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Message BUYER GUIDEY O U R G U I D E T O AS T R E S S F R E E H O M E P U R C H A S EO F C O L D W E L L B A N K E R R E A L T Y
HELLOIn today's competitive market, youneed a passionate, local advisor thatcan help you navigate the homebuying and selling process.As a valued client, you'll receive:• Expertise on neighborhoods andthe local markets• Innovative strategies to marketand sell your home• Additional insights into listings thatare not accessible online• A proven negotiator who will bewith you every step of the way• A trusted and knowledgeablepartner through closing and beyondI AM ERICAWASHINGTONMy real estate business is built on the concept of putting your needs first. an important part of that meansthat when you have a question or need support, we’re there. When you choose to work with me, you cancount on open and honest communication – in the frequency and medium (text, email, phone) you prefer.LET'S CONNECTDirect/Cell: 443-956-2660Office: 410-704-7100erica@iamericahome.comwww.iamericahome.com
TABLE OF CONTENTSABOUT METHE PROCESSGENERAL FAQ'SPREPARING TO CLOSEOFFER & NEGOTIATIONSTHE MORTGAGE PROCESSINSPECTIONS & INSURANCETHE COSTS OF BUYING A HOMEHOME SEARCH: WANTS VS NEEDS
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A P P R A I S A L :All homes that have a mortgage will require an appraisal to ensure that the home is valued correctly. An appraisal isdone strictly for the lender and costs between $400 - $895. This will be paid upfront but will be reduced from your totalclosing costs.D O W N P A Y M E N T :This is not due in full until closing day! Typically ranging from 3.5% (with an FHA loan) to 20%, and everywhere inbetween! I N S P E C T I O N S :Home inspections are important when buying a home. We want to find out everything we can that could be wrongwith the home. A general home inspection is a must, but you can also select the termite / pest inspection, radoninspection, water inspection (if well water), septic inspection (if on-site septic), stucco inspection, and lead paintinspection.C L O S I N G C O S T S :Closing costs are the fees that are needed to close and get keys for your new home — such as lender fees, transfer tax,escrow (including your taxes), reimbursements, and homeowners insurance. Closing costs typically range from 3%-5% ofthe purchase price of the home.The initial amount you put to secure the home for our offer. This ranges from 2% to 3% and is reduced from your finaldown payment. This can be done in one deposit or split into two payments.GENERAL HOME INSPECTION:$450-$700 (DEPENDS ON SQUARE FEET) RADON:$110-$150 TERMITE:$75-$150 WATER (IF APPLICABLE): $200-$400 ON-SITE SEPTIC (IF APPLICABLE):$350-$800 ***IT IS ALSO IMPORTANT TO ELECT PROPERTY & FLOOD INSURANCE TO MAKE SURE THAT THERE WERENO MAJOR CLAIMS ON THE PROPERTY THAT WERE NOT DISCLOSED! *COSTS MAY VARY DEPENDING ON THE INSPECTION COMPANY USEDTHE COSTSOF BUYING A HOMED E P O S I T :AVERAGE COSTS443-956-2660erica@iamericahome.comiamericahome.com
M Y R E C O M M E N D E D L E N D E R SYOU ARE FREE TO USE WHOMEVER YOU'D LIKE - THESE ARE A FEW OF THE LENDERS I KNOW AND TRUST.THE MORTGAGE PROCESSThe very first step of the home buying process is to get a pre-approval letter from a lender statinghow much you are qualified for. A pre-approval is only valid for 30-90 days, so while you can start talking to lenders, you’ll want to waiton getting that pre-approval letter when you’re ready to buy.1. What type of loan do you recommend for me? Why? There are multiple types of mortgage loans, and youshould know which one is best for you and how it works. 