Steps in Buying and Selling a Home and Closing on Time

In this blog, we will cover and discuss the steps in buying and selling a home and closing on time. Many renters who have been on the sidelines are beginning to pull the trigger on buying their first home. Christy Hembree, a senior mortgage loan originator at Gustan Cho Associates says the following about step in buying and selling a home and closing on time:

With home values appreciating to record levels and mortgage rates at a 3-year low, many first-time homebuyers feel if they do not buy a home now, they will miss the chance in becoming a homeowner.

Many homeowners who lost their homes during the 2008 Great Recession and Housing Collapse are also joining in the bandwagon in the housing market. With new loan programs such as Non-QM Loans and bank statement loans for self-employed borrowers, homebuyers who had trouble qualifying for a traditional mortgage can now qualify In the following paragraphs, we will cover steps in buying and selling a home and closing on time.

The Decision To Become A Homeowner

The benefits of being a homeowner surpass being a renter. Many renters are tired of paying rent and making their landlord’s rich. There is no equity earned with paying rent. Many renters who have been paying rent for years now regret that home prices have appreciated and they need to start from scratch. The good news is it is not late.

Discover the essential steps in buying and selling a home with Gustan Cho Associates. Learn how to navigate the process and ensure a timely closing for a seamless real estate experience.

Purchasing and selling a home can prove tricky but thanks to the right experts you can make the entire process much simpler and more profitable. The entire team at Gustan Cho Associates realizes how difficult this process can be and works hard to make sure every client reaches their real estate dreams. In this document, we will discuss the steps in buying and selling a home and provide some valuable tips on how to close the sale on time. That way, every party of the deal will have a win-win situation.

How To Avoid Getting Denied By a Mortgage Lender

Borrowers may get denied for a mortgage by one lender but get approved with another lender. Over 75% of our borrowers at Gustan Cho Associates are folks who either got a last-minute mortgage denial and/or are stressing over their mortgage process with a current lender. Make sure you interview several lenders and see that the lender can handle the type of borrower you are.

Gustan Cho Associates is nationally known for its no lender overlay policy on government and conventional loans. We are also experts on Non-QM Loans and bank statement loans for self-employed borrowers.

Home purchases have different processes than buying other products like a car. You need to prepare a budget. This entails scrutinizing your income, savings, and loans and checking your credit rating. Getting a mortgage evaluation will prepare you for better buyer negotiations, and it will also prepare Gustan Cho Associates for a better budget evaluation. Getting a mortgage evaluation will also prepare you for better negotiations as you…

The Type Of Home That Is Right For You And Your Family

Is homeownership right for you? How much house can you afford versus qualify? Does your job require a lot of travel? These are some basic questions you need to ask. Renters are not committed to more than one year at a time on their leases.

If you have a job that requires travel and/or potential relocation in the near future, homeownership may not be for you. However, if you are planning on staying in one area for at least three to five years, buying a home may be a good idea.

Are you married or single? If you are single and meet a significant other, think about the potential financial consequences. Are you going to live in your home? Or will your significant other want you to live in their home?  Consider the potential consequences before pulling the trigger.

Steps in Buying and Selling a Home and Hiring A Realtor

One of the most important Steps In Buying And Selling A Home is hiring a realtor you can get along with. Interview several real estate agents. Research their online reviews. Both homebuyers and sellers need to get along with their realtors.

Buying a home is not as easy as it often looks. Remember that a home will most likely be your life’s single largest investment. Experience is a must.

Professional realtors know their areas and markets. They often know of homes that are available prior to the home hits online and/or the marketplace.

