What to Expect When You Buy a Home Online with Abodefy

Abodefy provides a platform for buying your home online

We understand that buying a home online is a new and different approach to the home buying process. The goal of Abodefy is to provide buyers with an online experience that is convenient, secure, and understandable. Home buying is a complex process, but that doesn't mean it should be a difficult experience for our buyers.

So, we want to break down the process into easy steps to help simplify the experience. We've mapped out the major milestones and activities surrounding each, to clarify expectations of the Abodefy transaction process.

Take a Tour

We've done our best to give buyers the most inclusive online shopping experience with our listings with state-of-the-art photos, videos, and interactive animation, but we realize that there is no substitute for physically standing in your possible new home and getting an up-close view of the house and neighborhood.

All Abodefy listings are equipped with self-guided tour options. When you click to Tour This Property button, you can choose from any number of tour dates and times. We will provide you with a secure access code at the time of your tour, so you can walk the property with privacy at a time that is convenient for you.

Like what you see and want to take a friend or family member to the property to weigh in on your decision? Feel free! You can book as many tours as you like. We want you to feel good about your decision.

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Get Approved for Financing

Getting pre-approved as you begin your home shopping journey is a critical step in the process. It actually empowers you, as a buyer, to know exactly what price range you should be shopping in. Your pre-approval will give you peace of mind in knowing how much you can afford, what monthly payment range you can expect, and the ability to show sellers that you are a serious buyer.

Abodefy listings will show a Click to Buy option to buyers once they have reached a pre-approval status within their designated price range.

Buyers can apply for financing through Abodefy with a completely digital, online process. Abodefy financing is equipped to offer an online application, online approval, and online loan closing experience. Abodefy financing also offers competitive interest rates and low closing fees.

If you are currently pre-approved with an independent lender, you can upload your pre-approval letter within the Homebase of your Abodefy profile. Once your pre-approval is verified, your buyer status will change so you can access the Click to Buy option on Abodefy listings within your price range. Be aware that if you elect to finance your purchase through a third-party lender instead of Abodefy financing, that lender may not be equipped to allow a fully digital, online closing experience.

Apply for Financing Through Abodefy

Click to Buy This Home

When you Click to Buy on a home you want to purchase, Abodefy will show you all the information that is unique to your purchase that will be used to complete the purchase contract you will sign to submit your offer.

You will have the opportunity to review all of these terms prior to submitting your offer. Some of the terms will be grayed out indicating they cannot be edited. These terms are pre-set by Abodefy with information that matches the information from the listing. The rest of the terms will be pre-populated based on the property listing and your buyer profile. You will be able to edit those fields and should review them carefully.

Once you've reviewed and approved the terms, Abodefy will used that information to draft the actual purchase contract. The drafter purchase contract will then be emailed to you for signature. Abodefy uses secure Docusign technology to enable easy digital signatures on the purchase agreement.

If you have questions regarding the Terms or the Purchase Contract, Aobdefy Coordinators are available to meet with you via video conference to answer your questions.

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Up-Front Payments

While the majority of you purchase will most likely be financed through a home loan, there are a few costs that will be expected to be paid during the contract phase before your purchase is complete. The obvious bulk of expenses will be your down payment. Depending on you type of loan you are approved for, buyer will typically have some sort of down payment contribution toward their purchase. Your down payment and any closing fees will be accounted for on you Closing Disclosure that you will review prior to your closing appointment.

The first up front expense will be your Earnest Money Deposit. This is a common showing of your commitment, as a buyer, to show the seller that you are serious when presenting your offer. This amount can vary anywhere up to 3% of the sales price. Abodefy defaults all contracts to $1,000 for the amount of earnest money on all of its contracts. Industry standard is for the earnest money deposit to be due within three days of signing the purchase contract. It is important to note that this amount is held by the title company and then applied toward your closing costs as the sale is completed.

Once your purchase contract is accepted and signed by the seller, Abodefy will send a copy of the contract to the lender that you are using so they can begin to process your loan. Your lender will quickly need to order an appraisal. This appraisal is a report that shows the monetary value of the property is equal to, or greater than, the purchase price. Most appraisal companies require the appraisal be paid for prior to the appointment, to cover their expenses. If you are financing through Abodefy, we will send you a link with detailed instructions so you can pay for your appraisal digitally.

