The Home Buying Process
- Obtain Pre-approval
See attached recommendationsof consistently wonderfulloan officers my clients love. Please avoid using an internet lender, a corporate lender, out of state lender, or any broker!
Before touringproperties, it is wise to get pre-approved for a mortgage from a reputable, local, in-house mortgage lender. Yourloan officer should provide you with a pre-approval letter, an estimate of closing costs andan estimate of monthly mortgage fees. Ask your loan officer for a list of documents required during thehome buying process.
Hint: If you would like, back into the pre-approval by letting the lender know the maximum monthly payment you are willing to make, then he or she will inform you of a corresponding maximum sales price.
- Get started with your Realtor
Be prepared to answer the following questions:
Price range?
Why buy now?
Cities/communities?
Type of property/ownership:Condo?Attached home? Single family home?
Basement required?If yes, must it be finished?
Garage required? If yes,# spaces?
Minimum # bedroomsand bathrooms?
Any other must-haves, preferences, or turn-offs?
What is your time frame for buying?
Best days/times of the week for you to look at properties?
Preferred method of communication?
Email(s):______
Phone #(s): ______
I will email property listings customized just for you. You may click open the photos and virtual tour, zoom in on the map for a bird's eye view, and click the heart icon to save favorite listings.
Some buyers happen to find their home of choice very quickly, but for others it might take a couple months of searching. Go at your own pace. Use your checklist as your guide, but sometimes a home just speaks to you, then you throw the checklist out the window! Know that no house will be perfect and you will have to eventually change some things once you buy.
Exclusive Right to Represent Buyer Agreement: On July 1, 2012, it became statute in the state of Virginia that a Realtorand buyer forge a written agreement which clearly defines a buyer's and Realtor's duties, as well as the duration of the agreement, etc., prior to any licensed activity. It is so important for a buyer to have an expert looking out for his or her best interest.
When you work with The Baugh Team, you are working with a small but mighty family team with integrity, excellent work ethic, professionalism, savvy negotiating, and strong desire to have clients for life! Iwill walk you through every step of the process: house tours, opinion of property value, offer writing, inspections, financing, contingencies, settlement, and thereafter. Customarily, a sellerpays both Realtors’ commissions. Long & Foster charges an administrative fee of $345 at settlement.
House Tour Advice:
- When possible, please provide at least 24-48 hours notice prior to booking a showing appointment.
- Anymore than 6-8 homes at one time is overwhelming!
- Dress comfortably with shoes that are easy on/off.
- Bring a notepad and pen so that you can rate the home after touring, and jot down any quick impressions you had.
- Communicate those impressions with meso that I get to know your tastes better.
- While in a home, try as best as you can to overlook bad furnishings, paint, etc. It is the unchangeable or expensive necessities that you want to consider as true disadvantages to a property. Just think: you can hire a carpet company to replace dirty carpeting day one for a few thousand dollars, but you cannot move a gorgeous house off a lousy lot.
- For couples: please book appointments together if possible in order to maintain efficiency.
- Identify your home of choice & make an offer
Once you identify your home of choice, I will need approximately an hour of your time to review the offer paperwork with you. We can do so in person, or over the phone/email via an electronic signature program. At this time, I will need the following:
a personalor certified check for earnest money deposit (typically 1-2% of list price). Once you and the seller agree to all terms (ratification), this check will be deposited and held in a non-interest bearing escrow account until settlement, at which time it is credited back toward your fees.
lender's pre-approval letter
first name, middle initial, last name
desired settlement date (customarily 35-60 days from offer)
any special/personal property items you wish to convey with the property
offer price, & amount of closing cost assistance from seller (if applicable)
4. Negotiations complete… congratulations, the contract is ratified!
Buying a home might be your largest investment in your life to date. It is nothing to take lightly, and most buyers have some degree of anxiety or even buyer's remorse after ratification. Discuss your anxieties and questions with me as well as with your lender. Anyone who has bought a home will probably admit they felt the exact same way!I will provide you with a transaction checklist with dates to keep you on track, so that you know what to expect every step of the way.