10 Steps in Buying and Selling a Home With a Real Estate Agent

Once you have made the decision of buying and selling your home, the following steps in buying and selling a home are the most common and recommended;

1. Why are you selling your home?
2. Evaluate and do an assessment for the current housing market on where you are selling and planning on buying.
3. Decide when is the right time to make the move.
4. Get pre-approved on how much you will qualify and what your mortgage options are.
5. Go over your budget and decide on how much home can I afford versus how much house I can buy.
6. Consult with a real estate agent on how much you should price your home and the prices of homes in the area you want to move to.
7. Do you have the down payment and closing costs on your new home purchase?
8. The real estate agent will recommend how to show your home well.
9. List your home with a realtor and simultaneously shop for your new home.
10. Decide on a plan on how to sell and buy a home simultaneously

What are Recommended Best Steps in Buying and Selling a House

Steps in buying and selling a house without stress can be done with teamwork. It is teamwork with buyers, sellers, loan officers, and realtors to come up with a compromise on the best steps in buying and selling a house.
Real estate agents are professionals who represent their homebuyers and sellers. You should hire an experienced full-time real estate agent who you can contact anytime you have any questions and they return your calls and/or emails promptly.

How Much Home Can You Afford Versus Qualify

One of the most important steps for homebuyers is getting qualified for a mortgage. Differentiate between how much you can afford versus how much you qualify. Lenders will only tell you the maximum you qualify for. Lenders do not take into account the following:

• Monthly debts that do not report on credit bureaus
• Medical, auto, life, health, and other insurance
• Utilities
• Maintenance and repairs
• Vacation budgets
• Childcare and elderly expenses
• Education
• Other personal expenses

You do not want to own too much home where you will be poor in other areas. Make sure that you are able to maintain your lifestyle after paying your mortgage.

Steps in Buying and Selling A Home and Closing On Time

Gustan Cho Associates understands this ‘Wish List-Necessities’ checklist, and this list will help them understand you better. They will also provide helpful tips for the region. Evaluating your credit rating and your debt default risk will help you understand your optimal spending budget.

Buying and selling a home while closing on time has been made easy and simple. This is a borrower’s guide from Gustan Cho Associates, outlining the necessary actions and timelines, along with tips and answers to frequently asked questions.

After selecting a house of your preference, an offer must be made. Your realtor will assist in constructing a reasonable offer and handle negotiations with the seller. Like other stages in the process, this will be complicated but will hopefully be guided well, so that an amicable win-win scenario can be reached.  Gustan Cho Associates optimizes this gap and offers one of the most well-versed services in the region. They provide one agent devoted to the client, who is responsible for the entire transaction from negotiations and…### 4. Prepare an Offer and Negotiate

Why Yelling and Buying a Home at the Same Time Needs Careful Attention

• Sales and purchases are like a moving puzzle to coordinate.
• You’re in the thick of it with the price, the preparation, the showings, the inspections, the appraisals, the loan approvals, and dealing with the closing documents of both deals.
• The secret is to decide what you can decide and what you have to decide and in what order.
• At Gustan Cho Associates, we assist and strategize with borrowers on the elements of buying and selling a home, ensuring that the process aligns with the loan timeline, so both transactions are completed simultaneously with no hidden costs and delays.

Step 1: Get Pre-Approved Before You List

Serious buyers go for serious numbers, and a full pre-approval tells you exactly what you can afford before you set a list price or make a purchase offer. This includes a credit pull, an income and asset review, and is accompanied by automated underwriting (AUS). With the no-overlays approach, the Gus team has dedicated itself to matching you with set, tailored options. You get to work with FHA, VA, USDA, Conventional, or even Non-QM options. This comes with approvals that the timeline and credit profile work for you.

Step 2: Pick The Appropriate Sell or Buy First Strategy

If you sell first, you run the risk of carrying two mortgages, which you can eliminate; however, you may need some form of interim housing, along with a rent-back agreement. If you buy first, you can sell your current home and gain certainty about your next one without any restrictions. However, you will need a payment that can only be sourced from your savings, retirement, a bridge loan, or a home equity line (if available). Reserves, monthly cash flow, and both pathways should be modelled alongside your loan officer and agent in the scenario where one closing slides a week.

Step 3: Write Contracts That Protect Your Timeline

Ensure that your purchase and sale contracts are mutually related. Realistic time frames, aligned closing dates, and additional terms such as post-closing occupancy or seller concessions should be included where appropriate. If your purchase depends on the proceeds from your sale, make that clear with a home-sale contingency and provide dates that will give your lender and title company sufficient time to clear conditions.