2. Will my down payment vary based on the loan I choose? If you’re tight on cash or don’t want to be cashpoor, let your lender know. Loans vary in their down payment requirements.3. What is the interest rate and the annual percentage rate (APR)? Everyone talks about the interest rate, butthe APR is just as important. It combines the interest rate with the fees a lender charges to originate yourloan.4. Can I lock in the interest rate? If so, for how long? If you think rates will be moving up, ask if you can lock itin for a set period of time.5. What will my closing costs be? Are they a part of my loan, or will I pay them in cash at closing? Closing costsusually run 3-5% of your loan value so you need to know how they’ll be covered.Q U E S T I O N S T O A S K P O T E N T I A L L E N D E R S :(443) 956-2660 erica@iamericahome.com iamericahome.comMIKE FAGAN, NMLS #182530GUARANTEED RATE AFFINITYMIKE.FAGAN@GRARATE.COM410-409-4947AARON MATTY, NMLS #1063170PRIME RESIDENTIAL MORTGAGEAMATTY@PRIMERES.COM443-375-6466443-717-2070CHRIS MOYLAN, NMLS #304773FIRST PRYORITY BANKCMOYLAN@THEMOYLANTEAM.COM443-623-0609ANDREW WAGNER, NMLS ID: 1638034CHURCHILL MORTGAGEANDREW.WAGNER@CHURCHILLMORTGAGE.COM
MORTGAGE LOAN GUIDEWHICH TYPE OF LOAN IS RIGHT FOR YOU?The most common type of home loan, which is offered through private lendersLoans for homebuyers in designated rural areas, backed by the U.S. Department ofAgriculture.Loans designated for veterans, spouses, and reservists, offered through private lenders andguaranteed by the U.S. Department of Veteran Affairs.Loans designed for those with high debt-to-income ratios and low credit scores, and mostcommonly issued to first-time homebuyers. Offered by FHA-approved lenders only andbacked by the Federal Housing Administration.VA LOANFHA LOANUSDA LOANCONVENTIONAL LOANTYPE OF LOANDOWNPAYMENTTERMSOn downpaymentsunder 20%MORTGAGEINSURANCEMINIMUMCREDIT SCORECONVENTIONALVAFHAUSDA3-20%NoneNone3.5-20%15-30 Years15-30 Years15-30 Years15-30 YearsNoneNone620500640640For 11 years orlife of the loan(443) 956-2660 erica@iamericahome.com iamericahome.com
THE DO'S & DONT'SOF THE LOAN PROCESSDon’t buy a carDon’t get married or divorcedDon’t change professions or start your own businessDon’t change bank accountsDon’t buy ANYTHING! (appliances, furniture, etc.)Don’t throw away documentsDon’t get lazy with monthly bills and incur any late paymentsDon’t let anyone run your credit or apply for any credit cardsDo keep all accounts current, including mortgage, car loans, credit cards, etc.Do contact both your lender anytime a question may ariseDo make all payments on or before due dates on all accounts, even if the account is beingpaid off with your new loanDo have any lender-required money/funds to your loan officer within 72 hours after thehome inspection is completeDo return phone calls from your agent, loan officer, Settlement Company, or anyone elseinvolved in your transaction ASAP!There are certain “Do’s and Don’ts” which may affect the outcome of your loan request. Theseremain in effect before, during, and after loan approval up until The time of settlement whenyour loan is funded and recorded. Many times credit, income, and assets are verified the hourbefore you have signed your final loan documents. MAKE SURE THAT YOU DO: MAKE SURE THAT YOU DO NOT:(443) 956-2660 erica@iamericahome.com iamericahome.com
1. Use the search filters but not too much.You don’t want to narrow your search so much that you only have a handful of homes to view. Keeping yourwants vs. needs list in mind, expand your geographic search.2. If you find something that catches your eye, check out the Google street view (or do a drive-by)Online pictures can be deceiving so a virtual ‘walk down the street will give you a better sense of thehouse and surrounding area.3. Remember, you can’t change the lot or the location so make sure you love both. You also don’t want to be the priciest home on the block. I will help you assess whether or not that’s thecase.4. Don't let yourself get distracted by decor or staging. These things will be gone by the time you move in, so try to stay focused on the things that cannot bechanged as easily.5. Take your time. If a home makes a good first impression, let me know you’re interested and that you’d like