HOME BUYING GUIDE         Virginia, Maryland & DC   ReShawna Leaven, Realtor®   Licensed in Virginia, Maryland & DC   Dire...
Introduction                                         About MeWho is ReShawna Leaven?My name is ReShawna Leaven. I have bee...
Steps                Are you ready to buy a home?Do you have the pre-qualifying items to begin the process? ⇒   Steady inc...
Steps               Determining your housing needsYour home should fit the way you live, with spaces and featuresthat appe...
Programs              First Time Home Buyer ProgramsThere are many options to buying a home with little to no money down.P...
Steps            Who’s who in a real estate transactionGrantee & Grantor     Buyer (grantee) – A person purchasing a home....
Steps                              Levels of home buyingThe market needs new homeowners. Call me to see how you can be one...
Steps           Buyer consultation with a Realtor®Its important that you interview more than one agent to represent you.Hi...
Steps                              Get your approval letterWhat’s the difference between being pre-qualified vs. pre-appro...
Steps                                          Responsibilities                           After Applying for LoanIt usuall...
Review                                RESPA & Good Faith EstimateWhat is RESPA?RESPA stands for Real Estate Settlement Pro...
Review                                          Loan Application—1003In addition to the required documents, you will have ...
Form: 4506-T          Review                    Request for Transcript of Tax ReturnIn addition to the required documents,...
Steps              Property Search & Tour of Homes                  Start your home search on my website today!           ...
Steps             Making an Offer and NegotiatingMaking an Offer and NegotiatingAs your real estate agent, I will assist y...
Steps                                                      Offer(s)Items needed to make an offer to purchase a home:      ...
Steps               Pre-Paid Expenses and Closing CostsThere may be closing costs customary or unique to a certain locatio...
Steps                               Final Walk-Thru & ClosingFinal Walk-ThruThis will likely be the first opportunity to e...
Review                                        HUD-1 Statement                                                       HUD-1—...
Review                            What’s a home warranty?A home warranty is a service contract, normally for one year, whi...
Review                                             Title InsuranceWhat you should know about Title InsuranceTitle insuranc...
Review                              Homeowner’s InsuranceWhat you should know about Homeowner’s InsuranceKnow about exclus...
Tips                                    Mistakes to avoidAvoid these mistakes when you are in the market to buy a home...♦...
Benefits                                 Reasons to own a homeTax breaks. The U.S. Tax Code lets you deduct the interest y...
Review                          Frequently Asked QuestionsQ: What is the current interest rate? Rates change daily so it i...
Commuting                                How do you get to work?                   Consider these commuting optionsWashing...
Review                                         Research schools   Like a neighborhood but not sure of the school rating.  ...
Next steps...           Ready to meet me in person…              LET ME “WOW” YOU                 (703) 474-1754          ...
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Home Buying Guide for Northern Virginia, Maryland & DC by Reshawna Leaven

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Home Buying Guide for Northern Virginia, Maryland & DC by Reshawna Leaven

  1. 1. HOME BUYING GUIDE Virginia, Maryland & DC ReShawna Leaven, Realtor® Licensed in Virginia, Maryland & DC Direct/SMS: (703) 474-1754 Email: reshawnaleaven@gmail.com Website: www.reshawnaleaven.com
  2. 2. Introduction About MeWho is ReShawna Leaven?My name is ReShawna Leaven. I have been practicing real estate since2002. I am with Keller Williams Realty in Alexandria ,Virginia. I am licensedin Virginia, Maryland and DC. I am very knowledgeable of the area realestate market. I have worked in my facets of real estate, I understandhome values, the loan process, closing procedures and more.What type of experience do I have?I have assisted 1st time homebuyers, empty nesters, property manage-ment and investors. I keep current with the market trends on housing pricesand the changing finance options.Why did I get in the real estate business?I love homes and people. My goal is to connect with a client one time forlifetime of purchases. Real estate is a very emotional process and it’s im-portant to have someone with your best interest at heart. I love to “WOW”clients. There are over 15,000 realtors in the DC metro area. I want to beone of the 15,000 that is remembered for making connections with her cli-ents.What am I doing when you are not selling real estate? I am a social butter-fly. I attend area networking events, teach webinars on technology, holdopen houses, blog on real estate and current events in the metropolitanarea.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  3. 