Purchase Process
I went to a bank and was told that all I needed to do was find a house, the bank would call an appraisor and would work out the paperwork with the title company and then charge me closing costs (the bank was willing to pay for the closing costs if I was willing to accept a higher interest rate). I would like to know what the purchase process would entail without the bank. For example, do I first find an appraisor, then find financing, then contact a title company?
Usually one finds a property and gets the seller to sign an earnest money contract and then take the earnest money and contract to the title company. If you do not need a bank and are paying cash or the owner financing you may not even need an appraisal. The appraisal is usually ordered by the lender be it a bank or mortgage company. I would not order an appraisal until you get preapproved by the lender and they ask for the appraisal money. Banks and lenders usually have appraisers that are pre approved by them or some even have in house appraisers.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Who/what is the earnest money for? How much should the earnest money be?
The e/m is to show good faith. Usually the check is made out to the title company and the funds are held in escrow until the closing or the contract becomes null and void. I have seen small amounts as little as 10 dollars to several thousand to even the whole purchase amount in the form of a cashiers check delivered with the contract. $500 is kind of a standard when buying $100,000 houses or less. I try $100 on lot of my deals. Realtors want to lots of e/m. The sales contract will spell out the conditions the e/m will be given to the seller or returned to the buyer. Both parties need to sign a release before the money is released to either party.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Quote:
On 2004-02-02 09:20, sagrigg wrote:
I went to a bank and was told that all I needed to do was find a house, the bank would call an appraisor and would work out the paperwork with the title company and then charge me closing costs (the bank was willing to pay for the closing costs if I was willing to accept a higher interest rate). I would like to know what the purchase process would entail without the bank. For example, do I first find an appraisor, then find financing, then contact a title company?
1st the preapproval
2nd the property
3rd comes the contract
4th the appraisal
5th it all goes to the bank
6th the closing
lori
Ted Jr gave you a good roadmap there.
I would like to add that you find a good mortgage broker who will shop around for the deal that's best for you.
Just make sure in advance that they give you a clear picture as to their fees.
Going directly on your own to a lender does not necessarily guarantee that you get the best deal the market has to offer.
Hope this helps.
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Luctor et Emergo[ Edited by Hawthorn on Date 02/04/2004 ]