Buyer Info

Home Buying Guide

This guide has been prepared to help you navigate through the process. There are many steps in buying a home and the information can be overwhelming. We have outlined some preliminary steps to take to be successful at your home buying.

Preparation Matters

Interview With Lyle & Grace Caddell

Hiring the right agent to represent you and your interest is important. There are many licensees out there, however, only a few are full-time and have experience. With so many different components that need to come together to successfully close escrow, hiring the wrong agent can mean the difference between getting your offer accepted and also closing on time.

Here are some questions to ask when interviewing Lyle & Grace Caddell.
Are you a full-time realtor with at least 5 years of experience?
How many transactions have you closed each year?
Can you provide a list of the homes you sold and references?
How many buyers are you currently working with?
Are you available evenings and on weekends?
Do you have a team you work with?

Another consideration should be is, do they have a serving attitude that makes you feel like you are the only client?

In many cases, there is no fee for hiring a buyer’s agent. You get the benefits of your own representation without any cost to you. Having experienced buyer’s agents will work for you by using their negotiation skills to get you the best price, terms and in many cases getting your offer accepted when competing with multiple offers.

Get Pre-Qualified

Checking Your Credit and Getting Qualified

Even if you are not ready to buy for the next 3-6 months or even a year it is good to know where you stand financially and understand what you will need to qualify for the home buying process. Lyle & Grace Caddell will immediately refer you to a lender to get pre-qualified. The lender will check your credit and determine based on your income and assets what your home price range will be.

Plan Your Investment

Down Payment

After your initial meeting with your lender you will understand how much money you need to get started. Down payments vary and, in some instances, you only need as little at 3.5% down. There are many factors to consider when applying for a home loan and your lender can guide you with the proper steps you should be taking to achieving the goal of homeownership.

Beyond the Down Payment

Closing Cost

In addition to your down payment, there is a closing cost. You are probably asking what closing costs are and shouldn’t the seller be paying these costs for you. The answer is no, however, depending on the offer you could negotiate your closing cost to be paid by the seller. The closing costs are an expense you pay those fees including but are not limited to, title, escrow, lender fees, home insurance, prepaid interest, prorated taxes, and other miscellaneous fees. Ask your lender to give you an estimated closing disclosure for a breakdown of these closing costs. Keep in mind these are approximate and can vary from lender to lender.

Home Search Begins

Find the Right Home

Here is where Lyle & Grace Caddell come in to play. Lyle & Grace Caddell will ask you a set of questions to get an idea of what you are looking for, the amount you have been pre-approved for and how soon you need to buy. Giving Lyle & Grace Caddell a list of neighborhoods, must-haves such as bedrooms, bathrooms, and perhaps even schools will help them begin the search using various tools. Not all homes are on the internet or real estate directories. Lyle & Grace Caddell are networking with agents to get first-hand knowledge of homes that are coming soon.

Taking the Next Step

Making an Offer

If you are prepared to make an offer you will need to also be prepared to give an earnest money deposit. An Earnest money deposit is also known as good faith money. This is given as consideration of the acceptance of your offer. The money is given to escrow via wire or cashier check 3 days after acceptance. The deposit is held in escrow and credited towards your down payment and closing cost at the close of escrow.

Along with your offer, you will need to provide a preapproval letter from your lender and proof of funds of your down payment and closing cost.

When making your offer here are some things you should consider

The amount of your offer
Earnest money deposit amount
How long of an escrow period?
Do you need to sell your current home as a contingency?
Are you competing with other offers?

The purchase agreement prepared by your realtor will have contingency periods and a timeline that you should be aware of and follow.

Real Estate Escrow Guide

What Are Contingencies in Your Purchase Contract?

The purchase contract contains contingencies you should be aware of. Typical contingencies include appraisal, loan, inspections, investigations, and review of disclosures. Discuss this timeline carefully with Lyle & Grace Caddell.

