Home Buyer’s Guide

When you  work with me you will receive the professionalism that I built my reputation on, accompanied by the power and resources of the market leader in Hampton Roads.

This guide will give you important information about how I work for you to make the buying process easy and stress free, it also demonstrates why Rose & Womble Realty Company is the #1 in Hampton Roads.

My Buyer Services

Communication and Counseling

  • I focus on your wants and needs.
  • I return calls/messages promptly and maintain communication during the process.
  • I will go through and explain all documents prior to you signing.

Education and Information

  • I research constantly to stay updated on changes in the market.
  • I’ll explain all steps of the home buying process.
  • I will help to familiarize you with local communities.
  • I am your continued real estate resource after closing.
  • I can provide upgrade or remodeling guidance with my home renovation experience.

Specialized Buyer Broker Services

  • I research and evaluate the pricing of any properties of interest so you know if they are priced correctly.
  • I work with you to recommend the price and terms when presenting an offer to purchase.
  • I guarantee client confidentiality and work to strengthen you negotiation position.
  • I will review the contract and negotiate the best offer with you.
  • I present all offers and counter offers in a timely manner.
  • I only represent your interests during your home purchase.
  • I provide financial guidance and work directly with your loan officer to expedite the process.
  • I can assist you in obtaining financial pre-qualification and comparing mortgage options.
  • I work within your comfortable price range of homes.
  • I work with the mortgage company in obtaining your financing.

Professional Support

  • I schedule and organize all tours of the properties you select.
  • I will attend all inspections and advise you on all your options and I attend your final walk through and closing.
  • I am in constant communication with your attorney or settlement agent to ensure a smooth closing.

And that’s just the beginning.

I will be your Real Estate Resource for life!

Benefits of Working with Jay Jenkins

Finding and buying your perfect house is a complex situation. You are in competition with other buyers looking to buy their dream homes. There is a big difference in the level of expertise and quality of real estate agents. Give yourself the advantage of working with the very best!

My skills and services make a big difference for you!

Highly Trained Buyer Representative: I trained and educated in buyer representation to focus on finding your ideal home. I am committed to you and work with you throughout the entire buying process.

Instant Notification System: I will create your personal search website to sort all your potential homes and show you new homes as soon as they hit the market. You will be able to make notes, reject homes and mark your favorites all while receiving the most up to date information.

The Largest Inventory of Homes for Sale: I give you access to ALL listings, not just those on the Multiple Listing Service. I research new construction, can contact For Sale By Owner homes, and clients who may be considering selling their homes but haven’t put them on the market yet.

Expert Negotiation Skills: I have helped dozens of families find and purchase their dream home. My past client reviews are a testament to the expertise and negotiating skills that give my clients an advantage over buyers working with other agents.

Bargaining Power: I tell you everything I know about a specific property’s price, terms and conditions and the local market in order to give you the best bargaining position possible.

 

 The Home Buying Process

Buyers Map

 

REALTOR® vs Real Estate Agent

Not everyone with a real estate agent is a REALTOR®. A REALTOR® is also a member of the National Association of REALTORs® and must meet stricter education requirements than the law requires, and they’re bound not only by the law, but by the higher standard of the REALTOR® Code of Ethics.

That’s why only REALTORs® are allowed to use the Realtor_Blue logo. Your REALTOR® protects your interests throughout the entire transaction with the integrity, honor, professionalism, and expertise that meets the high standards set by the REALTOR® code of ethics.

Your REALTOR® isn’t just an expert on your local real estate market, but also a trusted advisor who will help you navigate a complex transaction.

What Will a REALTOR® Do For Me?

When you’re buying, your REALTOR® will…

  • help you determine how much home you can afford
  • explain financing options and help you find the right loan
  • assist in your home search through the local Multiple Listing Service, or with houses you find through REALTOR.com and other Web sites
  • provide objective data about each property – including helping find information you might not realize is available
  • provide negotiating expertise, and help resolve any issues that arise with the seller that could delay closing or void the contract
  • help you get and understand any homeowner association documents
  • coordinate appraisals and other issues your lender may require
  • help you determine what inspections are necessary, such as for dry rot, asbestos, and mold, and the condition of the roof and septic tank – just to name a few
  • explain earnest money deposits, escrow accounts, and closing costs
  • go on a final walk-through to make sure everything is in order and any repairs have been made properly
  • work with you and the seller’s agent to reach a smooth and problem-free closing

