A Sound Decision
Investing in a home is one of the most important decisions you’ll make. So much more than a roof over your head, your home is where life unfolds and memories are made, all while building a financial foundation for your future.
Deciding how you’ll navigate your journey to homeownership is equally critical to the agent you work with. As someone who’s been in your spot before, we are familiar with what’s cycling through your mind, and as real estate agents, we have mastered the ins and outs of the buying process. When you work with us, you’ll benefit from our experience, and together we’ll work toward making sound, smart decisions for your future.
Steps to Buying a Home
The buyer consultation
The first step towards buying a new home is to meet with your Realtor®. At the buyer consultation, we get to know you and chart a course for your home-buying process.
WE’LL DISCUSS: Home loan pre-approval ~ Home search process ~ Today’s housing market ~ Buyer agency benefits ~ Your real estate needs.
Pre-Approval
As you begin home shopping, a pre-approval letter brings you, your lender, and potential home sellers confidence in knowing what you can afford, making your offer more likely to be accepted than someone who is not pre-approved
Narrowing your search
We offer many different solutions to expedite and simplify the home search process. All brokers have access to the same information, the difference is the speed at which they can get you the information
Home Shopping
During the home shopping process, your buyer agent or showing specialist will suggest homes that fit your needs, and meet you to tour selected homes The average buyer finds the right home within the first 5 homes they view The most important key to finding the right home quickly is your feedback
Make an offer
You’ve found the home of your dreams and we’ll guide you through making the right offer With the offer, you will need to provide an Earnest Money check It is usually about 1% of the offer price and will only be cashed when your offer is accepted
You Found a Home! Now What?
Inspection & Repairs
After the offer is accepted, the inspection period begins The inspection is for major items only and is paid at the time of the inspection (typically $400-$600) We have a list of recommended inspectors
Appraisal
Your lender will order an appraisal on your behalf (typically $525) to verify that the value of the home you are purchasing is worth the loan amount that you are asking for If the appraisal comes back lower than the sales price, we will renegotiate The best part of the appraisal is that it ensures you don’t overpay!
Loan approval & clear to close
This means you now have a Full Loan Commitment & A REASON TO CELEBRATE!
CLOSING!
All your time and efforts have paid off! Make sure to bring your driver’s license or official photo ID and a cashier’s check to closing made payable to the title company for the down payment and closing costs. At the end of closing, you’ll walk out with the keys to your new home!
Do’s & Don’ts during the loan process
There are certain “Do’s and Don’ts” which may affect the outcome of your loan request. These remain in effect before, during and after loan approval up until the time of settlement when your loan is funded and recorded. Many times credit, income, and assets are verified the hour before you sign your final loan documents. Here is a list that you should comply with:
make sure that you do not
Doing any of the things that may alter your credit and may risk your obtaining your loan. Also, these things may put you in default of your Sales Contract, may put your ESCROW deposit at risk, and may put you at risk of being sued.
Quit your job or change jobs. If this is likely, consult with your loan officer and call this office should this occur.
Allow anyone to make an inquiry on your credit report except your lender.
Apply for credit anywhere else except with your lender This causes more “hits” on your credit rating which can reduce your credit score
Change bank accounts or transfer money within your existing accounts
Co-sign for anyone, for any reason, for anything
Purchase or attempt to purchase anything else on credit such as another car, truck, boat, furniture or other real estate
Charge any abnormal amounts to your current credit cards or credit lines
Send in late payments, or incur late fees for anything.
Wait longer than the time frame given per your contract to provide all necessary paperwork and information to your lender when requested
make sure that you do
Keep all accounts current, including mortgages, car loans, credit cards, etc
Contact both your lender and your sales associates anytime a question may arise.
Make all payments on or before due dates on all accounts, even if the account is being paid off with your new loan.
Return phone calls from your agent, loan officer, settlement company, or anyone else involved in your transaction within 2 hours of a message.
Will mortgage pre-approvals hurt my credit score?