Step 4: Prep, Price, and Launch the Listing

Withdrawn or kept aside, sellers, as well as buyers, become more confident, and the sale becomes much easier to make when the home is neatly put together, with all packing materials removed. The price is strategically positioned to facilitate quick sales and purchases. Receipts for post-listing repairs, alongside other permits and checks, ensure that these repairs are completed, as well as other actions that help the appraisal stay above water, and that the sale doesn’t get jeopardized.

Step 5: Lock the Loan and Manage Rate Risk

These changes occur constantly over the course of a market day. During the contract period, the lock period should be discussed with your loan officer and confirmed to extend over the entire appraisal, closing, and underwriting process, as well as all scheduled dates. In the event of a sale or rent slip, lock extensions or float-downs should be included.

Step 6: Clear Appraisals, Title Work, and Insurance; Bookings Should Be Done Months in Advance

Within this time frame, border your appraisal documents immediately after completing the lawyer review or the first inspection. In both transactions, initially clearing the title prevents delays caused by liens, boundary issues, unreleased mortgages, and other surprises. Within the mentioned timeframe, also arrange homeowners’ insurance and, if available, flood insurance. Closing costs are often delayed because a binder was left till the last minute.

Step 7: Condition and Underwriting, Are You Responding Quickly

Confirming the credit, assets, income, and property, the underwriter handles the remaining documentation. For the remaining documents, bank statements, letters of proof for the source of earnest money, appraisal corrections, and proof of insurance are required. You should respond within 24 hours if it’s within reach. Closing documents and wire transfers should be completed within the timeframe left after clearing the conditional documents.

Step 8. Closing Paperwork, Timing, and Funds Needed

Legally, most loans require lenders to provide the Closing Disclosure (CD) at least 3 days before closing. For the avoidance of fraud, confirm the wire instructions through the title company via known phone numbers and make payment to the moving company to receive confirmations of wire transfers, thereby alleviating rescheduling penalties. In the event of a simultaneous sale and purchase, work with the title companies to ensure the sale proceeds are wired before the purchase.

Step 9. Last Walk-Through and Day of Closing Logistics

Up to 24 hours after the closing, visit the new house to verify that repairs to appliances and other items have been completed, and that the house is in the expected condition. If you have sold the house and agreed to a seller rent-back, ensure that you receive the keys, daily rent, insurance obligation, and payment details via email. For double closing, make the sale appointment in the morning and the purchase in the afternoon. This will give time for the bank wires to arrive.

Step 10: Closing Time, And a Post-Closing Checklist

A closing, the final step in the transaction, comes after the buyer pays the seller the specified amount and pays the buyer’s closing costs in full.

Tips For Ensuring Closing Time Is Respected

They are expected to do what all buyers are supposed to: Close and sign the Closing Disclosure and pay the Closing Fees alongside the Closing Funds. After the closing, clients are expected to ensure that the utilities are turned on and that the signed closing papers are kept in the escrow account, along with the survey, the deed, the warranty, and copies of the inspection records.

Clients who have loans with a monthly payment set aside for private mortgage insurance removal should set reminders for the milestones on their calendar.

You can set the house for sale on real estate websites with good visibility, and attempt to find buyers on your own first. For valued buyers, you can also prepare a comprehensive brochure and set appointments for a walkthrough. Buyers can also be attracted using social media campaigns, especially on Facebook, Instagram, and other sites that have good marketing capabilities.

Creation of a Reverse Calendar

• Working backwards from the closing date, one should work backwards from the CD Issuance, which should occur three business days before the closing.
• The closing should happen 10 days after the appraisal is due, which should have insurance binders 7 days prior.
• The conditions that need to be cleared should occur seven days after the loan lock window, which typically spans 30 to 45 days before closing.
• The closing should occur 15 days after inspections and 30 to 45 days after the contract is signed. By planning backwards, one can see conflicts arise early.

Proof of Funds

If money is documented in an account, funds are considered seasoned. Large, unexplained deposits trigger questions of potential money laundering. Clients planning to move funds for the down payment should do so well in advance and maintain a clear paper trail, including bank statements, letters that are gifts, and proof of transfers, to avoid underwriting issues.

Don’t Change Your Credit Profile

Until the records of the closing from both ends are completed, do not engage in new debt, co-sign, or switch jobs. Even small, undetected changes to one’s credit can be a pain to deal with.

