If you need to learn a little more about the nitty gritty of your real estate case, read this and contact our Buffalo attorneys today.
What You Need to Remember Before Entering into a Real Estate Contract
Entering a contract as the purchaser means you are making an offer to purchase a piece of property.- You’ll execute a real estate contract that sets a price and lists any contingencies to your offer and then present it to the seller as an offer.
- Once the seller gets that offer, they can reject it outright, accept your offer as-is – thereby creating a binding contract, or offer you a counter proposal. If the buyer accepts that counter proposal, it then becomes a binding contract.
The First Steps to Purchasing a Home
- As soon as you decide to purchase a home, reach out to a lender and obtain a preapproval or prequalification letter. The lender will perform a cursory analysis of your finances and draft a letter which generally states that you qualify for a mortgage up to a certain dollar amount. When you are ready to make an offer on a specific home, you will use that document to offer the seller a certain level of security that you’re able to afford that home.
- After you get your prequalification letter, you should ask the loan officer about the additional documents you’ll need to complete the application process and when you should get those documents to your lender.
- Next, select a realtor with whom you feel comfortable to assist you in viewing various homes, choosing a home on which to make an offer, and preparation of a real estate purchase contract on your behalf – at a price with which you are comfortable, and tendering that offer to the seller’s listing agent.
- Once you have entered into a contract, you will retain a real estate lawyer to assist you in completing the transaction. The attorney should speak with you about the details of your transaction and your needs, gather information about where you’re presently residing and whether you need to meet any specific deadlines for vacating those premises – and just make sure to protect you throughout the transaction. He will examine the property’s title, all sale documents, and all lender documents on your behalf, and then attend the closing with you to complete the real estate transaction.
The Mortgage Application Process
- As soon as a home inspection is conducted and the rider is executed, a property inspection addendum is completed. That is when the buyer can officially apply for their loan.
- Traditionally, the contract for sale and purchase specifies a number of days after completion of the required home inspection within which the buyer must apply for the loan – often, five days after the home inspection is satisfied.
- The buyer should immediately bring the application and any supporting documents to the loan officer.
The Mortgage Commitment Stage
- A mortgage commitment stage is a preliminary stage that follows the application and initial review by the bank through which they promise to lend you money under certain conditions, including a commitment to provide your financial information to the lender.
- The appraisal may still be outstanding– and that appraisal must be satisfactory. It will require proof that the seller is tendering a clear title to the buyer.
- The commitment letter, signed by the buyer, is sent back to the bank as a contract between the buyer and the bank.
Ready to Sell Your House? Here’s What You Need to Know
- When you consider selling your house, the first and foremost, thing to do is select a realtor with whom you are comfortable and discuss the necessary steps to begin the process.
- That realtor will gather information about recent comparable sales for you to consider as you and the realtor set an appropriate price at which to list your house.
- You should gather such important legal documents as the title search, survey, tax receipts, and mortgage statement you may have. Assemble a year’s worth of utility bills and give the information to your realtor. During open houses, that gives people an idea of what those costs might be associated if they decide to purchase your home.
- Determine if there are repairs to be completed before listing the house. You may want to put a fresh coat of paint on something or do other things to add curb appeal and maximize your home’s perceived value.
- You may also choose to speak with your attorney and gain an understanding of the real estate transaction itself before entering into a contract, during the contract, and what happens at the end of the transaction.
If you are considering purchasing or selling real estate and need to learn a little more about the nitty gritty of your real estate case, contact our experienced real estate attorneys to learn what you need to remember when entering into a real estate contract. We welcome the opportunity to assist you.
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