This is a very common myth buyers have regarding getting preapproved. Getting preapproved is 100% a benefit to you as the buyer because it will give you confidence to write offers and prevent any heartache down the road. In a competitive market like ours, a good agent and a smart seller will not even consider looking at a financed offer without a preapproval letter.
credit bureau scoring
Credit bureaus use a subtle formula that they don’t publicize about how they crunch your credit history down into a single credit score One of the things that can cost you points on your credit score is to have a bunch of inquiries coming in very close to each other. So, should you worry about what mortgage pre-approvals will do to your credit reports? Probably not.
The “Ding” for One Inquiry is Very Small.
The most a single inquiry on your credit report will cost you is five points. Often, your score, which can range from 300 to 850, will suffer even less than that. Unless you are seeking a new mortgage and are right on the cusp between a good credit score and a fair credit score, five points shouldn’t make any difference in your loan terms.
making the mortgage process easier
All of the credit bureaus understand the complex timing of getting a mortgage. Therefore, they have instituted measures to avoid reflecting pre-approval inquiries on credit reports. For instance, if you are shopping around for the best rate, and several mortgage companies make credit inquiries about you within 45 days of each other, all of those inquiries will be bundled into a single event with a miniscule effect on your credit report. Your credit report also does not include any credit inquiries made within 30 days prior to your loan application.
It is, therefore, nearly impossible that the mortgage process of pre-approval will cause enough damage to your credit score to hurt your mortgage terms, so don’t worry if your real estate agent asks to see your letter of preapproval Getting pre-approved for the mortgage you want won’t hurt you
preparing for the lender
Personal Information
Full names of all purchasers as they are to appear on title
Social security numbers of all purchasers
Present residence address for all purchasers
Previous address for all purchasers going back two years if they have not resided in the present home for two years
Home, office, and cell phone numbers.
employment information
Present Employer: Name, address and a contact person to send employment verification form
Explanation for any gap during 2 year history
Relocation letter for any transferees - giving date, salary, new location, and any relocation benefits
Previous Employer: Name, address, and a contact person, going back 2 years if not in present job 2 full years.
Present Salary: Year-to-date pay stub and last 2 year’s W-2s.
If any variable income, commission, part-time income, bonus, overtime, interest income, etc., is being used to qualify: 2 years signed federal tax returns and W-2's and/or 1099s.
If self-employed: 2 years signed federal individual and corporate returns (if applicable) Also a profit and loss statement and balance sheet
Diploma or transcript if student during 2 year period
other income
Rental Income: Copy of lease which is current and at least one year in length
Alimony and Child Support (only if used for qualification): Copy of divorce decree and property settlement (ratified) setting out terms Proof of payment will also be requested at application
Income from Notes Held: A copy of the ratified note Retirement, Social Security and Disability Income: Copy of award letter and latest check showing amount of present payment Copy of end of year statement if applicable.
assets
Bank Accounts: Name of bank, address, account numbers, types of accounts, and present balances. With checking, use average balances.
Copy of two most recent statements of all accounts. Stocks and Bonds: Copy of certificates or copy of recent (within 30 days) broker statement listing the holdings.
Life Insurance: Cash value, only if being used for down payment
Vehicles: Year, make, and value Copy of title if under 4 years old with no outstanding lien
Real Estate: Address and market value If free and clear, deed of release, deed or mortgage payoff
Present Home: Copy of sales contract, settlement sheet and/or lease
Gift letter: Form will be provided by financial representative. Donor Capacity must be verified. Receipt of funds must be shown in account.
liabilities
Credit Cards: Account numbers and outstanding balances.
Loans (Auto, Mortgage, Personal, Student, etc.): Name of institution address, account numbers, outstanding balances, monthly payments, months left on loan Copy of next payment coupon 12 months statements or canceled checks for present mortgage Alimony and Child Support: Copy of Ratified Decree and property settlement setting out terms
Va loans
Certificate of Eligibility: To obtain certificate, you will need a DD-214 (Separation of Service) or if in the Service, you will need a Statement of Service signed by Commanding Officer or Personnel Officer (certificate must be updated prior to application).
If in service, you will need Authorization to Live Off Base (DD-1717 from Housing Office)
What does a Buyer’s Agent Do?