3. Steps Are you ready to buy a home?Do you have the pre-qualifying items to begin the process? ⇒ Steady income in the same line of work for 2 to 3 years ⇒ Few outstanding long-term debts ⇒ Savings or means of obtaining a down payment ⇒ Ability to pay a monthly mortgage payment every month + additional costsThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  4. 4. Steps Determining your housing needsYour home should fit the way you live, with spaces and featuresthat appeal to you and your family.Before you begin looking at homes, make a list of your priorities -items such as location, bedrooms, bathrooms, closet space, ga-rage space, etc.Do you need to be near public transit? There are many options inthe area: VRE (Virginia Railway Station), Metro, MARC train or an-other sourceIf you have children do you need to stay in the same schooldistrict?How far do you want your daily commute to be?The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  5. 5. Programs First Time Home Buyer ProgramsThere are many options to buying a home with little to no money down.Programs available in Virginia & Maryland home buyers. Here are a fewprograms to consider:FHA plus loan with VHDA – finance your 3.5% down payment requiredFHA 203K loan (rehab/renovation) – renovate a home that needs repairsand upgrades.USDA loan – 100% financing with no PMIGrant program - up to $7,500 – program offered to 1st time homebuyers.Maryland Mortgage Program with CDA - $5,000 deferred loan.VA Loan - purchase a home with no down payment & 100% financingAre you 10% disabled veteran getting a VA loan? No funding fee requiredat closing For a list of more programs in Virginia, Maryland or DC , give me a call (703) 474-1754The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  6. 6. Steps Who’s who in a real estate transactionGrantee & Grantor Buyer (grantee) – A person purchasing a home. Seller (grantor) – A person selling a home.Real Estate Agents Selling (Listing) Agent – A person who earns a commission on the sale of a home from the seller. Buyers Agent – A person who earns a commis- sion on the purchase of a home. Either real es- tate agent may be a certified Realtor or a law- yer specializing in real estate.Home Inspector – A real estate professional hired bythe buyer to inspect the home for defects and reportthe condition of the home with pictures and a fullreport.Home Appraiser – A real estate professional researches like properties to obtain adollar value. There is standard appraisal criteria to obtain the home’s worth. Theappraisal is an essential documents for loan approval.Lender – A bank or mortgage company. They will research credit and provide anapproval based on criteria provided to them. They provide the funds for thepurchase of a home.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  7. 7. Steps Levels of home buyingThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  8. 8. Steps Buyer consultation with a Realtor®Its important that you interview more than one agent to represent you.Hire the right agent that will be able to fulfill yourexpectations and knowledge of the area.During My Home Buyer Consultation, • Meeting at a Keller Williams Realty in Virginia, Maryland or DC • Explain my real estate background & services as your Realtor® • Find out the needs and wants in your next home • Review budget analysis (actual expenses vs. potential expenses) • Create a home search & view available homes in your price range • Review buyer representation agreement & other paperwork • Introduction to a lender that will best fit your needsThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  9. 9. Steps Get your approval letterWhat’s the difference between being pre-qualified vs. pre-approval?Pre-qualification is an informal way to see how much you maybe able to borrow. Youcan be pre-qualified over the phone with no paperwork by telling a lender your in-come, your long-term debts, and how large a down payment you can afford. Withoutany obligation, this helps you arrive at a ballpark figure of the amount you may haveavailable to spend on a house.On the other hand, pre-approval is a lenders actual commitment to lend to you. It in-volves assembling the financial records mentioned such as pay stubs, W-2 forms, bankstatements, tax returns, sales contracts, etc. and going through a preliminary approvalprocess. Pre-approval gives you a definite idea of what you can afford and shows sellersthat you are serious about buying. Required Documents to Secure a Loan Last 2 months of pay stubs Last 2 yrs. of tax returns Information on long-term debts Recent bank statements Proof of any other income Employment history Information on credit problems (if any) Address and description of the property you wish to buy Ratified sales contract *Other documentation may be needed based on your transactionThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  10. 10. Steps Responsibilities After Applying for LoanIt usually takes a lender between 1-6 weeks to complete the evaluation ofyour application. It’s not unusual for the lender to ask for more informationonce the application has been submitted. The sooner you can provide theinformation, the faster your application will be processed. If the loan is ap-proved, a closing date is set up and the lender will review the closing withyou. Your responsibilities during the lending process • Be sure to read and understand everything before you sign. • Refuse to sign any blank documents. • Do not buy property for someone else. • Do not overstate your income. • Do not overstate how long you have been employed or overstate your assets. • Accurately report your debts. • Do not change your income tax returns for any reason. Tell the whole truth about gifts. Do not list fake co-borrowers on your loan application. • Be truthful about your credit problems, past and present. • Be honest about your intention to occupy the house • Do not provide false supporting documents. • Do not make any large purchases on your credit cards or your credit such as buying vehicles, furniture etc. This will hinder you from obtaining a loan and put you in default.