Buyers

So you want to buy a home? Whether it’s your first home or your fifth I congratulate you and welcome you to the best way to build wealth yet. Yes, even in this kind of market!  Even though many of us look at this purchase as an asset it’s still primarily a home to live in. To raise a family, to enjoy a lifestyle, to create an environment where memories are made and life is enjoyed to the fullest…

Here’s a bit of what you’ll go through on this journey. While there are no hard and fast rules that say you must do it in this order, it generally works out that this flow is followed.   Much of it should happen sooner rather than later…

Find out what your credit score is and why

Very few of us pay all cash for homes in this country. Therefore we are somewhat in the supplicant role as we need to ask banks to loan us money. The credit score plays an ever increasing role in that process since it’s what drives the very rate we’ll be offered. It’s all about risk for the bank and your previous history tells them enough to make a judgment on what future risk you’ll carry for them. Pay your bills on time, have credit and use it wisely, and don’t run up to the maximum amounts on every card you have. Your score should pay off and be above the 680 you need as the minimum to ensure a decent rate. Below that you run the risk of subprime loans and we know where that’s gotten us lately… Lower rates. You spend less. A good thing.

Find a good real estate agent

Sure you can do it without us, but would you have brain surgery on your own? Why then do you trust assets worth millions to someone who isn’t trained to handle the many complications that potentially arise each and every day in the complex machinations of a real estate transaction?   Not recommended. 

Sure there are some duds in the business, just as there are in any business you encounter but the good ones are easy to pick out. We know our stuff! Look around this site and note that I know my stuff. You’ll want someone who absolutely knows the neighborhoods, knows the values, knows the complexities of negotiating through complicated contracts and can manage the multitude of people you’ll be meeting with along the way. We’re like good conductors! The music just seems to come out sweeter when the director can make the harmonies come together…

Find a good mortgage lender

There are lenders and there are brokers. Neither is better than the other but one who is a total professional at getting you into the right program for your level of comfort and financial stability is crucial. It seems like they are truly a dime a dozen but like agents the cream truly rises. Listen to them and make sure they listen to you. One size never, ever fits all in the lending world and in our very unsure, volatile financial markets of today, you need someone you can trust to get all the way to the settlement table with you. Nothing, and I do mean nothing, is so bad as the lender going out of business the day before you are scheduled to settle.  

Shopping simply on fees and rates is doing yourself a disservice. Just like an agent whose marketing plan is different from another, lenders who understand how to get loans through the system are invaluable. And now that FHA plays such a major role again, those lenders who have a variety of tricks up their sleeves are worth their weight in gold!

Before you ever start anything else in the process, you’ll get pre-approved. That means the lender will do enough due diligence to accept they’ll be able to get you to underwriting. It’s more than fogging a mirror but less than full documented loan approval. Without it, all the next steps are unnecessary. 

Searching for and Finding Properties in Montgomery County

So, there you are. You’ve got a great score, you are working with a fantastic agent and your lender is the bomb. Now what? Let’s find houses to look at! It’s what you’ve wanted to all along, anyway…

Pick up a newspaper and look inside

This is good for Sunday mornings when your day spans in front of you and you’ve got a cup of coffee at hand. It’s totally ineffective but it’s a nice way to linger through that second cup of coffee. Then let’s get down to business….

Hit the Internet

This site was largely created for people who want to buy real estate in Montgomery County and want to find it and see it online.   Buyers who live in the area or who are relocating will find lots of information at their fingertips right here. They’ll search on the.best.search.tool.around. Seriously. This map tool is easy to use and very flexible. Just register and login to mark your favorites, save searches and let me know what you are looking for. Since I can participate in your search with you we are always on the same page!    You can drill down into neighborhoods the way you want do – by looking at where they are rather than seeing them in a list. I look by zip code all the time but I have yet to meet a buyer who shops that way. They go to neighborhoods!

So now you can do the same… Save your favorites and let’s get started! This site was set up with the savvy Internet shopper in mind. You are my favorite kind of client.

You and your agent work from the same page

Duh. Your agent is the most informed person out there and has access to listings, both on the market and off. I hear about new listings every week that aren’t on the market yet and some that will never be since some sellers prefer to do quiet sales (which I hate but understand their need). Between the buyer and agent searching we’ll cover a lot of territory!

Getting Pre-Approved!

