Ready to Buy a Home?

Buying a Home
Buying a home can be one of your most significant investments in life. Not only are you choosing a place to call your own, you are investing in your future.  The goal of this page is to provide you with an overview of the process. Don't worry we are hear to guide you through every step along the way and to assist you in making intelligent and informed decisions. Remember, if you have any questions about the process, we're only a phone call or email away! We offer no cost Buyer representation....seriously ask us for details. 

HOME BUYING PROCESS... in a Nutshell

1. Buyer gets pre-qualified
2. Buyer finds the perfect home, makes an offer, seller accepts (that sure sounds easier than it actually is, but that is what we are here for!)
3. Buyer's earnest money and due diligence checks are given to the seller/attorney.
4. Lender orders appraisal (buyer or agent might order it for a cash purchase)
5. Inspections are ordered (Home, Termite, Radon, Septic...ect) and closing is scheduled with an attorney
6. Any repair issues are negotiated with the seller during the due diligence period. 
7. Surveys are ordered after a successful appraisal and inspections--buyers don't want to invest too much into the property until they are sure it's a go
8. Buyer applies for hazard insurance and the information goes to the lender and closing attorney
9. Nearing closing date, buyer arranges for utilities to be switched over
10. Closing takes place at the office of the buyer's attorney. The seller's attorney has forwarded signed deeds to the closing attorney
11. Buyer gives attorney certified funds to pay for closing and signs loan papers and other required documents
12. Closing day! Attorney records new deed at the courthouse and disperses the KEYS and funds due to all parties

FAQ 

• Home inspections
• Surveys
• Their share of yearly property taxes
• Property association dues, and other similar fees (prorated for date of closing)
• Fees for a title search and duties performed by their attorney, title insurance policies, hazard insurance for a year, downpayment and lender fees, flood zone certification fees,
• Funds to open lender escrow accounts for property taxes and insurance that will be paid by lender the following year

A Survey of the property conducted by a Registered Land Surveyor is strongly recommended in order to uncover problems such as encroachments, restrictive covenant setback violations, boundary disputes, deed gaps and overlaps, etc., before you buy. It should be considered an integral part of your due diligence investigation of the property. In addition, if you have plans for adding a pool or a fence to the property, for example, obtaining a survey is the only way for you to proceed with accuracy and avoid costly mistakes. Although it may be a prudent investment, unless it is a specific requirement of your lender, the decision to invest in a survey is yours. Please let us know as soon as possible, and in no case less than 15 Days prior to closing, whether or not you wish for us to arrange for the survey. The cost of the survey will typically be added to your closing statement (HUD1) and can be paid at closing. Please note that most surveys do not include staking the corners of the property. If you want this done, be sure to ask for this to be done at the time the survey is requested.

A title search and the issuance of title insurance means the ownership of the property can be cleanly conveyed to the new owners. During the search, the history of the property is researched verifying that all previous claims or liens have been satisfied, allowing a clear title to be issued. If any claim is overlooked, the title insurance protects the owner from the claim. Remember that if it’s not in writing on a real estate deal, it’s not enforceable.

Lender’s Title Insurance insures the priority and validity of the mortgage loan and is required by banks and mortgage companies.

Owner’s Title Insurance protects your investment by:

• Providing a corporate indemnity against insured defects.
• Paying the legal expenses to eliminate any title defects.
• Paying claims arising from errors in title examinations and recordings.
• Paying losses from hidden defects in title and defects not of record.

Interest Rates
As you start shopping for a home loan, your first question of each lender will probably be "What's your interest rate? How much are you charging?" Interest rates are usually expressed as an annual percentage of the amount borrowed (APR). If you borrowed $120,000 at 10% interest, you'd owe interest of $12,000 for the first year. With most mortgage plans you'd pay it at the rate of $1,000 a month. You would also send in something each month to reduce the principal debt you owe - and the next month you'd owe a bit less interest.

Rates dropped gradually through the 1990s, and by 2000 had reached their lowest rates in decades. Continuing into the millennium, home buyers appear to have the most favorable conditions for mortgage borrowing since their grandparents' days - and without 50% down payments either. REMEMBER if your are comparing lenders look at the (APR rates).

