Jerry Speight

The Neighborhood Team

Eight Step Process to buying the perfect home!

Step 1. Pre-Qualification

In order to insure that you are searching in the correct price range, take a few minutes to get pre-qualified by a mortgage loan officer. It only takes a phone call to become pre-qualified, providing the loan officer with some basic information. Being pre-qualified only means that you can afford a certain price range based upon the information you provide. This information will later be verified as you go through the loan approval process in Step 4. Another great reason to get pre-qualified is to increase your negotiating position. Sellers like to see that you have taken this step and they feel more confident that you will follow through with the purchase of their home.

To become pre-qualified, contact one of the loan officers highlighted on this web site, or contact me and I will make it happen for you.

Step 2. Home Search

Tell me about your "dream" home and let me get to work finding it for you. I will e-mail or fax you listings that may interest you. I can also set you up on ListingBook.com and you can search the same database that agents search. Once you have decided on a list of homes you would like to see, we can schedule a time to visit each one. It may take a couple of days or it may take a few months to find just what you are looking for, but we will find it!!

Step 3. Making an Offer

Once we find your future home, I will complete a standard NC Offer to Purchase contract after we discuss the terms, conditions, and price you want to offer. Once the offer is negotiated and accepted, it becomes a binding contract. An earnest money check will be presented with the offer. Normal amount of deposit is approximately $1,000 for homes less than $150,000. For higher priced homes, the amount will increase slightly. The earnest money check is deposited in the real estate firm's trust account, and it is a credit for you at closing.

Step 4. Apply for Mortgage Loan

Once we have an executed contract, you can take it to the mortgage lender of your choice and begin or continue the loan process. Much of this can be done before we find the home, but if not, you will need to do it now. The lender will give you a list of financial, investment, and tax statements that will be needed. The contract provides, that in the event you are not able to obtain the financing you desire, it will become void and your earnest money returned to you.

Step 5. Inspections

During the time that your lender is doing his or her thing, we will be performing inspections to insure you are purchasing a quality home. The first inspection you should have is a basic home inspection that includes utility, structural and mechanical inspections. The cost ranges depending on size of the home and the inspector, but usually runs $175 - $300. The second inspection is a wood-destroying insect (termite) inspection, which is $55 by Todd Farr at Pest-X. A well/water test and septic test is needed if the home is in the county and uses well and septic. Guilford County will take care of this inspection for $40, unless you request more specific water testing.

Another inspection that may be appropriate is a radon gas inspection. Radon gas is usually more prevalent in homes with basements, but not always. A radon gas inspection is usually $75.

Once the inspections are completed, you must decide what items are important enough to request the seller to address. If the seller is not willing to make repairs, there is an option for you to void the contract. Usually, we all work together to make sure that necessary items are addressed.

Step 6. Schedule Closing

The closing is performed by a local real estate attorney. I recommend Laurie Stegall, who is located at Guilford Crossing near Guilford College. She and her assistant, Teresa Tucker, will coordinate title work, deed preparations, insurance binders, and complete the HUD-1 form, which is the closing settlement statement.

My first step is to schedule the closing, giving the attorney the date and time we would like to close. I submit a copy of the contract, plus any invoices to be paid such as inspections.

You will need to contact an insurance agent to request coverage. The agent will then contact the attorney to provide all needed information. You will also need to contact all appropriate utilities to arrange service with them.

Step 7. Review HUD-1

Once the attorney has the loan package from the lender and the insurance information, he or she can complete the HUD-1 or closing settlement statement. Ideally, we have this form to review at least one day in advance, but often the loan package arrives late and we only have a few hours or less to review the statement. Either way, we don't close until everything is satisfactory to both of us!

The statement will outline your sales price less your mortgage loan, which is essentially your down payment. Then, add in your closing costs, which consist of lender fees, attorney fees, title insurance, one year of hazard insurance, inspections, and a few months of taxes and insurance to set up your escrow account. Your escrow account pays your annual taxes and insurance. Because of your escrow account, you are able to pay taxes and insurance in installments each month instead of having to come up with large lump sums each year.

Step 8. Close and Move!

The fun part! Once you have signed your life away at closing, the keys are handed to you and it is time to celebrate. Of course, there is that small detail of moving your personal property into the house. But once the boxes are emptied and furniture is in place, it will all be worth it!! Enjoy your new home.

SEE, THAT WASN'T SO BAD! BUYING A HOME IS A BREEZE!