The Home Buying Process

The Purchase - Once you have found your dream condominium, your next step is to make an appointment with your salesperson to complete the purchase contract and put down your escrow deposit. Reading and understanding the purchase agreement and all the related documents can be daunting, that is why our sales representative are there for you to ask questions and assist you with answers. Please read these documents carefully. Owning a condominium is quite different from owning a single-family home. Condominium ownership will always involve required monthly homeowner’s association dues, common ownership rights and rules and regulations for living in a condominium environment. As with any legal document, make certain you are comfortable in your understanding of these documents before signing.

Prequalify - We strongly recommend you work with one of our preferred lenders before you sign a purchase contract to prequalify for a home loan. Usually this is a free service all lenders offer, and it will tell you how much you are qualified to borrow.

Financing - Once you have your dream condominium home under a purchase contract, your next big step is obtaining financing. If you have not already met with one of our preferred lenders during the prequalification process, now is the time to contract a representative to discuss your various financing options. If you choose to use our preferred lender, we'll provide an extra incentive to you because we believe our preferred lenders can save you time and process your loan more efficiently. You will need to submit a complete loan application to the lender. As part of the loan underwriting process, the lender will typically order a credit report and various types of verifications i.e. employment, source of down payment, etc. Each lender will have their own set of underwriting criteria they must verify in order to determine your loan qualifications and gross loan proceeds they can make available to you. The lender will issue you a "good faith" and truth in lending statement. The lender will arrange to have the condominium appraised and after completing their underwriting, if you qualify, they will set the loan amount and notify you that your loan has been approved. The next step is ordering loan documents and securing your homeowners insurance.

The Closing - Once you have loan approval, the Escrow Company will contact you to confirm a closing date and work with both you and your lender to close the purchase and the loan. The Escrow Company will prepare an itemized estimated settlement statement that will list your closing costs which will include your lender related closing costs, as well as your purchase closing costs. You will usually be paying for such things as appraisal fees, loan related fees, escrow fees, prorated payments for property taxes and homeowner association fees, and title insurance premiums. In addition to the closing costs you will need to fund to escrow the balance of your down payment if you are obtaining financing or the balance of the entire purchase price if you are paying cash. Once funds are received from you (your down payment and any costs not included in your loan) and your lender (the loan proceeds), the Escrow Company will prepare your final closing statement, issue your title policy and record the Grant Deed and Deed of Trust. Now you officially take title to your own condominium!

 

Finding the Right Lender

Once you have made the decision to purchase your new condominium home, one of the first steps you need to take is finding the right lender. Working with an experienced, professional lender familiar with the condominium project you are buying can make all the difference when it comes time to find the right financing program for your specific needs and be there to close escrow on your condominium home.

Our Preferred Lender program makes it easier to find the right lender. For each new market we enter into, we search out lenders with specific knowledge of the local market and its financing trends. We team up to provide you with experienced, third-party professionals, who not only understand the condominium sales process but also offer the best service and most competitive programs available. Lenders not familiar with your specific project could cause delays in closing that can be costly and stressful. We would like to make this often difficult part of the buying process easier for you, which is why we take the time to find the right lenders to assist you.

Our Preferred Lenders offer c ompetitive loan programs which they will tailor to your financial needs; taking the time to carefully walk you through the process of obtaining financing while providing you with top customer service.

We believe both buyer and seller benefit when the lending process goes smoothly and efficiently and you move into your condominium home on schedule. Madison shares this benefit with you by providing you with an additional incentive when you choose to work with our preferred lender. Ask your Salesperson for more details about our Preferred Lender Incentive Programs.