Your first step, if you are financing the purchase of your new home, is to shop for a Mortgage. Contact me if you would like a list of local Mortgage Lenders. October 3rd, 2015 The TILA-RESPA Integrated Disclosure (TRID) rule became effective. Now when you contact a lender for a mortgage loan, the lender is obliged to provide you with a Loan Estimate within three business days of your application.
This is a significant change as it is now easier to shop for the right lender and a mortgage loan that meet your needs. The Loan Estimate allows you to easily compare loan programs from different lenders. You are allowed ten business days from receipt of the Loan Estimate to commit to the lender for the mortgage. You are not obligated to the lender to move ahead with a loan but will need to repeat the application process after this 10 day period. Shopping for a mortgage will establish your eligibility for a mortgage loan and the lender will be able to provide you with a Prequalification letter, a necessity to make an offer on a home.
Locating a home
Establishing a working relationship with a professional real estate broker makes your search for the right home in the right location much easier. I work exclusively as a Buyer’s Agent with my clients representing their interests in the selection, negotiation and purchase of a home. There is no cost to you the buyer as my services are paid for by the seller.
The most accurate up to date home listings are on the Triad Multiple Listing Service (MLS). The MLS is a cooperative broker service allowing your Buyer’s Agent to show you and help you purchase any listed home. Your Agent can provide you access to the MLS and provide you with searches tailored to your needs.
Real estate listing sites such as Realtor.com, Trulia and Zillow can be a useful resources but these third party aggregators are not always up to date and the information provided can be incomplete and misleading. You can spend considerable time searching online sites only to miss available homes, find properties that are not in desirable locations, that are missing the features you want or are no longer available.
The Purchasing Process
Buying a home in North Carolina is a straightforward, inexpensive and relatively quick process.
As your Buyer’s Agent, once a home is decided upon, I research comparable properties and suggest a market appropriate offer. All real estate offers must be in writing using the standard NC Offer to Purchase and Contract. Once your Offer is prepared, signing and submission to the seller is most often done online.
All Offers need to be accompanied by a Prequalification letter, or in the case of a cash offer by a Proof of Funds document, and Earnest Money and Due Diligence checks. Earnest Money is typically 1% of the purchase price and is held by either the listing brokerage or the closing attorney. The Due Diligence check, usually for $200 – $300, is made out to the seller as payment for a 2-3 week property inspection period.
Offers are negotiable and the seller can either accept an Offer or counter it with pricing and/or terms acceptable to them. A verbal agreement to accept an Offer does not bind a seller from accepting an other Offer. There is only a Contract when an Offer is signed by both parties and in possession of the buyer; signed, sealed and delivered.
The Due Diligence Period is the time for all home inspections to be completed and any repairs/improvements negotiated and agreed upon with the seller. During this Period the buyer can void the contract for any reason and recover their Earnest Money; the money paid for the inspection period is forfeit. The purchase of the property only goes forward after the completion of the buyers inspections and a satisfactory negotiation of any repairs or upgrades. In this case both the Earnest and Due Diligence payments are credited to the buyer at closing.
The buyer’s Attorney handles the property closing. Fees for the Title Search, completion of Closing Documents and Deed Recordation range between $500. to $700.
Property Closing is scheduled for 45 days or more from the date of Contract for financed purchases with possession of the home usually granted on the day of Closing.