Loan

Your lender will need a copy of the fully executed contract upon acceptance. They will order the appraisal and contact escrow for your fees to prepare the estimated closing disclosure. Hiring an experienced lender who works evenings and weekends will give you peace of mind throughout the escrow period.
Appraisal

This is an out-of-pocket buyer expense ordered and required by your lender. The appraiser will visit the home, take measurements, and write a report to determine whether the home's value matches your purchase price. This protects both buyer and lender from overpaying.
Inspections

Paid by the buyer. Lyle & Grace Caddell will provide a list of qualified, certified, and insured home inspectors. They will evaluate the general components of the home and may recommend specialists for pool, roof, plumbing, electrical, or foundation. Insurance review — including high fire area and flood zone premiums — is also part of this period.
Disclosures

Sellers are required to provide a Transfer Disclosure Statement, Seller Property Questionnaire, and other disclosures. Read through these carefully and ask questions. Ensure all questions and seller responses are documented in writing to protect your interests.
HOA Documents

If the property is in a homeowner's association, you will request that the seller provide HOA documents, rules, regulations, and financials. Review carefully for any special assessments or upcoming increases in monthly dues that may impact your costs.
Title & Escrow

The Preliminary Title Report confirms the property's ownership history and any encumbrances. Escrow Instructions & Reports formalize the terms and conditions of the transaction. These documents ensure a clean transfer of title and protect your investment in the property.

Terms To Be Familiar With

Sites used to search for homes such as Zillow, trulia, realtor.com and redfin. It is important to note that these directories are not always accurate, and information may not be in real time. Also, some of these sites sell your information to third parties, in which you will receive numerous emails and phone calls.

This is the site that all brokers are required to use to register any new listing. If you see a sign on a property, it is most likely the property will be in the MLS under a few categories, coming Soon, active, or pending. When you work with an agent you’ll have access to this information.

Coming Soon: A property that is not on the market, however it will be in the near future.
Active: A property that is available on the open market to buy.
Pending: A property that a seller has accepted an offer and is no longer available.
Sold: A property that has successfully closed escrow.

A third party that neither represents buyer nor seller. When you write an offer on a home you will write an earnest money check that will be place in “escrow.” That means it is not going directly to the seller. Escrow is responsible for holding money, paperwork or other assets for a transaction on behalf of buyer and seller before the transaction has been finalized. Buyer and Seller will each have their own fee.

The company that researches public records to determine the properties ownership status, liens, easement and any issues that may affect the ownership of a property.

This is when your lender gives you final approval of your loan. Your lender will send you a closing disclosure to review the final numbers upon your approval loan documents will be ordered and sent to escrow. Escrow will contact you to set up an appointment with a notary to sign your final loan documents and give you instructions of money to wire to escrow.
(Caution: Beware of wire fraud. Make sure to have verified information with the escrow company and received instructions on a secure site).

Next step, your lender and escrow will communicate and prepare for funding your loan. Once
Escrow receives your funds and they will release the deeds to be recorded. You are one step closer to owning a home.

One of our favorite words. This means the home has officially been recorded in your name with the County Recorder’s office. Congratulations! You are now a homeowner.

Middle Name

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Home Buying Guide

Interview With Lyle & Grace Caddell

Checking Your Credit and Getting Qualified

Down Payment

Closing Cost

Find the Right Home

Making an Offer

What Are Contingencies in Your Purchase Contract?

Loan

Appraisal

Inspections

Disclosures

HOA Documents

Title & Escrow

Terms To Be Familiar With

Real Estate Directories

Multiple Listing Service

Status in the MLS or Real Estate Directories

Escrow

Title

Close of Escrow

Recording

Leave a Message

Thank you for your message. We will be in touch with you shortly.

Buyer Info

Home Buying Guide

Interview With Lyle & Grace Caddell

Checking Your Credit and Getting Qualified

Down Payment

Closing Cost

Find the Right Home

Making an Offer

What Are Contingencies in Your Purchase Contract?

Loan

Appraisal

Inspections

Disclosures

HOA Documents

Title & Escrow

Terms To Be Familiar With

Real Estate Directories

Multiple Listing Service

Status in the MLS or Real Estate Directories

Escrow

Title

Close of Escrow

Recording

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