Loan Requirements

A pre-approval prior to submitting an offer on a home is important so the lender can verify your basic i\personal information like income and employment that will be considered for your loan. Once you choose a property, the lender will also want to verify the value of that home to make sure their loan will be secure. Once your contract is accepted by the seller, here are the steps that your lender will take to fulfill your financing:

The first thing your lender will do is order an appraisal. An appraiser will visit the property you are purchasing and compare it to other properties in the area to make sure the market value is comparable to your sales price.

Your lender may ask for additional documentation to verify the employment and income information you disclosed in your loan application.

Your lender will review the terms of your loan with you, including your interest rate, term, and payment amounts.

Once the appraisal and all of your provided information has been thoroughly reviewed, you lender will issue a Full Approval indicating that all requirements for your loan are satisfied.

Once your loan is fully approved and your closing date is approaching, you will receive your Closing Disclosures for review. These documents will disclose all of your charges and credits that account for the final totals for your purchase. It is important for you to understand fully each line item on this document. Abodefy coordinators are available to answer your questions regarding this disclosure once you've reviewed it.

Your lender will require that you have a homeowner's insurance policy in place at closing. Since insurance premiums are typically paid in advance of the designated term, one of the charges that you will see on your closing disclosure will be the first-year premium for your insurance policy. With this fee being included in your closing costs, you will just need to provide your insurance agent's contact information within your Abodefy Homebase profile.

Title Company

If you are unsure about the role of the title company in your purchase, there are two words that best explain what the title company manages: Money and Documents. All funds are received, held, and disbursed by the title company to complete your purchase. The title company also oversees the signatures required to legally transfer the ownership of your new home to you at closing.

When you deposit your earnest money, the title company will hold those funds and apply the amount toward your purchase at closing.

The title company will carefully review all documentation for your property to verify that the legal description is correct, the taxes are paid current, any existing liens are paid and cleared prior to transferring ownership to you, and ultimately that you are the new legal owner of the property at closing. The initial document you will see is called a Title Commitment. This commitment provides a starting point for the title company so they can clear all of the requirements mentioned prior to transferring ownership of the property.

Once the title company has thoroughly reviewed, and most importantly, remedied any outstanding liens or encumbrances that are on the title commitment for your property, they will declare that your property is Clear to Close. This means that the title company is ready to take the final closing steps to transfer the property to you as the new owner.

Just like you deposited your earnest money, the title company will provide you with a secure link so you can deposit your closing funds that are accounted for on your Closing Disclosure. This amount should include everything that you will need to pay to complete your purchase.

Some of your closing documents will require a notarized signature. No worries, though, the title company will provide an approved Remote Notary so you can still sign your documents digitally.

As mentioned above, the title company is responsible for making sure that all money is properly accounted for in your purchase. They will make sure your funds are properly received and held, they will make sure your loan funds are properly received and held, and finally they will make sure that the correct funds are disbursed at closing to pay all charges and fees shown on your Closing Disclosure.

Closing Appointment

Historically, a buyer's closing appointment is conducted at the title company office. In our quest to create a convenient experience for our buyers, Abodefy is striving to change that. An online, digital closing provides flexibility for buyers to close when and where they want.

We want to celebrate this momentous occasion with you, so we are prepared to conduct your closing appointment in the place most comfortable for you...HOME!

To make things convenient for our buyers, we like to schedule your final walk through of your property and your closing appointment together. That way, you can finalize everything for closing all in one appointment.

During your final walk through, an Abodefy Coordinator will take you through your new home to show you where all systems are located and how they are operated. From sprinkler system to air filters, we want you to know everything about your new home. You will also complete your warranty checklist, so you know exactly what is covered under that warranty.

Once you've walked through the property, your Abodefy coordinator will log into your remote notary session so you can sign all of your closing documents. The title company will also be in your video session to help any answer questions you may have.

The best part of completing your walk through and signing your documents in one appointment at the property is that, when you are done, you're HOME! This appointment should be your final step in your journey to becoming a new homeowner.

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