What to Expect When Buying a Home : You Are Under Contract, Now What?

by seacoast_ashley 31. August 2015 07:50

 

housead.jpg

As you know from previous blog posts, my family is finally under contract. After some negotiating and lots of luck we are able to start the final jog to the closing table. There is so much that happens after your realtor exclaims,  “Congratulations! Your offer has been accepted!”

 

No two real estate transactions are ever the same, and our situation has to be one of the most unique I have ever been a part of. My family (“the buyers”) are located in a hot market in North Carolina. The Sellers are located overseas...with a 12-hour time difference. This resulted in every required document, every question, and every interaction taking a full day longer to complete. To say that this has been a bit nerve-wracking would be a gross understatement.


As soon as we were informed that we were under contract, we began the process to secure our mortgage. Since the decline (or bust, if you will) of the Housing Market (beginning in 2007 and hitting lows in 2012), getting a loan has required more documentation, qualifications and time. We spent no less than one week just searching files, requesting documentation, and combing through bank statements to determine where every dollar had come from, and where it had gone. For the most part, I would say kids. Kids are where all the dollars go!


Every time that we thought we had absolutely everything the Underwriter would come back to us, requesting yet another document. Around midnight on a random Wednesday night, we swore (for the 1,000th time) that we would never lose track of a penny again! My advice? Do a quick Google search or contact a mortgage broker before you even intend to apply for a loan, start a list of everything that you may potentially need, and start finding that stuff stat! It will save you so much time and frustration.

 

Our house was being sold “as is” but we still wanted to have a home inspection completed. I suggest that you ALWAYS have one. We needed to know that the bones of the house were good and that the house was safe for our family. We also didn’t want any $20,000 surprises after we move in.


If at all possible, go to the inspection with your Inspector! Our guy was great, and was one of about 4 recommended by our realtor, friends, and family. We spent almost 5 hours looking into every nook and cranny of the house. After finding all of the “issues” we walked away knowing exactly what kind of renovations and repairs we were facing.


This allowed for us to determine what we could afford to do before moving in. For us, new windows, kitchen floor, a small plumbing job, and a minor roof repair are the priorities. Not too bad for a home built in the 1960s. In addition to walking through explaining what the issues were, our inspector sent us an extremely detailed report (complete with pictures) of everything that he found and noted as an issue. This will come in handy as we check off the smaller issues over time. Our inspector charged us (The Buyer usually pays for the Inspection) around $1000. I think that this is the most important money that will be spent on our house.


As the mortgage documents rolled through the approval process, the Lender scheduled an appraisal. Most common loans will require an appraisal to determine that the house is, in fact, worth the loan amount. Our lender scheduled the appraisal and we were not present for it. An appraiser will pull comparable homes for sale (“comps”) or recently sold homes in the area. He/She will compare all aspects from the condition, square footage, number of rooms, use of space and will adjust the home value accordingly.

worldad.jpg

We were cruising right on to the closing date...until we weren’t. Remember that fun little fact from the beginning of this post that the sellers lived overseas? With flexibility and patience it mattered very little...until now.


Find out how our closing has been effected by working with a seller so far away. And, find out if we even make it to the closing table. It will be a surprise for all of us, as we haven’t made it just yet!


What are some of the hurdles that you have jumped when closing on a home? Have you ever passed on an inspection? Join the conversation on Facebook

https://www.facebook.com/seacoastrealty

What to Expect When Selling Your Home: Part Six - The Closing

by seacoast_ashley 13. July 2015 03:35

 

uhaul.jpg

I was not as smiley as this woman on the side of our UHaul


After packing every square inch of our home, minus the living room curtains (you can read more about this in last week’s blog) we were ready to scrub. My family and I had loved our home and we wanted the new buyers to walk in and love it too.

Luckily, I had the help of my super awesome parents. Everyday for the last week in my home, my mother and I would drop my kids off at a drop-in daycare. We would clean the inside of the house while my father worked on the outside. We had so much stuff crammed into every available space that no less than 10 trips were made to local charities to make donations.


The week was looooong. I had prepared myself to cry from sun up to sun down. I had previously imagined that each piece of artwork coming off the wall, and each memory inducing wall scrape touched up, and each totally empty room would result in an ocean of tears. This was not the case!  The massive amount of work that it took to get the house completely empty and clean made me ready to get out.


kidroom.jpgheight.jpg

Little things like this set the tears flowing!


The tear-free me lasted until the morning of closing. I woke up early and attempted to make a video of each room so that our kids would be able to remember what the house was like when they were small. This was when the floodgates opened. I could remember memories so clearly in that empty house. I remembered every holiday photo, every scraped knee, and every birthday party. I knew that the new owners would be walking into the house, their house, in just a few short hours. With a couple of deep breaths and spoken thank-yous to the house, I slipped a bottle of champagne into the fridge, and walked out for the last time.


Oftentimes (almost everytime) buyers have the chance to do one final walk-through of the home. This usually takes place on the morning of the closing. I was informed by my realtor that I could be there for the walk-through or not. I chose not to attend. I knew that I would be sad seeing someone critique or make plans of changing what had been mine for so many years. I also wanted the new buyers to be relaxed and excited. I wanted them to “bond” with their new home.


Driving out of our neighborhood was rough, but somewhere between the neighborhood and the lawyer’s office I had made peace with moving out. We did not see the buyers at the closing table. It is my understanding that in some cases the buyers and sellers are at the same table and literally hand over the keys after signing all of the legal paperwork. My appointment to sign was an hour before the buyers’ appointment. The actual closing was pretty anti-climatic.


My agent sat beside me and a lawyer sat in front of me. It was so nice to have the experienced eyes of my agent reviewing everything that the lawyer slid across the table. It was important too, because we found a $200 mistake! Papers were re-done, resigned, and before I knew it my house was no longer mine. The “buyers” were no longer the buyers, but were the “owners.”


nest.jpg

New beginnings, here we come!


Every hardship and minute of work seemed to vanish. The memories stayed. And, in the second that I signed my name on the last of what felt like 1000 pages, my family and I became homeless! The relief of selling our home has morphed into panic again as we search for a new house to make a home. We are in a constant state of looking, number-crunching, racing to open houses! Stay tuned for the upcoming series “What to Expect When Buying a Home”.


Did you feel relief, sadness, pure joy when officially selling your home? Do you have advice for me on buying? Please do-tell!

https://www.facebook.com/seacoastrealty


If you are looking for guidance in the home buying/selling process:

http://www.seacoastrealty.com/

Buyer Tip: Change the Locks After Closing

by seacoast_ashley 16. February 2014 10:50

Change Locks on HomeAfter months of looking at homes in Southeastern North Carolina, making an offer on your favorite, doing your due diligence, and (finally!) signing the purchase papers at the closing table, you have a new home! Now, you’re ready to move in and make it all your own! You’ve got paint colors in mind, new furniture to assemble, pictures to hang, dishes to unpack…But don’t let your excitement get away from you. You still have one very important thing to do – change the locks!

It’s very important that you install all new locks on your new home. Most sellers won’t try to enter a home after they’ve sold it, but not everyone can be trusted. You have to take into consideration that they may have given a key to someone else at some point during their ownership – a neighbor, a contractor, babysitter, etc. You just never know who might have ill-intentions. So, it’s best to change the locks the day of move-in. After all, you don’t want to be always wondering, “what if?”

If changing the locks is one hassle you don’t want to have to deal with on the day of move-in, hire a locksmith. Your Sea Coast agent can refer you to a reputable one. Don’t have an agent? Find one today!

Meghan Riley

TextBox

Tag cloud