Are you planning on buying a house in Auburn, AL and are wondering what to expect in the process?
The first step to take when buying a house in Auburn AL is to obtain a pre-approval letter from your mortgage lender. Once you have a pre-approval letter then you can start looking at houses to find the right one for you. After choosing a house and obtaining an accepted offer on it the below information will give you an idea of what to expect from contract to closing.
Contract to closing/An idea of what to expect
- CONTRACT-Write an offer. Get a counter, counter back, initial changes. Write an earnest money check. Agree to terms!
- INSPECTION-Schedule a home inspection
- LENDER– Make your choice between the lenders you have interviewed. Submit a loan application. Lock your rate. Don’t buy anything else big until after closing. No furniture, cars big trips, etc.
- CLOSING ATTORNEY/AGENT– Who is paying the closing costs? Custom is that whoever is paying the bulk of the closing costs chooses the closing attorney, but that is not a rule. Many lenders have much more stringent guidelines and require their representation. Many builders require the use of their legal counsel. Whoever is selected, make sure they are selected as soon as possible.
- INSPECTION– Many good inspectors in the area. If you can attend the tail end of an inspection it is a good idea. If not, make sure your inspector has the capability to take pictures of what they see. Note: You can back out of a contract based upon inspection, or negotiate repairs based of what the inspector finds. However, do it quickly. Legally you have 48 hours from when you received your inspection to notify the seller in writing what your intentions are. Don’t wait that long. Notify them as quickly as possible.
- LENDER– Confirm you locked your rate. Find out when the appraisal is scheduled for.
- INSURANCE– Choose your home insurer and policies.
- APPRAISAL– Assuming the property appraised for contract price or higher, we have cleared the biggest hurdles to get to the closing table! Not quite done yet though.
- LENDER– Ask them what else they need from you. Ask them if you will close on time. Ask them when you will have the exact amount you need to bring to closing. Often they ask you for more documentation late in the process. Don’t be surprised by this.
- FINAL WALK THROUGH– Check to make sure the property is in the same condition it was when you purchased it, and your inspection requests have been addressed. Don’t be surprised if the home is not to your standard of cleanliness. Everyone’s opinion of what is “clean” is different. Also they are trying to move out and often run out of time before they can properly clean.
- CERTIFIED FUNDS– Make sure once you get a final amount to get certified funds. Closing attorneys will not take personal checks. However if you miss by a little they will refund you, or if you have to write a personal check for a few dollars more that usually is not a problem.
- OWNERS TITLE INSURANCE– If you are getting a loan, you are purchasing title insurance for your lender. Do you want to purchase title insurance for your portion of the equity? Many people do, but the Closing Attorney makes money off of you purchasing owners title insurance so it is worth educating yourself on that decision before you get to closing.
- PROPERTY TAXES– Property taxes are paid in arrears. The property tax year starts Oct. 1. So when you close the seller will pay you for the portion of the year they owned the property. Then you will be responsible for the full years balance at the end of the tax year.
CLOSING– You made it! Lots of paperwork lots of signing your name. Bring your ID and your certified funds. The person handling the closing will be there to explain the documents you are signing. If you plan on reading everything you are more than welcome, but make arrangements to do so ahead of time.
For all of your real estate needs in the Auburn-Opelika area please contact me at (334) 332-7263 or email me at LauraSellers01@Gmail.com or visit my website. I look forward to helping you buy the home of your dreams or sell your existing home. Search for Auburn homes for sale or Search for Opelika homes for sale here.