Steps in Purchasing a Home

• Talk with a Bank or Mortgage Company and become pre-approved for a loan. Get a pre-approval letter from the lender to include with any offers.

• Shop for a Home.

• Make a written offer: At this time you will need to make an Earnest Money Deposit that will go with the offer to the seller. The Earnest Money is to show good faith by the purchaser and is part of the legal consideration for the offer. This money will be deposited in a Trust Account at the time of Contract Ratification. When you go to closing, you will see this money credited on your closing statement.

• The buyer and seller negotiate until you have a ratified contract. Ratified means all parties agree and everything is signed. The contract is then valid. • Make a formal loan application within three days of ratification. • Remove any contingencies (home inspection, home to sell, ect.) within the appropriate time frame.

• The Real Estate Appraisal is completed and sent to the lender. This can take up to three weeks.

• Remove any contingencies from the homes appraisal.

• All necessary reports are ordered. Example: Termite, well, septic, house location survey and any other requirements by the lender. • Set up closing dates.

• Obtain a one year WA homeowner’s policy. You will need a Home Owners Insurance binder at closing.

• Call electric, phone, water, sewer, ect. To be switched into your name.

• Final walk through of the property before you sign your papers.

• Go to closing and finish signing all the paper work. In the State of Washington, you will be the given the keys to your new home and considered the official home owner after all paper work has been signed and the deed recorded.

Steps in Purchasing a Home

Robert Sheedy