Congratulations! We've found a home and now the fun begins! We will meet face-to-face and write an "Offer to Purchase", which is also called a "Contract". If we haven't discussed your exact needs and desires, now we will. Things we may talk about: 1. Financing - this is perhaps the most important part of the contract since it is the what you intend to offer the seller in return for their property. It is crucial to understand exactly what type of loan and at what terms you agree to pay back the loan. Keep in mind that the terms of a loan can change during the process, and you are free to change them for your benefit. Your lender will guide you through this process (we'll be there too!) and recommend the best type for your situation and need. Some things to think about: - What type of loan will you have?
- What rate? How long is the term?
- Do you need help with closing costs (settlement charges)?
- How much of your money will you contribute toward the loan?
- How much of your money will you put down in order to "seal the deal". This is called "earnest money" and tells the seller how serious you are about staying in the transaction (You do get this money back at settlement if you'd like, or you can apply it to your loan).
2. Settlement - A settlement agent is the party involved in completing a transaction between a buyer and seller. This is done through the transfer of securities (loan) to the buyer and the transfer of cash or other compensation to the seller. Other terms are title agent, closing officer, escrow officer, settlement officer, closing agent, closing attorney, or settlement attorney.
By Virginia law, you have the right to choose any settlement agent you wish, provided they are either an attorney or settlement company. Depending on the complexity of the transaction, we can make recommendations to you. Below are three excellent settlement agents that we have worked with: Settlement Services/Attorneys Real Estate Magnates
Tonyia Young
remagnate@vabb.com
(540) 727-8866 Blue Ridge Title
Nancy Lochridge
nlochridge@brtsc.com
(540) 825-9200 Tepeyac Title
Maggie Seale
mseale@tepeyactitle.com
(540) 347-6021 Bruce Clark, Esq. (Culpeper)
(540) 825-0701 S Braxton Puryear (Madison)
(540) 948-4444 3. Home Inspection - A home should not be purchased without obtaining a home inspection. For $250-$350, a professional home inspector can provide you with information that will help you decide whether to continue on with the transaction. We always recommend an offer be "contingent" on the satisfactory home inspection results; this gives you an "out" in the event the home inspection reveals a major defect that the seller cannot afford or refuses to correct. The inspection will be tailored to your schedule, and typically takes 2-3 hours. At conclusion, the inspector will provide you with a detailed report and recommendations. Below are inspectors we highly recommend: Home Inspectors/Radon Inspectors Hallmark Residential Services
Karl Colbrunn
hrsinc@wildblue.net
(540) 273-7453
Southern Home Services
Butch Brown
southernhomesvc@aol.com
(540) 270-1529 4. Termite/Well/Septic - Normally a seller pays for these inspections, but a buyer may be required to pay for them if the property is a "Bank-Owned" or "REO (Real Estate Owned)" property. Expect to pay approximately $150.00 for all three inpsections. We will take care of the scheduling, and your cost will more than likely be added to your settlment charges at closing. Tanner Pest Control
Jamie Tanner
(540) 829-0949 5. Miscellaneous - We can help you decide whether other "experts" may be needed for your transaction: - Surveyors or appraisers are typically coordinated by your lender, unless you wish to personally have a survey conducted. Costs vary.
- Septic cleaning services. A buyer may request the septic tank be pumped out. Each jurisdiction has their own regulations on this.
- Soils engineers. When raw land is purchased for the purpose of erecting a home, it is important to know what type of sewage system the soil will support.
- Contractors - in the event you have plans to modify or add on after you own the property, it would be prudent to discuss your plans with a licensed contractor.
As you can see, a real estate transaction can have many variables and it takes full-time professionals to help you through the process...the Butters Team has the experience and knowledge to make this important time in your life a satisfying experience! |