Common steps to Home Buying in Cary, NC
1. Select REALTOR®, “Working with Real Estate Agents” “Exclusive Right to Represent Buyer”
2. Preapproval with lender
3. Describe desired property. Review listings and visit selected homes on market.
4. Determine a prospective property to buy.
5. Do homework on specific property details and pricing.
6. Arrive at offer price and desired terms, including proposed closing date.
7. Write up offer, “Offer to Purchase and Contract” with addenda as needed.
8. Deliver Offer with any addenda, NC Residential Property Disclosure Statement, Preapproval Letter, copy of Earnest Money Check to the Listing Agent
9. Negotiate price and terms with Seller
10. When offer is amended and signed by all parties and communicated to both, you are Under Contract. Earnest Money Check is then deposited into trust account of Listing Agent, Buyer’s Agent, or closing attorney.
11. Initiation of transaction proceedings.
i. Contract documents to closing attorney, with any other documentation requested by attorney on a timely basis
ii. Inspections within timetable set forth in contract
iii. Apply for home loan within timetable set forth in contract
iv. Apply for Homeowner’s Property Hazard Insurance
12. Negotiate Repairs, “Repair Request and Agreement”
13. Make arrangements for utilities to be transferred to Buyers.
14. After repair walk-through and/or reinspection of repairs. Confirm repairs.
15. Closing arrangements, Closing meeting and Closing/Deed Recording:
i. A day or two prior to closing meeting, the closing attorney will provide a sample HUD1 Settlement Statement noting closing expenses for both parties. This must be reviewed and approved by the lender.
ii. Settlement statement reviewed by agent and client for accuracy
iii. HUD1 will indicate how much money either party must bring to closing. Earnest Money Deposit is credited to the Buyer’s total expenses. Only one certified check for the total amount due is needed, made payable to closing attorney/law firm.
iv. After closing paperwork is signed, the closing attorney will perform a final title search for liens, record the deed, typically on the same day as the closing meeting. NC law and the Standard NC REALTOR® Contract say that recording of the deed is the technical closing of the transaction. Many Sellers will give keys to Buyers at the attorney’s office, but a Seller may well withhold keys until deed recording is completed. That possibility should be included in Buyers’ plans. That is why a Friday closing is often avoided, since if recording is not accomplished, Buyers may not have possession until Monday.
16. Someone has a new home! Buyer will receive the deed and title insurance policy within a couple of weeks.
1. THERE IS NO SUCH THING AS A STUPID QUESTION. There are many details involved in buying and selling and closing real property. Relocatees from out of state may be used to title company closings, “Opening and Closing Escrow,” or other terms that are not applicable to the process in North Carolina. And first time home buyers may feel a great amount of stress and confusion. If you have a question, ASK IT.
2. Buyer always has the right to select service vendors, including home inspector, lender, termite inspector, radon inspector, closing attorney, surveyor, etc. Bank will select an appraiser. Cash buyer may choose to select an independent appraiser. I gladly offer recommendations of service providers with whom I have had very good experiences, but the Client always has the right to make their own choices.
3. Buyer should make a choice of lenders as early as possible. The contract timeline has definite dates for performance of certain tasks. Missing the dates may cause the Buyer to lose the Earnest Money Deposit if the loan cannot be made. Changing lenders in the middle of the transaction may cause problems with the timeline if the lender does not have adequate time to perform.
4. Items in quotes/italics in the Common Steps to Buying a Home in Cary, NC, refer to Standard North Carolina Association of REALTORS® Forms.