BUYER'S GUIDE
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BUYING PROCESS STEP-BY-STEP GUIDE TO BUYING A HOME
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STEP 1
FIND A REALTOR® WHO IS RIGHT FOR YOU & AGREE TO WORK EXCLUSIVELY
STEP 2
MORTGAGE PRE-APPROVAL
Buying a home can be tough, but it doesn’t have to be. Statistics show that even though 98.4% of people get help from a REALTOR® when buying a home, only about 20% of REALTORS® actually complete home sales. You want to select a REALTOR® who will guide you through the buying process (and inevitable bumps in the road) quickly, smoothly, and professionally. The first step is a buyer’s consultation meeting, where we’ll talk through your must-haves and your wish list. Then we’ll create a custom home search tailored especially for you! This provides you with information and homes relevant to your personal buying experience—there’s no need to waste your time with unrelated information. In our hot market, speed is everything, so we will send you the property details via text or email the instant they come onto the market. This gives you the opportunity to get there first! MONTHLY COSTS OF OWNING A HOME Mortgage Utilities Maintenance Insurance Property Taxes HOA fees
WHAT DOES IT COST TO OWN A HOME? Down Payment Title Fees Inspection Fees Taxes
HOW MUCH CAN YOU AFFORD Knowing your true budget is very important when buying a home. Focus on the monthly number. If you’re aware how much you can spend each month on a Mortgage, Taxes, and HOA fees, work with that amount to ensure that you are comfortable every month. Make the largest down payment you can. Be sure to set aside some money for moving expenses, repairs, renovations, and perhaps some new furniture. Choosing a local lender who knows the market and is readily available is vital. We can recommend several lenders, and have a great relationship with Armando SanMiguel with Ameris Bank.
STEP 3
SELECT HOMES TO VIEW WITH YOUR REALTOR®
We’ll keep in touch, helping you select the best homes to tour together. We’ll discuss the top matches and choose up to 6 homes to view at a time—any more than that, and it gets difficult to distinguish between them.
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STEP 4
FIND THE RIGHT HOME AND WRITE AN OFFER
You’ve found a home. Congratulations! In order to make it yours, you have to write an offer that the Seller will accept. DURING THE OFFER PROCESS WE WILL... Perform background research. We gather all the information necessary for you to make the best decision and develop the right strategy for having your offer accepted. Prepare the offer. We’ll ensure all your needs are met, while offering our advice on what will be the best way to WIN in multiple offer situations. We recommend reviewing the contracts in our contracts package so you can ask us any questions prior to writing an offer. Explain all the details. We will lay out all your options and ensure that you know what you’re agreeing to. Set you apart. Today’s market is competitive and getting attention is key! We will discuss how to give you the advantage, such as writing a personal letter to the seller and having professional interactions with the listing agent. Present and negotiate the offer. Once you’ve signed all the papers, we will work diligently to get you the home you want at a price you are comfortable with.
STEP 5
NEGOTIATE THE OFFER
THE SELLER CAN ACCEPT YOUR OFFER. Congratulations, homeowner! THE SELLER CAN REJECT YOUR OFFER. There are multiple reasons why this can happen. If it does, we will follow up with the Seller and see if there is anything more we can do. Remember, there are always other homes! THE SELLER CAN COUNTER YOUR OFFER. The Seller may want to alter some part of your offer—all negotiation revolves around the price or terms. We are here to skillfully negotiate the best deal for you.
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STEP 6
DUE DILIGENCE
This is where we work through any conditions written into the offer. Typically, these will be financing and home inspection. Your lender will need to see a copy of the contract, and you’ll work together to ensure that they can approve the financing. Home inspection: this is your biggest purchase, but a few hundred dollars spent on an inspection can save you from thousands of dollars of unpleasant surprises. We can recommend several home inspection companies to choose from. GO WITH A LICENSED PROFESSIONAL Join the inspection Get up close and personal with your new home. The process can take up to three hours, so it’s best to show up near the end so you can see any issues firsthand. If any problems are detected, you’ll see them right away and also learn some maintenance tips from the professional inspector. You’ll get it in writing The home inspector’s report will summarize the condition of the home. If anything needs work, the home inspector will provide guidance and suggestions. No such thing as “perfect” Even with a brand-new home, there will be some minor (and possibly major) defects. You can expect some level of deferred maintenance and associated issues to arise. We’ll work through these to decide which ones are serious and need to be fixed, and which ones we can live with.
STEP 7
CLEAR TO CLOSE AND SIGN
This is an exciting time. All of the waiting is over! You’ll receive the clear to close from your bank, normally a few days or a week before the closing happens. You’ll receive the final CD (closing disclosure) with a breakdown of all the final numbers (fees, monthly payment, cash to close) and you’ll wire the money to the title company. Always check the wiring instructions by calling the title company directly. SIGNING DAY You will need a copy of your driver’s license or ID. As soon as both parties sign, the bank will release the funds. Once funds are released, the keys will change hands...and you will officially own your new home!