When you’re selling, your REALTOR® will…

  • go over the market conditions to help you set the right price for your home based on everything from size and condition to recent sales in your neighborhood
  • find the best places to market your property – including the local Multiple listing Service and other channels that may not be available to the general public
  • help prepare or “stage” your home for sale by suggesting small improvements that can make a big difference – everything from arranging furniture to choosing the right paint color
  • take professional photos and video, and make sure they’re included in your home’s advertising
  • coordinate inspections, appraisals, and other issues to ensure a smooth closing
  • provide negotiating expertise. and help resolve any issues that arise with the buyer that could delay closing or void the contract work with you and the buyer’s agent to reach a smooth and problem-free closing

The Nuts and Bolts of Working With Your REALTOR®

You choose your REALTOR® the way you would choose a doctor, accountant, or other professional: Meet with several, take a friend or colleague’s recommendation, or respond to an ad, etc.

Once you’ve found the REALTOR® you want to represent you, you enter into what’s called a “brokerage relationship.” In order to work together, you and your REALTOR® need a written “brokerage agreement” that outlines at a minimum: what services the REALTOR® will provide; how long he or she will be providing those services; and what fee (if any) and how it’s paid.

This agreement might be for a single day — to see a few houses — or several months. In most cases, your REALTOR® will act as Realtor_Bluewhat’s called a standard or “full-service” agent, providing you with a wide range of assistance and all the advantages of having a trained real estate professional working for you.

There are other options available to you, including hiring a REALTOR® as a limited-services agent or as an independent contractor; your REALTOR® can explain the benefits and drawbacks of each relationship. Remember that you and your REALTOR® will decide what kind of working relationship works best for you.

Whatever you and your REALTOR® agree to, once you’ve signed that brokerage agreement, your REALTOR® can start working for you and representing your interests. Whether you’re buying or selling your home — or just checking out your options – you need the expertise of someone whose job it is to know your local market inside and out.

Bottom line: You need a REALTOR®

What is Pre-Approval?

It is extremely important that you connect with a local lender. I can recommend lenders who have earned my trust and with whom my past clients have had good experiences with. The lender will work with you to determine the price you are most comfortable with.

The pre-approval process will help you in several ways:Bag-of-money

♦ You will have a better understanding of what your payments will be.

♦ You won’t waste time considering homes you cannot afford.

♦ You can select the best loan package without being under pressure. There are many options and programs to choose from in today’s market. Your lender will explain the alternatives to help you select the one best suited for you.

♦ Sellers will find your purchase offer more favorable if they know in advance of your ability to secure financing. This will make your offer more competitive if you are in competition with other offers. Today, most listing agents require a pre-approval or approval letter to accompany a purchase offers.

♦ You’ll have an estimate of your closing costs and we will explain them to you in detail.

♦ You’ll have peace of mind.

You live in the payment, focus more on this. The price of the home is less important than what you have to pay each month.

What Will the Lender Need?

  • 30 Days most recent pay stub for each borrower
  • Current LES for military borrowers
  • For VA Loans: DD214 or copy of Statement of Service
  • 2011 & 2012 W2’s for each borrower (1099 if not a W2’d employee)
  • 2011 & 2012 Federal Tax Returns, all pages
  • 2 Months bank statements all pages for checking, savings, retirement, stocks, bonds, etc.
  • Copy of Driver’s License, U.S Residency card or Gov’t Issued ID

The “Do’s and Don’ts” of Your Loan Process

While your loan is being processed there are certain “Do’s & Don’ts” which can have an effect on the outcome of your loan request. These impact your loan all the way through closing.

To ensure there are no issues with your loan:

Do…

  • Keep accounts current, such as; mortgages, car payments, and credit cards.
  • Make payments on current accounts on time, even if the account is being paid off with your new loan.
  • Keep copies of all paycheck stubs, bank account or asset statements, along with any statements for bills being paid off through this loan.

Do not…

  • Quit or change jobs unless it is the same line of work and for equal or more money. Call your loan officer if this should occur.
  • Allow anyone to make an inquiry on your credit report.
  • Make a large purchase (car, motorcycle, other real estate).
  • Co-sign for anyone else on a loan.
  • Apply for credit, take on additional debt, or complete any other credit application.
  • Charge additional debt on any existing credit account that you have.

