Buyers

8 Steps to Buying

Modern Realty Company looks forward to helping you reach your real estate goals. Consider these 8 steps to get started on your home investment journey:

Step 1: Establish your home purchase goal | MRC can help you ask the right questions

Step 2: Find your agent | MRC is comprised of specialists in all neighborhoods

Step 3: Secure financing | MRC can answer questions about obtaining pre-approval

Step 4: Find your home | MRC will help you find your perfect home

Step 5: Make an offer | MRC can help determine a fair price

Step 6: Perform due diligence | MRC can help you verify the integrity of your home

Step 7: Close | MRC will guide your successful closing process

Step 8: Protect your investment | MRC can introduce preferred home care vendors

Step 1: Establish your home purchase goal | MRC can help you ask the right questions

Modern Realty can help you understand:

Your home purchase needs and wants
Your financial capacity for a home purchase
The home purchase process
Your long-term investment strategy
How to be an informed buyer
Homeowner benefits:
- Appreciation
- Equity
- Mortgage Interest Deductions
- Property Tax Deductions
- Capital Gain Exclusion
- Home Equity Loans

Step 2: Find your agent | MRC is comprised of specialists in all neighborhoods

A Modern Realty agent will be your most valuable resource in your home investment journey. Your agent will:

Educate you about your desired market
Analyze your wants and needs
Match homes with your criteria
Coordinate the work of all relevant vendors involved in the purchase process
Negotiate on your behalf
Be diligent with necessary paperwork and deadlines
Resolve any issues that may arise

Step 3: Secure financing | MRC can answer questions about obtaining pre-approval

Modern Realty agents can assist you in obtaining a home loan qualification and the best available loan for your unique situation.

We will help you:

Choose a loan officer
- An efficient, straightforward lender is key to a smooth finance process and, importantly, a timely closing. Modern Realty has established relationships with major banking institutions and we refer each client to the lenders best suited to accommodate their specific needs. See a list of our Preferred Lenders.
Make a loan application and get preapproved
Determine your payment preference, and select a loan option
Submit to the lender an accepted purchase offer contract
Get an appraisal and title commitment
Obtain funding at closing

Investor Financing Options

Modern Realty can identify unique programs for real estate investors as well. Our team may contact you if you would like more information or to determine your investment qualifications.

Investor Qualification: CLICK HERE.

Step 4: Find your home | MRC will help you find your perfect home

Modern Realty will analyze your needs and wants to find your perfect home. This includes consideration of the following:

REO / Foreclosures
- Our clients benefit from our strong bank relationships. Modern Realty matches clients with off-the-market REO & pre-Foreclosure properties.
Your community/neighborhood preferences
- Crime rates
- Location to schools, parks, amenities
- Location within the neighborhood/community
How much space do you need, and why?
Which is more critical to you – location or size?
Are you interested in a fixer-upper?
How important is home value appreciation to you?
Is neighborhood stability a priority to you?
Are you interested in a condo?
Which types of features & amenities do you want vs. need?

Step 5: Make an offer | MRC can help determine a fair price

Your Modern Realty agent will provide you with detailed comparative market analyses of properties similar to your prospective home, so that you can make an intelligent offer.

It is important to understand what you are obligated to pay for under the Purchase Agreement. Your Modern Realty agent will review the Purchase Agreement before you write an offer, so that you have time for clarification on any questions you might have.

There are three main components of making an offer:

Price: dollar amount you’re approved for, willing and able to pay.
Terms: financial and timing factors included in the offer.
Contingencies: clauses that let you out of the deal if the house has a problem that didn’t exist or which you weren’t aware of when you went under contract. They may specify any event that will need to take place in order for you to fulfill the contract.

Step 6: Perform due diligence | MRC can help verify the integrity of your future home

Perform due diligence:

Your primary concern is structural damage, which can come from water damage, shifting ground, or poor construction when the house was built.
It is the inspector’s job to mark everything discovered no matter how large or small. If the inspection finds a big problem, a specialist may determine whether the worst-case scenario is true, and you might want to walk away from the purchase.
Even if your home gets a good inspection report, you’ll still need to buy a homeowner’s insurance policy to protect against loss or damage to the property itself and against liability in case someone sustains an injury while on your property.

Step 7: Close | MRC will guide your successful closing process

Modern Realty will provide guidance on the closing process, and help you ensure success and simplicity each step of the way. Such information includes:

The fees associated with the buying (or selling) of a home are referred to as “closing costs.” Certain fees are automatically assigned to either the buyer or the seller; other costs are negotiable. Closing costs can vary depending on many factors such as purchase price, commission (typically paid by the seller), and the location. The geographical area in the state of California dictates payment of closing costs.

Pre-closing responsibilities:

Staying in control of your credit and finances.
Promptly return agent & lender correspondence and paperwork.
Communicate with your agent weekly and verify with your lender that all the mortgage funding steps are completed.
Conduct a final walk-through of the home with your agent.
Confirm with your agent, home insurance professional, and lender that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing.

Fees included in the Closing Costs:

The down payment
Buyer’s portion of the escrow holder’s fee
Loan fees: points/loan origination fee, application fee, credit report fee, tax service fee, flood certification fee
Appraisal fee
Prepaid interest on the loan
Private Mortgage Insurance (PMI)
Any impounds on the loan
Mortgage broker’s fee
Homeowner’s insurance
Buyer’s portion of title insurance
Inspection fees (if not paid for at the time of the inspection)
Home warranty plan (home protection plan)
Homeowner’s association transfer fee and fee to provide documents
Homeowner’s association dues (prorated)
Property taxes (prorated)
Gas earthquake safety shut-off valve (only applies in certain areas)
Other fees as confirmed in the Purchase Agreement
Miscellaneous fees (notary fees, messenger fees, etc.)