How We Do it
Not all properties you see on the internet are available and all available properties are not on the internet
Sellers “stage” their homes for a reason We need to look at things that don’t change and how difficult it may be to change others
You want to buy a house - not just make an offer. Strategies are different if it’s a buyers’ or sellers’ market We help you get the property for the best price & terms whatever the market
We need to be the “chosen one” A poorly written contract can be totally rejected Must be sure it meets your needs while also satisfying the seller to the extent they choose your offer
We don’t want to leave anything on the table. Working with a trained negotiating expert assures you will know all of your options and the pros and cons of all your decisions
Offer acceptance is only the beginning. Getting to the closing & moving in the right direction is our responsibility It’s the quarterback’s job to get the ball in the endzone and we will be your quarterback
BENEFITS OF HIRING A Buyer’s Agent
Expert negotiation:
Buyer’s Agents are skilled negotiators who can help you get the best deal on your new home. They understand the local market and can advise you on the right price to offer.
Market Knowledge:
Buyer’s Agents have access to the latest market data, including recent sales and listings. This information can help you make informed decisions about where and when to buy.
Access to Listings:
Buyer’s Agents have access to a wide range of listings, including properties that are not yet on the market. This gives you more options and a better chance of finding your dream home.
Guidance and Support:
Buying a home can be a complex process, but a Buyer’s Agent will be there to guide you every step of the way. They can help you navigate the paperwork and answer any questions you may have.
Buyer’s Agents are familiar with the neighborhoods and communities they serve. They can provide valuable insights into the local schools, amenities, and property values.
Save Time and stress:
By working with a Buyer’s Agent, you can save time and reduce the stress of searching for a home on your own. They will handle the legwork for you, so you can focus on finding the perfect home.
A Promise Community TO THE
WE LIVE HERE, WE GIVE HERE
RED DAY
RED Day, which stands for Renew, Energize and Donate, is our annual day of service. Each year on the second Thursday of May, we celebrate RED Day as part of our legacy worth leaving. Making a difference in the lives of others and bettering the communities that we serve lies at the heart of the Keller Williams culture.
ENRICHING OUR COMMUNITY
The Barr Team is deeply committed to giving back to the community. Each Thanksgiving, they join forces with likeminded individuals to donate Blessing Baskets to local non-profit organizations. These efforts exemplify their dedication to making a positive impact in the community and helping those in need.
YOUR COMMUNITY SERVICE
Community service matters. By giving back, we can address pressing issues, uplift those in need, and build a more caring community. Community service provides an opportunity for personal growth, allowing individuals to develop new skills, and make meaningful connections with others. We encourage our team members to give back and serve, and we do so in a variety of ways.
A Promise you TO
To serve the community as a leader in the real estate industry and as a friend and neighbor.
To always do the right thing, even if it isn’t what is easiest.
To take care of your needs at the highest level through unparalleled professionalism and attention to detail. No request is too small.
To serve as a trusted local expert and adviser by your side.
To consistently and clearly communicate with you in the manner and frequency that you prefer.
To treat you and your family with straightforwardness, integrity, and respect at all times.
To hold ourselves accountable to finding the prefect home for you - after all, that is what our business is built on.
Client Testimonials: See Why They Chose Us
“Working with the Barr Team has been amazing! They are great to work with - they are honest, open, and very responsive; timely in their communication; take OUTSTANDING care of their clients; and overall provide AWESOME customer service. We have worked with many excellent realtors and the Barr Team by far is the best team we have ever worked with. Thank you Julie, Alan, and Sue for taking such GREAT care of us! They deserve 7 STARS!!.” ~ Jayne
“Working with Julie and Alan over the years has been amazing. I have personally done 3 transactions with them and plan on more in the future. Both of them are willing to go the extra mile to get to know the person/family they are selling too and selling for. I am proud to say that I've worked hand and hand with these BUSINESS ICONS.”
~ Ashley
“Julie , Alan and their team went our of their way to help us with our Father's home...Their work ethic and integrity is top notch, we highly recommend them and it was a pleasure working with them!” ~ Candy
“Jim and The Barr Team made our land purchase a breeze. Jim patiently showed me several properties in person and kept me informed as new lots came onto the market. Jim went above and beyond, visiting and taking photos of the property we eventually purchased, as we are 400 miles away. Jim's knowledge of the area, as well as market trends, was invaluable. Jim was always available via phone and email and kept us up to date on everything involved with the closing. The ability to close remotely was also a huge plus. Thank you to Jim and the rest of the Barr team! I would recommend them to anybody.” ~ John
terms Commonly used
annual household income
Collective income from everyone in your household before taxes or other deductions are taken, investment income or dividends, Social Security benefits, alimony, and retirement fund withdrawals.
