The Home Buying Process

By: Stewart Zemil, Chief Operating Officer

Home ownership has always been a major aspect of the American dream.  Regardless of your home buying experience, buying a home can be an overwhelming process. Understanding the steps of this process will help make the experience more manageable and enjoyable. With over 20 years in the industry, I’ve worked with many families to help achieve their homeownership goals and wanted to share the full process and some tips! Now is a great time to buy a home, here are the steps to get you into the home of your dreams:

1. Start savings towards your down payment
2. Set a personal budget
3. Get pre-qualified/pre-approved: Give me a call! We’ll set up an appointment to meet and review your employment/income/assets/debts and pull your credit report to determine the loan size you qualify for, and the type of loan program that meets your needs. Getting pre-approved not only helps you shop smarter because you know your finance options before shop, but it also strengthens your offer and lets the seller know you're serious. More to come on the importance of pre-approvals in a future blog!
4. Pick a Realtor: Your agent will represent you throughout the entire transaction beginning with determining the area in which you want to live and showing you homes in that area that fit your needs at your pre-approved price range, to writing and negotiating the best price for your purchase. They’ll even help manage all of the required vendors (home inspection, pest inspection, septic, handling the repairs, removing contract contingencies, scheduling a final walk through) until the date of your closing. If you currently don’t have a realtor, I’d be happy to recommend one to you.
5. Finalize your loan: Once you have a ratified sales contract, your next step would be to work with my team and I on the following:
1. We’ll prepare the loan application and disclosures with all current information as of the date we meet
2. Order title
3. Order the appraisal
4. Review the sales contract and disclosures to make sure you are in compliance with our lender’s guidelines
5. Order homeowner’s insurance
6. Process the loan application – obtain third party confirmations on all documents you provided to qualify for the loan in order to verify their accuracy
7. Submit the loan to our in-house underwriting department for loan approval
8. At this point, the underwriting department may request any additional documentation required
9. Once those documents are obtained, we’ll resubmit the loan to underwriting for a clear loan approval
10. We’ll send  the settlement company loan closing instructions and review the final HUD-1 settlement statement for accuracy
11. Review the settlement statement line by line to make sure you have no additional questions 
12. Wire closing funds to the settlement company
6. Go to closing: Our last step is to meet with all parties on the contract at the closing company to review and sign your closing papers. This is your chance to ask the seller any last minute questions about the home, and when you’ll receive the keys to your new home!

If you’re considering a move, I’ll be happy to walk through the home buying process with you one on one. For additional information, visit my website or feel free to review  this homebuyer’s handout I put together which further dives into the loan process.

Why It's Critically Important To Have A Home Inspection

Many home buyers have found the perfect house, signed on the dotted line and may think they've watched enough home improvement shows to know if the home they're getting is in good shape. Unfortunately, some buyers make the mistake of skipping a home inspection in order to save a little cash.

Even if a home has already stolen your heart and you're ready to pay for it as-is, you need to bite the bullet and hire a home inspector to let you know what repairs and financial repercussions await you.

Why You Should Hire A Home Inspector

You might know a thing or two about home remodeling and repairs. However, most people are not experts on the inner workings of a home. That is why it's important to hire a professional to search for potential furnace issues, electrical wiring mishaps, plumbing weaknesses or roofing deterioration to name a few.

While a home might look like it's in perfect condition on the surface, there could be major issues hiding beneath its façade. That's why it really is imperative for your safety that you hire an inspector to scrutinize the bones of your home. Understanding any imperfections may also help you budget for immediate and future repairs.

When to Schedule the Home Inspection

Once you've signed a purchase contract, you'll want to schedule a home inspection before the inspection period has ended. Even though you've signed the offer, an inspector could just find something that you just cannot live with or afford to fix.

While you would normally schedule an inspection after you've signed a contract, it's important to have an inspector or two picked out beforehand. Ask your real estate professional or friends and family for referrals and then contact the inspectors for pricing and a list of what they will and will not cover at the inspection.

Once again, remember that the cheapest price may not be the best deal on home inspections.  Have a good understanding of what, and who, you are investing in.

Even if you do know a lot about the structure, plumbing and wiring of houses, don't let your ego get the better of you. It's important to shell out the additional money to hire an inspector and cover your assets. You'd hate to end up with a home that needs major renovations and not have known about it.

For more information on hiring a professional for your Rockville home inspection or for a referral, please call today!

Don't Get Fooled By Tricky Terms When Purchasing Real Estate

When looking to buy or sell Rockville real estate, confusing terminology can leave you feeling somewhat uneasy.

From a multitude of numbers to marketing jargon, property listings can provide you with an overwhelming amount of information — and it's hard to know what's important.

