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1.  Are You Ready?

One of the keys to making the home buying process easier and more understandable is planning.  Planning will help you discover valuable shortcuts in the home buying process. Do you know what amenities you want or need to have in a property?  Do you know your credit score? Is your financial house in order? 

2.  Call  Kay at 704-633-1111                                                 

Once you select  Kay to work with you, you will want to establish a proper business relationship. You likely know that some ?REALTORS represent sellers while others represent buyers. Kay will explain the options available, describe how she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in NC.  Once hired for the job, Kay will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace Kay will keep you updated and alert you to each step in the transaction process. 

3.  Get a Loan Preapproval

Few people can buy a home for cash.  Virtually all buyers -- especially first-time purchasers -- require a loan. The real issue with real estate financing is not getting a loan (virtually anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that's right for you -- the mortgage with the lowest cost and best terms.  Kay routinely suggests that consumers start the mortgage process well before bidding on a home. She can recommend a number of  lenders that she has worked with that would be happy to meet with you to find the loan that best meets your needs.

4. Look at Homes

Kay will introduce you to houses currently on the market.  However, you may be riding around

and see something that interests you.  REMEMBER that Kay can show you any house on the

market regardless of the firm that has it listed and she can normally represent you with private sellers as well.   So, in order to work together effectively, call her about any and every house in which you have an interest.  If you go to an open house, be sure to tell the ?Realtor there that you are working with Kay.

5.  Choose a Home

A house is shelter, but a home is far more. It's where you live, relax, entertain friends, rear your family, and often work. A home is where you spend much of your life, and so choosing a house is an enormous decision.  Sometimes people are afraid to make a decision on which house to choose.  Don?t be afraid to make a choice even if the first house you look at is "the one".

6.  Make an Offer

?Realtor groups, working with legal counsel, have developed forms that are appropriate for realty transactions. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. While much attention is spent on offering prices, a proposal to buy includes both price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers -- or additional costs. Terms are extremely important!   Kay will help you complete all the required paperwork.

How much should I offer? You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for a particular property, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.

How do you make an offer?  Kay will use a NC Association of  ?Realtors "Offer to Purchase

and Contract" form to reflect your price and terms.  Most sellers require that an "Earnest Money Deposit" accompany the offer.  The EMD will be held in the Wallace Realty Co. Trust Account and later brought to closing as part of the cash you?ll need to complete the transaction.  Once you have signed the offer, Kay will take it to the seller or the seller?s real estate agent for his review.  The seller may then accept your offer, reject it completely,  or may make a counter-offer.  Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it is important for you to remain in close contact with Kay during the negotiation process.  If the seller makes a counter offer, then you and Kay will review his changes and determine your response.  Once all parties have agreed, in writing, to price and terms, and communication is given to all parties that we have a deal, the house is "under contract".

7.  Start the Loan and Inspection Process 

Once the offer is accepted, contact your lender immediately.  He will need a copy of your contract and you will have required documentation to complete.  The sooner you give the lender every document he asks for, the sooner you will have a final loan approval.  The lender will probably ask for an application fee at this point (normally around $350) to cover the cost of pulling your credit report and hiring an appraiser.    Kay will order any inspections that you have authorized and you will be given copies of any and all reports received.  Remember that you are responsible for the costs of these inspections even if something should happen that causes the transaction not to close.

8. Get Homeowners Insurance 

A lender will require that you carry homeowners insurance with your bank?s name as a loss payee.  Your lender, closing attorney and Kay will need this information as soon as possible.  You will be required to pay one year?s premium up front, even if you are "escrowing" taxes and insurance.  Kay can explain further.

9.  Closing

Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. The settlement appointment is typically held in an attorney?s office, Monday?Friday before 3 PM, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.  All documents reflect the sale agreement and allows all parties to the transaction to verify their interests.  The buyer brings certified funds made out to the closing attorney?s trust account, for down payment and closing costs.  As soon as all documents have been signed and funding for the mortgage is received, the closing attorney will record the deed, note, and deed of trust at the Rowan County Register of Deeds office.  Recording has to take place by 4:30 PM Mon-Fri, or sellers? proceeds nor buyers? keys can be disbursed.  Once recorded, the buyer can be assured that there are no previous liens on the property and that he owns the house free and clear of encumbrances except for his current mortgage. Then the buyer gets the keys to his new house!

10.  What?s Next? 

You've done it. The home is yours. Determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You will need to have these services transferred to your name on the day of closing. Sellers will leave homes "broom clean" when moving out. This expression does not mean "spotless." Broom clean makes sense because it means the house is ready to be painted and cleaned to your satisfaction. Those papers you received at settlement are extremely valuable, so hold on to them! They can help establish tax deductions for the year in which the property was purchased, when the property is sold, and in some cases, for calculating estate taxes.  About two weeks after closing you should receive your recorded deed in the mail. Such records are public notices that show your interest in the property. Lastly, enjoy your home and tell all your friends to do business with Kay.  She will appreciate it immensely!