5. Inspection Contingencies
Have you ever heard the term “Buyer Beware”? Home inspection(s) are wise for any purchase, and will take place immediately once you are under contract.Your inspector is only there to point out all the deficiencies, so do not be discouraged with negative comments. Your home inspection contingency allows you to have any type of inspectors (general, radon, mold, stucco, fireplace, roof, HVAC, swimming pool, etc.) within your contingency period. It is best to keep these appointments streamlined on the same day if possible, in order to keep access to the property reasonable. The appointment will last a few hours, so this is a good time to have any contractors come for estimates if applicable, to invite a family member or friend to see the home if you cannot wait until settlement, and to bring a camera and tape measure for furniture and decor planning. If the home is not sold as-is, I can help you determine which issues you may ask the seller to remedy and which issues may be minor enough to ignore. Of course, more negotiations are ahead! Some busy sellers prefer providing a credit in lieu of the home inspection repairs, so keep in mind if this would be desirable to you.
6. Rush, rush, rush, then wait
After a flurry of activity with pre-approval, house-hunting, offer writing, negotiations, inspections, and more negotiations, you will experience a period of quiet. This may seem disconcerting, but it is normal. At least a week prior to closing, the lender will be requesting additional documents. Try to remain patient with the loan officer, as often they are just as bogged-down as you are by today's underwriting requirements.
In the meantime, you can order your hazard insurance policy, set up utilities in your name effective date of settlement, prepare for your move, etc. Do not: lose your job, make any large purchases, open up new credit lines, mislead the lender, or ignore deadlines. This could put you in default of Contract, which could lead to loss of earnest money deposit and/or a lawsuit for non-performance.
If the property you purchased is in a homeowner's association, you are entitled to review the HOA documents. These should be delivered within the first couple weeks, either hardcopy or electronic.Upon delivery, you have three daysto review the information, and, if necessary, void the contract.
Lenders require an appraisal to be conducted to ensure you are paying an appropriate price for the property. The appraiser is made aware of contract price, and often times the valuation is equal to sales price. If the valuation is lower than sales price, you mayrequest the seller lower the price (or else you must bring more cash to closing).
As settlement approaches, the lender should deliver to you a final loan commitment letter. This is when you may remove your Financing Contingency. Your loan officer may ask for additional documents down the line, but the commitment reflects that the loan process is going smoothly and there are no foreseen issues that will put the loan at risk. Ask your lender for a final closing cost figure so that you can then coordinate a wire transfer from your bank account to the title company’s prior to settlement day (beware of scammers emailing you revised wiring instructions).
The Baugh Team would be happy to order a termite inspection for you, which is typically required by your lender. These inspections cost approximately $45, paidas part of your closing fees. If termites or wood destroying insects are indeed found, the seller is required to treat as well as repair any damage caused by them.
7. Settlement Day
On or before settlement day, you will conduct a final walk-through inspection of the property. I will bring a checklist of conveyances and major systems of the property that you should double check to ensure are in substantially the same condition as of the date specified on theContract.
Settlement typically takes place at the office of a title company. Bring your photo identification. You should have wired your closing funds by now, but I suggest you bring a checkbook in case there are any minor overages.
You may not move anything into the home or garage prior to completion of settlement. The settlement agent will provide and review in detail an itemized list of eachclosing fee. Please authorize the title company to issue me a copy of this as well- I might catch errors that will save you money. Get ready to sign a stack of documents! If you are a very detail-oriented person with lots of questions, request that I arrange for the title company to send you the closing documents in advance of Settlement day so that you may have more time to review it all. If you cannot attend settlement, you must set uppower of attorneywith the title company in advance. At the settlement table you might meet the seller, which is a great time to ask such questions as when trash/recycling are collected, how the security system and sprinkler system work, etc. The keys and any remotes should be provided to you at this time.
8. Post-Settlement
Congratulations! Time to enjoy that new home of yours! If any questions or issues arise, never hesitate to contact me. The Marlene Baugh Team maintains a list of preferred service providers and we love when clients keep in touch.
My business thrives on repeat clients and referrals from past clients; please encourage friends, family members and coworkers to use me for their real estate needs.I so appreciate your business.
Sincerely,
Scotti
Preferred Loan Officers
THAD WISE, FIRST SAVINGS MORTGAGE
703.350.1733
KAREN DULMAGE, FIRST HOME MORTGAGE
703 626 9007
DAVID BOSWELL, FAIRWAY MORTGAGE
703 554 3290
davidboswellma.com
PATRICK CUNNINGHAM, HOME SAVINGS & TRUST
703 851 2963
CARLETON CHAMBERS, PROSPERITY HOME MORTGAGE
703 678 9786