We look forward to working with you in your search for just the right home for you and your family. We are here to help you every step of the way and believe me, there isn't a question we haven't heard before, so feel free to ask as many as you wish.
This home buying process is truly all about you and meeting your needs.
While it is tempting to make this all about the home search itself, which seems like it should be fun and easy, there are a lot more moving parts than many folks realize, so below is a brief primer to help familiarize you with the process.
We'll set up searches for you, based on your specific requirements and we will not only go through the listings before sending to you, we'll also preview as many as time allows. We don't just set you up on an automatic search - while that used to be a "thing" when it was a relatively new technology, today you could just do that yourself online - we will make property specific notes on each listing, so you'll have some context relative to the priorities you have given us. And, whenever your schedule allows, we'll be happy to show you around the various neighborhoods so we can get your feedback, which will help narrow your search.
Here is a tough outline of what you can expect from the process and from us, along with a few helpful hints that will help make things go as smoothly as possible. I don't want to overwhelm you initially, so this will be fairly general; as we go along, we will provide more specfiic information.
LENDERS:
If you already have a reputable local lender, that's great. If not, we can provide you with contact information for several excellent lenders who have a reputation for getting loans closed on time and with competitive terms. You'll see interest rates advertised everywhere, but don't be fooled - those rates are sometimes based on products or terms that may not work for you. Just as important as the rate is the ability of the lender to close your loan on time, how closely they communicate with you, and his or her reputation in the marketplace.
Talking to a lender sooner rather than later is important. First of all, they can educate you on different loan progams and help you figure out what works best for you. When we get ready to write an offer on a house, you'll need a letter from the lender to accompany your offer, so this is not a step that can wait until you find a house. In fact, it's best to go ahead and make that your first step so you have a clear idea of what you can afford - and where you are comfortable in terms of payment.
As soon as you have a ratified contract on a house, you'll need to start providing a lot of financial information to your lender in a fairly short period of time, so it's always a good idea to be sure you can put your hands on tax returns, etc. with little notice. Your lender will provide you with a list of what documents and information they will eventually need from you so you can start gathering that information.
FINDING A HOUSE
First, we'll help you pinpoint neighborhoods and houses that appeal to you and meet your family's needs. Once you decide you want to write an offer, then the real work begins.
MAKING AN OFFER and EARNEST MONEY
An offer to purchase consists of the paperwork that - once all terms have been agreed upon - becomes the actual contract, along with a number of various addenda. We refer to this as being "ratified," which means you are officially under contract.
The contract will contain standard legal terms, plus addenda for contingencies such as home inspection, financing and appraisal. And if you write an offer on a home with a homeowners association, then there is a statutory contingency which allows time for you to review the budget, bylaws and other aspects of the HOA and if you are not happy with what you see, you can void the contract on that basis.
Each of these contingencies provides some window of opportunity for you to void the contract, should you decide you do not wish to go forward with the purchase. We will get into the specific details of how each of these contingencies work a little later but for now, just know they exist.
With an offer, you will need to provide Earnest Money. Typically, in our area, this 1-3% of the purchase price; this money is provided by check and is deposited into the brokerage's trust account within 2 or 3 days of ratification. You are credited with the amount at closing, so the EM is applied to the amount due for down payment and closing costs. EM signals to the seller how serious you are about the purchase of his or her home and is only at risk if you willfully default once you are under contract.
Again, you will have several opportunities to void the contract without penalty and we will be on top of the timeline to insure you do not heopardize your EM deposit in any way.
HOME INSPECTION:
We always recommend buyers have a home inspection; if you do not have a home inspector in mind, we can provide a list of qualified, experienced home inspectors with whom other clients have worked and been satisfied. This is an area where experience is crucial and you do not want someone learning on the job when evaluating the condition of your future home. We will have a specific timeframe during which the home inspection will be scheduled and then we will have the opportunity to ask the seller to rectify any major items which are particularly concerning to you. Please note, however, that sellers are NOT obligated to make repairs nor are they obligated to negotiate on the basis of the home inspection, so be prepared.
FINANCING AND APPRAISAL:
As soon as you go under contract, you'll be working not only with us on various aspects of the purchase, but you will also be working with your lender. Since we typically have 30 days from ratification of a contract to settlement, it is critical that all information requests from your lender be attended to ASAP
We’ll have a contingency for financing, meaning if something unforeseen happens, such as unexpected job loss, you will be able to void the contract without penalty. We will also have a contingency for appraisal, meaning if the house doesn’t appraise for the same amount as the contracted sales price, we can void the contract if the seller refuses to negotiate and you are not willing to go forward at the sales price.
SETTLEMENT:
In Virginia, we use settlement companies to conduct the actual settlement or closing. This is when we sit down at the table, go over all the numbers and sign the paperwork, including the lender documents. After about an hour - or less, if it is a cash transaction - you receive the keys to your new home.
Just prior to closing, we will walk through your new home and make sure it looks the same as it did when you first saw it and that repairs, if any were requested, were made properly.
Prior to settlement, we will receive a preliminary settlement statement from the settlement company detailing the numbers required for closing. If you plan to transfer money from one account to another for down payment funds or closing costs, please inquire early in the process as to how long this will take and discuss with your lender in case any additional paperwork will be required to document this process. The settlement company will instruct you on how to deliver funds to them.
This is just a brief overview of the process; we will certainly fill you in with many more specifics as we work through the process. In the meantime, you are always welcome to ask any questions you have. Trust me, I am not sure there are any questions we haven't heard throughout the years.
We look forward to working with you.
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