1. The buyer will make an offer to the seller for the property, your offer will usually require you to also provide the following:
â€¢ A Check Deposit, also known as an â€˜Earnest Money Depositâ€™
â€¢ A Pre-Approval Letter from your lender (The Bank)
â€¢ A Proof of Funds Available (Bank Statement)
â€¢ Identification Documents
It is normal practice for both the buyer and the seller to have a real estate agent or broker working on their behalf; the offer for purchase will be made by the buyerâ€™s broker to the sellerâ€™s broker.
2. If the seller accepts the buyers offer to purchase the property, the buyerâ€™s broker will then deposit the check deposit into an escrow account.
3. Once the money has been deposited into the escrow account, the buyer will then make arrangements to have the property inspected for such things as structural damage, termite infestations, roof damage etc., etc. Once the buyer is satisfied that the property meets their approval they can remove any contingencies to the offer. It is at this stage that the â€˜Earnest Money Depositâ€™ becomes non-refundable.
4. The buyer will now need make a loan application to his bank or mortgage company for the balance of the purchase price. Before approving the loan application, the lender will perform an appraisal and valuation of the property; if they are satisfied with the property then the loan underwriter will approve the loan.
5. The buyer will then sign all the necessary paperwork in front of a notary public witness at the escrow company. This will include such documents as the loan application from the bank as well as documents from the real estate agents and the seller. The loan will then get transferred by the bank, the seller will pay off any monies they currently owe to their own lender and then the seller will transfer the property ownership deeds to the buyer. This grant deed will then be recorded by the County Clerk Recorder service and the buyer becomes the legal owner of the property.
Web Reference : http://www.globenetrealty.com
For foreigners, some banks have the foreign national mortgage program, it starts from 30% down for 30 years. Not all the banks have this program. But the ones which gives have different options which is great to choice based on your needs.
Every state has their own rules, and ways of doing business, it's a process with a team job from agent to title company in USA, generally takes about 30-45 days with mortgage for residential transactions if everything goes right. For full cash, it can be shorter. So, answer to your question is pretty detailed. In some countries there is even no such a thing called real estate license!!! So, it is important that your local agent understands the differences of doing business, high context culture, low context culture, instead of assumptions, explaining each step detailed without confusing. what is very common practice may be not acceptable in other country, and without knowing it, can create problems, even kills the deal.
Summary, it's very important to find the right agent for your needs. As multi cultural person/realtor, I can always answer your questions related with Real Estate, or even not related.
166 North Canon Drive
Beverly Hills, CA 90210
cell (001) 310 428 6573
There are also restrictions on resale with regards to the state and feds withholding a percentage for taxes. If you let us know where you are looking a local pro may be able to help.
Lance King/Owner-Managing Broker
Prudential California Realty
Beverly Hills, CA,
Homes@endrebarath.com or call me on my mobile 310.486.1002
Look forward to your direct contact.