Buyer Process

Making An Offer

When you find a house that could be the place you want to call home, you write up an offer with your Realtor. When you submit an offer, you are turning in what is called a Purchase Agreement. 

While the document is seven pages long, there are four main decisions that you, as a buyer, must make. You will decide on the price you will offer, what date you'd like to close on the home, how you will pay for the property (cash, financing, etc), and if you would like a home inspection.

If financing in the State of Nebraska, most lenders require a termite inspection. It is recommended that most buyers to conduct a Whole House Inspection. Other types of inspections that may be to test radon levels, the a/c and furnace, or the integrity of the sewer lines.

Once an offer is accepted, a buyer has 72 hours to turn in earnest money to the title company. Depending on the purchase price of the property, that amount is typically between $1,000-$5,000.

Accepted contracts are typically contingent on inspections, loan approval, appraisal or other terms. Prior to closing, you are never completely locked into your contract if something comes up of if a buyer suddenly encounters financial hardship. 

Appraisal

After an offer is accepted, and while inspections are being conducted and negotiated, your lender will order an appraisal. The appraisal is meant to ensure that the home is actually worth the amount of money that they will be lending you. The buyer pays for the appraiser through closing costs.

If the home appraises above purchase price, then that is seen as instant equity. If the home does not meet the appraised value, the price may be renegotiated, the buyer and or seller may be asked to come to an agreement to give a little, or a contract may be voided.

Inspections

The most common inspection is a Whole House Inspection. An inspection will check appliances, drains, foundation, roof shingles, chimney function, attic space, and electrical outlets. The buyer and Realtor (the listing agent and the buyer's representative) are welcome to attend the inspection walkthrough. That’s when inspector explains the findings and includes some education about the responsibilities of being a homeowner.

The buyer pays for the inspections at closing through closing costs. 

If there are problems or repairs that are needed, the buyer may discuss with their Realtor which items they'd like to request the seller to repair or request a closing cost credit for to make the repairs once ownership has been transferred.

In Nebraska, inspections must be completed within 12 days of a fully executed agreement. The initial repair request must also be submitted by the 12th day. Following that, a buyer and seller have 6 more days to come to an agreement on negotiations of requested repairs.

If an issue is found and a resolution cannot be reached, the contract is voidable.

Loan Approval,  Title Commitment

Once the appraisal and inspections are completed, the bank will closely review your credit history, employment, and other financial interests. Your file is sent to underwriters who examine your ability to repay the loan you requested.

Meanwhile, the title company will conduct a thorough title search of the home. They are looking at the history of ownership to be certain that the sellers have the right to sell the home and if there are any clouds on the title that may interfere with a buyer's ability to take possession and ownership of the property. 

Final Walkthrough

Up to 72 hours prior to closing, the buyer is allowed to conduct a final walkthrough of the home. This allows the buyer to ensure that the home is still in the same condition that it was in when they first toured it. It is also the time to inspect repairs that were conducted as a result of the inspection negotiations.

Closing