Writing the Offer

Writing the Offer

Jun 25, 2023 | Buyers

Congratulations! We found the right home…now what? Once you have found THE home …now I go to work helping you make a competitive offer based on market research.  Terms that we will need to decide include: sales price of home, close date, seller contribution to closing costs and any other contingencies to the contract.  I will advise you every step of the way.

  • Review the Contract: The best way to prepare for the contract phase of the transaction as a buyer is to review a blank copy of the purchase contract. Reading the contract prior to making an offer will make you much more comfortable during the negotiation phase.
  • Offer: While much attention is paid to the asking price of a home, a proposal to buy includes both the price and terms, as listed above.  I will help guide you in the negotiation process as we work to come to an agreement for you and the seller.
  • Seller contributions: Buyer may ask Seller to pay some of the closing costs.
  • Strategies to make your offer competitive: Price, terms and conditions.
  • I will explain the contract, attached forms and offer process to you.
  • Be prepared:
    • Have your mortgage pre-approval ready.
    • Have your funds available – Earnest money deposit with contract.
    • Ask questions about the contract and the process.

 

 

 

 

 

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© Copyright 2023 NATIONAL ASSOCIATION OF REALTORS®

The Home Search

The Home Search

Jun 25, 2023 | Buyers, Financing, Home Ownership, Resources

Educating yourself on your local market and working with a knowledgeable Realtor like myself can help you narrow your priorities and make an informed decision about which home to choose.  I will set you up on an internet “portal” called OneHome, which is linked directly to the MLS fitting the criteria of homes you are looking for. Then as we narrow down the search, we go see those homes!

  • Assess your wants & needs:
    • There are three criteria every buyer uses to find their home: location, price and style/condition. These criteria, along with your “needs and wants,” will determine the properties we search for and the homes we initially view.
  • Shop for a Home:
    • The process of viewing homes provides you with information in order to make the best decision possible.
    • Helping you find a home is a process of elimination; not a process of selection.
    • Viewing homes you don’t like is not a waste of time; it helps build a frame of reference to help you find what you do like.
    • Your Realtor will email you properties that meet your criteria, help you select homes to see, and will add expert opinion of the home.
    • Decide on the home you want to make an offer on

Start Your Home Search

New vs. Resale Home

  • New Home or condominium allows you to pick your floor plan and your finishes.
  • New home or new condominium have warranties.
  • VA Condominium Act requires the Developers to provide a 2-year warranty on the structure of the building.
  • You can do a walkthrough and create a “Punch List”.
  • New homes tend to be a bit more expensive than re-sales.
  • For new homes, you can save on the inspection costs.
  • For new homes, the price is usually fixed– you can negotiate the price on resales.
  • For Resale or used Homes, we recommend that you purchase a Home Warranty.

House vs. Townhome or Condominium?

  • House: You own the house, the land and are responsible for everything
  • Townhome or Condominium: You own the inside. The outside of the building, the land, and the amenities are owned in common. You pay a monthly fee for the maintenance of the common areas. (Not included in mortgage payment)
  • Factors to consider:
    • Cost for upkeep
    • Ability or willingness to do exterior maintenance
    • Do I want or need a yard? Do I want to maintain it?
    • Amount of living space needed
    • Amenities, pool, fitness center etc.?
    • Parking?

Homeowners Association Documents

  • Docs, Association documents, Public Offering Statement (POS), or Condo Docs are the rules and regulations for neighborhoods of single family homes or condominiums.
  • Documents specify what you can and can’t do e.g., fence requirements, pet restrictions, rental restrictions.
  • The Docs also contain the association budgets.
  • Seller must deliver a current copy of the Docs to the Purchaser.
  • Purchaser has 3 days (re-sales) or 10 days (new homes) to review docs and rescind the contract. Rescission must be in writing.
  • Read the documents and ask your realtor if you have questions.

Start your home search here.

The Mortgage Pre-Approval Process

The Mortgage Pre-Approval Process

Jun 25, 2023 | Buyers

Most buyers decide to finance their home purchase – – a consultation with a reputable and preferably – local – mortgage lender is a crucial step in the process. Viewing homes without a pre-approval usually leads to disappointment. Buyers who are wise discuss their financial situation with a reputable lender and acquire a pre-approval. A pre-approval creates an opportunity for you to not just understand what you qualify for, but ultimately to decide what you can afford. Having a pre-approval greatly enhances your negotiating position – especially in a competitive market. Find out how much you want to carry in a monthly mortgage before we begin your home search. We will need this letter to attach to any offer you make on a home.

  • Start the process early!!!
  • A mortgage professional will check your credit report to determine whether you qualify for a loan.
  • The mortgage pre-approval process will:
    • help determine how much you will be able to afford
    • what kind of loans are available
    • what your closing costs will be
    • if you are eligible for any closing cost assistance
  • The typical down payment is 3-5%
  • Gifts are allowed with some loans.
  • Ask about first time home buyer programs.

Types of Loans

  • Conventional
    • Fixed rates and ARMs
    • 5% minimum down payment
    • 10% minimum down payment for condominiums
  • VA – 100% financing for veterans with no mortgage insurance
  • FHA – Government loan with 3.5% down payment. Gifts allowed
  • ARM – Adjustable Rate Mortgage. Lower fixed rate for short period (3 ½ or 7 years)
  • VHDA – Virginia Housing Development Authority has a variety of first time buyer loans with minimum down payment. Usually have income restrictions.

Closing Costs

Settlement costs will vary, depending on the financing arrangement and on selling price of the home. First-time homebuyers could receive help with closing costs. Typical closing costs paid by the buyer include:

  • Lender Costs – Appraisal, administrative fee, Origination fee
  • Attorney Fees – Includes fee to close and title insurance ($4 per $1000 of purchase price)
  • Government Recording – Includes tax stamps for the deed and county and state charge$3.33 per $1000 for both deed and note
  • Escrows – Usually 3 months of homeowners insurance and real estate taxes are put into an escrow account by the lender

 

LOAN ORIGINATION FEE 1 % of the loan amount.
DISCOUNT POINTS Optional. May be paid to lower the mortgage interest rate. Rarely charged, only if the borrower pays points.
APPRAISAL FEE $575.00 – $750.00
CREDIT REPORT FEE $50
PREPAID MORTGAGE INTEREST The interest prepaid by the purchaser for the period between the closing date and the end of the current month.
HAZARD (Homeowners) INSURANCE PREMIUM Lenders require that the hazard insurance will be prepaid for one year that two additional months’ premium be held in escrow to cover the first two months of the following year. The first year’s premium is approximately .4% of the selling price.
CITY/COUNTY PROPERTY TAXES A reimbursement to the seller for prepaid property taxes covering the period between the closing and the end of the tax period. Also need to collect 2-6 months for Escrow.
TITLE EXAM/CLOSING FEE The attorney’s fee is generally $500.00 to $600.00.
TITLE INSURANCE A one-time premium, approximately .4% of the

selling price.
PRIVATE MORTGAGE INSURANCE Insurance required by lenders, paid for by purchasers, for loans with loan to value ratio greater than 80%.

Lender paid PMI is available with some programs. Ask your lender.
RECORDING FEES AND TAXES These fees cover recording of the deed and the mortgage with the City or County and the State. They are approximately .4% of the selling price.
SURVEY The fee for the survey, if required, will be in the range of $250.00 $350.00. The figure will be higher if acreage is involved.