8 Steps to Buying a Home in Virginia

The typical real estate transaction involves at least two dozen separate individuals-insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer's agents, seller's agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout. Seven main roles of your real estate agent:

• Educates you about your market.
• Analyzes your wants and needs.
• Guides you to homes that fit your criteria.
• Coordinates the work of other needed professionals.
• Negotiates on your behalf.
• Checks and double-checks paperwork and deadlines.
• Solves any problems that may arise.

While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment. From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.

Six steps to financing a home:

• Choose a loan officer (or mortgage specialist).
• Make a loan application and get pre approved.
• Determine what you want to pay and select a loan option.
• Submit to the lender an accepted purchase offer contract.
• Get an appraisal and title commitment.
• Obtain funding at closing.

You may think that shopping for homes starts with jumping in the car and driving all over town. And it's true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long-if weeks go by without finding what you're looking for, the fun can fade pretty fast. That's why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms. Questions to ask yourself:

• What do I want my home to be close to?
• How much space do I need and why?
• Which is more critical: location or size?
• Would I be interested in a fixer-upper?
• How important is home value appreciation?
• Is neighborhood stability and priority?
• Would I be interested in a condo?
• Would I be interested in new home construction?
• What features and amenities do I want? Which do I really need?

When searching for your dream home, you were just that-a dreamer. Now that you're writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies. Price-the right price to offer must fairly reflect the true market value of the home you want to buy. Your agent's market research will guide this decision. Terms-the other financial and timing factors that will be included in the offer. Terms fall under six basic categories in a real estate offer:

• Schedule-a schedule of events that has to happen before closing.
• Conveyances-the items that stay with the house when the sellers leave.
• Commission-the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
• Closing costs-it's standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
• Home warranty-this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
• Earnest money-this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

Unlike most major purchases, once you buy a home, you can't return it if something breaks or doesn't quite work like it's supposed to. That's why home owner's insurance and property inspections are so important. A home owner's insurance policy protects you in two ways:

• Against loss or damage to the property itself
• liability in case someone sustains an injury while on your property
• The property inspection should expose the secret issues a home might hide so you know exactly what you're getting into before you sign your closing papers.
• Your major concern is structural damage.
• Don't sweat the small stuff. Things that are easily fixed can be overlooked.
• If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.

The final stage of the home buying process is the lender's confirmation of the home's worth and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done. You just have a few pre-closing responsibilities:

• Stay in control of your finances, no new big purchases. Return all phone calls and paperwork promptly.
• Communicate with your agent at least once a week.
• Several days before closing, confirm with your agent that all your documentation is in place and in order.
• Obtain certified funds for closing.
• Conduct a final walk-through.

On closing day, with the guidance of a settlement agent and your agent, you'll sign documents that do the following:

• Finalize your mortgage.
• Pay the seller.
• Pay your closing costs.
• Transfer the title from the seller to you.
• Make arrangements to legally record the transaction as a public record.
• As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.