| Buying your first home can be a daunting task. As | | | | buyer's agent who will look after your best |
| a matter of fact, anytime you buy a home it can | | | | interest. The buyer's agent can be from the |
| be overwhelming when you consider all of the | | | | website that you performed your initail search. |
| variables that can come into play. We thought it | | | | 6. Write an Offer. Once you have found "the |
| was necessary to give you an outline of exactly | | | | one", you will need to get with your agent to |
| what to do throughout the process of that | | | | write the offer. Most agents are well-versed with |
| purchase. The main reason is that the country | | | | our contracts and can assist you with all the |
| right now is experiencing a huge influx of homes | | | | clauses that are contained within them. It's |
| being purchased by first time buyers. Here's a | | | | important to know what rights you have as a |
| step-by-step process for what to do in: | | | | buyer regarding contingencies, time lines, and laws. |
| 1. What's Your Payment Threshold? Initially you | | | | Don't let your agent breeze through this process. |
| need to determine what you are comfortable | | | | Notable terms of the "offer to purchase" include |
| with paying on a monthly basis for your new | | | | the names of both parties, the property address, |
| home. In many cases, buyers often qualify for | | | | personal property that conveys with the |
| more than they're willing to pay. What is that | | | | property, offer amount, how closing costs are |
| number? Nobody wants to be "house poor" and | | | | addressed, earnest money, type of loan, home |
| eat Ramen Noodles most of the week. Take a | | | | inspection, and homes owners association |
| look at you monthly budget and find out what | | | | information. Earnest money is needed for all |
| your comfort level is. Don't compromise this at all! | | | | transactions from the buyer and is considered |
| Don't let pier pressure, your loan officer, your real | | | | good faith money. Should a buyer choose to walk |
| estate agent, or your friends influence you on | | | | away from the ratified contract with no legal |
| over-leveraging yourself. They don't pay your bills. | | | | reason, the seller would be entitled to this earnest |
| 2. Get Qualified. If you have heard the news over | | | | money. On the flip side, there are several ways |
| the last few months, you know that the | | | | where a buyer is allowed to leave the transaction |
| mortgage industry has gone through a real | | | | and not lose their earnest money. Be sure to |
| "weeding out" process. Your mortgage company | | | | consult your realtor. When it comes to earnest |
| decision can be the difference between a totally | | | | money there aren't any standards only typical |
| smooth transaction and an outright nightmare. | | | | occurances. Usually, in our area of Hampton |
| First of all, I believe that a buyer should choose a | | | | Roads, Va. under a sales price of $300,000, $500 |
| strong, local mortgage company. Not only do you | | | | earnest money is sufficient. Above $300,000, |
| need to choose a legitimate mortgage company | | | | sellers often want to see $1000 or more. The |
| but you also need to choose the right loan officer. | | | | amount of earnest money typically shows the |
| The loan officer runs the show on that end and if | | | | seriousness of the buyer. As long as a buyer has |
| they leave your file on their desk until a few days | | | | not defaulted on the transaction(which is most of |
| before closing, you're going to have a problem. If | | | | the time), the earnest money will be credited to |
| you're confused on what to do, consider asking | | | | them at closing. Contingencies are things that |
| your realtor their opinion. Your realtor also has a | | | | have to happen in order for something else to |
| stake in the transaction and doesn't want you to | | | | happen. Common contingencies in an offer to |
| have any issues either. Okay, once you have | | | | purchase are a home inspection, selling a current |
| found who you want to work with, you need to | | | | property, and home owners association. |
| get pre-qualified. The loan officer will want to get | | | | 7. Negotiating. Most of the time, the seller will not |
| your work history, credit score, debt-to-income | | | | accept your initail offer. This really falls into the |
| ratios, and assets. Be prepared to give them this | | | | experience of your realtor to help you get the |
| information. There are 3 steps to the process: | | | | most that you can possibly get. |
| pre-qualified, pre-approved, and approved. When | | | | 8. Acceptance of the Contract. When both the |
