First Things First
Home buyer gets pre-approved through a reputable Lender/Mortgage Company/Bank. Then home buyer contacts their real estate agent-REALTOR to look at property.
The Home Buyer’s Offer to Purchase Contract
The majority of residential sales contracts are written by real estate agents using standard forms provided by their Association of Realtors exclusively or in conjunction with the Missouri BAR Association. If the Home buyers doesn’t have an agent, they sometimes ask their attorneys to draft offers for them.
Prepare the offer
Your REALTOR will provide you with a comparative market analysis on the property or properties of your choice in order to assist you in making an informed decision. Your Realtor will go through the contract with you and complete your offer.
Your Realtor will obtain the Seller’s Disclosure and any Condo or Homeowner’s Association documentation requiring Buyer review and approval.
Negotiations will proceed until both buyer and seller agree on all terms and sign. All documents will be sent to the Title Company or closing attorney where a file will be opened, and title commitment and property tax information ordered. Make sure you deliver your Earnest Money check to the Title Company ASAP. This good faith deposit will be credited back to you at closing.
Complete your loan application
Give your loan officer a copy of the contract and provide your Lender with all the documents they have requested in a timely manner.
Insure the property
Home Buyer will contact their insurance agent and get a quote for homeowner’s (hazard) Insurance, then provide a copy of the Dec Page to his loan officer and real estate agent.
Inspect the property
Select an inspector and arrange for both a general inspection and wood-destroying insect inspection. Your real estate agent also can provide information about other environmental assessments such as Radon, mold inspection, sea-wall inspections, lead based paint, etc.
Appraisal and survey of property
The lender and Title Company will make arrangements for the property appraisal and survey. The Buyer will be provided a copy of the Title Commitment Letter and will make arrangements for homeowner’s (hazard) insurance agent to talk with the closing officer at the title company or closing attorney’s office.
Closing is arranged
Buyer and Buyer’s agent receives a copy of the closing statement for review prior to closing.
Buyer and Buyer’s agent does a final walk-through inspection of the property.
The Buyer’s agent arranges a closing date and time with the buyer and title company or closing attorney. The Seller’s closing is also arranged. Buyer brings a cashier’s check or wires funds for all closing costs and the balance of the down payment.
After the closing
Documents are sent to the buyer’s loan company for approval and funds are disbursed. The title company or closing attorney receives and funds all money from the loan company. Payment of any accrued expenses in connection with the closing are due including taxes, attorney’s fees, professional real estate fees and title company fees. The closing is now finished, and the home buyer gets possession once the Seller receives their proceeds.
Legal documents will be recorded in the office of the county clerk and mailed to the Buyer.
Title Company prepares and issues the title policy and sends it to the Loan Company and new homeowner.
The Closing Process for those who want to know what's going on...