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STEP 8
THINGS TO DO BEFORE YOU MOVE IN
MOVERS We recommend Black Tie Moving. Clients of The Ashton Real Estate Group receive exclusive damage coverage and a luxury moving experience. MAILING ADDRESS Gather all your bills, statements, tax information, healthcare information, and anything you make automatic payments on. Sit down and make a list of these early, because you don’t want to forget forwarding any of these. Once you’ve done that, it’s time to start giving out your new mailing address. You might also want to have your mail forwarded through the US Postal Service. UTILITIES Before you take possession of your new home, it is very important to change your utilities over to your new address in advance. This includes your phone, cable, internet, power, water, and gas services. Also, don’t forget to cancel the utilities at your previous residence. Black Tie Moving also offers a concierge service to assist in the process. PROPERTY TAXES These are typically included in your escrow account with the bank. If you’re paying cash or they are not included, you will receive a tax bill around October and it will be due at the end of February in the following year.
STEP 9
MOVING DAY
You will be extremely excited and emotions will be running high. Having a REALTOR® who has gone through the moving process multiple times will ensure that everything is done correctly—you don’t want to miss anything during this exciting, busy time! TIMELINES MORTGAGE PRE-APPROVAL . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Week FIND THE PERFECT HOME. . . . . . . . . . . . . . . . . . . . . . . . 1 to 4 Weeks DUE DILIGENCE TO REMOVE CONDITIONS . . . . . . . . 1 to 2 Weeks POSSESSION . . . . . . . . . . . . . . . . .+/- 30 to 45 Days from Offer Date
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MORTGAGE DOCUMENTATION REQUIRED
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THE LENDER WILL NEED TO SEE
PROOF OF INCOME IF SALARY OR HOURLY Two recent pay stubs Prior two years of W2’s and tax returns IF SELF-EMPLOYED Past two years tax returns in the same work field IF INCORPORATED Two recent years of company financial statements Certificate of Incorporation PROOF OF DOWN PAYMENT Savings Account Statement, Gift Letter (plus confirmation it’s in your account ), Line of Credit or Credit Card statements showing balance, limit and confirmation of what the minimum payment would be if you used that limit. OTHER DOCUMENTATION Copy of Contract and MLS Sheet from REALTOR® Copy of Contract for sale of existing residence (if applicable) ID
THERE ARE SOME EXTRA COSTS THAT MAY APPLY
APPLICATION FEE Some mortgage lenders charge a fee to process your application. We can recommend ones who don’t. APPRAISAL FEE Your mortgage lender will require you to have your new home appraised by a professional. HOME INSPECTION FEE Avoid surprises and protect yourself. Money well spent! HOA TRANSFER AND CAPITALIZATION FEE This is a cost some management companies charge to put the HOA account in your name. Not all do this, but it is common. TITLE INSURANCE If you’re receiving a loan to buy the property you will be required to get title insurance. This is a normal part of the process in Tennessee.
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MOVING CHECKLIST
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MOVING ITINERARY 8 WEEKS BEFORE MOVING ☐ Contact a moving company such as Black Tie Moving to get estimates. ☐ If you have unwanted or unneeded items, plan a garage/yard sale and set a date. ☐ Arrange to transfer school records if you have children. ☐ Start a “move file” for all receipts, papers, and estimates related to your move. 6 WEEKS BEFORE MOVING ☐ Contact the moving company and arrange pick-up and delivery dates. ☐ If you are moving to a new city, ask your attorney, doctor, and other providers for referrals and necessary records. ☐ If you have pets, schedule a check-up and get a copy of veterinary records. ☐ Set schedules with real estate agents and/or landlords. 4 WEEKS BEFORE MOVING ☐ Schedule disconnect dates with your local utility company(ies). ☐ Notify the appropriate utility company(ies) of connect dates for your new home. ☐ Cancel newspaper subscription and trash pickup effective on your move date. ☐ Check with your local post office for change of address information and forms. 1 WEEK BEFORE MOVING ☐ Clean out refrigerator and defrost freezer. ☐ Have your car serviced if you will be moving/driving a long distance. ☐ Confirm connect dates for utilities in your new home. ☐ Transfer or close your checking account. ☐ Be sure to get all items from your safe deposit box. MOVING DAY ☐ Spend the entire day at home with the movers. ☐ Carry any valuables or family heirlooms with you. ☐ Just before the movers leave, take a final tour of your home. ☐ Make sure nothing has been left in drawers or closets. ☐ As you leave, be sure all windows and doors are locked.
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WHOM TO NOTIFY SERVICES AND UTILITIES
HEALTH
☐ Water
☐ Doctor
☐ Gas
☐ Dentist
☐ Electricity
☐ Optometrist & Optician
☐ Telephone
☐ Physiotherapist
☐ Post Office
☐ Chiropractor
☐ Cable/ Internet
☐ Massage Therapist
☐ Rental Companies
☐ Health Insurance
☐ Mobile Phone Provider VEHICLE(S) FINANCIAL
☐ Vehicle Registration Agency
☐ Banks
☐ Vehicle Insurance
☐ Credit Union ☐ Credit Card Companies
OTHERS
☐ National Savings & Bonds
☐ Friends & Family
☐ Employer
☐ Subscriptions
☐ Insurance Companies
☐ Club membership(s)
☐ Pension Companies
☐ Library
☐ Social Security
☐ Schools / Colleges
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