Buyer Resources

Understanding who your broker is working for is of vital importance.  At some point in the buying process, before an agent can submit an offer on your behalf, you will be asked to sign a buyer agency agreement. It is important to understand how agency in NC works; by whom and how you are represented. 

The following useful links provide more information:

www.ncrec.gov/brochures/wwreabrochure.pdf

WRAL (March 18, 2016) – “Understanding the Importance of a Buyer’s Agent”

It’s Just Smart to Get Pre-Approved Before You Start Your Home Search…..

Getting pre-qualified is a vital step in the home buying process, and should be done before you begin visiting, or even searching homes. It is important to know what your buying power is, so that you focus only on properties that you can afford. You will be able to move quickly once you have found the home you want.  And almost all sellers require a pre-approval to be submitted with an offer.

http://www.realtor.com/advice/finance/pre-qualified-vs-pre-approved-what-mortgage-shoppers-need-to-know/

Conventional vs Non-Conventional Home Loans

The Difference Between Conventional and Non-Conventional Home Loans

In 2011, North Carolina revised its Offer to Purchase and Contract (Form 2-T) and implemented the concept of a Due Diligence period and a Due Diligence (DD) fee to be offered to the seller, in addition to the customary Earnest money (EM). The DD period is a negotiated time frame, during which, buyers should arrange for and complete necessary actions required before closing on the property. During that time frame, buyers can walk away from the deal 'for any reason or no reason' but will forfeit that DD money. Both DD money and EM money are credited back to the buyer as a credit at closing,  if the transaction is fully executed and buyer closes on the home.

For the buyer, the DD period provides time for securing financing and arranging for inspections, title search, an appraisal, survey... to make sure that they are able to/desire to move forward with the purchase after the DD period ends. It is also during this period that the buyer and seller should negotiate and agree upon repairs (if any). Because a buyer in North Carolina is now free to walk away from the contract 'for any or no reason' during the DD period, due diligence money serves as a counterbalance to protect the seller for effectively taking the house off the market during this time period. DD fees vary widely, depending on the market and specific situation... and your agent will guide you on what is an appropriate DD offering. The DD check is made payable to the sellers, who will deposit into their personal account/cash it right away. If the buyer proceeds to closing, the DD money will be applied back to the buyer as a credit on the closing documents.

The earnest money deposit, refundable up until the DD period ends, is an amount used to show additional good faith and a security instrument that will protect the seller after the DD period ends, should the buyer fail to complete the transaction.  In most cases, the EM is not refundable after the DD period ends. The earnest money check is made payable to an escrow account (often with the closing attorney or one of the real estate firms) and will be applied to the buyer as a credit at closing.  

We can explain, in much more depth, the details about these deposits. We know it can be very confusing...that's why we are here for you!

Here is good article on the subject by the NC Real Estate Commission (PDF file):

www.ncrec.gov/Brochures/DueDiligenceBrochure.pdf

www.ncrec.gov/Brochures/EarnestMoneyBrochure.pdf

Closing costs can vary widely, depending on numerous factors.  Lenders will give home buyers an estimate of closing costs based upon loan specifics. Additionally, we can show our buyers examples of closing statements, and what to expect. 

Buyers will typically be responsible for the following:

•  Attorney Fees for Closing
• Pro-rations of Taxes and HOA Fees (If Applicable)
• Loan Origination Fee (If Buyer is Getting a Loan)
• Misc. Lender fees
• Points To Buy Down the Interest Rate on Loan (If Applicable)
• Appraisal Fee (Typically Paid Before Closing; Not Required if A Cash Transaction)
• Credit Report (Typically Paid Before Closing)
• Property Taxes (Debit or Credit at Closing Depending Upon Status of Taxes)
• Interest Paid on the Loan From the Day of Closing Until the First Payment is Due 
• Escrow Reserves for  Future Taxes and Insurance (If the Buyer Chooses to Have Their Lender Pay the Annual Real Estate Taxes and Insurance Payment)
• Recording of the Mortgage (Deed of Trust) with the County
• Homeowners Insurance Policy (Paid One Year in Advance Plus Escrows)
• Home/Radon/Pest/Septic/Well Inspections (Some or All As Needed)
• Home Warranty (Optional/Sometimes Paid By Seller)
• Survey (Optional But Highly Recommended)

These are just typical fees...some do not apply and there can be additional fees not listed here. We can further discuss with you what to expect!