to spend abit more time looking around. This is one of the largest purchases you’ll ever make so it’s worth it tolearn as much as you can while you’re there.Q U E S T I O N S T O A S K B E F O R E S E A R C H I N G F O R A H O M EOnceyou'vegotyourfinancesinorder,thefunoflookingfortheperfecthome begins!IwillsetyouuponanautomaticsearchthroughtheMultipleListingService (MLS), which is thedatabase that Realtors usetolistandsearchforhomes.The moment ahome that fits your searchcriteria is listed for sale, it will be sent directly to your email inbox. If we ever need to adjust the searchcriteria, just let me know and I can make any changes you need.W H E R E D O Y O U W A N T T O L I V E ?I S T H E R E A S P E C I F I C S C H O O L D I S T R I C T Y O U ' D L I K E T O B E I N ?A R E Y O U I N T E R E S T E D I N N E W C O N S T R U C T I O N O R A R E S A L EH O M E ? W H A T S T Y L E H O M E W O U L D Y O U P R E F E R ?A R E S T A I R S A C C E P T A B L E ?D O Y O U W A N T A G A R A G E ?W H A T S I Z E L O T W O U L D Y O U P R E F E R ?D O E S I T M A T T E R I F Y O U A R E I N A N H O AD O E S H A V I N G A B A S E M E N T M A T T E R ?W H A T 3 F E A T U R E S O F A H O M E A R E M O S T I M P O R T A N T T O Y O U ?YOUR HOME SEARCHSOME QUICK TIPS(443) 956-2660 erica@iamericahome.com iamericahome.com
OFFER & NEGOTIATIONSO F F E R P R I C EI N S P E C T I O N SC L O S I N G D A T EE S C R O W D E P O S I TF I N A N C I N G A M O U N TP R E - Q U A L I F I C A T I O N L E T T E R O R P R O O F O F F U N D S .IN ORDER TO WRITE AN OFFER, WE WILL NEED THE FOLLOWING INFORMATION:Include a pre-approval letter that shows that you’re serious, qualified, and ready to purchase.This Is typically 1-5%of the purchaseprice.Whatpercentageoftheloan you ARE financing,andhowmuchyouareputtingdownIfgettingamortgage,thisistypically 21-45daysfromacceptance of the offer.Thiswillbe the day thekeys are handed over. Ask the sellers what their preferred settlement date Is. i will help you determine the property's fair market value. Put your best foot—and price—forward. Youmay only get one shot, so make it count. Use comps and trends as a guide, but go in with a strongnumber you know a seller would find favorable.The inspection contingency is usually anywhere from 7-10 days,to perform Inspections & renegotiate orterminate the contract If the Inspection comes back unacceptable. So you think you’ve found “the one” and you’re ready to put in an offer—one that will besimply irresistible to sellers. Let's talk about making an offer that stands out.(443) 956-2660 erica@iamericahome.com iamericahome.com
RADON INSPECTION- Radon gas is the 2nd leading cause of lung cancer in the US- it is a naturallyoccurring gas that is colorless and odorlessTERMITE INSPECTION- Ask your lender if your loan requires any certain inspections such as a WoodDestroying Organism (WDO) inspection.LEAD-BASED PAINT INSPECTION- If the home was built prior to 1978, a lead-based paint inspection isrecommendedWELL WATER / SEPTIC INSPECTION - if the home has a septic system or well water- to make sure thewater is not contaminated and the septic system is working properlyDuringtheinspectionperiod,thebuyerhastherighttohirea professional to inspect the condition ofthe home.Theinspectionwill uncoveranyissuesinthehomethatwouldhaveotherwise beenunknown.Thestandardhomeinspector’sreportwillcovertheconditionofthe home’s heating system; central airconditioning system; interior plumbing andelectricalsystems;the roof, attic, and visible insulation;walls, ceilings, floors, windows, and doors; thefoundation,basement and structuralcomponents.Youwillreceiveawritten reportofthe inspection, but I recommend you attend theinspection.ADDITIONAL INSPECTIONS YOU MAY NEED:M Y R E C O M M E N D E DI N S P E C T O R SC A L L F O R Q U O T E SR C S H O M E I N S P E C T I O N S R C S H O M E I N S P E C T I O N S . C O M 8 6 6 - 8 1 5 - 4 3 9 1 MARYLAND HOME INSPECTORS MDHI.COM 410- 925-2088B L U E C R A B I N S P E C T I O N SB L U E C R A B I N S P E C T I O N S . C O M( 4 1 0 ) 6 7 9 - 1 4 0 1INSPECTIONS(443) 956-2660 erica@iamericahome.com iamericahome.com
