There are number of steps involved when looking to a buy a house in the US, these are as follows:
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