YOUR HOME BUYING GUIDE Clocktower Realty Group | 1709 E. Franklin Street | Richmond, VA 23294
www.SoldbyCurtandHeather.com Curt Reichstetter Associate Broker, CSP, SFR, SRES (804) 370-1210 Curt@CurtSellsRVA.com
Heather Reichstetter Associate Broker, SRES, ABR (804) 836-5042 Heather@HeatherSellsRVA.com
TABLE OF CONTENTS Introduction What It Takes to Buy a Home
About Us An Experienced REALTOR® on Your Side
Thank You
Financing Pre-Approval Process Types of Mortgages Ten Commandments
Resources Finding Your Right Home Your Home Search
Home Buying Process Flowchart
Home Buying Checklist Testimonials
WHAT IT TAKES TO BUY A HOME KEY:
Agent Does for You
Up to You to Do
We Do Together
Lender Does Attorney Does for You for You
BUYER QUALIFICATIONS Home Buying Overview
Loan Pre-Approval
Buyer Representation Agreement
PROPERTY SELECTION – FINDING THE RIGHT HOME Housing Requirements Purchase Strategy Area Selection See Homes
Price/CMS Analysis
Discuss Financing
Make Offer
CONTRACT NEGOTIATIONS Cover Letter
Package Your Offer
Deliver Offer & Present
Obtain Signatures
Acceptance of Offer
COMPLETE TRANSACTION MANAGEMENT FINANCING
ESCROW
TITLE
PROPERTY
MISCELLANEOUS
Loan Application
Sign Instructions
Review
Inspections
Disclosures
Verifications
Calendar
Public Report
Review Report
Notifications
Hazard Insurance
Amendments
CC&R’s
Repair Requests
Legal Compliance
Appraisal Comps
Review Costs
HOA
Repairs Confirmed
Coordination
Sign Off
Negotiations
Draw Loan Docs Final Walk-Thru
& POSSESSION Sign Initial Docs CLOSING Title Docs Coordination
Contingencies
Buyer Funds
Lender Funds
Signing
Recording
AFTER SALE FOLLOW-UP Closing Statement
Title Policy
After Sale Items
Miscellaneous
Referrals
THE PRE-APPROVAL PROCESS The Pre-Approval Process is the FIRST Critical Step in Purchasing Your New Home
Whenever we place an offer on a home, a pre-approval letter conveys that we are serious buyers to a seller - much more so than a buyer without a pre-approval letter. It is a powerful asset when making an offer on a hot property with multiple offers and allows us to move quickly and efficiently in ratifying an offer. If you plan to acquire a loan to purchase your home: It helps define your budget, monthly payment, interest rate, and transaction costs. Financing information is needed for the Purchase Agreement.
If you plan to pay in cash to purchase your home: It is still a good a idea to obtain pre-approval status from a lender just in case you change your mind (consult your CPA for the best advice). In addition, a proof-of-funds letter is necessary from your financial institution.
TYPES OF MORTGAGES Conventional
VA (U.S. Department of Veterans Affairs)
Fixed rates Minimum 5% down payment (10% for condos)
100% financing for veterans No monthly PMI required
FHA (Federal Housing Administration)
VHDA (Virginia Housing Development Authority)
3.5% down payment Seller can pay up to 6% toward closing costs Monthly PMI (Private Mortgage Insurance)
Offers first time home buyers (only) loans with minimum down payment. Income restrictions apply
ARM (Adjustable Rate Mortgage)
USDA (United States Department of Agriculture)
Provides a lower fixed rate for the initial term of the loan (3, 5, 7 or 10 years) Rate then adjusts annually
100% financing in rural areas (only)
Please note that this is a basic guideline of various mortgages. All terms, costs, and conditions should be confirmed with your lender while determining the best loan program for you.
THE TEN COMMANDMENTS When Applying For A Real Estate Loan 1. Thou shalt not change jobs, become self-employed or quit your job. 2. Thou shalt not buy a car, truck or van (or you may be living in it!) 3. Thou shalt not use charge cards excessively or let your accounts fall behind. 4. Thou shalt not spend money you have set aside for closing. 5. Thou shalt not omit debts or liabilities from your loan application. 6. Thou shalt not buy large purchases (e.g., furniture, home electronics, etc.) 7. Thou shalt not originate any inquiries into your credit. 8. Thou shalt not make large deposits without first checking with your loan officer.
9. Thou shalt not change bank accounts. 10. Thou shalt not co-sign a loan for anyone.
THE HOME BUYING PROCESS HOME SEARCH & MAKING AN OFFER
Phase 1:
BUYER CONSULTATION What are you looking for in your new home? Explain the buyer process and answer your questions.
