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 Buying A Home ?

Buying a home can be one of the most exciting and rewarding things you ever do, or can be one of the biggest nightmares you will ever go through. How you experience the home buying process depends entirely on how well prepared you are and how knowledgeable the people helping you are. The following report should clear up a lot of confusion you might have.

Most people, when selecting a lender, call various lending institutions to check on rates and generally go with the lender with the lowest rates. We strongly recommend that you go with a lender who has been referred to you either by your Tennessee Properties agent or by someone who has actually gone through the entire loan process with that lending institution and loan officer. The loan officer is just as important, if not more important, than the lending institution. Most lending institutions offer the same basic loan programs (conventional fixed rate, FHA & VA, etc.), but each will usually offer their special "niche" products.

Meet with your Lender

You will want to meet with the loan officer as soon as possible in the process, to go over and make sure you understand, every aspect of the loan process. One of the best strategies we can offer you, is to get pre-approved. It is simple to do and can save you thousands in negotiation on a new home. Most lenders can get you approved for a loan even before you have selected a home. Your loan will be approved "pending a property & appraisal". Pre-approval makes you, the buyer, much more comfortable knowing that you won't find your dream home only to have the loan turned down.

Selecting a Realtor

This is probably the most important step in the process. You will, for all intents and purposes, be in partnership with your agent. You will be confiding in him/her on a business level and often on a personal level. (S)he will be the the one dealing with any problems that crop up along

the way. The Realtor is the key to you finding what you want in the area you want for the price you want.

Also a very important step in the process, this is where you and your agents prepare each other for exactly what to expect along the way. The following are the points that should be covered and fully understood in this meeting: Exactly what your needs are looking for (bedrooms, baths, etc.), what areas you're looking in and what price range you are comfortable with and what your time line is. It takes generally takes 30-45 days from contract to settlement.

• How often you are available to look and what you expect from your agent in terms of availability & communication (e-mail, phone-daily, weekly).
• Your agent should explain financing options and give you references for lenders. They should explain the difference between the various loan programs available and anything else that you might be confused about.
• Your agent should give you copies of all the paperwork you will be expected to sign throughout the process and briefly explain what each form is for.
• Your agent should explain Buyer Brokerage vs. Seller's Representation and you should sign a Buyer Broker Agreement.

This is the fun part! It is important to limit the number of homes you're looking at in a day. If you look at too many homes, they begin to run together and you can't remember one from another. It's a good idea to use a checklist form to help you track the properties you have seen.. It is also helpful to actually begin to narrow down the properties after each visit. Remember, communication with your agent is crucial. It's important to let him/her know which houses you like and why as well as which houses you don't like and why. Sometimes it takes going out and looking one time before you & your agent really have a good grip on exactly what you're looking for.

Once you've narrowed your search down to one or two homes that you really like, you're agent will do whatever research necessary to help you make your decision, but the decision will ultimately be yours and surprisingly enough, pretty easy to make.

When making an offer on a property it is important to decide ahead of time, how much you are willing to pay at what terms for the house. You already know what fair market value is, now you have to decide:

• what price you will offer
• how much earnest money deposit you will offer
• what personal property you wish to have convey (everything is negotiable)
• how much you are asking the seller to pay towards your closing costs
• when you plan to settle, and
• what inspections you plan to have done

When negotiating with any seller, it's best to remember not to take anything personally. Also, try to put yourself in the seller's shoes. Figure out what's not negotiable to you and be willing to give a little on the things that are. A good agent should be able to give tons of advice as to how to structure your offer.

Once your offer has been presented, the seller will either accept your offer outright, reject your offer outright, or counter your offer. The counter process can go back and forth many times. It's important for all parties to keep their cool and focus on the goal.

If, as part of your offer, you asked for time to be allowed to have inspections done to the property, you have written what is called a contingent offer. Offers can be contingent on loan approval, inspections, the receipt of acceptable homeowners or condo association disclosure packets, the sale of property and many other things. It is important that all deadlines be met and that all contingencies are removed exactly the way the contract calls for. Your agent is responsible for making sure this is done correctly.

The sales contract will dictate who gets to choose an attorney to represent the transaction. Usually it's the buyer’s lender’s decision. If you don't know an attorney, your agent can recommend someone. The attorney will take care of ordering a survey, title insurance, title search, and drawing up all the documentation. They will also conduct settlement. Most people don't know that the attorney or title company doesn't actually represent the buyer, they represent the lender and the sales contract. Their job is to make sure that all the terms that have been previously agreed to get met. If any problems that require representation were to arise, each parties would need to hire their own attorney.

Most sales contracts will give the buyer the right to one pre-settlement inspection. This is your last chance to find any problems and have the seller correct them. Read the contract carefully, but most contracts read that all electrical systems, plumbing, appliances, heating & air conditioning need to be in working order at time of settlement. These are the items you check for at walk-through. You are also checking for any other items the seller previously agreed to fix or replace. If anything is found to be defective or missing, there are several options:

• The seller can remedy the problem prior to settlement
• The seller can credit you the amount of money it would take to hire someone to remedy the problem
• The seller can promise to correct the problem and place into escrow with the attorney, the amount of money you will need to pay someone else if the seller does not perform as promised.

On new home purchases, the process is a little different. The builder will generally do a walk-through with you approximately 1-2 weeks prior to settlement resulting in a "punch-list". Hopefully, they will get everything on the punch-list completed prior to settlement. If not, most new homes contract allow the builder to complete whatever minor items have been noted in a "reasonable" period of time, generally, 3 months.

This is the day you "sign your life away", as most clients say! Not really. You will be signing all the loan documentation, which can seem never ending. The person conducting settlement should be able to explain every document to you in a satisfactory manner. Do not ever feel intimidated. If you don't understand...don't sign. Your agent will help you understand everything. If you like, you can request blank copies of the documents you will be signing in advance so that you can carefully review them. You will decide at settlement whether your want owner's title coverage or just lender's. You will have to present whatever downpayment and closing cost funds you were expected to pay. This check must be certified, they will generally not accept a personal check.

This is the last and probably the hardest step in the home buying process! A little bit of planning and forethought, though, will make for a much smoother move. You will want to make arrangements with a moving company as soon as you can. Call at least two, to get competitive quotes. They will usually ask to come to your home to get an idea of how much they will be moving and the distance they will need to travel. Be sure to change your address with the post office, your banks and any creditors at least 30 days in advance. To avoid late payments, it's a good idea to actually call and verify receipt of the address change whenever possible. Call to order your utility hook ups approximately 10 days prior to your move. Be aware, some utility companies will keep you on the phone for a long time.

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