Items Needed For Loan Application - Here  

DETAILS EVERY BUYER NEEDS                     



Choosing Your Agent  

 

You might think that the most important decision you make is the home you decide to buy.
You just find a home and make an offer. What else is there? Right? Actually your first and
most important decision should be your choice of representation, and therefore, your choice
of a real estate agent. Your real estate agent will be the person you depend on for so many
things during the entire home buying process.

 

Your real estate agent should be someone you trust and respect, is professionally
knowledgeable, as they will be representing you, the homebuyer, exclusively. What this

means to you is that this agent will always have your best interests in mind, and will be

your loyal advocate throughout the entire transaction. They should never just show you the

homes that they are listing, or their company’s listings. They should show you everything

that meets your wants and needs. Maryland law requires a written agreement for you to be

represented by a “buyer's agent”. This agreement can be entered into upon your first

meeting with your chosen agent or no later than presentation of an offer to purchase.

With a buyer's  agent representing you, there is never any question as to

whether your agent is on your side or not. You receive the benefits of a fiduciary

relationship throughout your entire real estate transaction. These fiduciary duties include

Trust, Loyalty, Confidentiality, Disclosure, and Obedience. A buyer's agent generally

doesn't list homes or work for sellers, so there is less likely a chance for a conflict of

interest. Some agents do represent sellers and the only difference would be that your agent

could not show you their own personal listings and represent you. You are informed of this

up front by signing agency disclosure forms. 

Choosing Your Financing

 

 Another very important decision most of you will have to make is where you will get your
loan to finance your home .Another very important decision most of you will have to make
is where you will get your loan to buy the home, and what type of loan is best for you. Will
you use a bank, a credit union, a mortgage banker, or a mortgage broker? Will you choose a
30 year fixed rate loan, a 5/1 ARM (adjustable rate mortgage), a 2/1 Buy Down? How
much will you qualify for, and will the monthly payments fall within your comfort zone?
How much will the closing costs be and how much will you need for a down payment?
There is so much to know, and it can all be overwhelming at times. This is where you can
depend on your buyer's agent. They help you sort through all of the options. We recommend that
you get Good Faith Estimates from different lenders and compare not only the interest
rates, but also the closing costs to the seller compared to similar offers from other buyers
who do not already have a loan.We will help you differentiate between normal loan costs
and junk fees or garbage fees that some lenders try to charge you. Sometimes lenders will
lower their fees if they know they are being shopped against other lenders. You may want
to discuss financing options with lenders that your buyer's agent recommends as they are familiar
with those who are reputable and who have proven to be reliable and honest.

 

It’s best to be pre-approved, or at least pre-qualified, for a loan. This way when you do find
your home and make an offer, your offer will be more attractive. 

Finding A Home

 

You may wonder how a Buyer's Agent can help you find a home since they
don’t have any homes that we are trying to sell. The fact is, they have access to all of the
properties listed in the Multiple Listing Service, as well as for sale by owner properties and
new homes. They will do whatever they can to find your perfect home. 

 

The Purchase Offer and Negotiations

 

 Once you find your perfect home, how do you know how much to offer? This is when you
will really be glad you have a Buyer's Agent on your side. Not only do they try and find out
everything we can about the seller’s situation, we also do a comparative market analysis,
called a CMA, that shows you the selling price of other similar properties. Without this
information, it is really difficult to know whether the seller is asking a fair price.
You will most likely be asked to pay an earnest money deposit when you submit your
purchase offer. The amount of the earnest money deposit is usually around 1% to 3% of the
list price of the home. There are exceptions to this percentage depending upon what type
of loan you qualify for. Ask your Buyer's Agent to work with you in determining what deposit
amount is best for your situation. The purpose is to show the seller that your offer is in
good faith. The earnest money deposit is held in an escrow account by your agent's
brokerage firm, and is applied towards your down payment or closing costs when the real
estate transaction closes.

 

 The Purchase Contract

 

 The Purchase Contract is a standard Maryland Association of Realtor's contract form. It
contains the offer price and terms, any inclusions or exclusions such as refrigerators,
washers, and dryers, any additional provisions such as a sale-of-home contingency, and
numerous dates and deadlines concerning the loan, appraisal, title, seller’s property
disclosure, inspection, closing, possession, offer acceptance, and other items of importance.
The seller can either accept your offer, submit a counter offer, or reject your offer. 

The Home Inspection 

We always recommend that you have your potential new home inspected, even if it is a
newly built home. The cost is small, typically $200 to $300, compared to any potential

major repairs you might have to make after you move in. You must be prepared to be

present for your inspection and pay for it at that time. An independent professional

inspector could advise you of any deficiencies and also gives you general maintenance

information. It's important to note that home inspections are for structural, mechanical,

electrical or safety items and not for the correction of cosmetic features. Again, depend on

your Buyer's Agent for recommendations regarding home inspectors.

 

The Purchase Contract contains an Inspection Contingency clause that gives you a specified
number of days to have your own independent professional inspector inspect the subject

property. If the inspector finds anything wrong with the property, you have the choice of

either asking the seller to repair or replace the items that you are concerned with, or you can

terminate the contract and have your earnest money deposit returned to you.

If you ask the seller to repair or replace the items that you are concerned with, the seller has

a specified number of days to give you an answer. The seller can either agree to fix all of

the items, agree to fix some of the items or not fix any of the items. Unless the seller agrees

to fix all of the items, you still have the option to terminate the contract and have your

earnest money deposit returned to you.

 

Things to do five (5) days before closing:    You Need to See This

 

 The Closing 

 

The big day has finally arrived. All of the contingencies and negotiating items have been
resolved. Your loan has received final approval The last step is for a title company or real

estate attorney to close your real estate and loan transactions. You will need to bring your

certified check for the down payment and closing costs, and be ready to sign your name to a

lot of documents. The closing usually takes an hour or so. You will receive the keys to your

new home and can, unless otherwise negotiated, occupy immediately.

 

The Relationship 

 

Whereas you may never hear from some agents again, I believe that this special
experience of home buying is only the beginning of our relationship. I will always be

there for you after the sale, whether you have questions regarding the closing, the payment

of your property taxes – anything. I consider you to be a client for life and our friend.

I always respect and value our relationship.

 

Questions About Buying A Home Name: Email:   Phone Number: Comments:

Enter the code in the field below:

Refresh