HOME BUYING 101

Purchasing a home is both an exciting & emotional experience and a key component of the American Dream. Not only does it provide unmatched financial stability, but creative freedom and a deep sense of belonging.

Here is your crash course on the essential steps, expert tips, and valuable resources that will guide you through every stage of your home-buying journey with confidence.

Now that you understand the steps to homeownership , read on to explore the intricacies that occur before, during, and after the closing table.

Before starting the journey to homeownership, assessing your financial readiness is crucial. And whether you're buying a home or not, just by building a habit of regularly evaluating your financial health you are taking a key step toward achieving long-term financial stability.

Evaluate your credit score, savings, and current debt levels.

A healthy credit score can significantly impact the interest rates you qualify for, while sufficient savings are necessary for a down payment, closing costs, and any unexpected expenses that may arise. Managing your debt is also essential, as lenders will look at your debt-to-income ratio to determine your ability to take on a mortgage.

Understand how much house you can realistically afford.

You can use our Mortgage Calculator to estimate a monthly payment based on the price of a home, or better yet, get a Pre-Approval from a trusted mortgage professional. There are many loan types , and each loan type has its own set of requirements and benefits, so understanding which ones you qualify for will help you make informed decisions.

Obtain a mortgage Pre-Approval letter from your Lender.

This step is critical. A Pre-Approval letter not only gives you a clear picture of your budget but also signals to sellers that you are a serious buyer, giving you a competitive edge in the market. Not to mention, most Sellers will not entertain an offer that does not include this letter. During the process, your Lender will evaluate your financial situation to determine how much they are willing to lend. This letter will include vital information including your maximum loan amount, your maximum home purchase price, the required down payment, the interest rate you're likely to pay, and the types of loans you've qualified for.

RECEIVE MY PRE-APPROVAL NOW!

Buying a home is one of the most significant financial decisions you'll make, and it can be easy to overlook actions that you don’t realize could derail you in the excitement of finding your dream property. To help you make the wisest decisions and navigate the process smoothly, here are some of the most common mistakes homebuyers make — and how you can avoid them! Understanding these pitfalls can save you time, money, and a lot of stress. Click the link below for a full breakdown of avoidable risks.

Overview:

• Not getting pre-approved for a mortgage
• Overlooking hidden costs and expenses
• Skipping the home inspection
• Making emotional decisions
• Failing to research mortgage options
• Ignoring future resale value
• Making major financial changes before closing

READ MORE MISTAKES TO AVOID

Many home issues are identified during the Home, and Moisture & Termite Inspections. Your agent will assist you in requesting and negotiating any repairs through the Property Inspection Contingency Addendum (PICA) form. While some issues in a home may be cosmetic, others could have more substantial implications for the property's foundation. In either case, it's essential to know when to continue negotiations and, if certain requested repairs are not agreed to, when it may be best to walk away. Below are some red flags to watch out for. A trusted agent will ALWAYS point out all issues when helping you find the right home.

1. Signs of Poor Maintenance

Visible neglect, such as peeling paint, water stains, broken fixtures, or an overgrown yard can indicate a lack of regular maintenance. Sometimes this is evidence that there are potential issues that haven’t been addressed.

2. Unusual or Strong Odors

Musty smells sometimes suggest mold or mildew, while other times a strong “pleasant” odor is used as an attempt to mask underlying problems. Always investigate any suspicious smells thoroughly.

3. Foundation and Structural Issues

Cracks in the foundation, uneven floors, or doors and windows that stick can be signs of structural issues. These problems can sometimes be expensive to fix and in some cases can affect the safety and stability of the home.

4. Electrical Problems

Look for flickering lights, outdated wiring, or a lack of grounded outlets that could indicate electrical issues.

5. Water Damage or Leaks

Water stains on walls, ceilings, or floors, as well as signs of recent repairs jobs in these areas, could indicate past or ongoing water damage, which may lead to mold or rot.

6. Roof Damage

Missing or damaged shingles, sagging rooflines, or visible wear and tear can signal that the roof needs repair or replacement, which can be a costly endeavor.

7. Pest Infestations

Evidence of pests, such as droppings, nests, or chewed wires and wood can indicate an infestation that could cause significant damage and require extermination AND repair efforts.

8. Unpermitted Renovations or Additions

Any modifications or additions that do not have proper permits or documentation could lead to legal problems or repairs to bring the home up to code.

9. Neighborhood Concerns

Buyers are responsible for conducting their own due diligence in Virginia. Your agent can help you understand how to research crime rates, declining property values, excessive noise, or future development plans that could negatively impact your quality of life in any given area.

10. Flood Zones

Properties located in flood zones present varying degrees of risk. Zones are based on historical flood data in a given area and may affect insurance rates, resale value, or safety.

11. Outdated or Inadequate Plumbing

Low water pressure, rust-colored water, or outdated plumbing materials like galvanized pipes can indicate potential plumbing problems that may need repairs.

12. Discrepancies in Property Listings

If the property listing information doesn’t match what you see during the showing (such as differences in square footage or the number of rooms), it may signal potential issues.

13. High Homeowner Association (HOA) Fees or Restrictive Rules

Excessive HOA fees or overly restrictive rules and regulations could impact your monthly costs and quality of living. Always review HOA documents carefully.

14. Unexplained Property Price

If a home is priced significantly lower than similar homes in the area without a clear reason, it may indicate potential hidden problems.

15. No Access to Attic, Basement, or Crawl Spaces

If a seller or agent refuses access to certain areas of the home, it could indicate an attempt to hide damage or other issues.

