Get Pre-approved for a Loan
This has never been more important! Lending guidelines have changed dramatically since 2009. Start off on the right foot by getting pre-approved so we will have no surprises. There is no cost or obligation. I will be happy to recommend someone to help! Once you are pre-approved, it’s time to go shopping!
Find a Home
Write an Offer
Once we find the right home, we’ll do some research to see how long the home has been on the market, what the owner paid for the property and recent home sales for the area. We will use this information (and more) to come up with an offer. In Kentucky, verbal offers are non binding, so all negotiations will be in writing. Our offer will also specify who will pay closing costs. We will also propose a closing date, usually 30-45 days from our agreement date. The offer will include a time period for inspecting the home, appraisal contingency and finance contingency.
Inspect the House
Our current Kentucky Association of Realtor (KAR) contract offers two primary ways to accept a home’s condition. The primary means is a “due diligence” period. Our contract will specify the number of days for our Due Diligence period. During that time, you have the right to have a home inspection, survey, and depending on the home, even a pool inspection or tree inspection. Next, we will write up an “Amendment to Address Concerns with Property”. You can buy a home “as is”, which means you accept the home with all of its faults. Selling a home “as is” does not relieve the seller from disclosing any known defects. It is still highly recommended that you inspect the home so you can address any needed repairs.
When we finish our inspection, we will make a list of the items we would like the Seller to address. This is a second round of negotiations for the home. The Seller considers our repair request, and can accept, reject, or counter the offer. If the Seller’s response is acceptable, then you move forward to closing. If the Seller’s response is unacceptable, then you have the right to cancel the contract and in most cases a full refund of your earnest money.
Final Loan Processing
Once we’re through repairs, there’s usually about two weeks where everyone else springs into action. The loan officer puts the loan through final underwriting, reviews the appraisal, produces loan documents, and the Seller has any repairs completed that were negotiated.
Walkthrough and Signing
We’ll go back to the house and do a final walk-through, to make sure that it is in the same condition as when we went under contract and that all repairs negotiated with seller have been completed. From here we will head to the closing attorney’s office.
Finally! You will sign and sign and sign some more papers. Congratulations homeowner!