Information for Buyers

Buying a home is the one of the most important purchases in our lives. It is important that your interests are well represented and that your needs are met. At Jebb & Driggin Realty, Inc. your Exclusive Buyer’s Agent will work with your lender, inspectors, and attorneys to ensure a successful outcome.

The following is a brief overview of the home buying process.

Lender Pre-Approval

Before visiting properties, it is important to speak with a lender concerning your prospective mortgage. The lender will speak to you about your overall financial credentials and issue a conditional letter that confirms what mortgage amount you qualify for. This information is very helpful in determining what sale price you can afford; and when the letter accompanies the offer, it makes the offer more attractive to the Seller.

The Offer

In Massachusetts, the offer to purchase is a legally binding document that contains all the basic elements of the transaction including price, contingencies on which the offer is based (property inspection, financing, pests, lead paint, etc), and dates for execution of the Purchase and Sale Agreement and closing. A check for $1,000 accompanies the offer. The check is deposited in the Listing Broker’s escrow account and is fully refundable if the offer is not accepted or if any of the conditions in the offer are not met.

In Massachusetts, this offer contract allows the Buyer some time (normally 10 days) to perform due diligence* without the concern of the Seller accepting an offer from another prospective Buyer.

The due diligence process includes the following items:

• Property inspection by a duly licensed inspector (cost of which is borne by the Buyer).
• If a condominium, a satisfactory review of all condominium documents and budgets. It is generally a good idea to hire an Attorney familiar with condominium bylaws to assist in this review.

Purchase and Sale Agreement

When the Buyer and Seller have agreed on the terms outlined in the offer, the next step is to execute a Purchase and Sale Agreement. This agreement is for the protection of both parties and outlines the conditions on which the property will be delivered. The agreement is also accompanied by an additional deposit check, usually 5% of the purchase price reduced by the previously submitted $1,000 deposit, which is also held in escrow by the Seller’s Broker. Most lenders will not commence their “due diligence” until a Purchase and Sale Agreement is executed. The agreement will reflect a mortgage contingency date that is part of the offer agreement and requires a mortgage commitment letter issued to the Buyer from the lender. If a commitment cannot be made by the lender, the Buyer has the right to declare the agreement to be null and void, in which event all deposit monies will be returned to the Buyer.

Closing

The purchase of the home is complete when all pertinent documents are executed and the deed is filed at the registry of deeds.