So, brush up on the terms below and don't get fooled this April.

Sale-to-List Ratio

This is an important number to pay attention to when choosing a real estate professional to sell your home.

The percentage is calculated by what a home was initially listed for, divided by the actual sale price.

The closer an agent's percentage is to 100, the better.

If it's low, that could be an indication that they routinely list homes too high, or you may be in a slow market which would favor the home buyer.

On the other hand, if it's high, it could show that your agent markets their listings well and your market might favor home sellers.

Median Days on Market

The median days on market is the midpoint of how many days it took for homes in that area to sell.

If it's 30 days, then half of the homes sold quicker and half took longer than 30 days.

If you compare the real estate you're considering to its area's median days on market and you find that it's been on longer, the sellers might be willing to take a lower offer.

Distressed Property

Properties are listed as distressed when the owners have defaulted on their mortgage loans or are about to.

As a buyer, you might be able to get a good deal on a short sale or a foreclosure, as banks many times list them below market value to try and recoup some of their loss and clear the property from their books.

An Active Versus Pending Status

If you find your dream home and then notice that it has a pending status, brace yourself for disappointment.

An active status on a home means the owners are accepting offers, while a pending status indicates that they've already accepted an offer.

If you know it's the one for you, you can still place a bid in case the first offer falls through.

While there are many new concepts and terms you will learn when purchasing your new home, the benefits of home ownership far outweigh any fear that you may have.

If you're looking to purchase a new home soon, please contact a licensed real estate professional who can cut through the jargon and find the home of your dreams.

5 Top Tips For Purchasing Your New Home

It's a great time to buy a new home because there are quite a few Bethesda homes for sale and interest rates have continued to stay comparatively low.

Whether it's your first time purchasing real estate or you're a seasoned professional, here are a few tips to make shopping for a new house more pleasurable.

1. Get Help

Searching through all of the available properties on the market can be mind-boggling.

Find a professional real estate agent to help guide you through the homes for sale and select one that meets your family and financial needs.

2. Start Looking Now

Finding the perfect house can take longer than you might think, especially if you're looking in a competitive market.

If you're looking at getting a good deal on a foreclosure or short sale, then these transactions can take even longer because you're likely waiting on the bank to make the final call on your purchase transaction.

Try to be patient. The more thorough you are in your search, the happier you'll be in the long term.

3. Don't Settle For The First Place You See

Searching for a house can be extremely emotional.

If you think you've found the one, then take a step back, consult your real estate agent and go over your housing checklist one last time before writing an offer.

4. Weigh The Pros And Cons

Almost any property will need a few improvements; even newly constructed houses usually need improvements like landscaping.

Sellers are more savvy now about how to make cosmetic changes to catch a buyer's eye, so look carefully.

There will still be things you want to change, so weigh the difference between the cost of those repairs and the sales price of the home.

If you really want a house even though it's going to take a lot of work, make your offer accordingly.

5. Make Sure Your Financing Is In Order

Having financing done in advance makes the process of buying homes for sale much easier because you'll know how much you can afford.

Your loan officer can also help you determine what your monthly payments will be based on how much money you borrow. 

A great first step is to consult with a licensed mortgage financing specialist to go over the available programs and terms available in the area.

 

Reasons To Attend Your Own Home Inspection

As a home buyer in Rockville , you can get a feel for whether a home's systems and appliances are in working order. However, you can't know for certain until after the home's been inspected.

This is why real estate agents recommend that buyers hire a licensed home inspectors immediately after going into contract. It's the best way to really know the home which you're buying. 

By definition, a home inspection is a top-to-bottom check-up of a home's physical condition and systems, including a review of the structure, and its plumbing and electrical systems. Home inspections are not the same as a home appraisal, which is a valuation of the property.

When you commission a home inspection, you should be present for it. Here are 3 reasons why :

Seeing For Yourself
There's a big difference between reading a report and seeing "live" what may be right or wrong with a home. With first-hand knowledge of a potential issue, you'll be in a better position to determine whether a problem warrants contract cancellation, or whether it's an additional negotiation point. 

Discovering The Home
Via a home inspection, you will learn where the systems reside within a home (e.g.; boiler room, garage), and how to operate them. This is a valuable educational opportunity and most inspectors are happy to share what they know. It's also a chance to ask questions about maintenance and upkeep.

Better Understanding
A home inspector's job is to review and disclose the condition of the home. The inspector's report, however, is just a summary on paper. In being present for the inspection, a buyer will be able to visualize and understand the report's conclusions more clearly. This can make for more effective re-negotiations with the seller, in the event that damage or distress is identified.

So, what should you do during the home inspection? Your primary tasks are to watch, listen, learn and ask questions. A professional home inspector will welcome your participation in the process.