Buying a Home...

You've decided you want to buy a home, but is home ownership right for you?  Buying a home is one of the single largest purchases most people will ever make. Visit Freddie Mac's website to see if you are ready to buy a home and learn about the advantages, risks and myths of homeownership.  You also need to understand your credit score and how it will affect your ability to own a home.

One of the first steps that needs to be done before you begin looking at houses is to know how much you can afford. Visit my Finance Tools page where I have provided various links to help you begin this process. For any specific questions, please feel free to contact me, or a mortgage loan officer.

Selecting the right real estate agent is also important. Real estate professionals have access to home buying tools and experience that the average home buyer doesn't have. The real estate agent's role is to guide you through the home buying process and help you find the home that best suits your needs and price range.  As an Accredited Buyer Representative (ABR®), I have taken additional course work, passed a written exam and submitted evidence of practical experience as a buyer's representative.  Less than 2% of all licensed agents in the United States are Accredited Buyer Representatives (ABR®).

You also need to understand the role of agency in Virginia, as it varies by state. In Virginia, by default the agent represents the seller, unless you tell the agent that you want them to represent you, the buyer. This is referred to as Buyer Agency. Buyer Agency allows the agent to look out for your best interests in the transaction. To learn more on Agency in Virginia, read the Purchaser's Brokerage Relationships and Elections form [PDF].

Once you know how much home you can afford, it is time to start thinking about what type of home you would like to own, and where you would like to live. Make sure you take in to consideration items such as your commute, property taxes, and schools if you have children. Do you want some land or would you rather own a condo where the outer building is maintained for you? Do you want a new house, or would you prefer an existing home? For additional information on things to consider when selecting a neighborhood, take a look at Freddie Mac's page on Selecting a Neighborhood. Before our first meeting, try to determine what you are looking for in your new home.  I have included Freddie Mac's  wants vs. needs worksheet [PDF] to help you in this process. Be sure to share it with me when we meet.

Choosing a House. In choosing a house, many people let their emotions override the facts of the house. To help keep this in balance, you need to make sure you know what you need in a house. There are thousands of houses sold in the area every year and inspecting all the houses on the market is impossible as well as overwhelming. You can start your search at home by looking on-line to see what is available and what you like or dislike in a home. By knowing what you want in a house, you can turn this to your advantage and let me do the preliminary screening for you. After you select the best houses, you can concentrate on inspecting your top choices. When we start to visit your choices, having a notebook or checklist can be helpful. After seeing several homes, the features start to run together and you loose track of what you liked and disliked about each one.

You also need to keep in mind that the right house for you, may not be on the market yet. Don't just settle for something, and don't get discouraged. Once we begin looking for a house, I will keep a constant eye on the market to know what is available and what has just gone under contract. As soon as something comes on the market that meets your criteria, you will be sent an email of the listing and I will call you. I have access to all area houses that have been listed with any broker. Since I can help you purchase any home, there is no need for you to spend your time calling other agents to find out about a house you just saw in the paper or drove by. Because I know what you want in a house and what your price range is, you will be kept up to date on all homes that meet your criteria.

Negotiating the Purchase. You've found it--your "dream house"! You want to buy it. Now what do you do? First, we will discuss the details of the house. We will review the items that were in the house that you want to make sure stay once you purchase it, as well as some items that you may not want. We will discuss the price you want to offer, financing of the home, the deposit, down payment, any inspections you would like to have done such as for termites, lead based paint, and building inspections. We will put these items in to the offer that, once signed by both you and the seller, will become the sales contract. You also need to be prepared to write a check as an earnest money deposit. This is usually $1,000 or more, depending on the price of the home. The earnest money indicates to the seller that you are making a serious offer. The earnest money is made out to the Broker (not the seller) and is deposited in an escrow account. The money will be applied to your down payment or settlement costs. If the sale is not finalized for a reason beyond your control, the earnest money will be returned to you.  I will present this offer to the listing broker, and the seller if they will allow me to be present during the contract presentation. We will discuss the offer, and the seller will accept it as written, make a "counter offer" on unacceptable aspects, or reject it. The selling broker will then bring back the offer to buy and the home buyer can accept it, counter-the-counter offer, or reject it. The offer to buy becomes a legal or "ratified" contract when all parties have initialed every counter and signed the offer. You can learn more on the Art of Negotiation here. 

 Final "Walk Through". At some point, just prior to the date of final closing, you will need to make a final inspection of the property, known as a final walk through. We will go through the house and make sure that everything that was suppose to be in working order is working, any repairs that were suppose to be made have been done. We will also make sure that all items that were suppose to be removed have been removed. If certain light fixtures or draperies were suppose to convey, we will verify that they are still there. We will make a note of any discrepancies and they will be discussed with the listing agent. Any items that are still an issue will be addressed at the settlement table.

Closing the Deal. After all the searching, negotiating, inspecting and financing have been completed, it is time to close the deal which is known as the Closing or Settlement. What is involved? Be prepared to sign lots of papers! The settlement process is what will put the title to the house in your name, verify homeowner's insurance on the property, commit in writing the terms of the mortgage and usually, put the keys to the house in your hands. Usually, the buyers and the sellers, as well as their agents, will be present at the settlement table. The settlement will take place at either an attorney's office or at a Title Company. The settlement agent will ask you to sign several different documents. These may vary but usually include: The Settlement Statement (HUD-1), The Loan Papers, Title Insurance, Homeowner's Insurance, the Title or Deed and Down Payment and Closing Costs. This is your chance to make sure that everything related to the purchase of your home is correct. It is important that you review and understand everything prior to signing the document. Do not be afraid to ask questions, after all, this is probably the largest investment you will ever make. What do you need to bring? You will need to bring certified funds for closing costs and the down payment. The settlement agent will usually provide you with this information the day before closing once they have finished preparing the Settlement Statement.