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  11. 11. Review RESPA & Good Faith EstimateWhat is RESPA?RESPA stands for Real Estate Settlement Procedures Act. It requires lenders to disclose information to po-tential customers throughout the mortgage process, By doing so, it protects borrowers from abuses bylending institutions. RESPA mandates that lenders fully inform borrowers about all closing costs, lender ser-vicing and escrow account practices, and business relationships between closing service providers andother parties to the transaction.Here is a blank copy of the Good Faith Estimate (GFE) that you will receive from your lender.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  12. 12. Review Loan Application—1003In addition to the required documents, you will have to fill out a 1003. There are many ways that that thelender may request this document via email, fax or online thru a secure website. Here is the Page 1 of the1003 for your review. To get started with your loan application, call me at (703) 474-1754The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  13. 13. Form: 4506-T Review Request for Transcript of Tax ReturnIn addition to the required documents, you will have to sign a Request for Transcript of Tax Return. Thelender and underwriter will need to see a transcript from the IRS of your income for the last two years.When you receive this document, please send it back as soon as possible. ]tÇx fÅ|à{ DBDBECCEThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  14. 14. Steps Property Search & Tour of Homes Start your home search on my website today! www.reshawnaleaven.com At our buyer consultation, I will review the tour of homes information with you.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  15. 15. Steps Making an Offer and NegotiatingMaking an Offer and NegotiatingAs your real estate agent, I will assist you with making an offer ona home of your choice, which will include the following informa-tion: • Complete legal description of the property • Amount of earnest money • Down payment and financing details • Proposed move-in date • Price you are offering • Proposed closing date • Length of time the offer is valid • Details of the dealAll contingencies including home inspection, obtaining desiredfinancing terms, etc. Remember that a sale commitment de-pends on negotiating a satisfactory contract with the seller, notjust making an offer. But before signing a contract, consider ask-ing an attorney to look it over and tell you if it protects your inter-ests.Homeowner/Condo Association DocumentsIf you are buying a home in a community with an HOA or condoassociation, you are required to review the documents and signan addendum stating the time and date of receipt. If you are un-happy with the conditions, you may withdraw your offer. With-draw of purchase contract must be done by the deadline.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  16. 16. Steps Offer(s)Items needed to make an offer to purchase a home: Copy of the approval letter with type of financing used ie; FHA, Conventional or VA Check for the Earnest Money or Certified Check made payable to the real estate company to hold in escrow account until settlement. This amount is typically 1% of the sales price. For example, if offering on a $200,000, the earnest money needed would be $2,000 Initials & signatures on contract and required addendums stating any contingencies with regards to the contract. Ratification – the process after all parties have agreed to the terms of the contract.*Due to the demand for housing and a competitive market, you may have to submitseveral offers.After ratification of your offer: Earnest money check will be deposited within 3 days of acceptance Copy of the ratified contract will be sent to loan officer Appraisal and abstract research will be ordered by loan officer Home inspection will need to be conducted and report reviewed within time specifiedThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  17. 17. Steps Pre-Paid Expenses and Closing CostsThere may be closing costs customary or unique to a certain locations, but closingcosts are usually made up of the following: • Appraisal • Credit Report • Flood certification • Home, radon and termite inspections • Attorneys or escrow fees (Yours and your lenders if applicable) • Property taxes (to cover tax period to date) • Interest (paid from date of closing to 30 days before first monthly payment) • Loan origination fee (covers lender’s administrative cost) • Recording fees • Survey fee • First premium of mortgage insurance (if applicable) • Title Insurance (owner’s and lenders) • Loan discount points • First payment to escrow account for future real estate taxes and insurance • Paid receipt for homeowners insurance policy • Any documentation preparation fees • Home warranty can be paid by the seller, buyer or realtor Closing costs are typically up to 3.5% of the purchase price. Consult with your lender for more details. An estimate of closing costs with be illustrated your GFE (good faith estimate).The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  18. 