Congratulations!! You and your Buyer have finally found the right space to call home, and their Offer To Buy, has been Accepted!
Now comes the hard part! You would be surprised at how many Real Estate Professionals that have never represented a client in the Purchase or Sell of their Home or Condo. So many Agents, Realtors, Brokers, make a very handsome living, only doing Apartment Rentals, and that’s Awesome.
Hopefully, at some point in your career, you will get the opportunity to represent a client in a Sales Transaction, preferably a 7 figure deal. Now that you have procured the property for your client, you have to make sure that the process moves smoothly over the next 45-60 days before “The Closing”, or “Payday“, can materialize.
A Lenders Pre Approval Letter is just that…Pre Approved for X amount of dollars based on your credit worthiness. Now you need to get a Mortgage Commitment Letter from your Lender, who will guarantee coverage of the outstanding balance of the Real Estate purchase.
After the Contract has been signed by all parties, and 10% Down Payment of the Purchase Price has been Es-crowed, your Buyer/Client/Investor will need to provide the following documents, regardless of purchase type, Mortgage or All Cash transaction.
Mortgage Lender Commitment Letter, Tax Returns, Pay Stubs, Bank Statements, Bank Appraisal of Property being Purchased, including Homes and Condos.
Condo Board Application(First Right of Refusal Waiver), must be completed, submitted and approved by the respective Condo Board to allow your purchase.
Once your Buyer/Client/Investor has submitted all of the necessary documents required or requested, the process moves very smoothly…most of the time. There could always be a hidden nugget of Title,Deed,Probate or Lien issues lurking in the archives.
Your Title company should make sure all outstanding issues are resolved, if any exist, before The Closing can take place. These situations mostly develop with Resales of Property.
After 20 years in the business, I have never experienced this with New Condo Developments or New Homes constructed.
I hope this information has been, and will be, useful in your future Real Estate Sales endeavors.
Warm Regards, Frank
**Frank Allen is the Chief Executive Officer at the FD Allen Group Inc, located in Flatiron, Manhattan, NYC.**
#CEOSpeaks @ fdallengroupinc.com