1830 Washington St Chattanooga
Buyer Guide
- Get PreApproved
The preapproval process is the first step in home buying. Unless you will be making the purchase as a cash offer, you'll need financing assistance. The type of loan can vary depending on your income, debt/income ratio, credit, & various other criteria. The Battles Group can recommend several local lenders that will communicate effectively & efficiently. We work closely with your lender to ensure all parties are kept up to date. Not all homes are eligible for every type of loan, so this ensures that we narrow down our search as well.
- Begin Your Search
Searching for the perfect home may seem daunting, but it is one of the largest investments most of us make, so patience is key! Fortunately, an agent from The Battles Group will be by your side at every step. Partnering with them allows you to:
- Absorb their local insight
- Get to know neighborhood inventory levels
- Learn about emerging local trends
- See what’s about to hit the market
- Understand market averages
- Complete a thorough needs assessment
- Sign a buyer agreement for them to work on your behalf
- Tour Homes!
How can I make the most of my time when touring homes?
- With the preapproval letter ready, we will have already discussed the budget amount set for our mortgage & also what type of homes are eligible, so we can make an offer quickly since we have this ready.
- Refining your “wants” and “needs” list will help identify what’s most important to you, including both the location and the house itself.
- Preview homes - you can often cross off several on your list simply by checking out the general location.
- Once you and your agent narrow your list, you can plan an itinerary together.
- You may have an immediate attraction or disapproval when visiting a home. First impressions count, but you can also consult your agent to learn more about home values and possibly to reevaluate your priorities in the context of what’s available in your price range.
How many homes should I visit?
Sometimes buyers find their future home on the first day of touring and others look at several before they see one that checks all their boxes. It’s a good idea to see at least a few alternatives so you have some points of comparison, but sometimes you just know a place is where you want to live!
What should I look for when visiting homes?
- Be sure to note the features and fixtures that convey with the house.
- Check the condition of the home.
- Keep track of details with photos and notes.
- Consider possible home improvements you might want to make so you can research costs later.
- Don’t forget to check out the exterior features of the property and the neighborhood.
- Locate your commuter route, schools, shops, restaurants, parks, and other amenities.
- If the property is a condo or located in a homeowners association, find out the fees and rules to see if you can live with them.
- Research for property tax amount, if flood insurance is needed, etc.
- Make an Offer
When you’ve found "the one", The Battles Group can help you evaluate the market and make a well thought out offer that also protects your interests.
What are some of the important terms in an offer?
Your offer should include:
- The price
- Special stipulations – such as a request for closing cost help, or that the offer is subject to your obtaining financing and/or a home inspection, or contingent on the sale of your current home
- Target date for closing
- Earnest money deposit
- Request for final walk-through
- Time limit for the offer
What are the most common contingencies?
- Financing. Unless you’re paying cash, it’s typical to write your offer with a contingency clause that lets you off the hook if you can’t finalize your mortgage within a certain number of days. Even though you have a pre-approval for a loan, it’s smart to protect yourself.
- Home inspection. Your offer can be made dependent on a satisfactory home inspection report within a certain number of days. This protects you if the inspection uncovers expensive necessary repairs. (You can also negotiate repairs.)
- Appraisal. Just in case the property receives a value less than purchase price.
- Sale of your current home.
What happens if I face multiple offers?
In a hot housing market, you may find yourself competing against other buyers. With access to real-time market data, The Battles Group will be your ally and help know how to best position your offer. You and your KW agent can work together to find out what’s important to the seller, such as a specific moving date, and to discuss possibly waiving contingencies, adjusting your price, or writing a “love letter” about the house.
What is a counteroffer?
The seller can accept your offer as is, or they can make a counteroffer with an adjustment to your terms. You can accept or reject the counteroffer and make your own counteroffer. The contract is final once you and the seller have agreed to all terms.
- Binding Contract
What should I expect to see in the contract?
- Accuracy of information, including the legal name and the property address
- The effective date of the contract – important because your contingencies have time limits
- A list of contingencies, such as that the sale depends on financing, an appraisal, a satisfactory home inspection, and perhaps the sale of your current home
- Property disclosure information from the seller
- A complete list of what conveys with the property
- Information about when you can move in
- In some cases, such as if your offer is contingent on the sale of your home, the seller may add a “kick-out” clause, which means that the seller could accept another offer if one is made before your home is sold
This will be reviewed by all parties before signing & submitting. When buyers & sellers both agree to the terms and all signatures documented, you now have a binding contract.
- Inspection Period (Due Diligence)
As soon as your offer is accepted, you should schedule any inspections such as home, pest, septic, etc. If you’re buying in a busy season, it may take time to find an available inspector, so time is of the essence in getting this arranged!
What is a home inspection?
Your home inspector will check a massive list of systems, appliances, and structures in your home to evaluate its condition. You’ll get a written report that identifies potential problems and future maintenance issues. It’s up to you to decide whether the report means you want to walk away from a house or ask the sellers to make repairs. You can also have an “information only” inspection, which means you’re buying the house as is, but want to know its condition.
What’s included in a home inspection?
The inspector will check:
- Structural conditions such as the foundation, beams, and floors
- Roof condition
- Mechanical systems such as heat and air conditioning
- Appliances – to make sure they’re working
- Plumbing – for leaks, rust, and water pressure
- Electrical systems such as grounded outlets and code violations
- Safety issues such as stairs, handrails, mold, or chimney maintenance
- clear to close
What should I do before the closing?
As your closing nears, you should:
- Stay in close touch with your agent, lender, and title company.
- Avoid lowering your credit score with a new credit application or late payments.
- Confirm that your contract contingencies are resolved, including the home inspection, an appraisal, and your financing.
- Finalize your homeowners insurance policy.
- Gather your down payment and closing-cost funds in an accessible account.
- Review your closing disclosure form, which you’ll receive three days before your settlement, and ask questions if you don’t understand something.
- Arrange a wire transfer or get a cashier’s check for the funds you need for the settlement (depending on the amount).
- Schedule a walk-through of your new home within 24 hours before your closing to check its condition.
What can I expect at the closing?
Bring to the closing:
- A government-issued photo ID
- All paperwork associated with your loan and the home purchase
- Your cashier’s check or wire transfer confirmation
What paperwork is required to close?
You’ll be signing numerous documents, including a repeat of the documents you signed when you applied for your loan. The most important documents you’ll sign are:
- Promissory note to repay the mortgage
- Deed of trust, which gives the lender the right to foreclose if you don’t repay the loan
- Initial escrow disclosure, which outlines the funds on deposit for your property taxes and homeowners insurance bills
What’s next?
After your closing:
- Keep all your signed documents in a safe place.
- Be sure to transfer the utilities into your name, if you haven't already.
- Complete a change of address form at the post office.
- Change the locks and security codes on your home.
Congratulations! You’ve got the keys to your new home!