LOAN PRE-APPROVAL If you have already been pre-approved, we will get to work building a relationship with your lender. If you are looking for a lender to complete your pre-approval, I have great lending partners to recommend. Obtaining pre-approval will help you determine your purchase price and timeline of purchase. We will need this letter from your lender when we make an offer on your new home!
HOME SEARCH We will search the Multiple Listing Services (MLS) for homes that meet your criteria, and set up notifications when those homes are available. Together, we will decide which homes to see and see as many homes as you need until we find YOUR home!
MAKE AN OFFER COUNTEROFFER
Negotiate counteroffer until an accepted agreement is reached or not.
ACCEPTED
BINDING CONTRACT!
REJECTED
Start over with a new offer or move on to another home.
THE HOME BUYING PROCESS Phase 2:
UNDER CONTRACT
BINDING CONTRACT Congratulations! You are under contract to purchase YOUR new home! The price, terms, and conditions have all been negotiated and agreed upon.
EARNEST MONEY This is money that you provide at the time we go under contract to demonstrate your commitment to the purchase. Usually it is between 1-2% of the sales price and usually paid by check. These funds will be counted towards your down payment at closing.
START LOAN PROCESS Right after we go under contract, your lender will help you officially apply for your mortgage loan. You may spend a few days gathering the necessary documents to complete this process. The lender will be working on your loan approval for an average of 25 days, though much of it will be behind the scenes.
THE HOME BUYING PROCESS Phase 3:
HOME INSPECTION PERIOD
BEGINNING OF INSPECTION PERIOD We will have negotiated a period of days between 10 – 15 for your due diligence period. During this time, you will have the opportunity to order a home inspection and any additional inspections for issues such as radon, and mold. You may choose to have a survey completed of the property to determine exactly how much land you are purchasing.
END OF INSPECTION PERIOD Before the end of this period you may choose to negotiate repairs specific to safety, home structure, and function of major appliances.
THE HOME BUYING PROCESS Phase 4:
CONTINGENCIES
APPRAISAL CONTINGENCY If you are purchasing with a loan, your lender will most often require an appraisal. Even if you are a cash buyer, you can request an appraisal to protect your investment. If the home doesn’t appraise, we will discuss your options. If the seller does not want to work with any of those options, you have the right to terminate the contract and receive your earnest money back.
THE HOME BUYING PROCESS Phase 5:
CLOSING
CLEAR TO CLOSE This is the green light from the lender that your loan has been approved, all final conditions have been met and they are ready to disperse the loan amount to the attorney for closing. We will have a chance to review the HUD-1 statement a day or two before closing to confirm everything is correct.
CLOSING COSTS Your lender will discuss these costs at length with you but generally include your down payment (minus earnest money), loan origination costs, closing fees, and any portion of the taxes or utilities owed. These funds will need to be wired to the closing attorney the day before closing. The lender will give you a close estimate of the amount owed and you will be able to pay the difference or receive a check for any overages at closing.
CLOSING DAY The attorney will walk you through the closing paperwork and we will all be there to answer any questions you may have.
CONGRATULATIONS ON THE PURCHASE OF YOUR NEW HOME!
ABOUT US CURT REICHSTETTER Associate Broker, CSP, SFR, REALTOR® President, Richmond Association of REALTORS® Curt has been a licensed REALTOR® for almost 30 years and an Associate Broker for over a decade. He has the experience to get even the most complete real estate deals done.
As a former board member of the Sales and Marketing Council of the Home Builders Association and instructor of Certified Sales Professional and CSP Advanced courses, Curt has built a comprehensive knowledge of strategic sales development and marketing initiatives. His expertise ranges from residential and commercial sales to adaptive mixed-use in both suburban and urban areas. Curt was recently installed as the 2019 President of the Richmond Association of REALTORS® (RAR) and currently serves on committees at the state level with the Virginia REALTORS® Association (VAR) as well as the National Association of REALTORS® (NAR). He also serves as a trustee of the REATLORS® Political Action Committee. Not only does Curt represent his clients during their purchase, but is also an advocate for homeowner rights locally and nationally. In 2019, Curt earned the Commitment to Excellence (C2EX) endorsement from the National Association of REALTORS®. The endorsement goes to REALTORS® who have demonstrated knowledge and competency in 10 core areas of real estate practice. Launched in November 2018, this innovative program sets the standard for what it means to be a professional in the real estate brokerage business. Cell: 804.370.1210 | Email: Curt@CurtSellsRVA.com
HEATHER REICSTETTER Associate Broker, SRES, ABR Heather joined Curt in the real estate business shortly after they were married. She grew up with parents in the industry, her father was a developer and her mother was a real estate agent—so the transition for Heather was only natural! She is also very involved with the Richmond Association of REALTORS® (RAR), having recently receiving her Broker’s license. Heather also serves on the Legislative Committee and was recently chosen to be a member of the Leadership Development Academy. Cell: 804.836.5042 | Email: Heather@HeatherSellsRVA.com
www.SoldbyCurtandHeather.com
Licensed in the Commonwealth of Virginia
AN EXPERIENCED REALTOR® ON YOUR SIDE As licensed real estate professionals, we provide for you much more than the service of helping you find your ideal home – we are professional, knowledgeable REALTORS® you can trust to guide you through the entire transaction process.
