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At the beginning of the home-buying process, you need to consider how you will finance the purchase. Knowing how much you will be able to borrow before you start looking at homes is essential. It is the basis upon which you can determine the feasibility of buying a particular home and will allow me to show you only the homes in your price range. It will also place you in a much stronger negotiating position.
You can address this part of the home-buying process by getting pre-qualified or pre-approved. While these terms sound the same, they have some important differences.
Pre-qualification is a non-binding estimate of your ability to borrow based on informal questions about your income, job stability, credit history and current monthly expenditures. As an experienced real estate professional, I will refer you to lenders offering these informal preliminary services. There are no fees involved. Your loan approval may not be guaranteed, and you are not obligated to choose the services of the lender who pre-qualifies you. Pre-qualification will allow me to tell prospective sellers that your chances of loan approval are good when a formal application is made. This will be to your advantage when you negotiate for the home, as the seller can be reasonably assured you will qualify. Remember, however, that your loan is not guaranteed. Pre-qualification is based on the accuracy of the information you provide to the lender.
Pre-approval goes one step further as it represents a formal loan commitment. Most lenders offer pre-approval. It allows the homebuyer to process the loan application while shopping for a home. Two to three weeks may be needed for pre-approval, depending on the documentation required for your situation. Most lenders will charge a fee with the understanding that the money will be applied to your closing costs when approved. The fee is non- refundable if you choose a different lender for your loan. Once the loan is approved, the lender will issue a formal credit approval in writing up to a specified dollar amount. With this written approval in hand, your bargaining position will be greatly enhanced when making an offer. Sellers will be motivated because you are a qualified buyer who can close in a very short period of time.
There are many loan programs for all types of buyers. Explore your options! Find out what works best with your financial portfolio and purpose for the home. Allow your loan officer to recommend the best program. Your lender will be the best one to make recommendations to you.
Here are some loans you may want to discuss:
There will be certain additional requirements for these loans. Please make your REALTOR® aware if you are considering one of these options.
This gives the parties associated with the transaction the authority to release documents necessary to facilitate the closing. With consumer privacy concerns and potential related liability, it is necessary to protect all parties in disclosing certain potentially confidential information (including settlement statements) essential to close the transaction.
AUTHORIZATION TO DISCLOSE INFORMATION: Buyer and Seller each authorize the release of (1) this Agreement to appraisers employed by the Buyer or Buyer’s lender and (2) any closing disclosures, settlement statements and disbursement summaries to all parties associated with the transaction. Further, Buyer and Seller authorize lenders associated with the transaction and closing attorneys/title companies (in their sole discretion), to release closing documents, other documents and/or information related to or arising out of the transaction, to the other parties to this Agreement and third parties related to the transaction contemplated by this Agreement, including but not limited to, underwriters, appraisers, insurance providers, homeowner’s associations, etc.
Most lenders will take your application by phone, online or in person. The application interview typically takes 30 to 60 minutes.
Application fees vary according to each lender. A fee is generally charged to cover the cost of the appraisal, credit report and other items required to process the loan.
Lenders will frequently request W2s, pay stubs, bank statements and the Purchase and Sale Agreement on the home you are buying. Requests may vary by loan type and lender.
Some lenders have niche 100% financing programs and veterans may qualify for 100% financing on VA loans. But, generally, the minimum down payment on a conventional loan is 5%, and for an FHA loan, it is 3.5%.
You can lock in your rate when you have identified a property and have a closing date.
When the lender submits your information to the underwriter, more information (known as conditions) may be needed. Once the conditions are satisfied, the letter of commitment will be available. The process may take several weeks; consult your lender.
Depending upon your loan program, you may be able to pay “discount points” at the closing to secure a lower rate. Consult your lender for the options available to you.
At the point that you have made an application, you should be provided with an official loan estimate. You may also request preliminary loan scenarios or estimates to compare rates, closing costs and fees when shopping for a loan. Ask your lender.
A team effort with your Atlanta Fine Homes Sotheby’s International Realty REALTOR® will make your home purchase easier and more pleasant. Once you have decided to commit to your agent, there are ways you can help:
False. Research by the National Association of REALTORS® has shown this is untrue. It is often in the negotiation process that a REALTOR’s® experience will benefit you. Many problems can occur after the initial offer has been accepted, which may prevent the house from closing. This time is critical and the advice of an experienced agent can be of significant value.
False. Finding a home is only a fraction of the services provided by your buyer’s agent. Pictures on the internet do not tell the entire story. Is the house located next to a train track? Can you overlook the interstate from your deck? All these questions are best answered by visiting the home, and it is always best to be represented by a professional REALTOR® who has been educated on real estate laws and contracts and works to improve their knowledge on a daily basis.
False. Through our relocation network, we can acquire representation for you anywhere in the world.
False. All real estate community members can show all the homes and land currently for sale. A real estate agent possesses a license to sell property in the state of Georgia and can show any listed property in the state.
True. In most cases, the seller will be represented by an agent. It makes sense for the buyer to have access to the same level of representation.
False. Find out if this agent is representing the seller. If so, you will forfeit your right to your own representation.
