DRC Texas - Diversified Realty Consultants, LLC
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The Home Buying Process with Your Hometown Brokerage

The Home Buying Process with Your Hometown Brokerage
September 13, 2016 Haley Page
  • STEP#1: Choose one of our DRC agents as your Realtor® at no cost to you!Buyer Representation for FREE!  Your DRC agent is ready to help you find your dream home!  As your hometown brokerage, DRC has the best agents in Texas!
  • STEP#2: Get Pre-Approved. Unless you are a cash buyer, you will need a lender.  Getting pre-approved is the best way to determine the type of financing, property and sales price your search will start with.  You can choose any lender you wish, but if you need, Your DRC agent will be happy to help you find the right lender.
  • STEP#3: Narrow Your How many bedrooms and baths do you need? What area would you like to be in? Do you need acreage? Your DRC agent will set up a personalized search based on the information you provide. “The Portal” will send you homes that fit your criteria as soon as they hit the market, so you’ll always be in the know!
  • STEP#4: Find the Perfect House & Submit an Offer. After determining the amount you’d like to buy the property for, Your DRC agent will submit a written offer on your behalf to the listing agent.   Don’t worry – Your DRC agent will go through the process with you step by step.   Here are a few expenses that will be addressed along with the sales price.
    • Earnest Money This is “good faith” money to show the seller you are serious about the offer.  This is typically 1% of the sales price and will be made payable to the title company at the time the offer is accepted.
    • Title Policy and Survey – These costs are negotiable by contract to be a buyer expense or a seller expense at closing.  Title policy costs are determined by the state.  Your DRC agent will be able to tell you what the expected costs are based on the sales price.  Additionally, there are some optional coverages available by the title companies.  Sometimes the seller has an existing survey, sometimes they don’t.  This is also a negotiable cost. Sometimes the cost can be deferred to be paid at closing by the buyer or seller, as determined by contract.   Your Lender will require a title policy and an accurate survey.
    • Residential Service Contract – Another negotiable item, is to ask the seller to pay a portion, if not all, of the cost for a Home Warranty.   You will get to choose the company and coverage you’d like closer to closing time.
    • Settlement & Other Expenses – This is what is often time referred to as “Closing Costs”.  If you need assistance with closing costs, Your DRC agent will work with you and your lender to determine the amount that should be asked for with the offer.
    • Option Fee – $100-$400 paid directly to the seller at the time the offer is accepted.  This buys you an “Option Period”, Your DRC agent typically asks for 7-10 days.  This gives you “an unrestricted right to terminate” to protect your earnest money and allows you time for inspections, and repair negotiations, if necessary.  Or if you simply change your mind.
  • STEP#5: Acceptance of Offer. Earnest money and Option money will need to be delivered to title and listing agent/seller.  Your DRC agent will coordinate with you the best way to do this.
  • STEP#6: Inspections. During your option period you will need to order a home inspection.  A typical home inspection can run from $400-$700 and up depending on the size and type of home.  This cost is completely separate from the contract and will be due at the time of the inspection.  Your DRC agent has a list of home inspection companies to choose from if you need.  All inspections reveal items that need repair.  Your DRC agent will negotiate any repairs you request as necessary.
  • STEP#7: Title Commitment. This policy insures a clear title to the property.  When the title company sends the preliminary Title Commitment Policy, Your DRC agent will review it with you and get answers to any questions you may have. You will get an A-B-C-D explanation of the Title Commitment to assist you in the review process.
  • STEP#8: Finalize Your Loan. Your lender will need to finalize your credit approval, order the appraisal, send file to underwriting for file approval and issue the magic words “Clear to close”.    The appraisal is typically a direct cost to you that is due at the time it is ordered.  It is not credited at closing and is non-refundable.
  • STEP#9: Pre-Closing. 7-10 days before closing you will need to:
    • Home Warranty – If you are getting a warranty, the title company will need to know what company you have chosen and what plan.
    • Utilities – Don’t forget to schedule utilities to be turned on at the new property.  UtilityConcierge.com is a free service that can assist you with this step.
    • Change of Address – Make sure you notify friends, family, employers, creditors, banks and other relevant people that you are moving.  Don’t forget to update your driver license as well.
    • Schedule your closing time – Let Your DRC agent know the best time of day for you to be at closing. It is best to try for earlier in the day, in the event of any delays, you want to allow plenty of time for all parties to process the signed documents so that the lender can fund the loan.
  • STEP#10: CLOSING. About 3 days before your closing you should have the finalized Closing Disclosure from your lender.  Your DRC agent will review the Closing Disclosure with you.  This will give you the “Cash to Close” amount.  You will need to make arrangements to have your portion sent to the title company via wire transfer, or you will need to bring a cashier’s check to closing.   All parties on the contract
  • STEP#11: Recommend Your DRC agent Askew and The Moss Team at Diversified Realty Consultants! Write a 5-Star review on Zillow for Your DRC agent.  Everyone at DRC works hard for their clients, all we ask in return is good reviews & recommendations!