TIPS FOR BUYERS
• Find a Realtor and choose a neighborhood
• Choose a lender for pre approval. The lender will help you choose the right mortgage for you
• Review homes list with your Realtor and view selected homes
• Choose a home and make an offer. Your Realtor can help you make the right offer by reviewing recent solds in the area
• You will meet to write two checks to accompany the offer, one made out to the title company for the earnest money and one made out to the seller for the option period
• With your Realtors help, negotiate the terms of the contract
• The contract will be taken to the Title company when the terms are agreed upon by all parties
• Arrange for home inspection and pest inspection. It is a good idea to attend the inspection
• Negotiate any repairs, if needed arrange for home insurance
• You will receive a commitment of title insurance from the title company. Be sure to review this document. The title company can answer questions you may have about this document.
• You will receive the HUD closing statement right before closing. Be sure to review this document with your Realtor to make sure all of the charges are correct before closing
• The day of closing you will need to bring your license and a cashiers check for the amount on the closing statement.
• Congratulations! The house is yours and it's time to move in.
Common Closing Costs for Buyers
The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier's check. The title company or other entity conducting the closing will tell you the required amount for:
A Note About Prorations
Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.
What to Keep From Your Closing?
10 Things a Lender Needs From You
W-2 forms or business tax return forms if you're self-employed for the last two or three years for every person signing the loan.