Ep 8 - Steps to Buying a House - a podcast by Brian Cook And Kindra Cox

On the January 23 2020 episode of The Brian and Kindra show, they discussed the process of buying a property.  Brian and Kindra have over 30 years of combined real estate experience and have closed over 1,000 transactions.  

The first recommended step in purchasing a home is to choose a Realtor.  Brian and Kindra agree that experience is very beneficial when you seek a Realtor to assist you in your purchase.  They also recognize that this purchase process is very personal and it is important to ‘click’ with your agent.  Buyers should be able to trust and communicate well with the Realtor they choose.  Brian and Kindra provide a team approach so that buyers are rarely without one of their agents even when one of the team is out of town.  

Next, the buyer will want to choose a lender and begin the process to prequalify for a loan.  A buyer will want to be comfortable with their lender and may already have a relationship established at their current bank.  Some buyers find it very helpful to be able to walk in and sit down with their lender while other buyers are comfortable with a lender out of town who can handle their transaction digitally.  

Next up, is shopping!!  This is when the fun really seems to begin! Because you have chosen a Realtor that you can communicate well with, they will begin to make appointments to show you homes that fit your needs and desired budget.  Once you find the home that you are ready to commit to, you will make an offer!!  

Brian likes to call the offer a pre contract. The offer is written on the contract form so that both parties can see all of the terms that are being offered and hopefully are agreeable.  Once the offer is signed and accepted by both buyer and seller, it becomes a contract, then the inspection period begins allowing the buyer to be sure they are comfortable with the condition of the home.  The inspections can include a home inspection, termite inspection and even seeking insurance among other inspections.  Sometimes, during this part of the contract, the buyer requests repairs.  This is almost a renegotiation of the contract.  

During this time, the title work is also being completed.  Once a title attorney has read the abstract, he presents a title opinion or a title commitment back to the buyer (via the title company, agent and lender).  Occasionally, the title work will have an issue that must be corrected before closing.  The contract used by Brian and Kindra specify the transaction will not close without a clear, marketable title.  

Also during this portion of the contract phase, the appraiser will be physically viewing the home.  Various loan types have different criteria for the appraisers.  The appraiser is looking at condition, size, amenities and then comparing against other properties that have sold and are similar.  If the appraiser finds some condition lacking, he may bring that to the attention of the lender who may require repairs prior to closing.  The Realtors will again assist in this negotiation with the seller.   

The lender is most likely ready to schedule closing now!  The closing process brings the entire transaction to the end with buyers signing loan documents and sellers signing over the deed to the property.  The title company will send the signed documents back to the lender who will then give approval for funding!  This is the exciting moment when keys and ownership change from sellers to buyers!  

Sometimes it sounds like a simple process and then buyers or sellers are surprised by the time it takes to complete the transaction.  Kindra says it feels like a lot of ‘hurry up and wait’!  Be patient

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