Buyers

 

Buyers Agency

It is important to understand the difference between customer and client in real estate.

Customer:  a person who is not represented by an agent but can receive information and assistance from a licensee.  The agent’s obligation is to treat the customer fairly and honestly.

Client:  a person whom the licensee has agreed to represent.  The agent has a fiduciary duty to the client by giving care, obedience, loyalty, accountability and notice to the client.

Here is a general outline of the home buying process from the negotiated contract to the closing.  Please make yourself a copy of this.

Let’s assume the contract has been negotiated and has been delivered to the title company.

1. 1. Contract delivered with earnest money to the title company and effective date is placed on the contract by the broker.
2. 2. Option fee is delivered to the seller…most contracts in Texas have a 7 day option period for buyers to have the property inspected.
   
3. 3. A licensed inspector is scheduled to do a property inspection on behalf of the buyer.
   
4. 4. Copy of the contract is sent to the buyer’s loan officer.
   
5. 5. If the inspection results are acceptable to the buyer, then the contract goes hard and everyone involved moves forward to closing.
   
6. 6. Loan officer is preparing the buyer’s file to submit to the underwriters.  I won’t go into detail here but the file can be in underwriting for several weeks.  This is the time consuming part, lots of eyes review the file.
   
7. 7. While the mortgage company is working on the loan.  The title company is checking the title of the property, making sure the title is clean for the buyer and the lender. 
   
8. 8. Generally this process takes about 3 to 4 weeks.  Once the underwriter for the lender gives “clear to close” documents are drawn up and sent to the title company.  A day and time for closing is scheduled for the buyer and seller.
   
9. 9. On closing day a down payment of certified funds are accepted from the buyer.  Both seller and buyer sign the closing documents.  The documents are sent to the lender for funding approval and the funds are sent to the title company to be dispersed.
10. 10. When the loan is funded the transaction is complete and possession is given to the buyer.

 DONNIE KELLER - Reata Realty - Real Estate Broker - Residential
1813 Ems Rd West Fort Worth, Texas 76116