| you submit an offer on a home, sellers typically | | | | seller and the buyer agree to the terms, you |
| want to see a pre-approval letter along with the | | | | have a legally binding ratified contract. At this |
| offer. You are absolutely free to look at homes | | | | point, all parties involved are moving towards |
| before you get the mortgage process going but | | | | closing based on the terms of that agreement. |
| it's always good to know that you are qualified | | | | 9. Removal of Contingencies. Once you have a |
| and for how much. | | | | ratified contract, the buyer and agent will set up |
| 3. Find a Realtor. In Hampton Roads, there are | | | | the home inspection. When the inspection is |
| over 7,000 real estate agents. So who do you | | | | complete, the buyer will have the opportunity ask |
| choose? A lot of times buyers know of an agent | | | | for certain repairs to be made by the seller. Also, |
| through friends or family who have used | | | | at this point the seller will order the condo or |
| someone in the past. The majority of buyers, | | | | home owner's association documents, if applicable. |
| however, start their search online and use an | | | | The buyer will have the opportunity to accept |
| agent that provides them with the most | | | | these documents. If the buyer has a home to sell |
| information and help. As with any industry there | | | | first, well, they need to get on the ball. This is a |
| will be all kinds of personality types and you | | | | tough contingency, especially in our current |
| should choose an agent based on one that closely | | | | buyer's market. After ratification, the termite and |
| resembles yours. As a buyer, you want someone | | | | moisture inspection will also be ordered. |
| who will look after your best interest in finding | | | | 10. Complete the Mortgage Process. Finalize |
| you the best home, at the best price, and with | | | | everything with your loan officer and get your full |
| the least amount of hassle. | | | | approval if you haven't already done so. They will |
| 4. Search for Homes. Most agents have websites | | | | need a complete copy of your contract as well. |
| that you can utilize to search all of the available | | | | The appraisal for the home you're purchasing will |
| homes that are for sale in Hampton Roads. These | | | | also be ordered at this time by your mortgage |
| sites are tied directly into the local MLS company | | | | company. The appraised value of the home must |
| and typically contain the most up to date | | | | be the same or higher than your loan amount or |
| information on new listings. With these thousands | | | | the seller will have to lower the sales price to |
| of websites, you get to choose which one best | | | | meet the appraised value, if not, the buyer may |
| works for you. After you determine your price, | | | | terminate the agreement. |
| city, neighborhood, school district, square footage, | | | | 11. Title Search. There's not much for you to do |
| and etc., you are off and running. Simply, put in | | | | here. Just make sure that you choose your |
| your search criteria and viola, all of those listings | | | | settlement company or get a recommendation |
| will appear. | | | | from your agent. Once you've selected a |
| 5. View Homes in Person. Usually once you | | | | settlement company they will need a complete, |
| perform your search and find a few homes that | | | | legible copy of your contract. |
| interest you, you will want to contact the owner | | | | 12. At Closing. Bring your license so everyone has |
| of the site in order to see the property in person. | | | | proof that you are who you say you are. Review |
| Most of the time, there will be a link on that listing | | | | the HUD Statement(a 2 page document showing |
| that will easily allow you to do this. This link will | | | | all of the figures affecting your purchase) with |
| often times be a fillable form that will immediately | | | | your settlement officer to make sure that |
| email the site owner regarding your request. You | | | | everything is what you were expecting. You |
| will need to contact the agent in order to get into | | | | should actually be able to get a pre-liminary HUD |
| the home. Here's an important point. Always | | | | before closing so there's no surprises. Your closing |
| remember that there are usually two agents | | | | agent will be able to explain all of the aspects of |
| involved in every transaction. The sign in the yard | | | | your closing. Don't hesitate to ask them questions. |
| of the property has the name of the agent that | | | | Sign all of the paperwork. Congratulations, you're |
| represents the seller "only". You will need a | | | | a homeowner!! |