Buying a Home

Should I use a Realtor?

The investment for a Realtor to help you find a home is NOTHING. That's right, you pay nothing for their expertise through the whole process. This will likely be your largest financial decision you will make and you'll want to protect that decision with the best that you can find.

What should I do if I own a home and I want to purchase a new home?

This really depends on the market at the time. Your real estate professional will guide you in the best way. If you're eager to sell in a seller's market and want top dollar for your home, consider adding a contingency to your deal or finding a short term rental/temporary living arrangements until you can secure a home so you aren't pressured into finding something on a short timeline. Your agent will help guide you based on the current market conditions.

Should I rent or buy a home?

Oftentimes it makes more sense and is more cost effective to buy a home rather than rent. Purchasing a home comes with several advantages such as tax advantages and building equity for your future. There are several low down payment options to limit the amount of 'out-of-pocket' expenses. Your real estate professional and lender will help you explore which options are best for you.

Can you find me a rent-to-own home?

This question is very common. In most cases, the terms of a rent-to-own home ONLY benefit the seller so if on the slim chance you find this type of opportunity make sure the terms of the agreement are fair for all parties. Most will require a NON-REFUNDABLE deposit until purchased - and if not purchased, you forfeit the money. In our experience I would not recommend this type of deal as they are extremely rare and tough to negotiate.

What's the difference between short sale and foreclosure?

A short sale is when a homeowner likely over extended themselves on a loan, line of credit, or re-finances and the market dropped to a point where the home is worth less than what the owner owes. These transactions are negotiated through the lender and usually take several months to come to terms on an agreement.

A foreclosure is a property that the bank has taken back from non-payment. Usually these homes are in high distress and need a lot of work. Most of the time banks will utilize auctions to sell these types of properties but every so often you can find them on the public market.

Home Buying Process

Getting Pre-Approved

You will need to contact someone in lending if you are planning to get a mortgage for a "pre-approval" Now-a-days listing agents will not let agents set appointments or view homes without this document. Plus this will give you a great idea of what your home price range will be. The last thing you want to do is find a home you love and it's not within your financial means.

Submitting Offer/Accepted Offer

Once you find a property you want to make an offer on, your real estate professional will submit a purchase offer to the seller's agent for review. This document is not contractual but will include such items as a pre-approval, sales price, loan type, attorney info, & contingencies.

Once your offer is accepted it is essential to move to the next step fairly quickly so you can keep the process moving and make sure the home doesn't have any major defects.

Inspections

General Home Inspection: It is ALWAYS advised to get professional third-party home inspection on any home you are considering to purchase. You'll want to schedule an inspection within 3-5 days of an accepted offer.

Radon Test: The home inspector will likely ask you if you want a radon test which is a gas emitted from the rock. In some sections of Dutchess county it is known to be high but can be remediated with a system. The investment for the system is typically around $1500.

Pest Inspection: In some instances your home inspector will point out areas that might be areas of concern. If this is a concern, it is a minimal investment to get an expert opinion and estimate to remediate, which could help in negotiating the terms of the purchase.

Contracts & Earnest Money

After satisfactory inspections are complete, contracts will be drawn up by seller’s attorney and sent to your (buyer's) attorney for review and signing. At this point a deposit will be made as good faith. The earnest money (deposit) is typically between 5%-10% of the sales price and is, in the majority of cases, refundable.

Loan Process

Once the contracts are fully executed (signed by both parties - buyers and sellers) they will be sent to the loan officer and the loan process will formally begin.

Throughout the process your lender will be asking you for documentation on verifying your income, expenses, tax document, etc. You will be working directly with your lender to gather all necessary documents relevant to your loan approval. This process may seem overwhelming but is very necessary to ensure timely processing of the loan.

The next step is an appraisal and this will be ordered by the bank to value the property to verify the home's worth. The bank want's to make sure the home isn't being over sold or the price is too high for the market. (If for whatever reason the buyer defaults, the bank wants to be able to recoup their investment)

The last part is usually some confirming documents (if needed) on finalizing the loan process. These may include documents like verifying large deposits or withdrawals.

Clear to Close

Clear to close is a term used to let all parties involved know that everything is in order from the lending department and is approved and clear for closing. This is usually the last thing needed before the attorneys can schedule a closing date.

Final Walk Through - Closing

Final Walk Through: This should be scheduled the day of the closing so the buyer has one last opportunity to check the home to make sure everything is properly "ready" for closing. On rare occasions the sellers have not done everything asked of them and will need to be negotiated at the closing table. It is in your best interest as a buyer to do the final walk through, take pictures if necessary and perform this on the day of the closing.

Closing: At the closing, all monies are exchanged, documents are signed and keys are exchanged.