Build Your Green File

A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain

• Financial Statements

• Bank Accounts

• Investments

• Credit Cards

• Auto Loans

• Recent pay stubs

• Tax returns for past two years – three is even better

• Copies of leases for investment properties

• 401k statements, life insurance, stocks, bonds and mutual fund account info

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 an experienced lending institution so that we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies. Equifax, Experian and Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction and commercial and investments real estate fields.

Be Careful with your Finances

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

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. Here are some factors to consider when choosing your real estate professional

• Look for a full-time agent – one who has experience completing transactions similar to yours.

• Interview a few agents – Are they familiar with the area in which you are interested?

• Ask how much time the agent will have for you, and if they are available at night and on weekends.

• Ask about their credentials and education. A good agent will continually strive to improve and gain knowledge of the latest real estate trends and hold the highest designations in their respective fields of expertise.

• Does the agent return our calls promptly? Time is money when attempting to buy a property.

• Ask for a list of properties they have sold, or a list of references

• Choose an agent who listens attentively to your needs and concerns. Pick an agent with whom you feel comfortable and you feel like can get the job done. Ultimately - use your gut and go with the person you feel most confident in.

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 neighborhoods, complexes or subdivisions which interest you. Drive around and ge ta feel for what it would be like to own a property in the 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.

Time to Buy

Once you have picked out the property you want to purchase, your real estate agent can help you make an offer that the seller will accept. A good agent will investigate the potential costs and expenses associated with he new property. An agent can also help you draft your offer in a way that gives you the advantage over another offer

The Initial Agreement and Deposit

An executed contract is the legal arrangement between a potential buyer and the property’s seller.

Some important tips to keep in mind to streamline the process:

• Keep written records of everything. For the sake of clarity, it will be extremely useful to transcribe all verbal agreements including counter-offers and addendums and to convert them into written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.

• Stick to the schedule. Now that you have chosen your offer, you and the seller will be given a timeline to mark every stage in the process of closing the real estate contract. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements. During the process we will keep you constantly updated, so you will always be prepared for the next step.

Attorney

An attorney will be selected to represent you as the buyer. The attorney will guard your best interests and help make sure all legal deadlines are met. There are times where extensions can be asked for and granted. The attorney will work directly with us and is a vital part of negotiations and deadlines that occur after the contract execution. Some properties are subject to restrictions which limit various activities such as building or parking restrictions. There also may be home owners association issues that need to be disclosed and further investigated. There may be recorded easement and encroachments, which limit the rights to use your property.

The attorney will also advise on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.

Inspections

Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within 5 business days. 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, you are allowed to do so. We can recommend several different inspectors.

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

• Either each milestone is successfully closed an the contingencies will be removed, bringing you one step closer to the closing, or;

• The buyer, after reviewing the property and the papers, can requests a renegotiation of the terms of the contact to satisfy them that the purchase is sound.

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 appraises by a licensed appraiser to determine the value for the lending institutions, 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, 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, regulation and other important documents form the seller as soon as you have an executed contract. The attorney will also help coordinate this.

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.

Closing Day

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

Final Walk-Through Inspection

More of a formality than anything else, the final inspection takes place before the closing. You will visit the property to verify that all is in working order, everything is the same as when you last viewed the property and that there are no extra items left behind. Also 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 before 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 summarized and details the financial transactions enacted in the process. You and the sellers 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 hav the funds wired electronically into the closing agent’s escrow account or bring a certified bank check (depending on amount) to the closing. The seller should arrange to have left the property keys and any other important information for you at the closing so that you may receive these items at this time.