DID YOU KNOW… According to the National Association of REALTORS® (NAR), there are at least 184 distinct steps performed in order to close a single real estate transaction!
A REALTOR® spends numerous hours to complete each of these steps and can save you endless amounts of time, money and frustration. The quality control a licensed real estate professional administers during a transaction also helps buyers and sellers avoid many potential setbacks.
Remember, the listing agent represents the seller first and foremost. You want to have a professional in your corner to make sure that your purchase is to your benefit.
TRANSACTION MANAGEMENT APRIL LANE Owner, Trinity Transactions LLC April closes anywhere from 120+ deals a year. Over the course of the past 10+ years, that’s a lot of transaction scenarios she's seen! This experience has provided a lot of insight along the way and the ability to think outside the box. She has a system in place for each type of transaction fine-tuned over many years of handling deals from start to finish that is virtually bullet proof. It keeps you as clients feeling like you are kept in the loop each and every step of the way, incorporating friendly reminders along the way! Here are some ways that she helps assist us: •
Ensuring that throughout the process all documents are sent to the Closing Attorney and/or Title Company on your behalf.
•
Coordinating with you to arrange scheduling home inspections
•
Ordering of HOA Documents.
•
Ordering of termite Inspection, well & septic Inspection., and home warranty
•
Obtain required public information from governmental entities, if requested by Agent.
•
Coordinating any pro-rations for propane, oil, etc. that may be required.
•
Regular check-ins with the Buyer’s Lender (either side) to ensure we’re on schedule for closing.
•
Help with coordinating scheduled work needed to satisfy inspection contingency, collecting of invoices to ensure vendors are paid and/or POC.
•
Reminder to call for moving quotes and to call utilities prior to closing.
•
Sending change of address checklist prior to closing.
•
Coordinating closing time between all parties and/or deed signing for Sellers.
•
When and what to expect for the final walk through as well as coordinating with all parties for walk through date and time.
•
Coordinating with the closing attorney and/or title company to ensure Seller’s proceeds are disbursed.
April@TrinityTransactionsLLC.com | TrinityTransactionsLLC.com
THANK YOU! Thank You for your time meeting with us today as you consider us to be your real estate professionals! You are about to embark on the exciting journey of finding your ideal home. Whether it is your first home or your tenth home, a retirement home, or an investment property, We can help you find the ideal home with the least amount of hassle. We are devoted to using our expertise and the full resources of our team to achieve these results. Our goal is to provide you and your family with professional service, utmost trust, loyalty, and complete confidentiality during our real estate transaction. Purchasing a home is a very important decision and a big undertaking in your life. In fact, most people only choose a few homes in their lifetime. We are going to make sure that you are well equipped and armed with up-to-date information for your big decision and will guide you through every phase of the home-buying process. Please keep this packet to use during your home-buying process as an invaluable guide on your home-buying journey. This packet gives you helpful information for both during and after your transaction. Use its reference pages, explanations, and areas for notes and important dates to help you stay organized. So let’s take an exciting journey together! We look forward to meeting your real estate needs every step of the way!
FINDING YOUR RIGHT HOME After completing the pre-approval process, it’s time to have some FUN! Here’s how we will search and locate your new home Based on your criteria, we will utilize a very powerful search tool via the Central Virginia Regional Multiple Listing Services (CVRMLS) which is much more powerful than internet search engines. You will receive an initial email of ALL current properties on the market that match your criteria and will also receive an email whenever a NEW listing is posted by an agent that also matches – or the price is reduced. After we’ve narrowed down the search and have a list of homes you would like to see, I recommend taking an evening drive by each home (which can help eliminate quite a few). Once we have a final list of homes, we will begin to schedule showings. I recommend view about 2 homes per hour (4 or so a day) to avoid over exposure.
