Buyers Checklist
by Debra McCann



Making an Offer

Obtain your credit reports from all three credit reporting agencies and check them for errors. Shop around for a good mortgage rate and reputable lender and get pre-approved before making an offer on a home. Determine how much you can afford to pay and start looking at homes until you find something you are interested in.

Have your agent determine the true value of the home before making an offer. Research legal aspects of the property - zoning, easements, liens and other restrictions. Make an offer on the property and include an earnest money deposit.

Review the seller's property disclosure report with your agent. Determine what inspections you will want to schedule. Attend all inspections of the property, if possible. Review all written inspection reports with your agent. Remove contingencies according to the timelines in the contract.

Fill out a loan application and submit your financial paperwork and get a pre-approval letter. Complete your mortgage loan process. Your lender will require an appraisal on the home. You or your agent should attend the appraisal.


Purchase Agreement

• Contingencies: Loan, Appraisal, Title and Inspections
• Deposit: How much money accompanies the contract and who will hold it.
• Closing: When and where.
• Inclusions and exclusions: What is and is not included in the sale of the property.
• Warranties: Any that are included with the house and description of the warranty.
• Well and Septic: If applicable, they must be tested (and pass).
• Termite and Pest inspection: Who will pay and if there is infestation or damage, who will repair.
• Possession Date: When the buyers take possession of the house.
• Acceptance: How long the sellers have to respond to the offer with either acceptance or a counter-offer.
• Arbitration: Any provisions for arbitration of disputes.
• Insurance: Whose insurance covers the property up until the closing date.
• Property Disclosures: Notices of any property disclosures concerning the house.

Contingencies Loan Approval: The sale is contingent upon the buyer being able to obtain financing. Appraisals: The sale is contingent upon whether the property appraises for at least what you agreed to pay for it. Home Inspection: The sale is contingent on the findings of a professional home and pest inspector. Clear Title: Any liens on the property must be cleared by the close of escrow.

Closing Escrow

Is your homeowners insurance policy paid and ready to go into effect the day you close? One of the requirements that will be made by your lender is proof of a valid homeowners insurance policy, secured before closing.

You should receive from your lender a "good faith estimate" of the fees charged for closing. Are the lender's closing costs as they represented they would be? Is the loan amount, interest rate, term of the loan, and prepayment penalty correctly stated? Are the prorated dates and amounts correct?

Read over the Preliminary Title Report with your agent. At the close of escrow, the title company will issue an Owner's Policy of Title Insurance to protect you against losses that might arise from covered claims on the title. Are there exceptions to the title insurance showing encumbrances, easements and liens against the property?

Title Insurance Lender's Coverage: Lenders will require title insurance for at least the amount of the mortgage. Owner's Coverage: A title insurance policy with owner's coverage is usually issued in the amount of the actual purchase price of the property.

Call up all utilities- water, garbage, gas and electric, telephone, cable, etc. and make sure that everything is transferred over to you as of the close of escrow date.

You should have a copy of the settlement statement before the date of closing so you know the amount of certified funds you will need at closing and how the funds will be dispersed. Deposit the rest of your down payment and closing costs with the escrow company. Sign-off on all papers at the title company.

Ask for keys, garage door opener, and any security access codes. It is clear on which day you will take possession of the property? You’ll have a final walk-through of the property to ensure it is in the same condition and any required repairs have been performed.