APR
APR refers to the annual percentage rate, which is the interest rate you’ll pay expressed as a yearly rate averaged over the full term of the loan APR includes lender fees in the rate, so it’s usually higher than your mortgage interest rate
appraisal
A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby
appraised value
An opinion of a property’s fair market value, based on an appraiser’s knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price
Closing costs
Generally 2 to 5 percent of the purchase price which include lender fees, recording fees, transfer taxes, third-party fees such as title insurance/prepaids and escrows such as homeowner’s insurance, property taxes, and Homeowners Association fees
Closing Disclosure
A document that provides an itemized listing of the funds that were paid or disbursed at closing.
Deed
The legal document conveying title to a property
Down Payment
A cash payment of a percentage of the sales price of the home that buyers pay at closing. Different lenders and loan programs require various down payment amounts such as 3 percent, 5 percent, or 20 percent of the purchase price.
earnest money deposit
Also known as an escrow deposit, earnest money is a dollar amount buyers put into an escrow account after a seller accepts their offer. Buyers do this to show the seller that they’re entering a real estate transaction in good faith.
encumbrance
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions
equity
A homeowner’s financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens
escrow
Putting something of value, like a deed or money, in the custody of a neutral third party until certain conditions are met.
homeowners association fee (hoa)
A fee required when you buy a home located within a community with an HOA that typically pays for maintenance and improvements of common areas and may include the use of amenities.
homeowner’s insurance
Insurance that provides you with property and liability protection for your property and family from damages from a natural disaster or accident Lenders usually require borrowers to buy homeowner’s insurance
home warranty
A contract between a homeowner and a discounted repair and replacement service on a home’s major components, such as the furnace, air conditioning, plumbing, and electrical systems
lender fees
Part of the closing costs of a home purchase and may include an application fee, attorney fees, and recording fees The lender’s underwriting or origination fee is usually 1 percent of the loan amount
loan types
Mortgages have different terms ranging from 1 to 30 years and are available with fixed or adjustable interest rates Your lender can discuss down payment, insurance, credit requirements, and other specifics of various loan types.
loan types
The minimum payment of credit card debt; auto, student, and personal loan payments; and alimony or child support. Rent or mortgage for a property that you will pay after your home purchase must also be included.
Mortgage
A loan from a bank, credit union, or other financial institution that relies on real estate for collateral The bank provides money to buy the property, and the borrower agrees to monthly payments until the loan is fully repaid.
mortgage insurance
Insurance that protects the lender and repays part of the loan if the borrower defaults and the loan can’t be fully repaid by a foreclosure sale Usually required on loans with less than a 20 percent down payment
Property Taxes
Typically imposed by local governments on real property including residential real estate. The tax rate can change annually, and the assessed value of your property is usually recalculated annually.
prepaids
Prepaids are expenses paid at the closing for bills that are not technically due yet, such as property taxes, homeowner’s insurance, mortgage insurance, and HOA fees.
third-party fees
Any closing costs charged by someone other than your lender, typically including fees for an appraisal, a property survey, a title search, owner’s and lender’s title insurance, and sometimes an attorney.
after the closing
An Ongoing Relationship with our Clients
While the closing may mark the end of the purchase process, we hope it will mark the beginning of our ongoing relationship. We make a concerted effort to keep in touch with our clients and to continue to be a resource for their real estate and neighborhood needs. As a client, you can look forward to receiving updates on the market and neighborhood events. Of course, if you need referrals for plumbers, electricians and other service professionals, we are always happy to provide you with a list of trusted vendors
your referrals are key!
Maintaining ongoing client relationships is part of our commitment to provide a level of real estate service well above and beyond expectations. Our clients share their positive experiences with friends and associates who then seek us out. This has allowed us to build a successful real estate practice based on referrals As a result, we can devote more of our time helping clients and less looking for new ones. If you are happy with our services, we hope you will spread the word and send people our way so we can help them the same way we helped you. That’s a win-win all around!
