First Stepping Stone

The beginning of the pathway - Because you started out on the internet, most likely, you have 10 to 20 homes that interest you. Because of the large area I represent sometimes driving time is part of the equation on how many homes we can see in a day. Normally somewhere between 6 and 10 per day is normal. Even though we have a list of homes it is better to start out from my office so we can update the prospect list and can add or delete from the list. With the aid of my computer and my knowledge of the area I can help in the selection process. At this point I can call ahead if the listing Realtor has requested a phone call to make an appointment, in most cases the home will be on a lock box and we can proceed directly to the property. This is true of the local builders also they cooperate with the Realtors. While we are out looking at properties I can point out local places of interest such as restaurants, historical sites and shopping areas. We don't have any malls or track home developments (personally I think that is a plus). This is still a rural area. After just viewing a few homes I will be able to start fine tuning exactly what you desire, in some cases it is not what we originally started out to see. This is normal, the area that you are moving from is quite possibility different from the mountains and we both need to reconsider what your needs are.

Second Stepping Stone - Making arrangements for the Mortgage

If you are buying with cash this step is eliminated, if not, I suggest that you contact a local Bank or Mortgage Broker and at least start the process before you even start looking at property. Any Bank or Mortgage Broker can give you a Good Faith Estimate about how much of a mortgage will fit in your budget. On the Mortgage Calculator page I have a calculator and information about mortgages that might be helpful. Showing the seller a Letter of Commitment along with a Purchase and Sell Agreement makes your bargaining position very strong. It shows the seller that you are a serious buyer. For some sellers a Letter of Commitment and a large Earnest Money check will lead to a lower purchase price.

I have found the the local Banks or more receptive and more knowledgeable about our market than someone not from this area. I recommend that you contact your banker and also contact a local Bank from this area. Go to www.yellowbook.com and go to Banks and Mortgage Brokers for a list and phone numbers. Majority of times, out of state and out of this area banks will not finance purchases for land/acreage, log homes and manufactured homes our local banks will. The effort to see a bank are not wasted time, the Purchase and Sell Agreement will specify a time limit for the buyer to start the loan process anyway, usually 5/7 days. The loan officer will give you a Good Faith Estimate of the closing cost and other cost involved in the closing/purchase of land or a home. The cost are, but not limited to, monthly principle mortgage payment, interest payment, tax escrow account, and insurance escrow account, these are referred as PITI. One time cost can be origination, discount points, appraisal fee, credit report, document preparation, attorneys fee and some cases addition fees will also be attached to the closing. Some of these fee are tax deductable, consult you CPA or tax preparers to see what charges and fees are deductable from your income tax. The Bank will ask for W-2's for the last 2 years of if self employed your 1040 or 1099's for the past 2 years, Income Tax forms for the last two years, bank statements, log term debt information and proof of down payment funds are also requested.

Third Stepping Stone - Making an Offer

We found the right house, a little stress, but not as to bad as we had expected, we made a few concessions but it almost (99%) perfect. Working together we have come up with the Offer Price and the special stipulation we want. Special stipulations are some additional items we wish to request from the seller that are not include in the Purchase and Sell Agreement. For example we might ask for the pool table or the deck furniture. These things are negotiable and can be refused by the seller, don't be shocked if the seller wants to keep them. Real Estate is a little bit of horse trading. You will soon realize the you have become expert on the value of homes after you see a few listings it will soon become apparent if the home you want is priced correctly. I will furnish you Property Disclosure forms, filled out by the seller stating if their are any problems with the property, we will also check how long the property has been on the market and it's price history. Plats and copies of the Covenants and Restriction will also be made available. All of these items are covered BEFORE we make the written offer to purchase. At this point you will feel comfortable and now it's time to fill out the proper Purchase and Sell Agreement forms, I only use forms that are approved by the respective Bar Associations and the State Real Estate Commissions. At this time you will decide on the offer amount, financing terms, earnest money and special stipulations. I will create 4 sets of original forms, one set for you, one set for my office, one set for the seller, one set for the listing agent. Sometime in the future I may be requested to create and addition set for the Bank. I have occasionally heard the statement, "give me a couple of days to think about it", remember their are 1400 Real Estate agents that are members of or local board and they may have a customer/client that is not hesitating on deciding, you could be a few minutes late in your offer.

