The Purchasing Process

HOW A REAL ESTATE TRANSACTION WORKS
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BUYER SELLER
LOAN EVALUATION
Before making an offer, smart
buyers apply to at least three
lending sources to determine how
much they can afford to spend and
the best interest rate. >>>
OFFER PRESENTED
Buyer’s Realtor presents
buyer’s offer to seller’s
Realtor, who conveys it
to seller.
PURCHASE NEGOTIATION
Working through their Realtors, seller and buyer
negotiate final sales price, sales terms and any
contingencies buyer may request, such as whether
sale is contingent on inspections, appraisal,
attorney’s review, etc.
GOOD FAITH DEPOSIT
Along with the offer, buyer submits “earnest money,” or
good faith, deposit to cement the deal. Deposit is held in
escrow to be applied toward the down payment.
TITLE SEARCH
Concurrent with the loan process, closing agent
confirms seller has clear right to sell property
and establishes facts, such as whether there are
restrictive covenants on the use of the property.
CONTINGENCIES SATISFIED
Once financing is complete
and other hurdles are removed,
contingencies may drop off.
CLOSING
DOCUMENTS ISSUED
Lender provides loan estimate
and closing disclosure detailing
all terms and costs.
FINAL WALK-THROUGH
1-2 days before closing, buyer confirms that the home is in
the same condition as when purchase offer signed and all
elements that are to be conveyed are still in place.
Buyer’s
Realtor®
Seller’s
>>> >>> Realtor >>> >>>
CLOSING
Buyer and seller
sign documents and
complete sale.
SOURCES: FLORIDA REALTORS, CONSUMERFINANCE.GOV
SALES
AGREEMENT
EXECUTED
SELLER’S DISCLOSURE
Seller discloses issues that may
materially affect the value of the property
and which are not readily evident.
LOAN APPLICATION PROCESSED
Lender conducts extensive review of
buyer’s credit report, employment, source
of down payment, property appraisal, etc.