Question – When we meet what exactly are we going to discuss?
- Things you should NOT do when preparing to buy a home
- The Road to buying a home
- The Loan Process
- How to schedule showings
- Home Inspections – Overview
Question – What are the top four misconceptions about buying a home?
- It will cost me money to get pre-approved. This is a free service.
- I will have to pay my realtor when I close on my house. This is not correct, agents are paid by the SELLERS proceeds.
- Realtors can only help me with single family homes. We can also help you purchase condos, townhomes, land and investment properties.
- I can only help you with our company’s listings. This is not correct. Most home purchasers involve other firms.
Question – What should I NOT do when thinking about buying a home?
- Change banks or move money around
- Deposit cash
- Close credit card accounts
- Fail to disclose financial / credit information
- Calculate what your mortgage would be and apply for new credit
- Make any major purchases
- Change your job
Question – What is the first step in the home buying process?
Choose a lender and get Pre-Approved. A good Real Estate Agent can help you find a reputable lender. Good lenders offer competitive rates, are accessible and responsive. Your lender will request many documents such as bank statements, tax returns and pay stubs.
It is also important to understand what you qualify for, what you can afford and be sure to understand what you should and should not do before closing.
Question – What is the second step in the home buying process?
- Choose a Realtor
- Schedule showings
- Write the offer, negotiate terms, contract ratification.
- Review the purchase contract & addendums with me.
- There is more to a contract than price. We need to consider inspection and appraisal waivers if applicable. Your EMD (Earnest Money Deposit) will be collected upon ratification.
- Loan Application
- Within 7 days of contract ratification, you will need to officially apply for credit with lender.
Question – What is the third step in the home buying process?
- Property Inspection unless waived.
- Within 14 days of ratification, the inspections take place.
- Inspection cost typically range from $350-$500 depending on the sq. footage.
- The appraiser confirms you are not overpaying for the house.
- The cost is usually $500. Your lender can confirm cost.
- Prepare for closing.
- Be available for lender requests & updates. It is likely you will need to provide updated information to the lender.
- I will gather repair receipts for you if needed.
- Don’t forget to set up your utilities.
Question – What is the fourth and last step in the home buying process?
- Final figure & final walk through
- You will receive the “CD” (Closing Disclosure) with your final cash to close number before closing.
- Don’t forget to set up wire transfer or get a cashiers check for settlement.
- We will walk through your home one final time before closing.
- Closing ( average 30 to 40 days after ratification.)
- Also referred to as settlement.
- You will sign final documents at the closing attorney’s office.
- Be sure to bring your ID’s and cashiers check to closing unless you have already wired the funds.
Question – What does the loan process look like?
Answer – Here are the five steps
- Pre-Qualification / Pre-Approval. This is completed during your first call with the lender. They will need to know, income, debts, credit, etc.
- Loan Application. Within 7 days of contract ratification, you will meet with your lender to officially apply for your loan. This is where your lender will gather information from you and structure the deal.
- Processing. The is the longest portion of your loan process. Processor reviews all of your paperwork and lets you know of any conditions that may need to be met or any “red flags” to underwriters.
- Underwriting. The underwriter formally approves the loan after a review of your paperwork. You can usually expect a “conditional approval”. There may be more documents needed before its sent to closing.
- Closing. The closing communicates with your settlement agent to prepare and finalize the closing disclosure (CD). The CD must be approved by you the borrower, THREE business days prior to closing.
Question – What is the best way to find and see homes, I’m interested in seeing?
- I will set up a customized search portal during our first appointment. This is different and more accurate than Zillow.
- This allows you to stay informed of NEW listings and COMING SOONs BEFORE they hit the market.
- We will review helpful tools within your custom portal to help keep you organized.
- Best Practice – Remember to eliminate homes first then select between your top Three to five. This make you a more competitive buyer.
Question – What is the best way to communicate homes I’m interested in seeing to you?
- Call, email or text me with MLS # or address & few times you want to see the home.
- I am accessible and responsive. Please provide 24 to 48 hours notice to see homes if possible.
Question – Can you explain the Home Inspections Process?
- After we receive the inspection report on your home, the buyer will be granted the opportunity to request repairs by the seller or request a credit in lieu of repairs. Once the seller receives the inspection report and repair credit addendum, there is a 7-day negotiation period.
- If an inspector recommends that something specific should be inspected by a specialist (i.e., Roofer, plumber etc.) it’s your responsibility to have that inspection within the time frame stated in the contract. I will stay on top of this with you.
- After the inspection negotiations are agreed to, we can help schedule repairs to be completed. Please keep all receipts / invoices of work completed and send them to me.
Question – What is a reasonable home repair request and you should ask for?
- Defects of the property. This means something that is damaged or dysfunctional that affects a normal standard of living.
- Defect: a condition which impairs the normal stability, safety, or use of any improvements (building) on the property.
- Common examples include structural defects, a damaged roof, mold in the crawl space.
Question – What is generally considered an unreasonable home repair request?
- Cosmetic flaws. This means something that improves a personal preference of living. Any cosmetic flaws, antiquated systems, or grandfathered components that are in working order but would not comply with current building code if installed today.
- Examples – normal settlement cracks, a roof that is old but in working order.
Question – As my Real Estate Agent will you manage my entire home purchase transaction?
- Yes. There are over a 100 people involved in every real estate transaction. I will be sure to manage these daily. The next bullet point lists a few pieces of the Real Estate puzzle.
- Attorneys, Title Companies, Warranty Companies, Contractors, Appraisers, Inspectors, Termite Companies, Homeowner Associations and Co-Brokers (i.e. other Real Estate Agents)
Is there anyting else I should keep in mind?
- You are buying a used house and not everything will be perfect. If that is the expectation, let’s discuss new construction.
- Buying and selling a home is emotional for both parties.
Nadeem Khan (804) 551-1868 Call or Text