Use Contingencies as Tools, Not Crutches

Everyone knows that an inspection, appraisal, and financing, as well as home sale contingencies, protect you, but deadlines should be attainable and reasonable. Find out from your lender how much time they actually need, and give the title company at least a week to receive the payoff statements and HOA letters.

Financing Options Whenever You’re a Buyer and Seller

In the preliminary stages, the house can be sold at 10% lower than the average market price listed with other agents in the region. However, over a period of time, the price can be increased based on seller interest and demand. If the interest at the new listed price is low, the price can be reduced accordingly.

When buyers present their offers, consider how they are put forward. It is critical to take the pricing, along with the terms, into consideration. At Gustan Cho Associates, we will handle negotiations of every nature and finalizing the deal.

Properly marketing a home helps increase the number of potential buyers and how quickly the home will sell. This includes amazing photography, persuasive listings, and use of several marketing platforms. At Gustan Cho Associates, we use marketing techniques tailored to match the buyers interest to the home.

Conventional, FHA, VA, USDA, with a splash of Non-QM, When Life Is Messy

Everyone’s borrowing experience is unique. Non-QM alternatives such as the bank statement loan, the DSCR for real estate investors, and interest-only options may cover the blunders of your self-employment income and more recent credit history events that do not coincide with the Non-QM boxes. Gustan Cho Associates has a wide selection of programs with unbeatable pricing and industry-standard underwriting.

Bridge Loans, HELOCs, and Temporary Financing

Suppose your equity is tied up in your existing home. In that case, short-term options such as bridge loans and HELOCs may provide the funds you need for the down payment on a new home purchase, allowing you to avoid selling your current home to make the new purchase. Together, we will balance the costs, anticipated sale proceeds, approval speed, and the exit strategy.

Risk Management: What If One Side Slips?

If the Appraisal Comes in Low

Price discussions inevitably conjure the “split the difference” counsel. Cash-up negotiations will also be done. So, will programmatic shifts occur if new methods of valuation warrant them? Comps are in the cloud, agents like sandwiches serve reconsideration requests, and lenders do lunch-hour payment impact modeling.

If Time is Needed by the Buyer of Your Sale

Consider dilly-dallying on the rental excess that pays for the lock extension. Or conversion. Or co-borrowing if more agile ratios tighten. Some programs help individuals bridge these gaps through divorce.

If You Have to Move Before the Closing

Rushed decisions are avoided by short-term storage or rent-backs. Adding days of occupancy flexibility to a 3-7 day closing window is a common grace that saves many deals.

Closing-On-Time Checklist Summary

Respond to all closing conditions within 24 hours. Confirm all documents and your insurance policy, then wire the closing funds. Schedule the sale for the morning and the closing for the afternoon, delivering your closing funds as scheduled. Complete the final walk-through and be sure to bring your ID. Have all copies of closing documents.

Partner with a Lender Who Lives by Deadlines

With Gustan Cho Associates, there are no overlays with dozens of products, and neither are there imposing policies on the closing timeline. They operate on checked box performance and guaranteed accessibility. Everyone picks up during the closing week. Whether your strategy is Traditional with a home-sale provision or a non-QM bridge to a wishful house, we arrange it so you buy, sell, and close on time.

Frequently Asked Questions From First-Time Homebuyers

There are many first-time home buyers questions. Many may be nervous in taking such a huge step. Many are confused with the Steps In Buying And Selling A Home. You are not alone. Many first-time homebuyers are nervous about spending a lot of money and pulling the trigger with one of the most important decisions they need to make in their lives. Learning about the Steps In Buying And Selling A Home And How To Close On Time is a great start in the home buying and selling process.

Getting Qualified And Pre-Approved By A Lender

The qualification and pre-approval process is the most important stage of the home buying process. The home buying and mortgage process should not be stressful.

The number one reason for last-minute mortgage denials and/or stress during the mortgage process is that borrowers were not properly qualified.

Choosing the right lender is very important. Not all lenders can handle every type of home loans. Any loan officer can qualify a borrower with perfect 800 credit scores, low debt to income ratios, and no derogatory credit tradelines. However, that is not often the case.

