THE BUYER’S GUIDE
1. Obtain Financing
You should get pre-approved prior to submitting an offer, ideally an underwritten pre-approval. Don’t worry if none of these terms make sense — we’ll help you navigate the world of mortgage lending to find the best fit for you.
Mortgage lenders will ask you to submit an application, along with copies of financial documentation such as your recent tax returns, bank statements, pay stubs, and debt invoices. Once the lender receives this information, they’ll contact you to clarify questions, run your credit, verify your employment and, if you’re a renter, they may call your landlord to verify your tenancy and payment history.
Additional Information
Uniform Residential Loan Application - the standard application that lenders ask you to fill out.
“What Are the Steps in the Mortgage Application Process?” - Detailed guide provided by First Republic.
2. Create Your Wish List
Location location location! Identify the best neighborhoods for you and your family, then create your property wish list. We’ll help you track down the best available options. If everything you want isn’t what you can get, we’ll help you figure out how to get the most out of what you can afford.
Additional Information
HUD’s Wish List - HUD has a basic, straightforward template to get the wheels turning.
Pinterest’s Board of House Hunting Checklists - lots of interesting posts!
Greatschools.org - online public school ratings
Crimemapping.com - online crime statistics
3. Review Listing Disclosures
We’ll obtain listing disclosures for you right away so that you can review, ask questions and perform any relevant research.
Disclosures are a big deal! Beyond price and your own due diligence, listing disclosures are the most important part of any real estate transaction. We’ll help you identify any major issues and red flags.
The most important disclosures are ones that accurately describe 1) historic repairs and improvements; 2) the current condition of the property, including any necessary repairs and improvements; and 3) anything that could affect the future value of the property (e.g. land-use and future development plans that could impact air/water quality, water supply issues, negated views from nearby high-rise development, traffic congestion, etc.). Past, present and future — if any of these categories is lacking sufficient information, we’ll track down the missing pieces for you.
The most important disclosures include property inspections (performed by independent contractors, not the listing agent’s best buddy), the Transfer Disclosure Statement, the Seller’s Property Questionnaire, the Agent’s Visual Inspection Disclosure, and any documentation that detail any work done (e.g. work orders, invoices, permits, etc.).
I’ve outlined below the most important disclosures you’d expect to encounter in buying a typical single-family home in the Bay Area. Please reach out for more information — we’re happy to share examples of these documents.
Documents - Bay Area
Disclosure Regarding Real Estate Agency Relationship
Possible Representation of More than One Buyer or Seller
Real Estate Transfer Disclosure Statement
Agent Visual Inspection Disclosure
Seller Property Questionnaire
Market Conditions Advisory
Wire Fraud Advisory
Buyer's Inspection Advisory
Buyer's Inspection Elections
Statewide Buyer and Seller Advisory
Seller’s Affidavit of Nonforeign Status
Lead-Based Paint Disclosure and Addendum
Water-conserving Plumbing Fixtures and Carbon Monoxide Detector Notice
Water Heater and Smoke Detector Statement of Compliance
Wood-burning Fireplaces
Notice of Your Supplemental Property Tax Bill
Megans Law Database
Combined Hazard Disclosure Booklets
County Disclosures and Disclaimers Advisory
City Report
Natural Hazards
CA Tax
Residential Earthquake Hazards Report
Preliminary Title Report
Property Inspection Reports
General Property
Roof
Structural Pest
Miscellaneous Disclosures
City- and County-specific Disclosures
MLS Public Information Prepared by Listing Broker/Agent
Evidence of Insurance
Building/Floor Plan Sketch
Square Footage and Lot Size
Details of Historic Repairs, Improvements, and Additions
4. Make an Exceptional Offer
If you decide to make an offer, we’ll help you research recent comps and current market conditions to determine the most competitive price and terms, then make sure that you present the best possible offer that you can make. We’ll also help you get your financial documents in order, sign all necessary disclosures, and write an effective cover letter. There are many important elements to an offer that sellers consider beyond price!
5. Escrow
When your offer is accepted, the escrow process begins. If you’re paying all cash with no contingencies, the deal can usually close within 7-10 days. If you’re working with a lender, escrow may take 21-45 days, and you’ll encounter the following milestones:
Initial deposit: You’ll submit your good faith deposit, typically via bank wire, within a few days after offer acceptance.
Appraisal: Scheduling the appraisal happens right away, with a rush request possibly necessary for an additional fee. The appraiser typically requires 2-3 days to provide their report, then your lender will take another few days to review the report and finalize underwriting.
Inspections: Depending on the dynamics of your specific transaction, we’ll help you coordinate inspections. Based on findings, we’ll negotiate as hard as we can for seller credits for any recommended repairs that were not identified or disclosed in the listing disclosures.
Title clearance: To ensure there’s clear title on the property, a preliminary title report will be issued shortly after escrow is opened. This report will identify any problematic issues that may not be insured by title insurance. See link below for more information.
Hazard (or “Homeowners”) Insurance: Your lender will require you to bind insurance prior to closing (i.e. pick an insurance company and provide them with your insurance agent’s contact information). If you’re paying all-cash, you can purchase hazard insurance after escrow closes.
Final walk-through: At your discretion, we can perform a final visual inspection with you a couple days before closing.
Additional Information
Chicago Title’s California Buyer’s Guide - great details on all major aspects of selling property, especially the escrow process and title insurance.
Understanding Preliminary Title Reports - the CA Land Title Association’s summary of FAQs.
“What is Title Insurance?” - Fidelity National Title’s video presentation.
“What is Hazard Insurance?” - Allstate has a good reputation, especially in San Francisco, and this resource they’ve provided is very informative and straightforward.
‘10 Most Common Title Problems’ - First American’s summary, including a short video.
6. Closing
When your lender is ready to fund, the escrow company will coordinate a signing date and location with you. We’ll obtain closing documents as early as possible for you to review.
You’ll sign documents right before closing day, then you’ll transfer the rest of your down payment. After the Sellers have signed their documents and the County office has recorded the sale, we’ll notify you when it’s time to pop champagne!
Documents and Resources
New House Checklist - a good checklist from Ownerly that covers everything from moving prep to transferring utilities, etc.