The Home Buying Process

• Choose a REALTOR – Under Maryland law when you talk to an agent about purchasing a home, unless you enter into a written representation agreement that agent is representing the seller. Many buyers are reluctant to sign a contract with an agent and their broker for fear it limits them on who they can work with. While the agreement does state that you will work with that agent exclusively Maryland law requires for there to be a way for either party to terminate the agreement so if you are not happy with the agent’s services you are not “locked in”. The benefit of working with one agent who represents you is consistency.  An agent who takes the time to get to know you, your tastes, needs, situation etc. is able to represent your interests knowledgeably and effectively. I will be happy to give a detailed explanation of how Maryland agency law works.

   

• Choose a Lender – I can give you names of lenders who have served my clients successfully in the past. When you are dealing with such an important purchase it is wise to work with someone who has proven themselves trustworthy in past transactions. I always recommend local lenders because there is a relationship developed and personal accountability. It’s very difficult to hold an automated phone system halfway across the country accountable when something comes up. Having a local lender who you can get in direct contact which is golden.

   

• Get pre-qualified – Many buyers are reluctant to give out their personal financial information and certainly for good reason. That’s why it’s best to deal with someone whose track record you can rely on. When searching for a home, having a pre-qualification letter is essential in the negotiation of an offer. It also allows me to show you homes you know you will be comfortable buying. Furthermore, it’s also essential in determining what payment and interest rate you will qualify for. Just because you see a rate advertised that doesn’t mean that is the rate you will get. Advertised rates are baselines and can change based on credit score and other factors. It’s always best to be an educated buyer.

   

• Develop a plan – Buying a home is much more that just finding a place to live. I will be happy to meet with you and discuss what your plans are for the home you are considering. Whether you’re a first time buyer, a move up buyer or you’re downsizing it’s important to have a plan of action before we begin looking at homes.

   

• Searching for properties to see – Home searches are probably the most exciting part of the process next to actually moving in. During this stage I will be asking you a few questions to determine how I can best serve you. I will use that information to get you set up with a detailed search based on your specific needs. Many of the online search sites are not updated frequently enough so you often find homes that are either under contract or even sold. By having a search system that is tied directly to my Bright system you can be sure that the information you are receiving is accurate and up to date. This truly puts you in control of your home search and does so accurately.

   

• Choosing the right home – Some people try to approach picking the right home logically. In over 30 years of selling homes I’ve seen many people find a home that logically meets all their requirements but they just don’t like it. On the other hand, I’ve seen people fall in love with a house that is nothing like what they described they wanted and “make it work”. Buying has to be a combination of logic and emotion. I like to tell buyers if you walk in and you feel at home that’s probably the home you should buy. On the other hand if a home meets all your requirements but you don’t feel at home, you will regret that purchase until the day you can finally sell that home and move on. I will work closely with you throughout the process to make sure you’re satisfied.

   

• Structuring an offer – When it’s time to make an offer we will go over what you have discussed with the lender and the plan we talked about and  help you structure an offer that is in your best interest. We’ll talk about market conditions and the psychology of negotiating an offer. You want the best possible price and conditions. We’ll consider what loan you are going to apply for, what inspections you want, when you would like to settle and do you need any seller help. I’ll help you weigh the idea of seller help vs. price reduction and any other factor that could mean the best result for you. Remember, I’m on your side.

   

• Filling out the paperwork – Today’s offers to purchase can be from 40-50 pages depending on where you buy and from whom. I will go over the paperwork in detail and let you know what forms are required for your purchase. I will also give you a copy of all the papers you signed so you can examine them in detail and ask any questions you may have. I always tell my clients there is no such thing as a “dumb question”. If you don’t know the answer it’s a good question.

   

• Applying for a loan – Your loan officer will give you a list of what information is needed for loan application. The contract will stipulate what timeframe you have to make application. Usually it’s 5 – 7 days from  contract acceptance. At that time the lender will also order the appraisal. It’s very important, during the purchase process that you don’t apply for any additional credit. The lender will do a final check just before settlement and if you have taken out additional credit that may disqualify you from purchasing your home. Follow your lender’s instructions very carefully until after settlement.

   

• Selecting a title company- Under Maryland law you have the right to select the title company or title attorney of your choice. I will give you a list of reputable companies in the area of your purchase to choose from. Feel free to compare costs but be aware that the cheapest may not always be the best. I want you to be sure the settlement agent you select is thorough and that there will be no surprises or things missed.

   

•  Insurance – It’s very important that you contact your insurance agent as soon as the offer is accepted. Insurance companies keep a record of claims made against a property or made by a particular owner. If a number of claims have been made for the property you are purchasing or if those claims were related to water penetration it may be difficult and expensive to get a new policy. You need to find this out as soon as possible because the rate can affect your monthly payment.

   

• Home inspection – I never recommend you purchase a home without getting a home inspection. The home inspector will not only look for defects but also educate you on maintenance items, life expectancy of mechanical units, water flow issues and much more. The inspection will generally take from 2 – 3 hours and I strongly suggest you be present during the inspection. At the end of the inspection you will receive a report of the results. Based on that report and the terms of the accepted contract you may wish to ask for repairs to be made before the date of settlement. There are other inspections available to you including radon, lead, environmental, zoning and planning reviews etc. I will discuss what issues you feel are of concern and we will address those in the initial offer.

   

• Final details – Now that we’re waiting for the settlement date to come there are some details you will need to take care of. You will need to make sure all is good with your home owner’s insurance policy. You also need to contact the utility companies at your old location as well as you new home. Make sure the power is turned off in your name at the previous home and that it’s being transferred to your name at the new home. If the home is on natural gas you will need to contact the servicing company to set up a new account. Any other utilities such as cable, satellite, phone etc. will need to be contacted. If you are on public water the title company will usually take care of calling for a final reading and bill. If you are moving from a different or if you are a first time buyer I will supply you with a list of all the utility companies you need to contact.

   

• Pre-settlement walk through – Just before settlement we will do a final walkthrough to make sure the property wasn’t damaged during the move by the seller. We’ll also check to see that any negotiated repairs have been done and that the house is in essentially the same condition as when you made the offer and that it is at least broom clean and that no trash or unwanted items have been left on the premises.

•  Settlement – On the day of settlement we will meet at the agreed location, usually the office to the title company. The lender will have sent their documents and the title company will have prepared a deed and any other paperwork required by the state and or lender. A title agent will conduct the settlement which usually takes about 1 hour. At that point the home is yours and you’re free to move in.