What is The First Step in This Process?

• Complete a thorough pIn documents for closing, support for closing on time is the strongest.
• Prepare to send information in an orderly manner, set channels for discussion to contact the closing documents and the realtor, the lender, and the documents sent in.
• At Gustan Cho Associates, we work around the clock to encourage follow-through with various forms of documents.
  re-approval to understand your buying power, allowing you to list and purchase with confidence.

In The Process of buying a House, can I write an Offer Before My current Home is Under Contract?

• Each process should undergo timely resolution to avoid long stuck lags.
• This includes managing inspection findings, negotiating on repairs, and seeing to it that all documentation is prepared and delivered on time.
• Our staff will come up with innovative and prompt methods to contain and control any problems.
• Hopefully, but you will need a home-sale contingency or some backup resources, such as savings, a HELOC, or a bridge loan, for the down payment.

What is The Best Way to Pick a Closing Date to Lessen The Likelihood of Having to Move Twice?

• Schedule the sale for the morning and the purchase for the afternoon on the same day, or arrange for a short rent-back period with your seller.

For How Long Should I Lock My Mortgage Rate?

• Make sure your lock covers appraisal, underwriting, and the three-day CD period.
• Usually, it is 45 days when buying and selling simultaneously.

How Do I Deal With a Low Appraisal on The House I Am Purchasing?

• You have the options of renegotiating the price, bringing in the cash difference, requesting reconsideration with new comparable sales, and adjusting loan programs if applicable.

How Quickly Do I Need To Respond To Underwriting Conditions?

• In 24 hours. Quick responses protect your closing date and keep your file moving.

Can I Use Gift Money To Help With My Down Payment

• In most cases, yes, but the program rules apply, including a gift letter, proof of the donor’s financial capacity, and traceable transfers, to prevent issues.

Should I Sell My Current House Before Buying a New One?

• Locks first is the safer option but may require temporary accommodation.
• Buys first is the riskier option, but requires cash on hand for the deposit.

What Are Some Reasons My Closing May Be Delayed?

• Due to missing insurance binders, HOA documents, and appraisal revisions, as well as payoff statements with large unexplained deposits.

How Do I Eliminate The Risk of Wire Fraud on Closing Funds?

• Always use a verifying number to contact the title company.
• Don’t solely rely on emailed wire instructions.

Are Non-QM Loans Able to Assist Me in Assuring Timely Closing For My Complex Situation?

• Yes.
• Non-QM options such as Bank statement and DSCR loans tackle the income verification issues while ensuring that deadlines are met.

What Comes Next if The Buyer’s Financing Does Not Pan Out?

• Your agent can put the listing live again in no time.
• Discuss with your lender options for extending your rate lock or adjusting your purchase strategy.

Ready to Plan for Your Dual Closing?

Select a point is generally a period of 30 to 45 days after an offer is accepted up to when closing coll is done. This is the period when inspection, appraisal, and mortgage processes occur.

Professional real estate agent and lender, along with other professionals, to assist you. Their knowledge and dependability are very valuable during closing. Gustan Cho Associates works with other professionals to help close deals on time.

Contact Gustan Cho Associates to obtain a pre-approval and a customized timeline blueprint tailored to your sale and purchase. We’ll guide you through the step-by-step process of buying and selling a home, working closely with your agent and the title team to ensure a timely closing. You can reach us at 800-900-8569 or get started with your online pre-approval.

Steps In Buying and Selling a Home and Entering into a Purchase Contract

You can have peace of mind knowing that with Gustan Cho Associates, you will be offered the best service in the market when buying or selling your house. Buying or selling, you can be sure that, our seasoned professionals will handle every step of the deal to ensure that you close on time. Contact us today to learn how we can best serve you with your real estate needs.

Once you are armed with an iron-clad solid pre-approval letter, you can start shopping for a home with your realtor. Once you find the perfect home and enter into a real estate purchase contract, the mortgage process begins.

The timeframe to close on home loans is normally 30 days. Gustan Cho Associates has a national reputation for being able to close home loans in two to three weeks for borrowers who are changing lenders during the mortgage process. For more information about the contents of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.