Most people only buy a home a handful of times in their life. Buying a home is the single biggest investment most people will make in their life, but most go at it with little or no understanding on how the home buying process works. Below are what I feel are key steps in finding your next perfect home or that first perfect home.
Knowing what type of home is just the tip of the iceberg when it comes to buying a home. It is a good idea to have a list of wants and needs such as school system, bedrooms, bathrooms, how long you plan to live in the home, yard, pool, garage, the list goes on and on. The more specific you are in what you are looking for the more likely you will be to find that home.
I would like to say the most important step in the process is locating a real estate professional to guide you, but I feel the next step is. Not all agents are the same. I recommend finding a Realtor, like myself. A Realtor has a strict code of ethics that they are bound to up hold. Once you find a Realtor like myself, it will seem like you are dating or newly married. Always talking on the phone at length, sending emails, and meeting in various places to look at homes. You want to make sure you can live with your Realtor for the next couple of months during the home buying process.
I think the most important step is to seek out a mortgage professional and pre-qualify for a mortgage. Knowing how much you qualify for up front saves getting your heart set on that perfect home you can't purchase. Different companies offer different loan products so check with a couple. (I can refer you to a mortgage professional I trust.)
Armed with the information on how much home you qualify for and your specific likes and dislikes when it comes to picking out a home you can purchase, I will set you up with a search in the MLS system. The MLS search is a wonderful tool that keeps you informed on what is currently on the market and what is newly on the market. You will also have access to look at home through my website. Another great tool is Realtor.com. By mapping out the homes you like most via the internet first we save you time and gas just looking around.
Once we find that home that kisses you on the cheek and begs you to buy it, we will need to submit a written offer to purchase with the earnest money check. The earnest money check tells the seller you are serious about purchasing their home. This money will go towards your closing cost or down payment on the settlement statement. The offer to purchase includes several addendum's regarding contingencies. Some of these contingencies are Lead based paint, financing, termite and moisture, home, EFIS, pool inspection, and appraisal to name a few. All of these will be explained to you in great detail by me and I encourage you to ask questions.
A few points on contingencies...
I highly recommend you get a home inspection by a certified inspector. Most inspections are between $300-$500, depending on the size of the home. This expense is your responsibility as the buyer. (I have several a value and trust.) There are several structural and mechanical items on a home and no matter what age they are should be checked over prior to purchasing. You can expect to be at your home inspection for several hours. The inspector will look at every nook and cranny of the home from top to bottom and file a detailed report, including pictures on what they find. Most inspections turn up little honey do items such as a wall socket needing to be replaced, other times they find the A/C unit does not work. Depending on the findings in the report we may want to ask the seller to fix these items prior to our closing date or provide us with a monetary amount for you the buyer to fix.
Every loan backed by a bank will need an appraisal. The appraisal guarantees the bank that you are not over paying for a home. The appraisal must come back at equal or higher than our purchase price in order for the bank to loan you money for the home. This is to protect you and to protect the banks investment with you. The bank will order the appraisal on your behalf and you will see it on your settlement statement.
Every home sold in Virginia requires a termite and moisture report that is clear or free. What this means is there can be no evidence of active termites or mold. If the report comes back with evidence of one or both the home must be treated prior to closing at cost to the seller.
When purchasing a home that has a pool it is a good idea to get an inspector to look at the pool and pool machinery. The inspector can tell you about the mechanics and the life of the liner. This expense is your responsibility as a buyer.
Depending on the inspections we may need to go back to the negotiation table a few times before all parties agree. During the times of negotiation is where having a Realtor representing you is beneficial.
Prior to closing you will have a final walk through to double check any work we required be complete based on the negotiations and a final look to make sure the house is the same as when we put in our offer, then we are headed to the settlement company or attorney's office to complete the process. You will also receive a copy of the settlement statement to review for corrections or errors. If you need to bring additional funds to the closing table remember to get a certified check for that amount.
A few additional items to consider prior to closing...
Home warranties are great and sometimes the seller will purchase one on your behalf as part of the contract. This coverage last for one year and covers a wide range of items in the home from plumbing and electrical, to fixing the appliances.
The lender's require lender's title insurance and leave owner's title insurance optional. I highly recommend getting an owner's policy to insure you are protected. This insurance is there in case there is an over looked blemish on the title to the property. Sometimes things just pop out of nowhere years down the line and if you have this insurance everything is handled for you in court.
Remember to get utilities turned on or switched over for your move in date!
If all this seems overwhelming and stressful, contact me and I will guide you through the process. With the right representation the process seems like a walk in the park.
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