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

by seacoast_ashley 31. August 2015 07:50

 

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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.

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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 Buying a Home: You’ve Found “The One”

by seacoast_ashley 14. August 2015 09:08

If you read last week's blog post, you already know that I have studied, gotten a pre-approval letter, and started the home search. Back in my youth (before time got scarce and kids got plentiful), I loved the search for the perfect house. In all honesty, I still do, but the lazy Saturday mornings of driving to open houses at a whim are gone. Our search has been warp speed. We pack snacks, drinks, coloring books, diapers and plan our route like a trip to Europe.


We had three areas that we wanted to zone in on. All of them offered up great schools, walkability to parks, and the most important factor were in our budget...not a penny over! In total we looked at about 10 houses before we found the one. We knew when we walked in that this house would need work, but we also knew that the location and the house layout were perfect for our young family.

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This is the kind of work I’m talking about here. Anybody know a good tree service?


Because the city that we moved to is experiencing  quite a rebound from the housing market crisis in previous years houses were selling fast. In many cases they are selling above the list prices with multiple offers. We had to make a move, and we had to do it fast. As soon as we viewed the house and buckled everyone into their seats, and passed out waters, and found pacifiers we talked. We drove the neighborhood again, we speculated on what kind of neighbors lived on the street, and then we called our real estate agent and told him that we wanted to make an offer to purchase.


Acting on our Realtor’s advice, we offered full asking price. We asked for closing costs, and the offer would be contingent on our financing and home inspection. Here is where things slowed down, and the dream felt like it was going to die.


As soon as we walked into our rental condo, we started “signing” all of the necessary paperwork. Our realtor was able to prepare and send all documents online. This was extremely helpful. He looked through the documents and informed us that he was submitting the offer. We waited...


At 10pm our realtor called. The seller actually lived overseas, so all offers (and there were a few others) would be held until the following morning and submitted to the seller at the same time. Yikes! 2 days passed and we were freaking out! How long was an offer good for? When would we hear back? Would we hear back? Could we make other offers? The number of questions that our Realtor had to answer was downright embarrassing!  By the end of the third day we were informed that the sellers chose another offer. The house was “under contract.”

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Dreams of the kids coming down these stairs on Christmas...dashed.

My family experienced a strange sort of heartbreak knowing that we were still house hunting. In the short time (not even a week) since seeing the house, we had started to picture our life there. We were so in love with the neighborhood that it seemed like every other neighborhood was not as good. We knew that we would continue looking in this neighborhood, but we also knew that most things that came on the market in this area went under contract super fast, and for more money than we had to spend. I actually cried.


Two weeks later, our luck changed! Our realtor called us one evening to inform us that the contract had fallen through, and that the seller would be putting “our house” back on the market! We immediately told our realtor to resubmit our offer, to take out the closing cost, and to add an extra $1000 to the offer. This would be the strongest offer that we could make, and we did not want to lose out again.


Two nail-biting days later, we were under contract. Our offer to purchase had been in competition with 3 other, but the tweaks to the offer were enough to sway the seller. The kids went to bed talking about their new rooms and my husband and I poured a glass of celebratory wine!


The next morning the drive to close on this house kicked into high gear. There were papers to be signed, inspections to be lined up, loans to qualify for. You can read all about those things on the blog next week!


How did you know that you found “the one”? Did you have to jump through many hoops to make it your own? Let us know on our Facebook page!

https://www.facebook.com/seacoastrealty


If you haven’t already found your dream home, we can help!

 

http://www.seacoastrealty.com/

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