Posted by Matt Curtis on Tuesday, September 12th, 2017 2:52pm.
Loan Options Include
CONV - 3 to 20% down loan programs. Loan down payments of 20% or greater eliminate PMI (Link to blog on PMI)
VA - 100% financing, $0 down payment program for eligible veterans
FHA - Government backed 3.5% down loan program
USDA -100% financing, $0 down payment program eligible in certain rural areas
Portfolio Loan - did you not qualify for a government backed loan but can afford the mortgage? Consider a portfolio loan (Link to blog on Portfolio Loans)
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Search Homes based on commute time to work, school, shopping
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Search based on School District, Price Range, and many other features
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Research Comps for Area
Look at neighborhood, and similar submarket (Price and school district) comps
Into stats, for the latest stats by city, schools, and neighborhoods
Terms to consider
Offer Price
Closing Date - most lending programs take approximately 45 days. However, they can vary based on how quickly you get your loan documents in, the type of financing program you’re using, and whether you are using a local lender
Earnest Money amount
Held in escrow until closing or mutually agreed upon both parties. Shows good faith and seriousness in purchasing home.
Do you want anything to convey with the home?
Do you want the seller to pay for your closing costs? Average closing costs range from 3 to 4% of the purchase price depending on the loan type, down payment, and purchase price. MCRE has a pre negotiated vendor discount program with local vendors and can save you money on these closing costs.
Utilize esignature software for convenience
When purchasing a home in Huntsville, we use a form called a request for repairs. It’s negotiable, but typically you negotiate approximately 2 weeks to have your inspection completed.
Alabama is one of the few remaining Caveat Emptor States, which means buyer beware. What this means is that seller’s do not provide buyer disclosures. This is why you want to get a good home inspector and let’s be honest - a home inspection report is probably more valuable than a seller’s opinion of condition :) There are some exceptions to caveat emptor:
Purchasing from a builder, which is why you get a 1 year builder’s warranty
Direct Inquiries - ie we ask the seller or the seller’s agent a question - they can’t lie
Anything affecting health and safety
Typical Inspections include:
General Home Inspection. Typically ranges from $350 - $500+ depending on the size of the home
Termite Inspection: Typically ranges from $85 - $150+
Other Inspections to consider are:
Radon - odorless gas in the ground that is found in North Alabama.
Mold Inspection - if you suspect mold
Structural inspection if you suspect structural issues or if recommended by the home inspector
This is where you get writer’s cramp from signing documents, but at the end it’s all worth it because you get the keys to your new home.
In Alabama, we close with Real Estate Closing Attorneys.
You may be asked to bring a certified check or wire funds prior to closing. Please verify with the closing attorney prior to wiring any funds because of a rising number of wire fraud cases relating to real estate closings
Questions??? We offer a free first time home buyer’s counseling session.