Buying a Home?
Buying a new home can be an exciting and special time in your life; but because of its complexities, most people approach it with a mix of fear and anxiety. Let our experience and expertise guide you through the process making the whole experience easier, more predictable and more enjoyable.
Step 1
Getting Pre-qualified
Getting pre-qualified for a loan serves multiple purposes. First, you will find out the price you are comfortable spending on a home; what your monthly mortgage will be and the down-payment and closing costs you will need.
Secondly, most seller's require a pre-qualification letter from your lender when you make an offer on their home. So go ahead and contact your bank or a lender with whom you are comfortable. It should only take a small amount of your time - usually less than an hour to get pre-qualified. If you don't know a good lender, your Carolina Home Realtor will be happy to refer you to a reputable lender in the area.
Step 2
Looking at Homes
Once your price range is determined, I will set up a personalized home search for you on the Multiple Listing Service (MLS) used by all realtors in the triangle area to promote the homes currently for sale. It is helpful if you spend some time familiarizing yourself with possible neighborhoods and areas before we schedule to see any homes.
Once you start viewing homes, it usually takes between a week and a month before finding the home on which you want to put an offer.
Step 3
Making an Offer
Now that you've found a home you love, the next step is to make a formal offer on the home. This is a written contract that I will prepare on your behalf. It includes the price you are offering, an offer of earnest money to secure the offer (usually 1% of the purchase price), a nominal Due Diligence Fee to the seller's (usually 1% of the earnest money), the Due Diligence period needed for inspection, and of course the closing date - among other things. Changes in the market and each buying/selling situation may change the amounts needed for the security deposit and Due Diligence Fee, but don't worry, your Carolina Home Realtor will walk you through it all.
Usually after a series of counter-offers, you and the seller will come to a compromise and the contract is finalized.
Step 4
Inspections & Due Diligence
As specified within the contract, you have a set amount of time to inspect the home to make sure there are no hidden problems. If problems are identified within the contracted Due Diligence Period, the Buyer can get out of the contract and get their Earnest Money Back only losing the Due Diligence Fee.
Some inspections you may want done include a general home inspection, termite, radon, water & sewer (if needed), survey & appraisal. Your Carolina Home Realtor will have a list of qualified vendors to refer to you if wanted who can perform any these inspections.
Step 5
The Loan
After the contract on the home is finalized, your Carolina Home Realtor will send your lender and your chosen closing attorney a copy of the contract and the loan process will begin. Your lender will order the appraisal on the home and the attorney will order a title search. Your lender will probably need additional financial information from you required to get your loan approved. The whole process usually takes 30 to 45 days to be completed. Once approved, the lender will send the loan package to the closing attorney.
Step 6
The Closing
Once the closing attorney receives the loan package, the attorney will prepare a Settlement Statement that clarifies the final closing costs associated with the transaction. The Statement will be sent to the Buyer, the Seller and their agents for review usually 24 hours prior to closing. This document along with many more will be signed at the closing table. Once the attorney's office files the deed with the Registrar of Deeds, the home is yours.