For first-time home buyers, or those unfamiliar with North Carolina real estate, here is a general guideline for the home-buying process.

YOUR BUYER'S AGENT - First, you are entitled to your own real estate agent. On any listing (which is not our personal listing), we can represent you as your Realtor. Typically, the seller pays the commission, so our services are at no cost to you.

LENDER - A Pre-Approval letter is becoming an industry standard when making an offer on a home. Sellers will have more confidence in an offer that includes a pre-approval letter, and in multiple offer situations, the ones with a pre-approval letter are viewed more favorably. Pre-approval will also assist you in determining your price range, cost to close and your estimated payment. We can assist you in obtaining a local experienced Loan Officer.
Be aware that if you "shop" for a loan, it can be harmful to your credit. While inquiring with multiple lenders, we suggest that you use caution as multiple credit inquiries can lower your credit score.

SEARCH FOR PROPERTY - As your Realtors, we do a detailed search for homes that fit your price range and other criteria. We view the homes with you and once you decide on the "perfect one", we research the comparable sales in the area and sit down with you to write the offer.

THE OFFER - At this point in the process, we research other similar homes in the same area, showing you what is currently on the market, pending sales, and what has recently sold and for how much. We will guide you in reaching an offer price that is reasonable for the value of the home.

EARNEST MONEY / OPTION MONEY - You may need to write two checks at this point, which will be held until the seller has agreed to your offer. One is for your earnest money (we suggest that this be for 1% of your offer). The other, which may or may not be required, is for the Option Period. This is the amount of time you are asking the seller to take their home off the market, and during this time, you will have your inspections done, check to be sure you can obtain Homeowners Insurance on the property, and generally satisfy yourself that this is the home for you.

OPTION PERIOD - Option checks can range from $100 up depending on what the seller is willing to accept and you are willing to pay. The option funds are paid to compensate the seller for the time the home is off the market during the Option Period.  During the Option Period, you have the unrestricted right to withdraw for any reason, or no reason. The seller will keep the funds from the Option check. If you proceed with the purchase of the home, the contract should indicate that the funds for the Option Period may apply toward your purchase price. Once you and the seller have agreed on a contract price for the property, the seller will be given your Option Money check, and the Earnest Money check will be given to the Listing Company, along with a copy of the signed and executed contract.

INSPECTIONS - You now have typically 5-10 days to have your inspections done. We can supply you with a list of Home Inspectors, but as Realtors, are not allowed to choose your Inspector. Once you have arranged for the inspection, we will generally meet the inspector at the home to let them in for the inspection. You will usually arrive toward the end of the inspection to review what the inspector has found in the way of defects. If the property has a septic system or a well, these will typically need to be inspected also. You should also ask your inspector to do a Termite Inspection (Wood Destroying Insect WDI) and Septic System Inspection, if applicable, or to recommend someone who does. Often, your lender will require a clean Termite Certificate, stating that your new home has no conditions conducive to termite infestation.

AMENDMENT TO CONTRACT - Once your inspection is complete, we will discuss any repairs that you will request in an Amendment to the contract. This will be signed by you and given to the seller's agent. If they agree to complete the repairs you have requested, or to adjust the sales price according to your request, then we will proceed with the other items required for closing.

SURVEY - If the sellers have a recent survey, this is reviewed by the title company or lender, and may be acceptable. If a survey is not available or the existing one is not acceptable to your lender, then a new survey may be required.

INSURANCE - You will need to contact an Insurance Company and ask them to send an "Insurance Binder" on the home to the Title Company. This must be received prior to the closing.  With recent issues regarding insurers, we recommend that you start this process as soon as the contract is executed.

APPRAISAL - Your lender will ask for a check for the Appraisal. Once you are fully under contract and any Amendment to the contract has been signed, the lender will order the Appraisal. This is done to satisfy them that the house is worth the price you are paying.

title search - A Title Search will be done by the Title Company to ensure that the home has no existing liens, and that the sellers have valid title to sell the home. The Title Search will also state if there are any problems with existing surveys, easements or right-of-ways. You will receive a copy, and a Title Policy will be issued at closing.

FINAL LOAN APPROVAL - Typically, this will not be received until very close to the closing date. Don't panic. Your lender should be staying in touch with you, as we will, throughout the process to make sure everything is proceeding as it should.

FINAL WALKTHROUGH - Just before closing, we will meet you at the property to do a final walkthrough.  The purpose is to ensure that the property is in the same condition that it was when you made the purchase offer and that any requested repairs have been completed.

CLOSING - Prior to closing, the Title Company should have received the Survey and the Insurance Binder. On the day before - sometimes the day of - closing, we will receive a HUD statement from the Title Company. This statement lists all of the items being charged to you and to the seller, and we will review it, to make sure all costs have been apportioned correctly and let you know the amount of the check you need to bring to closing along with a photo ID.

POSSESSION - Typically, the home is not legally yours until Funding has occurred, meaning that your Lender has actually sent the funds to the seller. Often, the sellers may lease the home back after closing (with your agreement), allowing them time to move.

This is a general analysis of the Home Buying Process. Each real estate transaction is unique and most issues can usually be resolved. We have never believed our work is  "9 to 5" profession, and are available via cell phone for any questions you may have. We have been in the real estate profession for a long time, and are very good at explaining the process. We would like to be Your Realtor! 

William "Art" Sexton
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