Cavanaugh - An Alameda legacy since 1870, we've been helping you move around the island for more than a century
Your trusted real estate advisor
Cara Cavanaugh Collection
Buyer Process
01 Find an Agent
Set up a time to sit down with your agent to discuss the neighborhoods you’re considering and can help guide your search.
02 Get Pre-Qualified
Before beginning your search, your first step is to get pre-approved for a mortgage loan (unless you will be paying the full price of your home in cash). Your agent can connect you to a mortgage broker. Based on your income and credit history, the mortgage broker will determine how much a bank will lend you, which will help determine the price range for your search.
03 Visit Properties
Now is the time to consider your ideal home’s location and amenities. You will attend viewings and open houses spanning a range of areas and property types. Additionally, your agent will activate notifications for exclusive Coming Soon and Off-Market properties as they hit the market.
04 Packaging and Submitting Offers
Once you identify a home you like, you can put in an offer, which is an agreement to pay a certain price for the home. This offer is packaged with a Proof of Funds (POF) and Pre-Approval Letter. NOTE:if your offer is lower than the list price or with terms not acceptable to the seller, the seller will likely return with a counter-offer price or acceptable terms, which you can accept, reject, or make another counter offer. Your agent will provide advice throughout.
05 Escrow Process
(Life of an Escrow: 21 & 30 day escrow period)
Day 1 Once an offer is accepted, escrow is officially open & the clock begins on contingencies*
Day 2 Contact your insurance agent for homeowners coverage
Day 3 Initial deposit is due per terms of agreement
Day 1-7 Seller delivers disclosures to buyer. Buyer performs inspections (Step 6)
Step 1-10 Loan is in underwriting & appraisal occurs (Step 7)
Day 7-21 Seller signs grant deed & staging is removed, if any (Step 7)
Day 14-30 End of Escrow - Within final week of escrow period, buyer signs loan & closing documents & wires in closing funds (Step 10)
Day 20-30 Loan funds & escrow closes (recordation)
06 Home Inspections: Review Disclosures, Reports & Repairs
It is the buyer’s duty to select all desired inspections and determine the overall condition of the property within the agreed timeline and contractual contingencies. Buyer will also review the disclosures and preliminary title report. You may approve or negotiate credits/repairs. Prior to closing, remember to schedule a final walk-thru of the property to verify property is still in acceptable condition and any negotiated repairs were done.
07 Loan Appraisals
Organize an appraisal with your bank. Your mortgage application and all supporting documentation should be submitted to your lender. The bank then issues loan approval.
08 Final Walkthrough
A final walkthrough confirms that no damage has been done to the home since the time of inspection and that the major systems and appliances are in working order.
09 Completing the Close
The closing documents are signed, payment is exchanged, and you receive keys to your new home!
10 Welcome Home!
Congratulations! You are now a homeowner.
Compass Tools and Programs Help You Find Your Next Home
At Compass, we strive to help everyone find their place in the world. From providing a sophisticated search experience to offering you a sneak peek at homes not yet on the market, every one of our tools is designed to help us deliver your dream home.
Collections lets you compare multiple properties—their size, neighborhood, amenities—within a central visual workspace. We can monitor market activity in real time, stay in constant contact, and invite collaborators to join in on our search discussions.
Compass Search can sort by a wide range of features and amenities to pinpoint the perfect home. Plus, discover exclusive Compass listings you won’t find anywhere else and receive real-time notifications of new homes with Saved Searches!
Coming Soon and Private Exclusives give you an edge in your home search. Browse unique properties that are only viewable on Compass.com and discover your future home before it even hits the market.
Key Terms
APPRAISAL
Assessment of the property’s market value, for the purpose of obtaining a mortgage and performed by a licensed appraiser.
CLOSING COSTS
Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, and title insurance.
CLOSING STATEMENT
The statement which lists the financial settlement between buyer and seller, and the costs each must pay.
CONTINGENCY
Certain criteria that have to be met in order to finalize the sale.
DEBT-TO-INCOME RATIO
The percentage of an individual's monthly gross income relative to the amount of debt owed.
EARNEST MONEY DEPOSIT (EMD)
A good faith deposit the buyer makes with an offer to show that they are serious about buying the property. In exchange, the seller agrees to stop marketing the property.
INSPECTION
An expert conducts a formal review of the property to find visible issues
that need to be repaired.
LIEN SEARCH
A background check on the property and the seller to ensure there are no outstanding debts or claims upon the property.
PRE-QUALIFIED
Potential buyers provide an overall financial picture and mortgage brokers provide an estimate of what level of loan they will likely be pre-approved for.
TITLE INSURANCE
Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.
RECORDING FEES
A fee paid to the local government to officially report a sale of a home;
usually paid by the buyer.
