offer was contingent upon receipt and review of the seller’s disclosures, obtain a copy of the seller’s disclosure. Review the seller’s disclosures requesting and request supporting documentation or written explanations for items of concern.
STEP 12 — SECURE HOMEOWNER’S INSURANCE. Contact your insurance agent and request a binder for homeowner’s insurance on the property. If there are prior property insurance claims associated with the property, it may be more difficult to obtain insurance so it is important to request the binder early in the process. Review your coverages with your insurance agent.
STEP 13 — SELECT BUILDING INSPECTOR, CONDUCT BUILDING INSPECTION, AND NEGOTIATE REPAIRS. Obtain referrals for building inspectors. Interview the building inspectors using set criteria. Obtain verification as to what is and is not included in inspection. If items of concern are not covered by inspection, consider using alternate building inspector or other professional to inspect these items. Provide copy of seller’s disclosure to building inspector. Attend building inspection asking questions regarding items of concern. Obtain a copy of the building inspection report. Request repairs and/or negotiate price reductions based on costs of repairs. If repairs are to be made, verify that the repairs have been made by reputable contract, secure proof of payment and/or obtain lien waivers, obtain copy of warranty for repairs and, if appropriate, request the building inspector to review the adequacy of the repairs.
STEP 14 — REVIEW TITLE COMMITMENT AND REMOVE CONTINGENCIES. Review the title commitment. For any exception, request copies of the underlying documents or the removal of the exception. If appropriate, formally remove all contingencies that have been satisfied such as attorney review, review of seller’s disclosure statement, financing, building exception, etc. If contingencies have not been satisfied, request extension of deadlines or provide written notice of termination of the sales contract.
STEP 15 — PERFORM PRE-CLOSING INSPECTION. Immediately prior to closing, perform a pre-closing inspection of the property. The purpose of the inspection is to insure that there are no changes in the condition of the property from the initial building inspection through the date of closing.
STEP 16 — REVIEW SETTLEMENT STATEMENT. Prior to closing, obtain and review a copy of the closing and settlement statement. Review the charges to buyer under the terms of the sales contract. Compare the lender charges on the settlement statement to the good faith estimate. Determine the funds necessary to close. Obtain certified funds for the amount due at closing and deposit the funds with the title agency by cashier’s check or wire transfer.
STEP 17 — ATTEND CLOSING AND SIGN LOAN DOCUMENTS. At the closing, review the closing and settlement statement then the loan documents. If the lender is using standard Fannie Mae forms, these forms cannot be written or changed—except to correct errors in the terms of the loan such as interest rate, monthly payments, escrows, prepayment penalty, etc. Sign loan and related closing documents. Obtain keys, appliance manuals and related warranties.
STEP 18 — POST CLOSING ITEMS. Change locks to the home. Order and transfer utilities. Obtain copy of recorded deed and deed of trust, signed loan documents and signed settlement statement.
The actual steps in the sales process will vary based on the nature of the sales transaction and the specific property. The purpose of this page is to provide a brief overview of the sales process. With adequate planning addressing these items, you will have a smooth, problem-free closing.
If you are in the market to purchase a new home, we would like the opportunity to represent you. For more information, contact Michelle Silies via telephone at 314.397.3182 or via e-mail to MSilies@PREASignatureRealty.com to schedule a free consultation. |
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THE HOME BUYING PROCESS |
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EXCLUSIVE BUYER’S AGENT
Our exclusive buyer’s agents stand ready to assist you with your home purchase. We use a four step process to assist you with your home search before you even see the first home.
Step 1—Perform housing preference survey.
Step 2—Preliminary search and online review with customer.
Step 3—Preview homes prior to first showing with customer.
Step 4—Obtain preapproval from lender.
To schedule a FREE consultation with an exclusive buyer’s agent, contact:
Michelle Silies PREA Signature Realty 314.397.3182 |
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BUYER RESOURCE CENTER
Let Us Show You Home!
Neighborhood & Local Market Reports MLS Access and Automated Search Assistance Preview Tours and Showings Loan Pre-Qualification & Pre-Approvals Staff Attorneys & Experienced Contract Negotiators First-Time Home Buyer, Corporate Housing & Other Programs Referrals to Qualified Lenders, Building Inspectors & Title Agents
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