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5105-D backlick Rd Annandale,
VA 22003 Annandale,
Virginia
(703) 232-9222
burhan.signaturerealty@gmail.com

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Expert Real Estate Agents           

With experts to your side, we offer priceless knowledge to help you during the process so help you make your decisions.

Best Customer Service

Here are Signature, we are never about the commissions. We always want to ensure everything single one of our clients leaves with a smile!

No Pressure

People always feel that the home buying process will be pressure-packed, but here we always ensure we will lift the pressure off of our clients.

SEND US A MESSAGE

CONTACT INFORMATION

5105-D backlick Rd Annandale,
VA 22003 Annandale,
Virginia
(703) 232-9222
burhan.signaturerealty@gmail.com

Do you have questions about how we can help your company? Send us an email and we’ll get in touch shortly.

We all have big steps in our life. From graduating from high school, going to college, getting married, to even having kids. Every time you make a huge decision, it’s a turning point and you will always want to consult someone for advice and to point you in the right direction. When you are choosing your college, you have your parents. When you are naming your son or daughter, you have your the love of your life. When you are taking the next big step in your life and purchasing a house that will become your home and something that will be irreplaceable in the future as far as memories, you have your real estate agent. 

Having a real estate agent guiding you is crucial because they turn the tedious home buying process into a walk in the park. We will explain all the important steps of purchasing a home, the crucial factors, and key mistakes buyers tend to make in our buyer’s guide.

Step 1: Determining how much you can afford and getting pre-approved

One key mistake buyer’s always tend to make is overestimating or underestimating how much they’re prequalified for when being able to afford a house. By using a pre-approval calculator you should be able to determine how much you are pre-qualified up to based on your monthly or annual income, debts, and obligations. 

After determining how much you will be able to afford and seeing what your budget is on a month to month basis, the next step is contacting a lender. They typically ask for proof of income, bank statements, and must run your credit to determine your debts and based on these factors they are able to see how large your next dream home will be. 

Lenders in today’s market offer a 0% down program which allows buyers to purchase a house without bringing money to the closing table.

However, they must have above average to excellent credit and meet other criteria that is required by the lenders in order to be qualified by this program. 

You will always want to reach out to more than one lender to see who is offering the best interest rate. 

The monthly mortgage payment is broken down into the following: 

  • Principal & Interest (Frequently referred to as P&I) 
  • PMI (Private Mortgage Insurance)
  • Property Taxes
  • Homeowners Insurance

Here are two examples illustrating a breakdown of the monthly mortgage payment:

Monthly Payment: $3,493

The Chart above is based on a purchase of a $500,000 house with 3% down. By not applying at least 5% down towards the purchase, you are responsible for the full amount of the PMI.

Monthly Payment: $2,814

This chart is based on 20% down towards a $500,000 house. The monthly payment is significantly reduced due to the large down payment, but more importantly, you are not responsible for the PMI. 

 

The higher you put down towards purchasing your home you may be able to avoid the PMI (Private Mortgage Insurance). Typically you have to put down 20% in order to avoid the PMI. However, if you put down 5%, 10%, or 15%, the PMI does not completely go away, but it is reduced. 

You also pay less in interest if you obtain a shorter term mortgage loan versus a longer term. 15 year mortgages save the buyer much more in interest for a slightly higher mortgage payment versus 30 year mortgages. 

Closing Costs are another factor towards purchasing your home. They are typically anywhere from 3~5% of the price of the home. 

By sticking with the $500,000 example, here is a breakdown of the closing cost structure:

Typically closing costs range from 2~5% of the purchase price of the house. Above are some of the samples of what are in the closing cost structures.

Step 2: Find your dream House..!!

After finding the right lender and determining the magic number you are pre-approved up to, get ready… its house hunting season. 

When you are searching for your dream home, what is it that you are looking for? Are you looking for a huge yard for your dog? Are you looking for a nice sized basement with large windows for your kids to play in? You always want to key in these factors and let your agent know. The other crucial factor is always location. You will want to be near your friends and family as well as be able to commute to work on a timely basis. 

As you go with your agent and tour each house, be sure to ask questions about each house you visit.

Step 3: Making an Offer

After you find the perfect house that has everything you were looking for be ready to submit an offer with your agent. By doing a CMA (Comparative Market Analysis), your agent comes up with similar properties that were sold in recent weeks in the same are to your dreamhouse. This gives you and your agent a great idea of what price to submit the offer. 

Once you submit the offer, the listing agent and the seller review and typically respond within 1~2 business days. A good portion of the time, this is where your agent has to come into play and do a good job of negotiating to settle on a deal with the listing agent.

Step 4: Home Inspection

After your agent and the listing agent come to terms and have the contract ratified, this is where the ride really begins. As the buyer, it is your obligation to survey the house you will reside in the near future. By hiring a licensed home inspector, you will get to see everything in regards to the property you did not happen to see beforehand. Licensed Home Inspectors do a fabulous job of finding hidden issues with houses and explaining what the cause of the issue was as well as what needs to be done to not only fix the issue, but prevent any ongoing issues from occurring again going into the future. 

Once the home inspection is complete, a report is provided. If there are any major issues with your dream home, you and your agent must let the seller and listing agent know and they must be resolved by a licensed contractor prior to closing. 

The home inspection also will tell you if there are any major issues prior to the appraisal. During the appraisal if any major issues arise, the bank or lender may refuse to grant the loan against the property due to the major issues.

Step 5: Closing

Once you and your agent clear the home inspection process, the appraisal comes and is cleared, it’s time to head over to the closing table. 

As you are assigned a closing date, you are going to be in communication with you lender, your agent, and the title company to make sure everything is cleared as you are ready to sign the dotted line. Lender’s typically give you a Closing Disclosure (CD), three days prior to the closing. The CD will give you a breakdown of the payment structure, all fees associated with the loan, the interest rate, and a closing costs breakdown. The title company will usually provide a settlement statement typically referred to as “ALTA” (American Land Title Association) 

that shows a breakdown of costs between the buyer and seller as far as credits and debits. It also shows how much each party has to bring to the closing table or will receive at the closing table. You also have to be sure to have a home warranty company setup. Typically the seller pays for one year of home warranty issuance for the buyer. It is usually a $500 cost and covers for certain incidents such as: Water Heater issues, HVAC issues, electrical problems, etc. 

As you do final revisions of all the closing costs structures and the “ALTA”, it is in your best interest to do one final walkthrough of the property with your agent. By doing one final walkthrough, you will view it one last time before going to the closing table. 

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SEND US A MESSAGE

CONTACT INFORMATION

5105-D backlick Rd Annandale,
VA 22003 Annandale,
Virginia
(703) 232-9222
burhan.signaturerealty@gmail.com

Do you have questions about how we can help your company? Send us an email and we’ll get in touch shortly.