Home Buying Process In Arizona

There are many important needs and factors involved in finding the perfect property. The first is finding the right Realtor.

Working with a Realtor

In searching for the perfect home, you need to be certain that all options are researched and explored.  People who look for a home on their own often find it to be an overwhelming task.  Partnering with a Realtor is the best way to ensure you make an informed decision and experience a smooth purchase. If you are not already working with a Realtor, please select the “Find A Real Estate Agent” button on the right to be paired with one of my preferred partners. You will need a professional, experienced agent to represent and guide you through the buying process.

Reasons to work with an agent

• Realtors have access to the Multiple Listing Service or MLS.  This is a computer system devoted entirely to keeping track of all home listings in the area you desire.

• Realtors are trained to write offers, handle negotiations, problem solve and offer real estate advice.  With an agent handling these tasks, you can relax and make informed decisions

• Realtors are knowledgeable about market values.  Your Realtor will work with the listing Realtor to obtain the best possible price for you.

• Realtors are customarily paid from the commission the seller offers.  There usually is no charge to the buyer for Realtor representation.

• Realtors can help save your transaction.  Due to te complexity of the buying process, occasionally unexpected problems arise.  Realtors know the process and are trained to handle these issues that might otherwise end a transaction.

What to look for in a Realtor

Now that you are aware of the value of working with a Realtor, here are some qualities your agent should possess.

• Your Realtor should let you make the decisions and not push you into any purchase that does not suit you.

• It is imperative that you are comfortable around your Realtor.  He/She should have a personality you can work closely with.

• Your Realtor should be excellent at communication.  Ask your Realtor what systems/processes he/she will use to keep you informed.  Remember, lack of communication is the #1 complaint in the Real Estate Industry.

Choosing the right Realtor to represent you is imperative.  As a neutral 3rd party, I have met many professional Realtors that are experts in representing buyers. Please contact me for a referral to one of my preferred partners.

Shopping for your lender

An important aspect of your home purchase is choosing a good lender.  You will need to check reputations and references.  Comparing interest rate locks and loan packages is also advised.  Do not call around asking for interest rate quotes.  Why?  There are different loan programs for different financial situations.  If he/she does not know your goals, a lender might quote you a rate from a loan program that does not fit your situation.  Interest rates quoted over the phone are not locked rates.

As a neutral 3rd party, I have met many professional lenders that are experts in all loan programs.. Please contact me for a referral to one of my preferred partners.

Four Things To Avoid In A Purchase

1. Do not change jobs.  Changing jobs before or during the loan process can create a real problem in qualifying you for a loan, particularly if that jobs in a different line of work or at a lower rate of pay.
2. Do Not Switch Banks or Move Money Around: It’s difficult to verify funds if money is moved, so leave everything as is until your loan is closed.
3. Do not Pay Off Bills: Your loan officer will advise you if it is necessary to pay bills to help you qualify.  He/she ill show you how to pay off bills so there us sufficient proof of payment.
4. Do Not Make Any Major Purchases: Large purchases have a major impact on qualification.  If you add a payment or increase a payment it will decrease your qualification amount.  Stay away from purchases such as cars, boats, R.V.’s furniture etc during the loan process.

Once you identify the right property, Realtor and Lender it will be time to open escrow with Old Republic Title Agency.

Escrow

An escrow is a neutral, independent account created to process a transaction such as a sale or loan.  It protects the interests of all parties involved and favors neither the buyer or seller.  An escrow is opened after the purchase contract is fully executed and becomes the depository of all monies, instructions and documents pertaining to the transaction.

How does the escrow process work?

The escrow officer follows instructions based on the written terms of your Purchase Contract and the lender’s requirements for closing.  The escrow officer secures the satisfaction of all requirements of the title commitment.  Escrow cannot be closed until all the terms and conditions are met.

Opening escrow

Any party to the real estate transaction may open escrow as soon as the Purchase Contract is fully executed.  The Purchase Contract is executed by placing the initial deposit (earnest money) in an escrow account at Old Republic Title Agency.

Information you will need to provide

You will be asked to complete a Statement Of Identity for the Title Company.  This is a confidential tool used to correctly identify all parties involved in the transaction.

Title Companies and escrow officers

Title Companies in Arizona offer escrow services. An escrow officer is employed by the title company to handle the escrow transaction.  The duties of the escrow officer include:

• Accept executed contract and issue earnest money receipt

• Request a commitment for title insurance which shows requirements for issuance of a title policy.

• Order payoff/assumption statements from the existing lender/(s).

• Prorate taxes and insurance upon instructions fro the seller and buyer.

• Accept hazard insurance policy, inspection reports and all relevant bills.

• Compute settlement figures.

• Assist the buyer and seller with signing documents.

• Record the appropriate documents with the county recorders office

• Disburse final documents and money on the basis of mutual instructions.

The appointment for signing

The escrow officer will contact you to arrange an appointment for you to sign all the necessary documents.  Your appointment will take approximately 45 minutes.  Your signature will be notarized so make certain to bring either a passport or current driver’s license for identification purposes.

After Your Signing Appointment

After you and the seller have signed all the necessary instructions and documents, the escrow officer will return them to the lender for a final review.  Within a day or so, the lender will be ready to fund your loan and will advise the escrow officer so that all necessary work can be completed to record the documents and close the escrow.