Thinking About Buying?
One of the largest and most stressful financial decisions you will ever make is buying a home. Whether you are a 1st time buyer or moving to a different home there are a lot of considerations

• Reason For Buying?
  Are you moving to a different location? Do you need a larger home? Are you tired of paying rent? Do you want a vacation home? Looking for investment income?
  
Knowing exactly what you need will make your search easier.


• Income Grown or Looking for Investment Opportunity?
  Owning a home will be one of the best investments you will ever make. As you make payments you’re building equity plus any appreciation to your property.
  
  
• Is Buying Within Your Budget?
  Financialists recommend spending between 30-40% of your total income. There are many tax benefits of home ownership that you don’t receive when renting.
  

• Do Your Homework
• Sell First
• Why Use a Realtor
• Searching for a Home
• The Closing Process
• Closing
  

• Gather Your Financial Documents
  • Bank Accounts
  • Investments
  • Credit Card Statements
  • Loans
  • Recent Pay Stubs
  • 2 Years Tax Returns
    
• Check Your Credit Score

A higher credit score may mean a lower interest rate on your mortgage.  Below is contact information for credit reporting agencies.  Your lender can give you advice on how to raise your credit score if needed.

Equifax – www.equifax.com
Experian – www.experian.com
Trans Union – www.transunion.com

• No Major Changes

Now is not a good time to make career changes or make large financial purchases. Lenders like stability.

• Why Sell First?

Putting in an offer on a new home before your old home sells could be a financial hardship. The offer on your new home may not go through if your home doesn’t sale. There is a chance you might have to make two payments until the first home sales.

Selling a home may take months. It takes time to get a home listed, to find a buyer and to close the transaction. Sellers don’t have time to wait on your home to sell!

• We’re Experienced Negotiators

Our goal is to get you into the best negotiating position possible. Sellers will choose qualified buyers who can close quickly and easily over ones who are less prepared.

• What Happens If You Sell?

People often worry where they will live until they buy another home.  Don’t Worry!  We will assist you in finding a rental during this transition period.

Buying and selling real estate is complex.  A basic rule of real estate is that all properties are unique.  Homes differ and so do contract terms, financing options, inspection requirements and closing costs. 

Through the forms, financing, inspections, marketing, pricing and negotiating it makes sense to work with professionals who know the community… and much more! 

For buyers, Realtors use many resources to help you in your search for a home.  They also provide objective information about each property, can help you negotiate, help you understand different finance options, and guide you through the closing process to make sure things go smoothly. 

When selling your home, Realtors can give you up-to-date information about the market as well as the price and condition of competing properties.  The Realtor markets and advertises your property and can help you through the sale of your home. 

Working with a Real Estate Agent  - Article By NC Real Estate Commission

When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer's agent). Or you may agree to let them represent only the seller (seller's agent or subagent). Some agents will offer you a choice of these services. Others may not.

Buyer's Agent

Duties to Buyer:

If the real estate firm and its agents represent you, they must

• promote your best interests
• be loyal to you
• follow your lawful instructions
• provide you with all material facts that could influence your decisions
• use reasonable skill, care and diligence, and
• account for all monies they handle for you.

Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer's agent, they may not give any confidential information about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer's agent, you should avoid telling the agent anything you would not want a seller to know.

Unwritten Agreements:

To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer's agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Furthermore, if you later purchase the property through an agent with another firm, the agent who first showed you the property may seek compensation from the other firm.

Be sure to read and understand any agency agreement before you sign it.

Services and Compensation:

Whether you have a written or unwritten agreement, a buyer's agent will perform a number of services for you. These may include helping you

• find a suitable property
• arrange financing
• learn more about the property and
• other-wise promote your best interests.

If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller.

A buyer's agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer's agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.

Seller's Agent Working With a Buyer

If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller's agent (or "subagent"). The agent can still help you find and purchase property and provide many of the same services as a buyer's agent. The agent must be fair with you and provide you with any "material facts" (such as a leaky roof) about properties.

But remember, the agent represents the seller—not you— and therefore must try to obtain for the seller the best possible price and terms for the seller's property. Furthermore, a seller's agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers' agents before you say anything that can help the seller. But until you are sure that an agent is not a seller's agent, you should avoid saying anything you do not want a seller to know.

Now that you know the reasons why you want to purchase and you know your pre-approved limit, you’re ready to search for a home.

Familiarize yourself with the different areas by driving around.  You can choose homes you want to view and/or let us use our experience and do the legwork for you.  We will help you compare and contrast the homes until you find the right one. 

Once you’ve chosen a home, we will help you make an offer.

• Escrow

Escrow is the process that starts when your offer is accepted by the seller. It ends when you become the new registered owner of the property.

From Contract to Closing 

Parties Involved                                                 Action

Buyer, Seller, Agents                                           Contract Successfully negotiated, all copies delivered

Buyer, Seller, Agents                                           Home inspection ordered, performed.  Report issued.  Repairs negotiated.  Termite Inspection ordered and preformed.  Any treatment paid by sellers. 

Buyer                                                                     Makes formal loan application, pays for credit report & appraisal.

Lender                                                                   Orders credit report, appraisal, solicits verifications.

Seller, Appraiser                                                   Appraisal performed.  Report sent to lender.

Lender                                                                   Receives all documents, sends file to Underwriter.  Sends to PMI Company if necessary.  Loan commitment issued.

Buyer or Agent                                                     Notifies Attorney to do Title Search, Prepare Sellers deed        Homeowner’s Insurance is purchased                                             Closing date is set:  All parties notified.

Buyer                                                                     Utilities ordered in Buyer’s name as of closing date. 

Seller                                                                      Final meter readings for utilities ordered as of closing date

Lender                                                                   Forwards final closing package to Attorney.

Attorney                                                                Runs final update search on Title.  HUD statement to Agents.

Agent/Broker                                                        Forwards Earnest Money Deposit to Attorney.

Buyer, Agent                                                        Perform final walk-through inspection prior to closing

Buyer, Agent, Seller, Agent                                Settlement:  Seller signs Deed.  Buyer sign Note & Deed of Trust.  Title Insurance issued.  Buyer pays Attorney by Certified Check per HUD-1 statement. 

Attorney                                                                Closing:  Records all necessary documents at County Court House.  Disburses funds:  Agent’s check, Seller’s proceeds, all items agreed upon at settlement meeting.