When You Buy Your First Home
1. Contact A Real Estate Professional at Better Homes Realty.
2. Choose a Responsible Lender Based on Rates and Charges, we will assist you with this.
3. Meet with the Lender and make a complete application. You should receive documentation from the lender that you are “approved” for a loan in the amount of $______________. This could take a few hours or a few days.
4. Determine the price range of the home you wish to purchase and the area where you wish to live. The price range and the loan amount may or may not have any bearing one to the other depending on the amount of cash you will be using. Determine the type of property you prefer; i.e. Single Family Home, Town Home, Condo etc. Determine the style of home that you prefer.
5. Once the property is found, move quickly. Even in slow markets a home that you like will be liked by others and multiple offers occur in all markets. The price that you will pay for the property will be determined by many factors; i.e. market conditions. If the property is overpriced you may achieve a price reduction or seller concessions in the form of closing costs paid by the seller on your behalf. If the property is under priced, you may pay more than the list price.
6. During the time you are spending locating a property you may wish to “check out” some home inspectors or home inspection companies. We will be able to assist you in locating home inspection companies. We recommend that the final decision on home inspectors be your decision. The inspector may/will miss some things. We do not want to create the illusion that the home inspector is trying to “save the deal” for the Realtor. Unfortunately, we have heard that this has been the case in some instances.
7. Contract offers are made to the Seller, through the Listing Realtor utilizing the standard Regional Sales Contract format. Now let us assume that the contract is ratified. This means that all of the parties have agreed to all of the terms and conditions in the contract. We are now faced with lots of chores.
a. We will provide the lender with a copy of the contract.
b. We will provide the Settlement Service with a copy of the contract.
c. The home inspection should be completed within 5-7 days from the ratification date in the contract. The time frame will already be agreed to in the Contract. We will accompany you for the Home Inspection.
d. If there is a lead based paint and/or radon inspection, many times the home inspection service can also provide these services as well.
e. If there is a well and/or septic inspection, this is usually the responsibility of the seller.
f. The termite inspection is usually the responsibility of the seller; this is determined by the terms of the contract.
g. If the property is a PUD (Planned Unit Development), there will be a requirement that you receive documents from the homeowners’ association. The seller, at the seller’s expense, provides these documents.
h. If the property is a Condo, there is a requirement that you receive the condo disclosure documents. The seller, at the seller’s expense, provides these documents.
i. NOTE: Reference g. and h., these documents should be read as quickly as possible after receiving them. There is usually a period of 3 days allowed in the contract for document review. If there are issues that need to be addressed, you must address these issues within the 3-day period. Resolve the issues or void the contract. If you are buying a condo, many times there will be a requirement for both items g. and h. An example of this is Reston, Burke Centre, Lake Ridge, Ashburn, Kingstowne, etc.
j. After the home inspection and/or other inspections are complete, resolve the “issues” as soon as possible or void the contract. For this exercise we will assume that all “issues” were resolved.
k. Utilities: We will provide a list of the names and numbers of all the local utility companies. It is the Seller’s responsibility to have all of the utilities on for your final walk-thru inspection. However, it is your responsibility to have the utilities on in your name as of the date of settlement, even though the settlement may be late in the afternoon. All too often we hear that settlement took place on Friday and the new owner spent the weekend without utilities. Contact the utility companies at least a week in advance. It usually takes a little time for them to respond.
l. If there were significant issues concerning the home inspection, it is a good idea to have a preliminary inspection a few days prior to settlement. In any event, do another walk-thru the day before or the day of settlement. We will be with you during the Walkthrough Inspection.
m. The Settlement Process:
i. Be sure to have your homeowner’s insurance policy (hazard insurance) well before settlement. Have the original and one copy and a paid receipt. (The Lender wants the original and the paid receipt)
ii. Certified funds at settlement: These funds may be in the form of a cashier’s check, certified check or bank check, not a personal check. You may call the lender or the settlement office the day before settlement to determine the amount. Sometimes, however, the exact amount will be available only minutes before settlement. In that event, We will give you a good estimate of how much to have the check drawn for. If the amount is too small, you may give a personal check for the difference at settlement. This amount should be less than $500.00
n. Don’t Forget The Keys.
i. At settlement, receive at least one key for all doors unless excepted in the contract.
ii. The Mail Box Key, if applicable
iii. Storage Room Key, if a condo
iv. Garage Door Remote (s) if the house has automatic garage door openers.
8. Don’t forget that the Sales Contract is your guide. The contract is a
Blueprint for all of the things that are to take place and when things
are to take place. When in doubt about an issue, please read the
Contract.
9. We will be available to assist you with any and all questions related to the transaction. There is no question too trivial, be sure to ask.