If you are planning to become a first-time home buyer, the following information about what occurs during a closing will keep you in-the-know.

1.     When you are ready to make an offer on a home, it is good to make an offer that is less than the asking price. This will give you plenty of room to negotiate with the seller. Make sure to discuss this tactic with your realtor FIRST.  In some markets it will simply assure that you will lose out on any property you make an offer on.  Currently in the High Desert most properties are selling for asking price and MORE!

2.    When you make a formal offer, you must pay 1-3% of the sale price as “earnest money”. This lets the seller know that you are serious about your offer. 

3.    You will have contingencies, such as getting proof of proper financing and a good house inspection.

4.    You will hire a home inspector that will give the home a complete inspection, to catch any possible problems the home may have.

5.    When your offer is accepted by the seller, a legal and binding contract is drawn which states the selling price, details of buyer’s and seller’s obligations, and date of possession.

6.    The required “settlement sheet” provides a list of all monies paid at closing, including commissions and escrow amounts.

7.    There will be a mandatory title search, and title insurance and an application for homeowners insurance is required.

8.    Various closing costs will be paid such as the appraisal fee, the credit report fee, your taxes and the document preparation fee, to name a few.

9.    Utility service will need to be arranged.

For more information on the closing process visit Title and Escrow Questions

For your entire Apple Valley CA Real Estate needs: visit our web site at http://www.RealEstateAppleValley.com