What are my closing costs going to be?

Calculator

Lenders charge fees for giving you a mortgage.
In addition to the lender’s fees, there are other closing costs when you purchase a home:

  • Title fees
  • Recording fees
  • City and state transfer taxes, etc.

Most of the buyer’s closing costs are generated by the mortgage.

The lender’s points (also referred to as the service charge) will be your largest fees and usually run between 1 % and 3% of the loan amount.

Occasionally, the points will run more than 3% and there are some loans available with zero points.

Your lender will make all this easier by explaining your options and showing you the pros and cons of each.

 

 

Who Pays for What at Closing?

The Seller Normally Pays…

  • Real estate brokerage fees.
  • Payoff of all loans in seller’s name.
  • Fees, re-conveyance fees, and prepayment penalties.
  • Home warranty according to the contract, if any.
  • Any judgments, tax liens, , against the seller.
  • Recording fees to clear all documents of record against the seller.
  • Tax pro-ration. This is for any unpaid taxes at the time of transfer of title.
  • Any unpaid homeowner-association dues.
  • Any assessments according to the contract.
  • Grantors tax.
  • New approval of well, septic, and as-built survey (if required per contract).
  • Re-inspection fee with appraiser or home inspector (as negotiated in contract).
  • Deed preparation

The Buyer Normally Pays…

  • Lender’s title-policy premium
  • Owner’s title insurance
  • Recording charges for all documents in buyers’ names.
  • All new loan charges (except those required of the seller by the lender).
  • Interest on a new loan from date of funding to 30 days prior to first payment date.
  • Assumption/change-of-records fees for takeover of existing loan.
  • Home warranty according to contract.
  • Homeowner’s insurance premium for the first year.
  • Appraisal if not paid in advance
  • Reserve account for taxes, insurance and POA escrow.
  • Flood-certification fee.
  • Cost of survey if ordered.
  • Lenders re-inspection fees if required.

Considering New Construction?

When you go to a new construction site, you need someone to represent you!

The site agent at a new construction office represents the builder! Their job is to put together a sale that is the best for the builder. You need your REALTOR® there to protect you as the buyer.

New ConstructionBuying new construction is more complicated and time-consuming than buying a resale home. We can professionally guide you through this process. Our experience representing buyers in new construction gives us a database of information about subdivisions, floor plans, builders, the building process and other aspects that only relate to new construction.

It is very important that your interests be professionally represented when you are entering into a contract for a new construction home. These transactions are complex and the contract details must be in order to protect you and to ensure that you get exactly the home you want!

Are there any advantages to not using an agent to purchase a new home?

No. You pay nothing extra to be represented. Just as in any resale, the seller pays your agent’s fee. The builder has the advantage when you are not represented.

CAUTION: Most builders will make you give up your right to representation if you visit their model homes without an agent on the first visit. If you are interested in a new construction site call me first and I will visit the models with you.

Things Every Buyer Should Know Before Buying

  1. The most important decision you will make is choosing the right REALTOR®
  1. Property taxes and qualified home interest are deductible on an individual’s federal income tax return.
  1. Many times, a home is the largest asset an individual has and is considered one of the best investments available.
  1. A portion of each mortgage payment goes toward the principal, which is an investment.
  1. A home is one of the few investments you can enjoy while you’re still purchasing it!
  1. Your REALTOR® can show you any home, whether it is listed with a company, a builder or is a For Sale By Owner.
  1. Using a REALTOR® to purchase a For Sale By Owner is very advantageous for you, because even though the seller doesn’t have a professional looking out for their best interests, you do!
  1. A pre-approval will approve you for a specific loan amount subject to the property. In the current market this is required when negotiating with the seller.
  1. The right to conduct a home inspection, included in your purchase agreement, gives you the ability to negotiate repairs with the seller or choose not to buy the home based on its condition.
  1. A Home Protection Plan can provide coverage for selected items, such as central heat and interior plumbing, built-in appliances, water heaters, etc. If the seller is not providing this coverage, you can purchase it yourself.
  1. Working with a qualified REALTOR® helps assure you that the transaction will be handled smoothly and close on time.
  1. Don’t go ‘shopping for a deal’. Set your sights on the right house for you, and then let your REALTOR® help you negotiate the best price and terms.

