So, it’s time to buy a house! Let Simple Title Closing and Escrow PLLC help you navigate the process.
1. Find a local Real Estate Agent familiar with the area you are interested in living in. This person is referred to as a Buyer’s Agent. The real estate commission for your Buyer’s Agent is usually paid for by the Seller. Simple Title works with real estate agents all over Massachusetts and can provide some referrals for you to contact.
2. Find a Lender to provide the financing for your purchase. It is best to work with the Lender before finding a house to find out the loan amount that you could afford, which will help you determine the purchase price that you can offer. You should be prepared to provide a Lender pre-approval with your Offer to show the Seller you have done your financial homework, giving the Seller a comfort level that you could afford to purchase the house. Simple Title works with a variety of Lenders from Banks, Mortgage Companies, Mortgage Brokers, Credit Unions, and Private Lending. Please contact us for some referrals.
3. Once you find a house that you are interested in, you will make a written Offer that will contain the purchase price, deposit amount to be paid with the Offer and the additional deposit to be paid with the Purchase and Sale Agreement, the date for completing a home inspection, the date for signing a Purchase and Sale Agreement, date for obtaining your financing commitment from your Lender and the amount of the loan, and the closing date. If the terms are all acceptable to the Seller, they will accept your offer. If not acceptable, the Seller may reject your Offer or accept some terms and counteroffer with other terms.
4. Once the offer is accepted, you will complete a home inspection on or before the deadline agreed to in the Offer. The usual inspection clause will allow you to terminate the agreement if you are not satisfied with the results of the inspection. In most cases, a Buyer will first ask the Seller to remedy major inspection items or provide a credit to the Buyer to remedy an issue after the Buyer closes.
5. If the parties are still moving forward after the inspection, the parties’ attorneys will negotiate a detailed agreement called the Purchase and Sale Agreement that contains the items agreed to in the Offer, plus more details and terms. It is common for the Attorney for the Lender and for the Buyer to be the same person.
6. The next deadline is the financing commitment. This is a document the Buyer/Borrower receives from their Lender stating they have been approved for their loan. It is important to have this in hand by the financing commitment date to protect your deposit. Be sure to read the commitment letter carefully as it may contain outstanding conditions that must be completed before closing in order for the lender to close the loan.
7. Before closing the Buyer is entitled to a walk-through of the premises to make sure it is being left in the condition agreed to in the Purchase and Sale Agreement.
8. The closing attorney will inform the Buyer as to the amount of money the Buyer needs for the closing. Most offices require those funds to be wired to the closing. Wire fraud is a major concern for real estate transactions. Never wire any funds unless you verbally confirm the received wire instructions by calling a known telephone number for your closing attorney.
9. Closing day in Massachusetts is usually done in person with the closing attorney. After signing the closing documents and the closing attorney has received funds from the Lender and the Buyer, the closing attorney will record the deed at the Registry of Deeds which transfers title to the property from the Seller to the Buyer. Let the moving begin !!
Buying a house is an exciting time! Please give Simple Title Closing and Escrow a call to find out how we can help with a smooth and stress-free transaction.