YOUR HOME SEARCH Where do you want to buy property? ________________________________ Is there any specific part of the area or neighborhood that you prefer? ________________________________
Is there a specific school or school district you’d prefer to live in/near? ________________________________ How soon do you want/need to be in a new home? ________________________________ How long have you been looking for a home? ________________________________ Have you been to see any homes? □ YES □ NO Did you see any you like? _____________________________ Why have you decided to move? ________________________________ Do you need to sell a property before you can purchase another? □ YES □ NO □ CURRENTLY ON THE MARKET Are you currently in a lease? □ YES □ NO If yes, when does it expire? ________________________________ Are you interested in a newly built home, a resale home, or both? □ NEW □ RESALE □ BOTH Are you open to doing renovations? □ YES □ NO
HOUSE HUNTING CHECKLIST BASIC REQUIREMENTS: Minimum Bedrooms: _______
Minimum Bathrooms: _______
Minimum Size : _______ sq. ft.
FEATURES (Circle and check “must haves”, check “nice-to-haves”, and cross off things you don’t want.) Structural
Interior Features
Location
Garage (Min. Cars_____)
Hardwood Floors
Waterfront
Single Story
Open Floor Plan
City Views
Multiple Stories
1st Floor Master
Quiet Street
Basement
Granite Countertops
Cul-de-Sac Lot
Gas Cooking
Strong Schools
Eat-in Kitchen
Association Amenities
Laundry Room
Walking Neighborhood
Exterior Features Deck
Porch/Sunroom Patio Pool Fenced-in Yard Shed/Workshop Garden/Landscaping Paved Driveway
Walk-in Closet(s) Fireplace Formal Dining/Living Rec/Bonus Room Finished Basement Handicap Accessible
Other ______________________ ______________________ ______________________ ______________________
______________________ 18
TESTIMONIALS "Beyond words of gratitude, the professionalism and trustworthy service this gentleman and his wife has shown towards me as a buyer of a home. I am overjoyed with satisfaction in buying my home because of Curt. Indeed a professional and highly recommend him to anyone in search of a home." ~ Xavier L. (Buyer) "If you are on the fence about who to choose as your realtor, stop right here! Curt and Heather were so amazing when it came to handling our affairs buying our first home. They were a quick phone call, text or email away any time we needed them. Jesse and I couldn't of asked for a better experience or realtors!" ~ Alexandria P. (Buyer) "Curt and Heather Reichstetter are the best! We relocated and had a extensive home search that lasted months, followed by an extremely difficult closing - with a seller's agent who was not helping either. Curt was patient, professional, responsive and extremely helpful through the entire process. I would never recommend a different realtor in the Richmond market. Hands down the best there is." ~ Michael S. (Buyer) "Curt and Heather are world class. This is our 3rd home purchase, and far and away y'all are the best realtor's with whom I've worked. Great service from start to finish." ~ Mike (Buyer) "They helped me get a house, when I doubted that I'd even qualify for a mortgage to begin with; Curt was great!" ~ Jen C. (Buyer) "Curt Reichstetter recently helped us to buy a very unique historic property. The deal was extremely complex due to the innumerable eccentricities of the property. Curt's tireless persistence and attention to detail helped us to successfully leap various hurdles and make this purchase possible. He spent many, countless hours working on the deal for us and visited the property dozens of times to help us to gain access for contractors, inspectors, historians and to help answer our own questions. Even after closing, he has been extremely prompt in correspondence and eager to help us address the many complex details of this purchase. Curt has been friendly, courteous, knowledgeable, and helpful and I highly recommend his service as a real-estate agent. He takes his job seriously and works diligently for his clients, and it shows that he enjoys the work he does." ~ Gananath G. (Buyer)
TESTIMONIALS "I couldn't have asked for a better selling experience with Curt. I sold my home only 12 hours after putting it on the market and ended up with an offer that was higher than asking price. I recommend Curt to anyone buying or selling in Richmond!" ~ Morganne P. (Seller) "Curt and his team have been nothing but helpful during my first home-selling experience. Right away, they nicely made suggestions that would help with the sale of the house and seemed very knowledgeable of the area and had comps on hand to help come up with a good selling price during our first meeting. Even when it seemed that there wasn't much interest in my place after listing, they never gave up and pushed to find a buyer. My house actually sold quicker than I thought it would! The sale process went smoothly. Curt and his team were always quick to respond whenever I had a question, and if he was busy, he always let me know the soonest he'd be available. And just seems to be an all around nice guy. A pleasure to work with." ~ Melissa E. (Seller) "Curt helped us buy and sell our homes. He made it all happen and advised us every step of the way. And it was great advice too. He worked through all of the inevitable issues with us. He was supported by April Lane who was also great and advocated for us. A very pleasant experience. And we strongly recommend the team including Blake Poore, April and Curt." ~ Joyce & Jeremy L. (Buyer & Seller) “It has been great working with you! We really appreciate you going the extra mile for us in every way. Jeremy and I are really happy with the way things have worked out! Thanks for the champagne, nice touch!" ~ Joyce L. (Buyer)