What to offer for a home?

What to offerAfter being pre-qualified by a lender, you already know the max you can spend. However, what you can afford to spend has nothing to do with how much a seller is asking for their house.

The seller wants the most money possible and you want to pay the least amount of money. This leads to the negotiation process.

You want to know how much a house is worth

before you make an offer.

As your REALTOR® I will do a comprehensive price analysis before you decide on what you want to offer. I will look at the market, the sold and active homes, the area and other factors that affect value (school district, location, neighborhood amenities) so you can make an informed decision.

What contingencies should be included in an offer?

A contingency allows you to back out of the contract for a specific reason. There are typically three contingencies with a purchase contract: financing (mortgage), home inspection, and attorney approval. There are many other contingencies that might appear in a contract for purchase including:

Sale of your prior home

Approval of home owners’ association rules and regulations

Approval by the condo or co-op boards

Pest inspection, asbestos, lead

Compliance with building code

Flood hazard insurance

What Is A Home Warranty or Protection Plan?

These are service contracts that cover major and minor home appliances and systems (water heater, garbage disposal, electrical system, interior plumbing, etc). With these plans you pay a deductible for service and the service is covered up to a pre-determined limit.

For example: If your water heater breaks and can’t be fixed, you pay one deductible to get it replaced rather than the cost to diagnose it, purchase a new one, and have it installed.Warranty

Especially in homes with older systems this can be a huge savings!

These warranties do not cover pre-existing problems. If the appliance works on the day you buy the policy, it’s covered; if it was already broken, it’s not. These warranties don’t cover everything in your home. Most important, they do not cover structural problems.

The typical policy covers: the furnace, air conditioning, kitchen appliances, water heater, trash compactor, electrical system (fuses and interior wiring), and interior plumbing, but there are some serious exclusions. For example, if a pipe bursts because something gets stuck, it’s covered. If a pipe bursts because it freezes, it’s not covered. While a home warranty offers some protection against some problems, YOU are still responsible for the deductible, usually under $75.

More about home warranties…

Client Testimonials

My Military Cash Back Program

Military Family

Preserve Your Freedom of Choice

 

Regardless of which lender you use, You qualify for a superior benefits package to any program offered by USAA or Navy Federal (NFCU)

Anyone active duty or prior military is eligible for my program.

 

Military Family 215% Cash Back at Closing up to $10,000*

 

$500 Discount of the Origination Fee through Advance Financial Group

 

$50 Discount on Settlement Services with Advance Title & Abstract

 

Types of Financing

I can set up a meeting with a loan officer and make sure they discuss the possibilities available to you and help you select the right program for you.

These are the major loan types.

There are many programs available for each of these categories.

♦   VA Loans Not available to the general public, the Veteran’s Administration (VA) makes federally guaranteed loans available to eligible veterans and requires no down payment for loans up to a limit set by law. Higher loans require some down payment. The maximum interest rate is set by the VA. The monthly principal and interest payment remains constant for the life of the loan and the loan will amortize (usually in 30 years). No mortgage insurance is required.

♦   FHA Loans The Federal Housing Administration (FHA) provides mortgage insurance to lenders who originate loans according to FHA guidelines. The FHA mortgage can be utilized by nearly all homeowners. There are no income limitations and no previous home ownership restrictions. The down payment is as low as 3-5%. There several different programs available for FHA financing.

♦  VHDA Loans The Virginia Housing Development Authority (VHDA) offers mortgages for individuals and families who meet income restriction guidelines and who have not owned a home in the last 3 years. This program allows some buyers to buy their first home with affordable financing. There are several programs available under VHDA.

♦   Conventional Loans Conventional financing is available to any borrower and is usually written for 15 or 30 years. Mortgage insurance is required if the down payment is less than 20% of the purchase price. The lender may quote points wanted (if any).

Fixed-Rate Conventional MortgageThe monthly principal and interest payment (P&I) remains constant for the life of the loan. Interest rates will reflect the current market trends.

Adjustable-Rate Conventional MortgageThe principal and interest payment (P&I) will remain fixed for short periods during the term of the loan (1 year, 3 years, 5 or 7 years) but are subject to change at the adjustment period. The new interest rate will be a combination of the rate of a specific index (agreed upon by you and the lender) plus a fixed percent (called a margin or lenders’ yield). As a safety feature, most loans will stipulate the percent of adjustment allowable in the monthly payment (P&I) at any adjustment period and over the whole life of the loan (called caps).