False. The agent in a new home subdivision represents the homebuilder. Most of the time, the builder has already set the commission rate for each home sale, and this usually stays the same, so saving a great deal of money is not possible. If you use the builder’s agent, you will forfeit your right to representation.
False. Your buyer’s agent can find out the information for you for any house or land listed for sale. It is always best to have your own representation for negotiations.
True. The buyer’s agent works for the real estate buyer and holds the buyer’s best interests above all others throughout the transaction.
True. Research by the National Association of REALTORS® has shown that a prospective buyer who uses a buyer’s agent will find a home faster and examine more properties than consumers who do not use a buyer’s agent. The prospective buyer will also be more likely to obtain a better price for the home they decide on.
There are numerous manufacturers of synthetic stucco. A group of Wilmington, North Carolina, building officials implemented an extensive study of hundreds of homes clad with synthetic stucco. They found that many of the homes studied had problems with moisture in the wall cavities, contributing to the decay of structural lumber.
Synthetic stucco is a type of Styrofoam sheeting glued and nailed to the structural sheathing (usually plywood) on the home’s exterior, with a factory or field-applied fiberglass mesh installed over the outer surface, then finished with two to several coats of the stucco-like material. Properly installed, the system is waterproof. The coating is waterproof not only on the outside but also on the inside. Water cannot get out if it gets behind the coating through a breach. As long as the system is properly installed, it is effective.
The most common sources of water entry are joints between sections of synthetic stucco and dissimilar materials, unsealed bottom edges of foam, gaps around decorative trim, and windows and doors that need to be flashed and caulked. Water intrusion can lead to swelling, loosening and buckling of the foam substrate, as well as cracks and general deterioration of the foam and coating. Continued water intrusion may lead to water stains on interior walls and eventual decay of structural lumber in the leakage area.
Louisiana Pacific is a national manufacturer of building products and hardboard siding. A national class-action lawsuit was filed against the company’s “premium-grade” of siding, called “Inner-Seal.” A trained eye may be able to identify the product because it has an embossed wood grain surface with a randomly located, small, embossed 2.25-inch knothole design. The siding is constructed of thin wood wafers bonded into planks with resins. The bottom edge of the installed siding is rather rough and porous. The siding is usually installed with seven inches of the width of a panel showing varying lengths.
Consumers and home inspectors report observing water damage to the siding. The wafer construction of the siding seems to increase the potential for rainwater to be absorbed by the material at butt joints, joints with other wall materials, nail holes, joints with window and door frames and at the bottom edges. When the material absorbs moisture, it swells, separating the wafers and encouraging more water absorption, leading to decay and damage. Much of the damage appears to result from improper installation of the siding, e.g., improper nailing, lack of flashing over windows and doors, improper caulking and failure to paint the bottom edges properly. Additionally, homeowners may not have adequately maintained the siding, mainly neglecting caulking and painting the bottom edges.
Radon is a colorless, odorless and tasteless gas, but it can be harmful when inhaled in large quantities. It comes from the natural decay of Uranium that is found in nearly all soils. Radon is especially high in areas where granite is present. Atlanta sits upon a large reserve of granite.
The gas emitted from decaying Uranium enters a house through small cracks and openings. It typically moves up through the ground and into your home through cracks and other holes in the foundation.
Your home traps radon inside, where it can build up. Any home may have a radon problem. This means new and old homes, well-sealed and drafty homes, and homes with or without basements. The good news is that testing is inexpensive and easy.
Contact your agent or state radon office about obtaining a list of qualified testers. You can also contact a private radon proficiency program for lists of privately certified radon professionals serving your area. For links and information, visit www.epa.gov/radon. EPA believes that any radon exposure carries some risk - no radon level is safe.
Lowering high radon levels requires technical knowledge and special skills. You should use a contractor who is trained to fix radon problems. A qualified contractor can study the radon problem in your home and help you pick the right treatment method.
Numerous homeowner complaints have been lodged about leaks experienced with polybutylene water piping. This type of plastic piping has been used for several years but is fading from the construction scene in light of the adverse publicity.
The material is seen in two forms in residential properties: a bright blue piping used underground from the street water meter to the house and a medium gray color piping used inside the house.
There are numerous opinions as to why the material is defective. However, two theories predominate. One theory is that if the piping is stored outdoors for some time or exposed to sunlight after installation, ultraviolet light alters the chemistry of the plastic, causing it to deteriorate. The second theory is that chlorine in the water attacks the plastic chemically, causing deterioration.
While there is no maintenance of the piping required of the homeowner, the reality is that most in- house leaks occur at the pipe joints caused by improper installation of the clamps. However, numerous homeowners have had to replace the blue pipe buried in their yards and, upon digging it up, have reported observing the deterioration of the pipe itself, lending some credence to the theories about chlorine and sunlight contributing to pipe decline.
Interested in learning more about buying a home? Download our detailed PDF to gain a thorough understanding of its features, benefits, and how it can address your specific needs.
Our team’s unprecedented professionalism, skill, and attention to detail has allowed us to set sales records for the past 30 years. We will ensure your buying or selling experience exceeds your expectations.
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