DD Web • July 1, 2020
Your Contract-to-Closing Checklist for Real Estate Buyers
As a realtor, you perform a multitude of tasks to ensure that the home purchase process goes smoothly for your real estate buyers. You manage nearly every aspect of the transaction, not only your own duties and deadlines but also theirs. Your clients look to you for guidance, insight and ultimately — a big, reassuring checkmark next to each completed task as they get one step closer to closing on their home.
You’re only human, and even the most expert real estate professionals struggle to master the volume of tasks they face. Additionally, the process between signing a contract and closing on a new home can be confusing for new real estate buyers. So, how can you help each client manage the transaction process without bankrupting your time?
In The Checklist Manifesto, award-winning author Atul Gawande revealed the power of creating checklists to help professionals manage the complexities of today’s world and it holds a lot of relevance for real estate. He notes that “Success frequently requires multiple people, often multiple teams, and specialized expertise. Unanticipated difficulties are frequent. Timing and coordination can become serious concerns.”
Sound familiar?
No matter what end of the spectrum you’re at, the business of real estate is a checklist-driven activity. A real estate buyer checklist will help buyers comply with contractual obligations and ensure nothing falls through the cracks. And while unforeseen factors can affect the ease and timing of a real estate transaction, its purpose is to help buyers keep track of critical dates and time periods throughout the transaction.
Here is our 10-step checklist to guide homebuyers through the initial stages of a purchase all the way to closing day.
1. Determine your readiness: Understanding the costs of home buying and home ownership are vital steps in determining whether you’re ready to ‘take the plunge!’ Factors that determine financial readiness include your current income, savings, fixed expenses and debts.
2. Become optimal mortgage candidates: With lender requirements stricter than ever, you’ll need to make sure your credit and finances are in excellent condition. Try to pay off or pay down outstanding balances on credit cards, car loans etc. This will help improve your income-to-debt ratio and improve your credit score.
3. Get a pre-approval letter: A loan officer will review your finances and credit report and determines you qualify for a specific loan amount for one or more mortgage programs. The lender will then offer you a pre-approval letter, which will be a testament to your buying power when you’re ready to make an offer on a home.
4. Determine your budget: Your pre-approval letter will tell you how much the bank is willing to lend you, but how much you can really afford is a personal decision. The bank will take your fixed expenses into consideration when determining your pre-approval amount, but you will need to determine what you’re comfortable spending each month.
5. Find a real estate agent: With access to multiple listing services and insight into the market, a real estate can help you find the best property matches as well as facilitate the negotiating and closing process. Using an agent will make the entire process much easier, especially for first time real estate buyers.
6. Select a property: Narrow available properties by determining what you really want and make a list of pros/cons. Your agent will help you arrange home viewings for your properties of choice. Once you’ve selected the right home, it’s time to make an offer and close the transaction.
7. Make an offer: The current market condition, time of year, home repairs and the length of time the home has been on the market can all affect your offer — not to mention your own budget. The price is not the only factor within an offer, either; you can also negotiate closing costs, necessary repairs, etc.
8. Inspect the home: Once your offer is accepted, it’s customary to schedule a buyer’s home inspection. This is when you have the opportunity to get a professional opinion on the condition of the home and determine any red flags (damage, pests, structural issues, etc).
9. Sign a purchase agreement: The sales contract, or purchase agreement, will outline the specific directions of the transaction. The contract will outline the details of the sale, negotiated repairs to be made, certain disclosures on the property, etc. This, along with a payment of earnest money, will be held by your realtor or title/escrow company.
10. Close the transaction: Understand that the closing process can require several weeks (or longer) and many steps. During the escrow period, you will work with your lender to secure your mortgage. The process will involve gathering a wealth of financial paperwork and arranging a lender’s appraisal of the property. During the closing, your lender may require you to purchase a homeowners insurance policy, and you will have the option to purchase an owner’s policy of title insurance. When the requirements of your purchase agreement have been fulfilled and your mortgage has been approved, you will be given a final walk-through of the property. On the closing date, you will sign your mortgage documents and should receive the keys to your new home the next day!