Interest OnlyInterest-only mortgages can be used for purchase or refinance transactions and allow home buyers to make payments of “interest only” during the fixed-rate period of the ARM − five, seven or 10 years. After the interest-only period has ended, full principal and interest payments are required as the loan fully amortizes. Home buyers/homeowners can make principal reductions during the interest-only period, but aren’t required to do so.

Rehab Loans

♦     FHA 203K Streamlined – The 203k streamline is an all-in-one loan used for homes that need minor repairs.  It allows borrowers to finance the purchase of an existing home and make improvements or upgrade up to $35,000.  There is no minimum repair costs and the borrower must occupy the property.

♦     FHA 203k Full  The 203K standard is an all-in-one loan used when homes need major rehabilitation, or when repairs are structural, involves landscaping, or when the renovation costs exceed $35000 including the contingency reserve requirement.  There must be a minimum of $5000 worth of repairs, and the borrower must occupy the property.  For a purchase you may also roll in up to six months of mortgage payments if the home is not habitable during repairs.

GLOSSARY OF TERMS

CONTINGENCY: A clause in the purchase contract that if not satisfied allows for one or both parties to release from the contract without penalty.

LOAN ORIGINATION: A lender’s fee for the origination and processing of a loan.

MORTGAGE INSURANCE: (MIP, PMI or FUNDING FEE) – Insurance policy required by the lender to protect the mortgage company in the event of default (non-payment) on the loan.

MORTGAGE COMMITMENT: A document or certificate which indicates you have begun the process of applying for a mortgage and which shows you are able to qualify for a loan in the amount that you are offering for the purchase of a property.

PITI: Principal, interest, taxes and insurance. The components of a monthly mortgage payment.

POINTS: Charges by the lender to adjust the effective rate of interest on a loan. Each discount point equals one percent of the loan amount.

POSSESSION: Occupancy of a home by the buyer. Possession usually occurs after the closing on the home.

PREPAIDS: Money collected at closing to start the escrow account to pay interest, taxes and insurance.

PRE-QUALIFYING: Pre-qualification for a mortgage is obtained by meeting with a loan officer and discussing your financial situation to determine the price range and loan type which will be comfortable for your needs.

RATIFIED: Term used to denote when a purchase contract has been agreed to by all buyer and seller and contains all required signatures.

REALTOR®: A Real Estate licensed in the state, who is required by their membership in the National, Virginia and Tidewater Associations of REALTORS® to abide by a higher standard of ethics than state laws require. A Real Estate agent or salesperson is not necessarily a REALTOR®.

REAL ESTATE INFORMATION NETWORK (REIN): The local computerized system of all homes listed for sale and/or sold through REALTORS®. In our market, less than 5% of all homes sold are not listed in the REIN system.

TITLE INSURANCE: Insures against possible defects in the title which were undiscovered in a title search.

TOTAL MARKET OVERVIEW: A specialized report which shows market trends based from a home buyers perspective.

UNDERWRITING: Process of evaluating a loan application to determine the risks involved for the lender.

UNLISTED PROPERTIES (FSBO): Homes which are not listed through the REIN system; usually offered for sale by the owner(s) of the home or foreclosure properties.

VA/FHA/CONVENTIONAL EXHIBIT: A part of the Purchase Agreement which requires that a property appraise at or above the sales price. This offers you, the buyer, protection against paying more for a property than it is worth.

WALK THROUGH INSPECTION: An inspection by the buyer completed within a day or two of closing. This inspection allows the buyer to check all appliances, outlets, heating, air conditioning, plumbing, etc. to insure these items are in working order prior to closing on the property.

 


*Cash rebate deducted from purchase and/or sale side of the commission of any closed transaction through Rose and Womble Realty Company, LLC. Mortgage origination fee discount provided through Advanced Financial Group and not to be used with any other Advanced Financial Group incentive or promotional program. Settlement discount through Advance Title and Abstract only. Discount is shown on line 1101 of HUD-1. Buyers or Sellers in a short sale transaction may not be eligible due to 3rd party approval restrictions.