Home Inspections
Inspections are designed to help you understand the overall condition of a property, potentially saving you considerable time with the purchase process and hundreds or thousands of dollars in repairs. Some of the inspections which may be required or recommended by your real estate professional are:

Standard Home Inspection
The areas which may be covered include lot and grounds, roofs, exterior surfaces, garage/carport, structure, attic, basement, crawl space, electrical, heating and air conditioning systems, plumbing, fireplace/wood burning devices, and appliance condition. Remember that your inspection rights are clearly stated in the Contract For Sale and vary from jurisdiction to jurisdiction. In some cases homes can be sold "as-is" even though an inspection may take place.

Radon Inspection
Radon levels are detected and measured. The Environmental Protection Agency (EPA) estimates that between 15,000 - 22,000 deaths per year result from radon exposure, therefore they recommend that all homes be tested for radon. EPA recommends that homes containing 4.0 or more Pico Curies per liter be remedied.

Termite Inspection
A termite inspector will inspect the property for the presence of wood-destroying insects (WDI) or wood destroying organisms (WDO, i.e. fungus) and conducive conditions that exist. Inspection requirements vary by state.

Asbestos Inspection
Lab analysis will determine if asbestos fibers are present and evaluate their condition. If friable or non-friable conditions exist, buyers should seek professional assistance.

Composition Board Siding
The condition of the siding and any areas of high moisture are evaluated during this inspection. Typically, composition board siding is a paper-based product that is manufactured to replicate traditional wood siding at a fraction of the cost. Homeowners recently brought class action lawsuits against some of the larger manufacturers of this type of product. The homeowners claimed that the siding was susceptible to water penetration, which caused premature deterioration and rotting. According to the Environmental Protection Agency, some of the most commonly known manufacturers of composition board siding are Louisiana Pacific (LP), Georgia Pacific (GP), Masonite, and Weyerhaeuser.

Lead Paint Inspection
Painted surfaces of a home can be evaluated to determine the presence of lead paint. Homes that were constructed before 1978 may contain lead-based paint. Lead exposure can be harmful to young children and babies. Children with lead in their bodies can suffer from damage to the brain and nervous system, behavior and learning problems, slowed growth, hearing problems, and headaches.

On-Site Waste System (SeptiChekTM) Evaluation
SeptiChek^TM is an evaluation performed by an on-site waste management professional. It involves accessing the cover of the septic tank to examine the fluid level inside the septic tank. The tank is then pumped to check the condition of the tank and its baffles. The leaching field is probed to check the level of sub-surface liquid waste (effluent). This test alerts the buyer to a wide range of potentially costly septic system repairs or failures. The SeptiChek^TM evaluation provides more reliable information of potential problems than a septic dye test.

Pool/Hot Tub Inspection
Determines the overall condition and operability of a pool and/or hot tub's equipment. Additionally, the condition of the pool deck will be inspected for deterioration and/or other noticeable defects.

Private Well Flow and Potability Inspection
Designed to determine whether or not a private well adequately supplies water to the house. Samples are sent to a lab for potability (drinkability) analysis.

Stucco Siding Inspection
There are two types of stucco siding to be aware of: cement-based "traditional" stucco and synthetic stucco. An inspection of the siding's application according to manufacturer's installation specifications is recommended. Synthetic stucco siding is commonly referred to as Exterior Insulated Finish System (EIFS).

• In considering a home with stucco exterior, we recommend an inspection be conducted to determine the condition of the siding.
• Synthetic stucco is predominately found in the Southeast but it is present in homes in other areas of the country as well.
• Hidden structural damage has been documented in synthetic stucco homes in 34 states.
• Moisture readings are taken to determine if the system has already experienced water intrusion.

Underground Storage Tank (UST) Inspection
The most common methods for testing a UST, typically used to store oil for heating homes, are either the soil test or vacuum test. The soil test consists of random core samples taken around the location of the tank and submitting them for lab analysis. This will determine if any product has contaminated the soil at that particular area and to what extent. The vacuum test consists of having a technician seal off and place the tank under a vacuum. Readings are periodically taken to determine whether or not the tank is losing its vacuum. With this test immediate results are available for the buyers.

• Since USTs are predominately made of metal they rust and corrode over time, causing hazardous materials to contaminate soil and potentially aquifers that supply drinking water to surrounding communities.
• The majority of UST problems occur in the northeastern states due to the older properties located there.
• Obtaining the proper inspections for a home prior to purchase is one of the best ways to make a smart purchase decision and protect your investment. The above is not meant to be an exhaustive list of all of the types of inspections that may be necessary on a particular home, but it is meant to provide general information on some of the most common types of inspections.

Obtaining the proper inspections for a home prior to purchase is one of the best ways to make a smart purchase decision and protect your investment.