Buy With Us
Buying a home is one of the largest and most important investments you will ever make, but buying a home doesn’t have to be an intimidating process. From the first consult to final signing, Carolina Realty & Investing Group will work with you each step of the way to ensure your experience is a memorable and positive one! We pride ourselves on integrity, honesty, and creating long-lasting relationships. We’ll go out of our way to personalize the buying process for you! That means we are always here when you have questions and will return your phone calls promptly. We’ll explain in detail all the paperwork necessary to facilitate a successful transaction. We will will work one-on-one with you to ensure you’re fully satisfied with your purchase!
We’ve gathered a list of information that would be beneficial to you as a home buyer. Feel free to utilize these resources, as well as contact us with any additional questions you may have.
- How Escrow Works
- Closing Costs
- REO & Foreclosed Homes
- Get Pre-Qualified
- Due Diligence & Earnest Money
These are just some of the many topics we can discuss when planning to buy a home. Feel free to Contact Us with any questions you may have!
Your home is the stage where memories come to life. It shares your laughs with you when you are happy, comforts you when you are sad, and welcomes you back when you and your family return. A home is not defined by it’s size but the love that fills it. I don’t sell “houses” to my clients, I help my client’s find their perfect HOME!
I work with young couples looking to buy their first home, the family that has outgrown their current house, and the empty-nesters looking for something more manageable now that the kids are gone. There is nothing more rewarding to me than finding you a place to call home. Regardless of price or size, all my clients receive my best-in-class services in finding your perfect home. Please feel free to Contact Us to tell us about your perfect home. I will do all the homework and find you exactly what you are looking for!
What is an REO?
“REO” is Real Estate Owned. These are properties which have been foreclosed upon that the bank or mortgage company now owns. This is not the same as a property up for foreclosure auction.
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. The buyer must also be prepared to pay with cash in hand. Finally, you’ll get the property entirely as is. That might involve prevailing liens and even current occupants that may require eviction.
A bank-owned property, by contrast, is a much neater and attractive proposition. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The bank will attend to the removal of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from typical disclosure requirements. For instance, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects they are aware of. By utilizing me along with my firm Better Homes and Garden Real Estate | Go Realty, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.
Is REO property in North Carolina a bargain?
It is commonly presumed that any REO must be a bargain and an opportunity for easy money. This isn’t necessarily true. You have to be cautious about buying a REO if your intent is to make money off of it. Even though the bank is usually eager to sell it promptly, they are also looking to get as much as they can for it.
When considering what to pay for a foreclosure, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. However, there are also many REOs that are not good buys and not likely to turn a profit.
Prepared to make an offer?
Most lenders have staff dedicated to REO that you’ll work with in buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.
Prior to making your offer, you’ll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know concerning the condition of the property and what their process is for accepting offers. Since banks typically sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any real estate offer.)
After you’ve presented your offer, it’s customary for the bank to make a counter offer. From there it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Be aware, you’ll be working with a process that usually involves multiple people at the bank, and they don’t work evenings or weekends. It’s not unusual for there to be days or even weeks of going back and forth. I am accustomed to these situations and will work to ensure there are no unnecessary delays.
Questions? I am standing by to answer any questions you may have. Feel free to use the form below!
CONTACT FORM HERE
Being Pre-Qualified for a Loan will provide you the price range of homes you’ll want to preview.
As your agent, we can help you pre-qualify. Items considered when pre-qualifying for a mortgage loan include:
- Employment History
- Credit History and Scores
- Monthly Income and Expenses
There are many different types of loans to consider – FHA, VA, Conventional. We have a network of loan officers that can get the ball rolling for you and help you make an informed decision as to the best type of loan for your situation.
CONTACT FORM HERE
So whether you are a first time home buyer, you are moving to North Carolina, or you have not bought or sold a home in a few years earnest money and due diligence money might be new terms for you. Although the two terms might sound like just another way to throw money into an offer, they are there more to protect both buyers and sellers during the transaction than anything.
