Buyers

Buyers Typical Costs

• Appraisal-onetime fee for new loan
• Credit report-for loan application
• Homeowners insurance-paid by buyer for fire/hazard insurance
• Loan fees-origination and processing fees charged by lender
• PMI-some lenders require a private mortgage insurance
• Prepaid interest-prorated depending on time of the month the loan closes
• Property Inspections, Pest Inspection/Correction-termite report

The Buyers

• Tenders a written offer to purchase (or accepts the Sellers counter-offer) accompanied by a good faith deposit amount.
• Applies for a new loan, completing all required forms and often pre-paying certain fees such as credit report and appraisal cost. Approved and signs the escrow instructions and other related instruments required to complete the transaction.
• Approves the preliminary report and any property disclosure or inspection report called for by the purchase and sale agreement.
• Approves and signs new loan documents and fulfills any remaining condition contained in the contract, lenders instructions and/or the escrow instructions.
• Deposit funds necessary to close the escrow. Approves any changes by signing amendments in the escrow instructions.
• The lender (When applicable).
• Accepts the new loan application and other related documents from the Buyers and begins the qualification process.
• Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.
• Submits the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.
• Provide a Loan Estimate/Closing Disclosure Form describing terms of loan and applicable closing cost.
• Deposits the new loan documents and instructions with the escrow holder for Buyers approval and signature.
• Reviews and approves the executed loan package and coordinates the loan funding with escrow officer.