By providing real estate buyers with this checklist, you can better help them understand each step in the process and what to expect, from purchase to closing. It’s an easy way to ensure that you provide your clients with excellent service from the get-go (and secure potential referrals down the road).
At Novation Title, we take immense pride in being recognized on the 2024 Top Latino-Owned Business List ! As a Latino-owned company, we are passionate about empowering our community through homeownership—one of the fastest ways for Latinos to build generational wealth in America. Why Hispanic Homeownership Matters Homeownership is more than just buying property; it's about creating stability, financial security, and opportunities for future generations. We believe in providing the resources and education needed to help our Latino community navigate the path to homeownership with confidence. Educating & Supporting Latino Homebuyers Our team uses key insights from the NAHREP (National Association of Hispanic Real Estate Professionals) reports to share real data on Latino homeownership growth and opportunities. We know that numbers don’t lie , and we want to ensure that every aspiring homeowner and entrepreneur has access to the right information. Advice for Latino Entrepreneurs For those looking to start a business in the title and real estate industry, our advice is simple: educate yourself and lean on data. By understanding the numbers and trends, you can position yourself for long-term success. Thank you to our community and partners for trusting Novation Title. Together, we continue to break barriers and build wealth through homeownership!
At Novation Title, we take immense pride in being recognized on the 2024 Top Latino-Owned Business List ! As a Latino-owned company, we are passionate about empowering our community through homeownership—one of the fastest ways for Latinos to build generational wealth in America. Why Hispanic Homeownership Matters Homeownership is more than just buying property; it's about creating stability, financial security, and opportunities for future generations. We believe in providing the resources and education needed to help our Latino community navigate the path to homeownership with confidence. Educating & Supporting Latino Homebuyers Our team uses key insights from the NAHREP (National Association of Hispanic Real Estate Professionals) reports to share real data on Latino homeownership growth and opportunities. We know that numbers don’t lie , and we want to ensure that every aspiring homeowner and entrepreneur has access to the right information. Advice for Latino Entrepreneurs For those looking to start a business in the title and real estate industry, our advice is simple: educate yourself and lean on data. By understanding the numbers and trends, you can position yourself for long-term success. Thank you to our community and partners for trusting Novation Title. Together, we continue to break barriers and build wealth through homeownership!
Welcome, 2020! We made it through the first week of the New Year and are already excited for what’s to come in this brand new decade. Anything can happen, and we have so much to create! Whether you’re a fan of long-term resolutions or prefer setting smaller, short-term goals, it feels good to start the year off with a desire to change for the better. If you know us, you know our approach at Novation Title has always been goal-centric, not only within our business but in our personal lives and out in the community. In today’s world where we are constantly connected (and distracted), it’s no wonder that we increasingly find ourselves overwhelmed mentally and physically drained. Often, the issues in everyday life are the ones that prevent us from enjoying the very same everyday life! How can we balance this out? We believe we can do better. That is why we are introducing meditation into our workspace. While meditation has been practiced for over 5,000 years, it is increasingly becoming a necessary way for us to unplug from the modern world. But what, exactly, is it? Meditation is a practice where an individual uses a technique — such as mindfulness — to train attention and thoughts. Mindfulness is awareness, it is a state of peace. It is being in the present moment, intentional and serene. It is the process of being aware of your thoughts while also disconnecting from them so you can connect within. Connecting within is the highest form of intelligence and results in proven mental, emotional and spiritual health benefits. Here are just a few science-based benefits of meditation: Reduces blood pressure Increases serotonin production that improves mood and behavior Improves immune system Increase in energy levels Lessens stress and anxiety Increases happiness and creativity Clarity and peace of mind Increased memory retention and recall Enhances self-awareness and self-acceptance Each one of us, regardless of gender, age or other factors, undergo daily stress and tension at some level or the other. That’s why we’re so excited to introduce #NovationMeditation into our business and we encourage others to join us this year. We can ALL benefit from improved mental and physical health in 2020. Who’s with us?!