As a buyer, you want to ensure that you are given the proper time to check out the home and make sure it is a good investment before you make such a large purchase. This time (known as the due diligence period) is a set time within the Offer to Purchase contract that allows you to get inspections, appraisals, obtain loan approval, and perform property surveys.
Along with the due diligence time, you have a due diligence fee. The due diligence fee is a negotiable, non-refundable fee a buyer may pay for the negotiated due diligence time period. The due diligence fee is paid directly to the seller.
Before the end of the due diligence period, the buyer has the right to terminate the contract for any reason or no reason at all, while the seller remains bound by the terms of the contract.
While the due diligence period is non-refundable, except in the event a seller breaches the contract, the due diligence fee is typically credited to the buyer at closing.
Earnest money is money that the buyer gives the sellers to show your good faith when making an offer to purchase the seller’s property. Again, the amount of earnest money is negotiable. Most of the time the earnest money is a check written out to a listing agent or an attorney’s trust account (escrow account). As long as you do not default, the money is yours and will be used for closing costs or your down payment at closing. If you do not close, the buyer, may or may not be entitled to a refund of your earnest money depending on why the closing did not occur, the offer to purchase is the guideline. Here’s the catch, even though it may appear obvious that you are entitled to a refund, both parties (buyer & seller) must sign off on how the earnest money is disbursed before the firm holding the earnest money can release the money.
The contract will always state the final say in all issues regarding the earnest money and due diligence fee. While both fees are negotiable they are not required. Make sure to ask your real estate professional what the local market is trending regarding both fees.
CONTACT FORM HERE
An escrow holder is used to assure your property closes on time and the closing process goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it’s in escrow. An easy way to understand what an escrow company does is to think of how you might use PayPal for Internet purchases.
The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are performed prior to the sale being finalized.
These are the records that escrow companies usually compile:
- Loan documents
- Tax statements
- Fire and other insurance policies
- Title insurance policies
- Terms of sale and any seller-assisted financing
- Requests for payment for various services to be paid out of escrow funds
You’re ready to close when each step of the done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The property’s title gets handed over to you and title insurance begins per the steps of your particular escrow agreement.
When closing is completed, you’ll submit a payment to the escrow company. As your REALTOR®, I will let you know what is an acceptable form of payment.
The Escrow Holder Will:
The Escrow Holder Won’t:
- Prepare escrow guidelines
- Perform a title research
- Comply with the bank’s guidelines as outlined in the escrow agreement
- Accept payments from the buyer
- Prorate insurance, tax, interest and other payments according to instructions
- Record deeds and other documents as instructed
- Request title insurance policy
- Close escrow when all terms of agreement of seller and buyer have been met
- Disburse payments and finalize instructions
- Advise you – the escrow holder must maintain a neutral, third-party status
- Give insight about future tax estimations
Mortgage Escrow Account
A Mortgage Escrow Account is started to pay recurring fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.
This is a simple outline of the escrow process. Your particular plan might be slightly different based on your lender and your escrow company.
Questions? I am standing by ready to answer any questions you may have. Feel free to Contact Us.
- Points (optional)
- Appraisal Fee (sometimes paid outside of closing)
- Credit Report
- Interest Payment
- Escrow Account
Taxes you may be responsible for at closing
- Property Taxes
- Transfer Taxes and Recording Fees
Insurance fees due at closing
- Homeowners Insurance
- Flood or Quake Insurance (optional)
- Private Mortgage Insurance (PMI) (optional)
- Title Insurance
Sellers: As we negotiate your deal, not only will we work to get the very best sales price, but we’ll also campaign for lower closing costs. And once we’ve come to an agreement, we’ll walk you through the closing costs so you are aware of exactly where your money is going.
Buyers: When purchasing a house in the triangle area, your lender should send a “Loan Estimate” within three days of submitting your loan application. Loan estimates will include an amount for your closing costs. The estimate is based on the loan officer’s previous experience and is required to be within a reasonable range so you’re not astonished when you come to the closing table. As the Realtor, I do not receive a copy of your loan estimate but I would be happy to work with you to review and help you sort through any questions you might have with your lender.
Further questions? I am standing by to answer any of those you may have. Please feel free to use the contact form below.