18. Steps Final Walk-Thru & ClosingFinal Walk-ThruThis will likely be the first opportunity to examine the house without furniture, givingyou a clear view of everything. Check the walls and ceilings carefully, as well as anywork the seller agreed to do in response to the inspection. Any problems discoveredpreviously that you find uncorrected should be brought up prior to closing. It is thesellers responsibility to fix them.Before Closing DayA week before closing, you will need to order, homeowner’s insurance a week be-fore settlement. Homeowner’s insurance – the amount of the insurance will dependon the property as well as your credit rating. Consider bundling your car and home-owners insurance. You will get a better discounted rate.Consider getting your homeowner’s insurance from these companies: Nationwide,Allstate, Farmers, Liberty Mutual, Travelers, &USAA *if you are a memberTransfer utilities in your name. As your agent, will supply a list of the utility companieswith phone #s and addresses for your reference. (I recommend waiting until the daybefore the closing just in case there may be some delays) I will review the HUD-1 be-fore settlement to make sure the fees and items are correct prior to going to settle-ment.Closing DayYou will need the following with you on closing day: certified check & your driver’slicense for verification of your identity.You will sign many documents at closing. On average closing documents are from80 to 100 pages depending on the lender documents and type of loan received.You will receive a settlement Statement, HUD-1 Form (itemizes services provided andthe fees charged; it is filled out by the closing agent and must be given to you at orbefore closing), truth-in-lending statement, copies of deed, loan documents andYOUR KEYS!The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  19. 19. Review HUD-1 Statement HUD-1—settlement statement Outlines purchase price, taxes, your total settlement fees which include: title charges, recording fees, loan items to be paid in advance (interest, PMI*, homeowners insurance for 1 year) begin- ning balance of escrow ac- count for taxes & insurance. The amounts charged on the HUD-1 can not be more than 10% from your GFE (good faith estimate) given by your lender.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  20. 20. Review What’s a home warranty?A home warranty is a service contract, normally for one year, which helps protecthome owners against the cost of unexpected covered repairs or replacement on theirmajor systems and appliances that break down due to normal wear and tear. Cover-age is for systems and appliances in good working order at the start of the contract.Check your home warranty policy to see which of the following items are covered.Also find out if the policy covers the full replacement cost of an item. ♦ Plumbing ♦ Electrical systems Watch this video from Old Republic Home Protection http://www.orhp.com/index.cfm?go=homeowners.main ♦ Furnace ♦ Water heater ♦ Heating ducts ♦ Water pump ♦ Dishwasher ♦ Garbage disposal ♦ Stove/cook top/ovens ♦ Microwave ♦ Refrigerator ♦ Washer/dryerThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  21. 21. Review Title InsuranceWhat you should know about Title InsuranceTitle insurance protects the holder from any losses sustained from defects inthe title. It’s required by most mortgage lenders. Here are five other thingsyou should know about title insurance.It protects your ownership right to your home, both from fraudulent claimsagainst your ownership and from mistakes made in earlier sales, such asmistake in the spelling of a person’s name or an inaccurate description ofthe property.It’s a one-time cost usually based on the price of the property.It’s usually paid for by the sellers, although this can vary depending onyour state and local customs.There are both lender title policies, which protect the lender, and ownertitle policies, which protect you. The lender will probably require a lenderpolicy.Discounts on premiums are sometimes available if the home has beenbought within only a few years since not as much work is required tocheck the title. Ask the title company if this discount is available.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  22. 22. Review Homeowner’s InsuranceWhat you should know about Homeowner’s InsuranceKnow about exclusions to coverage. For example, most insurance policiesdo not cover flood or earthquake damage as a standard item. Thesetypes of coverage must be bought separately.Know about dollar limitations on claims. Even if you are covered for a risk,there may be a limit on how much the insurer will pay. For example, manypolicies limit the amount paid for stolen jewelry unless items are insuredseparately.Know the replacement cost.If your home is destroyed you’ll receive money to replace it only to themaximum of your coverage, so be sure your insurance is sufficient. Thismeans that if your home is insured for $150,000 and it costs $180,000 to re-place it, you’ll only receive $150,000.Know the actual cash value. If you chose not to replace your home whenit’s destroyed, you’ll receive replacement cost, less depreciation. This iscalled actual cash value.Know the liability. Generally yourhomeowner’s insurance covers youfor accidents that happen to otherpeople on your property, includingmedical care, court costs, andawards by the court. However,there is usually an upper limit to theamount of coverage provided.Be sure that it’s sufficient if you havesignificant assets.