We went over this briefly earlier, and I’ll assume you have a great mortgage broker by now, or you are working with your bank to get financing.  If you’ve got someone you can trust who has your best interests at heart, that’s fabulous but if you need, a couple of recommendations, I have folks I go to again and again because I know they come through. I’ve got a couple I use personally again and again for every deal I do; their info is here: 

Steve Jacobs: 301-962-4667
FNMC

Jeff Boogaard:240- 354-6700
First Horizon 

When you went through the initial pre-approval it was for you, now we are working on a specific property. If there’s a seller who will consider an offer without proper financial qualifications I’ve not met him or her yet! And frankly they are dolts if they do… This absolutely needs to happen before presenting the offer so your lender is already part of the team and ready to spring into action when we present him/her with an address

Negotiating the Deal

Voila! Found the perfect home and we’ve written an offer. Now it’s time to present it to the seller. That’s right. Present it. Not just fax it over, though sometimes there is no other way. But when I can present an offer it’s much more compelling and you as a buyer come alive in their minds. I might have a few tricks up my sleeve here but I’m not sharing them so you’ll need to call me a 302-385-9213 to find out just how we’ll go about this… It will be me on the phone when you call. Not someone else to get to me. Just me.

Whoopee! They Took Your Offer

The sweet success of victory! And now all the hard work truly begins. What you thought we’d just skate from here on in? Not. In fact we’ll be working in doubletime to get everything through because we’ll be on the clock, so to speak… Contingencies need to be cleared in the proper timeframe or you are out of luck. This is where you are ever so glad you picked someone who can manage all the details in a calm frame of mind and stay focused on the tasks at hand.  A good agent shines through this part of the transaction. A bad one will make your life miserable and probably cost you money or worse yet, your home. Meet the new players who enter the deal:

Home Inspection

Unless we are in the midst of a seller’s market, I expect you’ll want to get a home inspection so you can be assured of what you are buying. Both to know what problems exist that must be fixed under the contract terms or that you might be able to negotiate and those that you might choose to remediate later as you renovate or budget changes. Both as the listing agent and buyer’s agent I ALWAYS attend this all the way through. The inspectors I’ve used have never failed to impress me with their knowledge and skill in presenting the buyers’ with the information they need to make a proper decision on the home. It’s never the inspector’s decision but rather it’s his job to give you enough information to make a good decision about your purchase. Two I particularly like are: 

Bill Gosman: 301-905-7451
Rob Schwindt: 301-270-3554

Termite Inspection

Typically within the last 30 days before closing the buyer will do a termite inspection to see if there are any live infestations or prior damage. The contract has specific language that addresses the repairs sellers are required to make should there be a need. A good home inspector will already have pointed out areas of damage in his report and will have made recommendations as to resolution. The termite company will treat for live bugs or give you a clear report.

Appraisal

Ah, the appraisal. Used to be a slam dunk. Now I might start biting my fingernails again because the banks have become so paranoid about risk that appraisals are not the sure thing they once were. We spend a lot of time with appraisers making sure they have the comps they need, understand specifics about a neighborhood if they are not familiar and in general really trying to support all the work that was done prior in the pre market pricing. More than once the appraisal contingency has been invoked to renegotiate a home price based on an estimate lower than the sales price.

This is crucial because the bank is only going to loan you a % of the appraised value. Not the sales price. You get to come up with the remainder out of pocket unless there’s a contingency.

Title Company

You must receive clear title to your property and that’s what the job of the title company is. They will coordinate the title search, where the abstractor looks through all the land records to ensure the chain of title can be properly traced. And though they don’t represent either party in the transaction they are well versed in all aspects of real estate law and can help to facilitate every part of the transaction. They’ll coordinate all the lending documents and hold escrow funds. They cut checks to sellers and agents and in general cross every T and dot every I to transfer the ownership of property from one entity to the next. Established companies that understand beforehand what trouble looks like can help all of us to avoid it. Sage Title Company is always right on top of every detail all along the way. They can be reached at

Closing

The finish line is there! The loan docs will be in order, the lender has fully funded the loan so money is wired in place, all repairs have been made post inspection and we did a walk through of the property to ensure all is good order and broom clean (don’t expect white glove service). Now off we go to the title company’s office to sign, sign, sign and sign some more papers. The keys will be handed to you and you are now the proud owner of your new home. If all has gone well, it’s like a really good party!

And after all good parties, you go home with a goodie bag… I have special gifts made for each buyer, especially first time home buyers. Of course I ask that you give me a testimonial to add to my book and to know that I appreciate each and every referral you give me from here on out. I’ll treat them just like I treated you… 

After Closing

Now you can unpack, paint, hang the new drapes and shop for furniture! You are done with me for a while but I don’t really ever go away. I’ll be happy to provide with you folks who can help with the many projects you’ll find along they way, and even though you’ve just moved in, you and all the other neighbors will be happy to know that the value of your home is, hopefully, increasing and you’ll be able to count on me to give you all the latest info about the market. Because statistics show, you’ll do this again in 5-7 years. I hope to see you again when you decide to trade up!