Smooth Sailing: A Comprehensive Guide to
Buying a Property with The Warmack Group
The journey of buying a property can vary from smooth sailing to challenging waters, and the key difference often lies in the buyer’s level of preparedness. At The Warmack Group, our mission is to empower you with the knowledge and support you need to make informed decisions when purchasing a home in the Greater Seattle area. This comprehensive guide will walk you through the steps before buying, once under contract, and immediately following closing to ensure a seamless experience.
Before Buying: Initial Preparations
Share Important Information with Your Real Estate Agent
Marital Status: Washington is a Community Property state. It’s crucial to disclose if you’re married to avoid potential delays or surprises during the closing process.
Earnest Money (EM): Ensure your funds are liquid and available for a quick wire transfer for the earnest money. If your money is tied up in stocks, convert it to cash in a transferable account in advance.
Power of Attorney: Inform all parties upfront if you plan to use a Power of Attorney to avoid any legal or procedural delays.
1031 Exchange: If you’re engaging in a 1031 Exchange, communicate this early on in the process to both your agent and lender to ensure all necessary steps are followed.
Lender Considerations
Choose a Lender: Seek recommendations to find a skilled lender. Local lenders are often more familiar with regional laws and practices. Reach out to us for a list of our preferred local lenders.
Get Preapproved: Before heading out to look at homes, get preapproved. This not only strengthens your offer but also gives you a clear understanding of your budget.
Once you have a valid offer on your prospective home
(or prior to writing an offer)
Due Diligence Checklist
Neighborhood and Community: If you’re not familiar with the neighborhood, it’s important to evaluate the vibe of the neighborhood by exploring local parks, amenities, and retail centers. Consider proximity to schools, public transportation, and your workplace. Engage with neighbors to gain insights and check online for crime statistics and school ratings.
Lendable Property: Verify with the lender whether the property is eligible for financing, this is particularly important for condos where specific criteria must be met.
Future Development: Research any future developments that could impact property values, such as new infrastructure projects or commercial developments.
Zoning and Land Use Regulations: Understand the local zoning laws and restrictions on property modifications to ensure they align with your future plans for the property.
Utilities and Services: Confirm the availability and reliability of essential utilities, including preferred internet services, and inquire about any planned upgrades or changes that could affect the property.
Environmental and Geographical Factors: Check for environmental hazards or contamination concerns in the area.
Property History and Condition: Review the Seller’s Disclosure and any other documents provided by the seller. Check for renovation permits, as well as zoning or land use regulations. If the property is in the City of Seattle, you can access permits and property records on their website here.
***For properties outside of Seattle, ask us who you should contact or where you can find this information.
Market Trends: Consult with your Warmack Group agent to analyze recent sales data and discuss pricing trends in the area.
Financial Considerations: Work with your mortgage professional to calculate the total cost of ownership, including property taxes, insurance, and maintenance costs. Assess your mortgage options and potential return on investment.
HOA Rules and Fees: If applicable, understand the HOA rules, fees, and what they cover.
Once Under Contract: Ensuring a Smooth Process
Understanding Your Purchase & Sale Contingencies
Review Contingencies: Ensure all contingencies, such as financing, inspection, and appraisal, are understood and met within the timeline specified in your contract. Your Warmack Group agent will help you navigate these requirements.
Earnest Money
Earnest Money Deposit: You’ll have approximately three days to deposit EM once under contract.
**Please refer to your purchase and sale agreement for exact number of days.
Home & Sewer Inspections
Scheduling Inspections: Work with your agent to schedule home inspections.
Lender and Loan Application
Loan Officer Communication: Stay in close contact with your loan officer, providing any necessary documentation promptly to keep the loan process moving smoothly.
Finalize Financing: Confirm your loan application is complete and lock in your interest rate
Appraisal
Lender Orders Appraisal: Once you are through the inspection contingency, your lender will order the appraisal to determine your home’s value.
Review Appraisal Results: Confirm the appraisal value meets or exceeds the purchase price.
Legal and Title Issues
Contact Title Officer: Once you receive a copy of your title report, we recommend reaching out to your Title Officer so they can help you understand and verify that the title is clear of any liens or encumbrances, check for any boundary disputes and easements, or any other items on the report that may need to be reviewed and cleared before closing. This service is included in your escrow and title services, so use it!
Review Legal Documents: If anything is unique, consider reviewing legal documents with a real estate attorney. We are happy to provide you with a list of attorneys should you need one.
Home Insurance & Warranty
Obtain Homeowners’ Insurance: Shop around for homeowners’ insurance and select a policy that fits your needs. Once you select a policy provide proof of insurance to your lender.
Home Warranty: Consider purchasing a home warranty for added protection against unexpected repairs.
Condo-Specific Considerations
Resale Certificate: Carefully review the Resale Certificate, especially the “Executive Summary Signature Pages,” for any red flags.
Common Elements: Verify details about parking, storage, and any special assessments.
Legal Review: Consider hiring an attorney to review the resale certificate and other condo-specific documents.
Final Steps Before Closing
Final Walkthrough: Conduct a final walkthrough of the property to ensure it’s in the agreed-upon condition.
Review Closing Disclosure: Carefully review the Closing Disclosure statement provided by your lender.
Funds For Closing: Make sure that you have the money needed easily accessible for closing. Escrow will provide the final amount needed when they call to set your signing appointment.
Schedule Signing: Your escrow company will reach out to schedule your signing appointment once they have loan documents from your lender. If you will not be in town on closing day or right before, please let escrow know right away, so they can arrange a mobile notary.
Prepare Documentation: Gather all necessary documentation and bring a valid ID, cashier’s check for closing costs, and any other required items on signing day.
Move-In Logistics: Plan your move, including gathering moving boxes, getting city permits for the moving truck, and scheduling moving services, but do not plan your move on closing day, in case there are any delays with your closing.
Signing Day
Bring Required Items: Bring a valid ID, cashier’s check for closing costs, and any other required documents.
Review and Sign Documents: Carefully review and sign all closing documents.
Closing Day
Lender Wire: By early afternoon on your closing day, your lender will send their wire to escrow. Once escrow has received this, they will release to record with the county.
Recording Numbers: Once the county has recorded, they will send an email with recording numbers and you’re now the homeowner! This typically happens in the afternoon.
Receive Keys: Your agent will make arrangements with you to hand over the keys to your new home! This generally happens in the late afternoon/early evening once recording numbers are back from the county.
After Closing: Settling Into Your New Home
Immediate Actions After Closing
Change Locks: For security reasons, consider changing the locks on your new home.
Transfer Utilities: Ensure all utilities are transferred into your name.
Update Address: Complete an official USPS address change online, and notify relevant parties of your new address, including banks, employers, etc.
Settling In
Make It Home: Begin the process of unpacking and personalizing your new space.
Share Your Experience: Spread the word about your positive experience with The Warmack Group and your new home purchase.
By following this guide and staying in close communication with your Warmack Group agent, you’ll be well-prepared to navigate the home-buying process with confidence. For more in-depth information or personalized assistance, don’t hesitate to reach out to us. Happy home buying!