Buying Guide
First Steps
"Are you ready to shop for a home?"
Regardless of your individual reason for beginning the journey toward buying a home, we at WEICHERT, REALTORS® -Kingsland Properties know full well how daunting the process can seem. That's why we like to begin with an in-person Buyer Consultation. Your Sales Associate will help you identify and clarify your requirements for your new home and then give you a good idea what to expect when you proceed with your home search.
Your Sales Associate will stay with you every step of the way, diligently searching the current inventory of available homes to find ones that will meet your expectations. He or she will also network in any specific neighborhood you're interested in.
Keep in mind that your Weichert Sales Associate can show you any home on the market, even if it's listed with another real estate agency. So if you see a For Sale sign, an ad in the paper or a listing on the Internet you'd like to know more about, your Weichert Sales Associate is your best resource for the details you need to decide if a house is worth seeing in person.
Your Sales Associate will also introduce you to our Weichert Gold Services team, who can assist you with getting a mortgage credit approval now and later provide a host of other services to make your home purchase and move easier.
Buyers' Frequently Asked Questions (FAQ)
Q. How many homes should I plan to view and how should I make the final decision?
A. While exploring your needs and wants fully is a good idea for focusing your search and saving time, viewing a number of homes will help you become familiar with what you can expect to get for your money. When you find a home you really like, it's a good idea to go back and look at it at a different time of day. This will give you greater insight into what it will be like living in the home full time.
Q. How can I check my credit rating before I apply for a mortgage?
A. Your credit rating is based on a combined score generated from three credit bureaus who look at your credit history, amount of credit available, and recent inquiries to determine what's called your FICO score. A smart way to go is to have your Weichert Gold® Services Manager check your rating for you and, if appropriate, suggest ways for you to improve your credit. For a small fee, you can get your score or review your credit report by going online to www.myfico.com or contacting the credit bureaus directly at:
Equifax: (800) 685-1111
Experian: (888) 397-3742
TransUnion: (800) 916-8800
Q. Why should I consider paying points?
A. Buyers often choose to pay a one-time charge called mortgage "points" in exchange for a lower interest rate. Usually paid at closing, each "point" costs 1% of the mortgage amount, or $2,000 on a $200,000 loan. The lower rate reduces the monthly mortgage payment, and points paid in conjunction with the purchase of a home are generally tax-deductible in the year they're paid (see tax advisor). Monthly savings will often exceed what was paid in points in just a few years' time.
Q. What is the purpose of an attorney review?
A. In states where the real estate agent writes the contract, there may be an attorney review period. This specified period allows the attorney to cancel the contract or request it be altered. Both buyer and seller would then have to agree to the revised contract in writing. During this period, either party may void the contract without penalty.
Q. What is title insurance and why do I need it?
A. Basically, title insurance assures that you have clear title to the home you're purchasing. A title search is the primary component of "due diligence," a process that will be started either by your attorney, if you are using one, or by the title company you choose. The title search determines whether the seller actually owns the property and if there are any claims against it.
Q. What happens if the house I want to purchase does not appraise at the amount expected?
A. If the house doesn't appraise at the amount expected, other alternatives are typically found. A second appraisal may be sought, the buyer may be willing to put more money down, the seller may adjust the price or offer other concessions, or the two sides may negotiate to split the difference between them.
Inspections
"What is involved in a home inspection and is it necessary?"
While only certain inspections are required by mortgage lenders or government mandate, a comprehensive home inspection is considered a wise thing to do when purchasing a home. However, since it is not required, the buyer must pay for it. It is also recommended that at the time of the inspection, you accompany the home inspector so that you can learn firsthand as much as possible about the home you are about to purchase - including such basics as where the main water shut-off is and electrical distribution boxes are.
Mortgage lenders typically require inspections for wood-destroying insects. Inspections mandated by the state or municipality could include: smoke alarm inspection, testing of well water, septic system test, and a certificate of occupancy, all of which are typically paid for by the seller. All other inspections are generally paid for by the buyer and must be done within a specified time frame, as indicated in the contract. Some insurers require inspection of underground oil tanks.
What if the inspections turn up problems?
Few homes are perfect. Some problems may be a matter of simple cosmetics; others may be more serious and call for costly repairs. The good news, however, is that in most cases the seller and the buyer are able to come to terms. You and the seller may decide to compromise, with both sharing the costs of repairs, or the seller may pay for any repairs. Or you may decide that the issue is not important enough to risk losing the home.
It's All Yours
"What can you expect at the final walk-through & closing?"
The final "walk-through" is typically scheduled within 24 hours of the closing/settlement. It gives you one last opportunity to make sure that the home you are purchasing is in the condition that you and the seller mutually agreed to in the sales contract.
Should a problem arise during the walk-through, your Weichert Sales Associate will contact the seller's representative to let him or her know what the deficiency is. If the seller accepts responsibility, money for the repairs can be allocated to you at the closing/settlement. If the seller does not agree to the repairs, your Sales Associate will act as the go-between to help you and the seller reach a satisfactory compromise so that the closing is not delayed.
When the closing/settlement day arrives, be sure to bring:
1. A certified check for the closing/settlement costs (your mortgage lender or attorney will advise you beforehand)
2. Your homeowners' policy
3. Your checkbook for any miscellaneous costs that may come up
You'll sign the mortgage and many other documents, adjustments will be made for such items as property taxes, the seller will be paid, and you will receive the title or deed and the keys to your new home. Be prepared to sign your name over and over again, but when it's over, it's time to celebrate - you're ready to move into your new home.
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