Lets assume the your offer is countered and it is a reasonable counter offer and you accept, Your earnest money is now turned over to the Broker and they will deposit it in a Real; Estate Trust Account. If you need a couple of extra days to get back home to cover the check their are ways to extend the day of deposit. You now select a state licensed Home Inspector. I'll make arrangement for him to inspect the property and produce a written report. After his inspection and we have a written copy of the report, we will discuss the items on the report and produce a written "Request For Repairs". I will get in touch with the selling agent and will present to him/her a list of items that need repair before closing. The seller can agree to all the items or a portion of them, or none, we now enter a new negation phase. At this point we hope the seller does not take our list personally and that he assumes we are not either trying to drive the price down more or that his/her home is not of good quality. I will stress to the selling agent that this is the business portion of the negation and for the seller not to take any thing personal. Next we reach an agreement on the repairs and a time limit for the repairs to be completed. We will schedule a walk through usually the day before closing for you to inspect the house and see if the repairs were made. We will also request copies of any warranties that are still in service such as a new appliance that still has the balance of factory warranty in effect. Items such as; who is the cable TV provider, propane gas supplier and is the tank rented or belongs the the seller, are their any maintenance or landscaping contracts that need to be address.

I looks like a lot of things we need to do but it is not overwhelming. I can handle a lot of these item with your permission.

The offer is accepted and the special stipulation and repairs are made and the bank is working on the loan. We are now heading toward the closing.

Fourth Stepping Stone -
Time between the Acceptance and Closing

After the contract has been signed by both parties, copies of the contract are then forwarded to the Bank and Closing Attorney. If they wish the Buyer and Seller can be represented by separate Closing Attorneys, in most cases the seller will also chose the Buyers Attorney. This is done by the seller because it usually less expensive and saves time because all the paper work is in one office. The Closing attorney will perform a title search to see if their are any liens or other encumbrances against the property. Even if it is a cash transaction I highly recommend that Title Insurance be purchased for any and all real estate transactions. The closing attorney in conjunction with the Bank will produce all the necessary paper work to complete the transaction. This includes the property tax proration's. During this time the Buyer will contact an Insurance Company of his/her choice for home owners insurance. If the property is located in a flood plane, flood insurance will also be purchased. The buyer will also arrange for utilities and other services be transferred to their name. Sometimes a deposit is required by the utilities, this can be done over the phone and with a credit card. See the information Booklet for phone numbers. If this is a full time residence don't forget to fill out the Change of address forms at the Post Office. This is also the time when arrangement are made for moving, if a professional moving company is being used they can handle most all the details. If your new home is located on a road that a large moving van cannot get to, make sure you tell them about this. Moving trucks have a hard time turning around on narrow mountain roads. Usually they will rent a small truck or van and move it a few pieces at a time. If you are moving yourselves, remember you can start moving a few things at a time and use one of the many storage facilities. Just make arrangement before hand on how many bays you will need. If you have school age children this is the best time to visit the school and reregister the for the school year.

Fifth Stepping Stone - The Closing

Buyer and seller will go to the closing attorney's office to sign all the requires documents. Seller or buyer do not have to present at the same time, if fact a lot of closing are handled via Fed-Ex courier service and wire transfers of money. At this time the closing attorney will have you start signing the mortgage document, title, required county, state and federal documents. You will be given a copy of the HUD-1 statement, this Federal document will list all the fees, charges and escrowed moneys that you are being charged. Typically you will receive a copy a day or two before the closing for your review to see if all items are correct. This is also where you will see your Earnest Money appear as a credit toward the purchase price. At the end of about an hour and a half, you will get the keys to your new home.

Sixth Stepping Stone - Home at Last

Go to your new home and celebrate! Start planning your new experience. This has not ended our relationship; Please feel free to call me for suggestions on where to shop and directions, restaurants and how to get there, camping and the name of the State Parks. The list is endless. Don't forget my web site has a lot of this information.

This ends the Path To your Home in the Mountains!