16. Poor Drainage or Grading Issues

Significant standing water, pooling near the foundation, or signs of erosion could indicate poor drainage or grading issues that can lead to water damage or foundation problems.

CONGRATULATIONS! You’ve signed the paperwork, you’ve received the keys, the house is YOURS! ...Now what? Set yourself up for success in the short and long run of homeownership with these helpful tips.

Create a Moving Checklist: Start by making a detailed checklist that includes everything from hiring movers and packing to notifying utility companies and updating your address. A well-organized plan will help ensure a smooth transition.

Set Up Utilities and Services: Ensure your electricity, water, gas, internet, and other essential services are set up before moving in. This minimizes disruptions and helps you settle in comfortably.

Familiarize Yourself with the Area: Explore your new neighborhood, locate essential amenities including pharmacies, walk-in clinics and hospitals, and get to know your new routes to work or school.

Review Your Homeowner's Insurance Policy: Make sure your policy provides adequate coverage for your property and personal belongings, including protection against natural disasters common in your area. Living in Coastal Virginia, flood insurance is either required based on your zone, or at least worth considering, while earthquake insurance might not be worth it. Call your Trustworthy Agent for information and contacts for affordable home insurance!

Understand Your Property Taxes: Familiarize yourself with the local property tax rates and payment schedules. Some areas allow you to pay taxes monthly or annually, so it's essential to budget accordingly. You might also explore potential exemptions or deductions that could lower your tax burden. With many homeowners, real estate taxes are paid by their mortgage company from funds in the owner's escrow account. For those property owners that do not have a mortgage company, the tax payment is sent to the City Treasurer directly by them.

Understand Your Escrow Account: Most mortgage lenders will require an escrow account as part of your mortgage agreement. An escrow account is opened once the contract is ratified and you provide your Earnest Money Deposit (EMD). During the home-buying process, the escrow account secures the funds and documents involved in the transaction until all conditions are met. After closing, your escrow account manages a portion of your monthly mortgage payment to cover ongoing property taxes and homeowners insurance premiums, helping you avoid potential penalties.

Create a Home Maintenance Schedule: Deferred maintenance can quickly turn into an overwhelming list of to-do’s, not to mention expensive repairs. Develop a seasonal maintenance plan to keep your home in good condition. Regular tasks may include cleaning gutters, checking for leaks, servicing HVAC systems, and inspecting the roof for damage. See below for an expanded list.

Know Your Home's Systems: Familiarize yourself with your home's plumbing, electrical, and HVAC systems. Know where the main shut-off valves and circuit breakers are located, and keep manuals and warranties for appliances and systems in a convenient location.

Budget for Repairs and Upkeep: Set aside a portion of your monthly budget for ongoing maintenance and unexpected repairs. This financial cushion can help cover minor issues before they become major problems.

Invest in Basic Tools and Equipment: Equip yourself with essential tools like a hammer, screwdriver set, wrench, pliers, lawn equipment and a ladder to handle minor repairs and maintenance tasks around the house.

Consider a Home Warranty: A home warranty can provide additional peace of mind by covering the repair or even the replacement of major home systems and appliances. Evaluate the terms and costs to see if this option suits your needs. Your agent can provide you with several home warranty companies to interview.

Whether it's cosmetic or foundational, regularly inspecting both the major and the minor systems of your home will not only bolster your home's energy efficiency and resale value, but can save you thousands by avoiding deferred maintenance costs over time. Check out this list of suggestions for maintaining your beautiful home.

  Create a Seasonal Maintenance Schedule

  Check and Replace HVAC Filters Regularly

  Inspect the Roof Annually

  Clean and Maintain Gutters

  Test Smoke and Carbon Monoxide Detectors

  Maintain Plumbing Systems

  Service Major Appliances

  Inspect Windows and Doors

  Seal Gaps and Cracks

  Check Your Water Heater

  Maintain Landscaping

  Know Where Utility Shut-Offs Are Located

  Clean Dryer Vents

  Inspect Foundation and Basement

  Caulk and Seal Bathrooms

  Test and Flush Sump Pump (If Applicable)

  Service Your Fireplace and Chimney

  Plan for Pest Control

  Maintain Your Home’s Exterior

  Budget for Future Repairs

These resources below will continue to support you in making informed, confident decisions...wherever you are in your home search journey!

Do you have an important question that you need answered faster? Give us a call today for thorough, zero-pressure solutions. (757) 500-2404

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For the most reliable, up-to-date Home Search Tool in Hampton Roads...aka Coastal Virginia visit ExploreVirginiaHomes!

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Escrow...Contingency...PMI...what do all these mean? Learn to Talk the Talk with this comprehensive list of Important Terms

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Estimate your expenses, and calculate your down payment, your monthly mortgage payment and more with this MORTGAGE CALCULATOR!

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What are they and how do you budget for them? Understanding Closing Costs will help you budget wisely, reduce uncertainty, and boost your confidence as you approach closing.

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What is it like to drive, eat, have fun and relax in Hampton Roads, aka Coastal VA.? We created this brochure full of helpful information on life here in our historic community with favorite local restaurants, city sites and attractions, detailed school information and community support for civilians considering a move here and military families PCS’ing to our area

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Whether you need a painter or a plumber, or you have a question about qualifying for a mortgage loan, we have reliable references so you can keep moving forward in accomplishing any goal you have.Call your Trustworthy Agent for information and contacts for affordable home improvements & maintenance!