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  23. 23. Tips Mistakes to avoidAvoid these mistakes when you are in the market to buy a home...♦ Buyers don’t ask enough questions of their lender and end up missing out on the best deal.♦ Buyers don’t act quickly enough to make a decision and someone else buys the house.♦ Buyers don’t find the right agent who’s willing to help them through the home buying process.♦ Buyers don’t do enough to make their offer look appealing to a seller.♦ Buyers don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  24. 24. Benefits Reasons to own a homeTax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage,your property taxes, as well as some of the costs involved in buying your home.Appreciation. Real estate has long-term, stable growth in value.Equity. Money paid for rent is money that you’ll never see again, but mortgage pay-ments let you build equity ownership interest in your home.Savings. Building equity in your home is a ready-made savings plan. And when you sell,you can generally take up to $250,000 ($500,000 for a married couple) as gain withoutowing any federal income tax.Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years soyour housing costs may actually decline as you own the home longer. However, keepin mind that property taxes and insurance costs will increase.Freedom. The home is yours. You can decorate any way you want and benefit fromyour investment for as long as you own the home.Stability. Remaining in one neighborhood for several years gives you a chance to par-ticipate in community activities, lets you and your family establish lasting friendships,and offers your children the benefit of educational continuity.The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  25. 25. Review Frequently Asked QuestionsQ: What is the current interest rate? Rates change daily so it is hard to pinpointthe rate. Your rate with your home purchase would depend on your credit wor-thiness, income and other qualifications.Q: Where can I find an application for a loan? Email me and I will send you acopy. The Uniform Residential Loan Application is a standard form that will beused by any loan officer/mortgage company.Q: What is “subject to third party approval” in a listing mean? When you see“subject to third party approval” in a listing, it typically means that the propertyis in pre-foreclosure status. Though in some instances, property sales have to bereviewed and approved by someone else other than the current homeownersuch as an attorney, relocation firm, etc.Q: I am viewing a listing online what does CNTG/KO and CNTG/NO KO mean?When you see the status of a listing in a CNTG status, that means that the prop-erty has a contingency on the contract and all items are waiting to be resolvedby a specified deadline in the contract. A contingency may be a home inspec-tion, third party approval, appraisal, etc.Q: What is the value of my house? Fill out a CMA request on my site and I willsend you a report of your homes value based on recent sales in the area.Q: Can I search for foreclosures on your website? You can create a homesearch for foreclosures on my site. I have to make some changes to your searchin the back office of my site. Just send me an email with your request.Q: Can I get a good deal buying a foreclosure? Sure, you can in some instancesget a property for a good price. Banks typically want to try to sell properties atthe current market values in order to keep the market stable.Q: What areas do you practice real estate in? I practice real estate in NorthernVirginia Maryland and District of ColumbiaThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  26. 26. Commuting How do you get to work? Consider these commuting optionsWashington Metrowww.wmata.comVirginia Railway Express (VRE)Fredericksburg & Manassas line(service only on weekdays) www.vre.orgMARC trainhttp://mta.maryland.gov/marc-train Slug Lines - ride the HOV-3 with other pas- sengers in the morning. Ride to work for free. For information about slugging, go to www.slug-lines.com Metro, county & city bus lines Don’t be frustrated driving in traffic!The market needs new homeowners. Call me to see how you can be one (703) 474-1754
  27. 27. Review Research schools Like a neighborhood but not sure of the school rating. Be an informed parent and home buyer, go to: www.greatschools.orgThe market needs new homeowners. Call me to see how you can be one (703) 474-1754
  28. 28. Next steps... Ready to meet me in person… LET ME “WOW” YOU (703) 474-1754 Connect with me. Via my website www.reshawnaleaven.com Search for homes, get free reports, upcoming open houses, school data, search by MLS# and more… Via phone or text message at (703) 474-1754 Via email reshawnaleaven@mris.com Via social networks Friend me on Facebook www.facebook.com/realtorleaven Follow me on Twitter www.twitter.com/realtorleaven Add me to your professional network on Linkedin www.linkedin.com/in/reshawnaleaven Watch my Youtube channel www.youtube.com/realtorleaven

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