Well, you just found a house, or a lucky buyer has found yours!! Now that everyone has agreed on a price, what happens next? What happens between now and the time it becomes legally owned by you or another party? The home buying can be a little confusing, so I would like to share some information on how to help you better understand what happens once the SOLD sign is in the front yard.
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The First Step ~ Earnest Money
Earnest money is a deposit made by the purchaser as a sign of good intent to purchase the property. An agreement to convey ( or transfer the title) starts the process once it is received at the title company along with the earnest money. Loan application is made by the buyer, and approval is usually subject to a credit check, and appraisal and sometimes a survey of the property.
The Second Step ~ Tax Check
The Title company then determines what taxes are owed on the property. The various assessor/collectors are contacted by the title company.
The Third Step ~ Title Search
Copies of documents are gathered from various public record: deeds, deeds of trust, various assessments and matters of probate, heir ship and divorce and bankruptcy are addressed.
The Fourth Step ~ Examination
The title company now verifies the legal owner and the debts owed by the owner.
The Fifth Step ~ Document Prep
Appropriate forms are prepared for the transfer of title and settlement, or the formal transfer of ownership ( commonly referred to as the closing).
The Sixth Step ~ Settlement
An escrow office oversees the closing of the transaction. The seller signs the deed, the buyer signs a new mortgage, the old loan is paid off and the new loan established. The seller, real estate pro, attorney, surveyors, title company and other performing services for the buyer and seller are paid. Additionally, title insurance policies will then be issued to you and your lender.
Rick Raanes is a Rockstar Realtor in The Woodlands Tx. He is an expert in negotiating for you. Contact me for more information on the home buying process and the home selling process, title insurance and to find out why Rick Raanes is the right agent for your real estate needs.