PREPARINGTO CLOSET I T L E :Thetitlecompanywillconductatitlesearchtoensurethepropertyislegitimateandfindifthereareanyoutstandingmortgages, liens, judgments, restrictions, easements, leases, unpaid taxes, or any otherrestrictions that would impact your ownership associated with the Property. Once the title is found to be"clear", the title company will issue a title Insurance policy that protects lenders and owners against claimsor legal fees that may rise over ownership of the property. This is required when obtaining a mortgage andis highly recommended even if you are paying cash. This will also be a part of your closing costs, and thefees are state-regulated, which means every title company will charge the same amount for title insurance,making It easier for you because you don't need to "shop around"!" C L E A R T O C L O S E " I S E X C E L L E N T N E W S ! Itmeansthemortgageunderwriterhasofficiallyapprovedalldocumentationrequiredtofundtheloan.Allthatremainsis theactualclosingprocess.FI N A L W A L K TH R O U G HWe will perform a final walkthrough the day of settlement to confirm that the seller made the repairs that wereagreed upon and to make sure no issues have come up while under contract. TRANSFER ALL UTILITIES INTO YOUR NAME (GAS, ELECTRIC, WATER,SEWER, ETC.)REVIEW THE CLOSING SETTLEMENT STATEMENT A FEW DAYS BEFORECLOSING TO ENSURE YOU HAVE THE FUNDS FOR CLOSING COSTSFINAL WALK-THROUGHWIRE FUNDS TO THE CLOSING COMPANY OR GET A CERTIFIED CHECKFROM YOUR BANKBRING YOUR DRIVER'S LICENSE OR PASSPORT TO THE CLOSING TABLE TAKE YOUR KEYS, POP THE CHAMPAGNE, AND MOVE IN!CLOSING CHECKLIST(443) 956-2660 erica@iamericahome.com iamericahome.com
Banks + Post OfficeCredit Card CompaniesInsurance CompaniesFamily + FriendsDeclutter, discard & donateCollect quotes from movingcompaniesLocate schools, healthcareproviders in your new locationSecure off-site storage if neededElectricWaterTrashGasInternetTVChoose a mover and sign contractCreate a file of moving-relatedpapers and receiptsContact homeowner’s insuranceagent about coverage for movingContact insurance companies toarrange for coverage in new home1 WEEK BEFORE3-4 WEEKS BEFORE4-6 WEEKS BEFORE2-3 WEEKS BEFORENotify the following about yourchange of address:Notify utility companies of date todiscontinue or transfer serviceNotify DMV of new addressDiscontinue additional home services(housekeeper, gardener/lawn service)Start using up things you can’tmove, such as perishablesClose/open bank accountsArrange for child and pet careon moving dayNotify HOA about upcomingmove, reserve elevator usage Confirm final arrangementsArrange transportation for your pets and plants Review your moving-day plan with moving companyTake a picture in your homePack an essentials box forquick access at new homeLabel moving boxes withthe contents insideMOVING CHECKLIST(443) 956-2660 erica@iamericahome.com iamericahome.com
NEW CONSTRUCTIONI can negotiate better terms or upgrades in your new home that the builders often do not tell buyers becausethey have the builder’s best interest and profit in mind, and not yours. I can also recommend which upgrades todo now with the builder, and what would make more sense to do after you move in. Not to mention, if anythingwere to go wrong during the process, you would definitely want someone representing YOU and your bestinterest, which is not the sales rep, as they work for the builder. FORECLOSURE/BANK-OWNED PROPERTIESThough many foreclosure homes are perceived as an excellent investment due to lower than average pricing,there are a few stipulations to consider. Many foreclosed homes are in a rough condition due to previousowners being forced out of their homes. With this in mind, the properties are rarely left in “move-in” conditionand are always sold as-is with an extremely