"Curt was very accommodating throughout my home buying process. The deal was very complicated and unorthodox, and Curt was instrumental to our ability to make it happen. He gladly put in a lot of extra time helping us, and I would not hesitate to recommend him or to use him again if I am ever to purchase another home." ~ Kevin D. (Buyer) "Curt did a wonderful job taking me around and showing me all of the houses that interested me. He spent a lot of time walking me through the home-buying process and giving me honest opinions to all of my questions. I could not have asked for better support." ~ Hadeel A. (Buyer)
TESTIMONIALS “Curt was a joy to work with. He was always available and helpful. He steered me away from things he should have and ultimately helped me find the perfect house!" ~Jackie D.(Buyer) "Many thanks go out to Curt for his help in my extensive property search. I was very picky and cheap. He remained patient throughout the process and exercised concern when he felt something was amiss or if he truly felt a certain property was not for me. He often thought of me first when previewing certain properties due to his preparation and extensive knowledge of what I was looking for in a house." ~ Jeffery & Elizabeth W. (Buyer) “I just wanted to thank you for all the hard work. You guys did a great job managing the sale process and I couldn't be more pleased with the result. The sale price and time to close both exceeded my expectation and I am sincerely appreciative. Should you ever need a referral from a former client, please don't hesitate to reach out - you'll receive a glowing review.” ~ Bruce S. (Seller) "Working with Curt Reichstetter and April [Lane] during my recent homebuying experience was really terrific. I'd recommend this team of professionals to anyone in search of a new home. April really stepped up and 'dug her heels in' on my behalf during the closing process, turning what might have been a loss into a win. I'm very grateful to both Curt and April for their knowledge and expertise to bring the sale over the finish line!" ~ Marilyn S. (Buyer)
"Curt [Reichstetter] helped us to purchase our sixth property and he is by far the best realtor we have ever used. He was extremely knowledgeable about the properties he showed us as well as informative about the area. Curt was very responsive to questions we had and was a pleasure to work with. He went above and beyond what we expected from an agent, even helping us to get settled in long after the closing. We highly recommend Curt to anyone and would certainly call on him in the future. " ~ Barry & Vanessa (Buyer) "I don't really need to do much actually, and Curt [Reichstetter] taught me a lot of things on purchasing my own home. This is my first time purchasing my own place and it didn't take long for him to show me a place I like." ~ Terry S. (Buyer)
TESTIMONIALS "Curt [Reichstetter] was great from the start, and I really felt that he went above and beyond my expectations. He was very knowledgeable about the various neighborhoods that we looked at and had a ton of great advice. I was looking primarily at some very old houses, and he had a mountain of information and insight into all of the extra complexities that that added as well. I felt that I was in very good hands throughout the search, negotiations, closing process, etc. Even after the closing when I had some minor issues with public works, he stepped in and helped take care of it for me so that I could concentrate on the move. I really can’t say enough positive things about Curt. If you’re looking for a home in the city of Richmond and you’re considering working with anyone else, you’re probably doing yourself a disservice... " ~ Tyler S. (Buyer) "I just wanted to thank both of you (Curt [Reichstetter] and April [Lane]) for your hard work on this crazy transaction. I can't wait to do another under more conventional circumstances, but you both are the reason this closing happened. Thanks again!" ~ Mike, REALTOR® (Seller) Well – we’ve done it again! I cannot thank you enough for the assistance with my daughter’s first home. I apologize for the sheer number of properties she wanted to see but thank you very much for being patient with her as she accomplished something so huge! She was very stressed and you all made her feel safe making such a life changing decision. Also wanted to thank you for exhibiting the same patience and helpfulness with my parents. They are very happy with their new place and it would not have happened had you not been so great about exploring our options every day. They too felt quite well cared for by your team. So I believe that makes a total of 5 or 6 transactions between my family and I. The only one left is my son….and I’m working on him. You guys are awesome! I wouldn’t think of using anyone else. Thank you for taking such good care of all of us!" ~ Theresa (Buyer) "Your team did a great job selling our condominium. They put together a professional website, interfaced with prospective buyers and their agents, and negotiated effectively on my behalf" ~ Tom & Mary (Seller)