The Real Estate Transaction
From Inspiration to Ownership
Once a potential buyer establishes interest in purchasing real estate, the process begins with a lender prequalifying the buyer for a mortgage amount. This amount is usually subject to the property's appraised value, but there are a variety mortgage types that can include construction,
When a property is selected for purchase the buyer signs a Sales Agreement which indicates the buyer's earnest intention to purchase the property. At this time the buyer also writes a check to the Broker further indicating a firm intention to purchase. This is called earnest money.
The seller accepts and signs the Sales Agreement & the document becomes a firm contract between the buyer and seller. The Broker gives a copy of the Sales Agreement to the buyer and the seller.
The buyer makes application for a mortgage specific to the selected property.
On the date specified by the Sales Agreement, the buyer increases the earnest money to the amount specified in the contract.
Both the buyer and the broker make sure that the mortgage commitment is obtained within the time frame outlined in the Sales Agreement. This is where the Broker's knowledge of lending & financial institutions works to ensure a smooth process so that both parties of the sale are kept abreast of the progress of the transaction.
The lending institution then orders a title search to be sure there are no claims on the property other than the seller. They prepare the mortgage & note, then advise the buyer they are ready the set a date to conclude the real estate transaction; this is called the closing date.
The buyer obtains insurance for the property prior to the closing date.
The Broker confirms the date, time and place for the closing to take place.
The buyer is advised of the dollar amount needed to close by the lending institution and obtains a cashier's check or certified check for this amount. The buyer usually views the property prior to closing to be sure all conditions of the sale have been met. This is known as the walk through.
Unless otherwise stipulated in the Sales Agreement sellers usually pay commission, real estate taxes as of
More Real Estate Tips
For more info on buying or selling a home in Keene NH or another southern NH town, contact us today. We are always happy to provide tips or answer any questions you might have.
Remember to register with us so you can save your custom searches, favorite listings and email notifications when similar properties go on the market.