THE PROCESS

OUR GOAL IS SIMPLE:

TO HELP YOU ACHIEVE YOUR REAL ESTATE GOALS

Siham helps her clients see the full potential of their real estate needs. She provides guidelines using her up-to-date market knowledge and experience. With her attention to detail and a genuine desire to help others, she will skillfully manage and enhance your real estate experience.

STEP 1: DECIDE TO BUY

Purchasing a property is most likely the biggest financial decision you will make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment.

STEP 2: PREPARE TO BUY

Before you start shopping for your property, it is a good idea to make some preparations.

  • WHAT DO YOU NEED TO GET PRE-APPROVED?

    It is important to gather the correct documents for your lender. You will need it to secure financing for your property. The typical file should contain:

    • Financial statements

    • Bank accounts

    • Investments

    • Credit cards

    • Auto loans

    • Recent pay stubs

    • Tax returns for two years

    • 401K statements, life insurance, stocks, bonds, and mutual account information

    CHECK YOUR CREDIT RATING

    Your credit score will have a huge impact on what type of property you can buy and at what price. It is first recommended to check your credit rating with experienced lending institutions so that we can determine what you can afford. The lender will research your credit ratings from the three reporting agencies: Equifax, Experian and TransUnion.

    BE CAREFUL WITH YOUR FINANCES

    Now is not a good time to make sudden career changes or larger purchases. You want to approach your property purchase from a position of financial stability.

STEP 3: CHOOSING AN AGENT

Buying a property requires making many important financial decisions, understanding complex issues and completing a lot of paperwork. It helps to have an expert in your corner when undertaking such a large purchase. We can guide you through this process, and also provide you with access to property listings before they hit the general market.

STEP 4: TIME TO GO SHOPPING

Once those preparations are out of the way, it is time to find the right property for you.

  • TAKE A DRIVE

    Get to know the neighborhood which interests you. Drive around and get a feel for what it would be like to own a property in that area. Start getting a sense of the properties available in those areas.

    NARROW YOUR SEARCH

    Select a few properties that interest you the most and have your real estate agent make appointments to visit them. Ask your real estate agent about the potential long-term resale value of the properties you are considering.

STEP 5: ESCROW, INSPECTIONS, APPRAISAL

Breaking down what can be seen as daunting in an easy-to-understand guide

  • THE INITIAL AGREEMENT AND EARNEST MONEY DEPOSIT

    An effective agreement is a legal arrangement between a potential purchaser and the property’s seller. Earnest money is a deposit that you would pay upfront however often this is deducted from your down payment.

    INSPECTIONS

    Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within the time frame that was agreed upon in the effective contract to purchase. You may elect to have different inspectors inspect the property if you wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). If you are purchasing a commercial property, then you will need to have an environmental audit done on the site for the lending institution. We can recommend several different inspectors.

    Depending on the outcome of these inspections, one of two things may happen:

    1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close

    OR

    2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of the contract (usually the price).

    APPRAISAL AND LENDING

    It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, double-check with your lender to be sure the loan will go through smoothly and on time.

    ASSOCIATION APPROVAL

    If the property that you are purchasing is conditional upon an association approval, request the rules, regulations, and other important documents from the seller as soon as you have an effective agreement to purchase. Make sure that the application documents and processing fees are submitted to the appropriate person at the association by the required time. Fill out all of the information completely and legibly so there is no delay in processing the application. If you are required to meet with the association for your approval, make an appointment as soon as possible for the interview. Most associations require a certificate of approval before move-in. Your closing agent will request that the original copy of this approval letter be brought to the closing so that it can be recorded with the deed in the county public records.

    PROPERTY INSURANCE

    If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.

    • Consider a higher deductible.Increasing your deductible by just a few hundred dollars can make a big difference in your premium.

    • Ask your insurance agent about discounts.You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.

    • Insure your house NOT the land under it .After a disaster, the land is still there. If you do not subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.

    THE CLOSING AGENT

    Either a title company will be selected as a closing agent. The closing agent will hold the deposit in escrow and will research the complete recorded history of the property to ensure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities such as building or parking restrictions. There may be recorded easements and encroachments, which limit the rights to use your property.

STEP 6: MOVING IN

You’ve waited so long for this day, and now it’s here! Let’s move in!

  • CLOSING DAY

    If you have come this far, then this means that it is almost time for a congratulations, but not yet. Do not forget to tie up these loose ends:

    FINAL WALK-THROUGH INSPECTION

    More of a formality than anything else, the final inspection takes place a day before, or the day of the closing. You will visit the property to verify that everything is in working order, everything is the same as when you last viewed the property, that there are no extra items left behind, and that everything included in your purchase is still at the property.

    HOME SERVICES AND UTILITIES

    We will provide a list of useful numbers for the activation of home services and utilities after the closing occurs.

    BE PREPARED

    We are ready to assist you should an unforeseen glitch pop up, even at this last stage. Something at the property breaks down, or some other minor detail – no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manner.

    CLOSING

    The closing agent will furnish all parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. You and the seller(s) will sign this statement, as well as the closing agent, certifying its accuracy. If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution. If you are unable to attend the scheduled closing, arrangements can be made depending on the circumstances and the notice that we receive. If you are bringing funds to the transaction, you can elect to either have the funds wired electronically into the closing agent’s escrow account or bring a certified bank check to the closing in the amount specified on the settlement statement. The seller should arrange to have all property keys and any other important information for you at the closing so that you may receive these items at this time.

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