Establish a Buyer Agency Relationship with a CT Real Estate Broker
One of the first steps in starting your home search is to establish an agency right to represent buyer with a reputable CT brokerage. Connecticut law prohibits a real estate broker or salesperson from representing or negotiating on behalf of a buyer unless a buyer signs a written agreement to allow the broker or salesperson to act on buyer’s behalf. This term is limited to a specific location in Connecticut and must be for duration, typically 3-6 months.
The broker’s duties are to:
• Attempt to locate suitable homes that fit your criteria
• Negotiate acceptable terms and conditions on your behalf
• To assist you the buyer in the purchase and exchange of a property
• To act in your interest regarding the location, purchase and exchange of property
Your agent will assist you in coordinating all inspections, appraisals, and act as a liaison between you and all related affiliates (listing brokerage, mortgage broker, attorney etc,).
There is usually no cost to you for this service, the seller is required to pay your realtors co broke fee, which is normally a % of the sales price or a flat fee depending on the term that is negotiated with the seller by the sellers agent and is offered to the buyers agent as a co broke fee.
Obtain Pre-Qualification from a CT Mortgage Broker or Banker
Before you begin your home search it is necessary to obtain a pre-qualification from a mortgage banker or broker. Your CT HomeBuyer’s representative can put you in touch with a list of broker affiliates that have established a proven track record of successful transactions. It is necessary to determine type and terms of financing in the initial phases of your home search. A pre-qualification will be required with an offer to purchase as well as terms such as down payment, amount and type of financing must be presented accurately in your offer in addition to a copy of your pre-qualification letter. This process can take up to several days to complete. When multiple buyers are bidding on the same CT home, a mortgage pre-approval can be the deciding factor in whose offer is accepted. There are many mortgage programs available from special first home purchase programs, 100 % financing packages, interest only loans plus many other creative options that you will discuss with your mortgage professional.
Locate your CT Home and Negotiate Terms
Your CT HomeBuyer’s representative will narrow down your home search by price, location and other specific criteria. If your looking to purchase in Connecticut communities that are un-familiar to you, your realtor will provide you with information on local real estate values, property taxes, schools, recreational facilities and such You will start viewing these properties until you locate one that is suitable to you. At which point a written offer to purchase must be presented. You will be required to make an earnest deposit along with this offer, in Connecticut it is a minimum of $500.Typically the first deposit is $500 and a second deposit may be required depending on your initial down payment and financing terms. The listing broker or sellers attorney holds this money in an escrow account until closing. Your realtor can advise you on the position of your offer based on recent market data of similar property listings that are active, on deposit and recently sold. Your buyer’s agent will present this offer to the seller’s agent, who will convey these terms to the seller. The seller can accept, counter or reject your offer.
Contract Acceptance
Once a mutual agreement of price, terms and closing date is reached a purchase contract will be drawn either by your CT realtor utilizing a standard Connecticut Association of Realtors contact or one will be drawn up by either parties attorney. A copy of this contract will be submitted to your mortgage broker to finalize your mortgage application. As part of the sales contract you will agree to obtain financing within a specified time period, this period may be extended with the sellers permission in the event that the bank may need additional time to pull the financing together You will have to gather up all necessary paperwork that will be required by your lender to obtain mortgage commitment. An appraisal will be ordered by the bank to make sure that your homes sales price meets current market values based on comparable properties recently sold.
Conducting a Home Inspection
It is your option to have your home inspected by a licensed home inspector who can inspect all mechanical systems (electrical, plumbing, structural) of the home as well as all appliances, cosmetics issues, pest infestations, particularly termite and bark beetle, and in some cases radon (for more info on radon go to http://www.epa.gov/iaq/radon/pubs/hmbyguid.html and download your home buyers and sellers guide to radon). An inspection can pick up on potential environmental issues such as asbestos and underground oil tanks, which can be costly to remove. Your CT buyer’s rep can give you a list of reputable inspectors; you can also obtain one your self. In the event that the inspection has revealed some issues with the home that was initially not apparent, then the contract terms can be renegotiated provided that an inspection addendum is made part of the sales contract and all dates and terms are adhered to. In the event that a mutual agreement is not reached the opportunity to get out of the contract may be an option at this point.
Closing Your Property
After receiving mortgage commitment your lender will require you to obtain homeowners insurance, which usually is 6 -12 months, paid in advance. You will be required to show proof of this prior to or at closing. The attorneys will schedule a time to close your property. Adjustments will be made for misc. items (taxes, heating oil etc.) Your attorney and/or lender will notify you of the amount that you will be required to bring to closing via a certified or bank check once they receive your funds package from the bank. A final walk through is usually scheduled within 24 hours of closing. The purpose of this is to make sure the property will be conveyed to you as stated in the sales contract. At closing you will have to sign and/or initial a package of closing documents that will be explained to you by your attorney. You will receive title and keys to your new property.
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