rare chance to have the home fixed prior to purchase. While typicalescrows last 30-45 days, due to the complicated nature of the loans, these escrows take a minimum of 90-120days to close and receive keys.REASONS WHY NOT TO CALL THE AGENT ON THE SIGN The listing agent has a fiduciary duty to the seller by signing a contract with them first, you as a buyer are asecond interest. If you went to court, would you use the other person’s attorney? Of course not, you want anexperienced agent working for you to get the best price and terms that is best suited for YOU, not all one-sidedfor the seller! GENERALTHINGSKNOWTOWHAT I AM HERE TO DO FOR YOUAggressive offer strategies to ensure you get either the best deal or to have your offer accepted ina multiple-offer situationShowing you the most recent and most similar comparable homes that have settled in the area tohelp you make the most educated decision Perform a market evaluation and determine the best and most suitable homes for youI can connect you with lenders who have financing options for buyers, including down paymentassistance and low down payment programs I conduct “reverse prospecting” to proactively go after sellers looking to sell the specific type ofproperty you are looking forUpdates on searches daily In the multiple listing service so that you get the most up-to-datehomes and do not miss anyI use e-signing for all contracts and offers in order to get an offer submitted in under 15 minutesA complete referral network to help give you the best deal and any discounts when it comes to themaintenance and long term care of your new home(443) 956-2660erica@iamericahome.comiamericahome.com
“Erica helped me find my home inrecord time . She also linked me to alender who approved me for amortgage loan and advised me alongthe way on how to come up with thebest offer. Since that time (2019) shehas kept in touch with me.”"Erica is one of the greatest! She waspatient, she knew her stuff, and veryeasygoing. She was straightforwardand told you what you needed to hearabout a home not what you wantedto hear! Work with her I guaranteeyou will have what you like !"“Erica was a great asset to our househunting process. Her knowledge of the realestate industry, connections with otheragents, passion for her job and sense ofhumor made her a wonderful choice for areal estate agent. She communicateseffectively and advocated for us whenputting in offers. She also took the time toexplain the different clauses in an offer sowe would understand the process better. Ihighly recommend Erica for your realestate needs!”“We couldn’t be happier with ourexperience with Erica Washington fromColdwell Banker Realtors in Maryland! If Wecould give Erica 10 stars we would. Fromstart to finish, Erica was incredible—alwaysprompt, responsive, and willing to go aboveand beyond. She truly cared about findingus the perfect home and took the time tounderstand exactly what we were lookingfor. Her dedication, combined with heramazing personality, made the wholeprocess not only stress-free but genuinelyenjoyable. Erica is more than just a realtor;she’s someone who you won’t forget, andwe’re so grateful for her expertise andkindness. Highly recommend her to anyonesearching for their dream home!”“Mrs. Erica is very patient, andunderstanding, and she cares this hasbeen one of the most amazingexperiences of my life. When I go to getmy second home I will only do so with her.Even when I was ready to give up she wasnot and that you can not teach someonethat’s in them. Very charismatic, there isno amount of stars you can give her as arealtor or as an individual she is literally anAngel sent straight from God's hands. Irecommend her to everyone who asks.This experience because that’s exactlywhat it is an experience is life-changing.We Thank you for making us want to bebetter as people and for helping us findstability until we’re ready to go bigger MrsErica you are amazing you are a lifechanger. Thank You”