Choosing a lender and the loan process

The loan process may actually be the most time-consuming part of your home-buying process. Being acutely aware of your financial position and credit scores for months in advance of your actual home purchase is an absolute necessity. Your financial stability and wise use of credit could make a major difference in your interest rate and your options in the mortgage arena. I will be happy to suggest a lender also included in a link below and this process needs to be completed before we move any further. It is crucial for you to understand what you can qualify for as far as a mortgage and as a mortgage payment. Please be prepared to produce the following for your mortgage lender:

1. Two years of tax returns
2. Two years of W-2 forms
3. Copy of your most recent pay stub
4. Copy of your most recent bank statements for all checking and savings accounts.
5. Contact information for your current homeowner’s insurance agent
6. Copy of your driver’s license.

If you are self-employed or have had any changes in your employment, please understand that additional paperwork will be required.

If you have had a problem with your finances in the past or need to raise your credit scores to the next level, we have avenues to assist you with this as well.

Do not open any new accounts–checking, savings, or credit–after your application and prior to closing. Lenders will verify employment and credit scores within 48 hours of closing.

Your amenities list for your new home

I have prepared a Wish List for the amenities that you desire in your new home below. Please feel free to complete this with as much or as little information as you can but understand that the more knowledgeable I am about your specific home needs or wishes, the better I will be in matching you with the perfect home.

Your home search

After reviewing your amenities list, I will begin a search for you for a home that meets as many of your requirements as possible. We will review what is currently on the market and in addition, I will set up an auto-notify campaign that will alert the two of us when something comes on the market with the same criteria. Please feel free to thoroughly critique the homes that are being sent to you. If I understand your likes and dislikes, I am better able to narrow your search.

Evaluating of your home choice

Once we find a home that meets your needs and/or desires, I will complete a Comparable Market Analysis of the home and the surrounding areas. We will educate ourselves on what would be a fair offer. Take into consideration that although you may want to make an offer that is lower than the listing price, homes in the Middle Tennessee area are moving very quickly these days and a fair and equitable offer will allow us to negotiate fairly. At this time, you may want to conduct any research that is important to you as well such as the school systems, neighborhood conveniences, and any concerns on the property disclosure, etc.

Making an offer and earnest money

In order to make an offer, we must prepare a written agreement. I use standard Tennessee Association of Realtors in order to protect your best interests. If you are making an offer on new construction, a builder may request that you use their contract. If we decide to do so, the Builder’s Contract needs to be thoroughly reviewed. You can expect to complete the following Tennessee Association of Realtor and Realty Source forms:

–Working with A Real Estate Professional (F1)
–Confirmation of Agency Status (F1C)
–Purchase and Sale Agreement (F9)
–Counter Offers (F8)
–Addendums (F45)
–Tennessee Residential Property Condition Reports–Disclosure (F16), Disclaimer (F43), or Exemption (F42)
–Subsurface Sewage Disposal (F84) If needed
–Personal Interest Disclosure (F17)
–Lead Based Paint Disclosure (F15) If built before 1978
–FHA/VA Loan Addendum (F47)
–For Your Protection, Get A Home Inspection(F48)
–Impact Fees/Adequate Facilities Taxes (F83)

Buyer’s Agents will need:

–Buyer Representation Agreement (F3)
–Realty Source Commission Fee $349
–MLS Printout
–Realty Source Disclosure of Business Relationship
–Mold and Related Hazards Disclosure
–Disclaimer Notice (F14)

Listing Agents will need:

–Earnest Money Check (in Addition to Copy)
–MLS Printout with Status Changed

The negotiating process

Once we have written an offer on the property of your choice, I will present to Listing Agent with a deadline for an answer. The listing agent and the sellers will discuss our offer and either accept, counter, or reject the offer. If they decide to counter or change the offer in anyway, we move to the negotiating period. We can go back and forth until we have reached a happy medium for everyone. Once the negotiation is complete, everyone signs off on the final contract and we have a legally binding agreement.

Inspections and appraisal

Once your contract has been finalized, you have the option for a home inspection. You will hire a third party to come in and inspect the home. This is a cost that must be paid out of your pocket at the time of inspection. This will ensure that the home is in a condition that you are prepared to live in and that there are not any major defects. After the inspection is complete, the inspector will provide you with a written report for your review. At this time, you can make a list of repairs that you require to be made. Again, we begin a negotiating process since the seller can agree to make the repairs or they can refuse at which time you could nullify the contract.

In addition, I will request a termite inspection. If we receive a clean report, we move forward. If there is an issue with termites, we request the seller to pay for the extermination.

The appraisal is completed by a third party that is hired by your mortgage lender to complete an analysis that ensures you, as well as the lender that your home is worth what you are paying for it. This fee will be included in your closing cost figures provided by the lender.

Preparing to move

Make this a family affair! Have a yard sale and let the children sell their old toys. Donate unused items to the charity of your choice. Organize your personal possessions in your current home as you would want them moved or delivered to your new home.

Choose your homeowner’s insurance company and communicate the agent’s name, contact information, and company to your lender.

Contact your local utility companies and let them know your move date so that you can have your utilities transferred seamlessly.

Begin to pack but retain all important documents that you might need for closing.

Closing!

Although everyone involved in your home purchase will do everything in their power to see that your home closes on the first date of your choosing, please don’t be alarmed if there is a delay. As with any business transaction, there are many different parts of this transaction that must come together on the same day. I personally try not to close on the last day of the month to give you an extra day or two if needed.

Please bring identification to closing and if bringing funds to the closing table–personal checks are accepted up to $1,000, cashier’s checks are accepted for $1,001-$9,999 and any funds required over $10,000 must be wired. Any checks should be made payable to the title company handling the transaction.