Steps to Becoming a Homeowner

Turn Your Dreams A Reality

Buying a home is u​ndoubtedly one of the biggest investment decisions you will ever make.  Whether you are a first-time home buyer, buying a bank owned property, purchasing new construction or building your investment portfolio, our number one priority is to find a property that is the perfect fit for a great price!

Karen and Kathy will provide you with valuable tools needed to help find the perfect home.  They will make sure you receive new listings as soon as they hit the market! As your Realtors, they will take the time to understand your needs and assist in finding your dream home.

If you are relocating into the Northern Virginia area, we can assist in collecting the information needed to make your transition as smooth as possible. Buying a home is an exciting time in one's life. Choosing us as your REALTORS® is your first step to ensure your new home and community meets your needs.

 
Our services, referrals and experience includes; negotiating the most favorable price, terms and savings, coordinating all aspects of the transaction leading up to settlement and mortgage counseling.

For your convenience, we also have a program that automatically emails new listings as they become available to give you a head start over other buyers.
 

Things to Consider "Before You Start Looking For Your New Home

 
  • Check credit rating.
  • Straighten out any errors before its too late.
  • Determine a comfortable monthly budget for your new purchase, including    down payment and monthly payment.
  • Find a loan program that meets your needs and get pre-approved by your      lender.
  • Determine what neighborhoods best meet your needs.
  • Identify important features you want your new home to have.
 

 
Once you have found a home and your offer is ratified.  A series of inspections and contract contingencies begin, including but not limited to:

  1. Home inspection
  2. Radon inspection
  3. Lender’s appraisal
  4. Mold inspection
  5. Termite inspection
  6. Lead based paint inspection
  7. Loan approval process
  8. Well/Septic Inspection
  9. Final walk-through inspection

  Closing Costs to Expect:
  • Lender fees include charges for loan processing, underwriting, preparation and establishing an escrow account.
  • Third-party fees include charges for home owners insurance, title insurance, title search, survey and other inspections such astermites, home inspection, well and septic if applicable.
  • Government fees include deed recording and state & local mortgage taxes.
 
                                                                                    
Escrow and interest fee-known as PITI
This will be your mortgage payment each month which Includes homeowner's payment toward the principal,  interest, real estate taxes, home owners insurance and occasionally private mortgage insurance.


BREAKING DOWN 'Principal, Interest, Taxes, Insurance - PITI
PITI is typically quoted on a monthly basis and compared to a borrower's monthly gross income for computing the individual's front-end and back-end ratios, which are used to approve mortgage loans. Generally, mortgage lenders prefer PITI to be equal to or less than 28% of a borrower's gross monthly income.

How PITI Influences Mortgage Underwriting
Because PITI represents the total monthly obligation a homeowner carries on his mortgage payment, it serves as a useful figure to plug into several formulas used to determine if a borrower can reasonably afford a given mortgage.
The front-end ratio compares PITI to gross monthly income. This is the ratio that most lenders prefer to equal 28% or less. If borrower's PITI equals $1,500 and gross monthly income equals $6,000, the front-end ratio, then, is 25%. This is an acceptable level to most lenders.

The back-end ratio compares the total of PITI and other monthly debt obligations to gross monthly income. Most lenders prefer to see a back-end ratio of 36% or less. If the above borrower making $6,000 per month has a $400 car payment and $100 minimum credit card payment in addition to PITI of $1,500, the borrower's back-end ratio is 33%.

Some lenders also use PITI to calculate reserve requirements. Lenders require reserves so that if a borrower temporarily suffers an income loss, money still exists to make the mortgage payment. Often, lenders quote reserve requirements as a multiple of PITI. Two months of PITI represents a typical reserve requirement. Therefore, the above borrower, if subjected to this requirement, would need $3,000 of seasoned funds in a depository account to be approved for a mortgage.


Buyers usually begin their searches on a digital device.  Although desired home features vary somewhat according to region, type of home, and buyer demographic, there are certain features that are consistently attractive to today’s buyers. Interestingly, the importance of those features to searchers is very different depending on whether the home is new or previously owned.
 




What Do Buyers Want to See in an Online Property Listing?
 People want pictures. Buyers also want detailed information about the property—all the information they’ll need to imagine themselves living there, to help them decide if the home is right for them.The 2012 Profile of Home Buyers and Sellers reports the following responses to questions about the value of web site features:
 
 
 
 
 
 
 
 

 
 


 
Do’s and Don’ts When Applying for a Mortgage
While you are considering the purchase of a new home or exploring new financing on your current home, you should not do anything that will have an adverse effect on your credit from this point through the rest of the process.

Do...
•Continue making your mortgage or rent
• Continue living at your current residence payments
• Continue to use your credit as normal
• Stay current on all existing accounts
•Call us if you have any questions, as we are always here to help and just a phone call away
• Keep working at your current employer
• Keep your same insurance company

Don’t...
• Make a major purchase (car, boat, jewelry, etc.)
• Change bank accounts
•Max out or over charge on your credit card
•Apply for new credit (even if you seem pre- approved) accounts or consolidate credit card debt
• Take out a new loan
• Open a new credit card
• Start any home improvement projects
•Transfer any balances from one account to another
• Finance any elective medical procedure
•Pay off charge offs or collections without a
• Open a new cellular phone account discussion with us first
•Pay off any loans or credit cards without
• Buy any furniture
• Close any credit card accounts

K Realty 
 703-585-5418
Karen@KRealty.net
Realtors Dedicated to Positive Results