A HOME BUYING GUIDE
PRESENTED BY:
YOUR LOCAL EXPERT
Kelly has been an active Realtor in the Greensboro area for 17 years. She has worked closely with both buyers and sellers, and forged lasting relationships with others in the real estate industry. In the years following the Great Recession, and during one of the most challenging real estate markets in history, she successfully helped hundreds of families avoid foreclosure and settle their mortgages. When the market began to recover, Kelly saw an opportunity to start her own team which has succeeded in a highly competitive marketplace. Through her leadership, drive, and ability to assemble and empower high-performing partners, she has helped hundreds of families fulfill their dreams of home ownership, maximize their profit when selling and use their equity to start investing in real estate.
KELLY WALTERS Lead Agent NCRE# 188247 336.547.6537 KellyWalters@KW.com www. KellyWalters.com
As an accomplished business owner, real estate investor, employer, and devoted mother of 3, Kelly understands that real estate is more than a business, it is about helping people realize their dreams.
Individual Buyer and Seller Agent Listing Agent and Short Sale Specialist Owner & Lead Listing Agent 2008—Certified Distressed Property Expert 2016—NC Real Estate Broker-In-Charge License 2016— NC Real Estate Firm License # C27634 Experience November 2005 to Present—Keller Williams ONE 2008—2014 Team Leung at KW Licenses & Designations 2001—NC Real Estate Broker License 2005—REALTOR® Designation 2014 to Present—Kelly Walters REALTOR® 2016 -2018—Associate Leadership Council Bold Graduate - 2008, 2015, 2016, 2019, 2020 Accreditations 2015 - 2021 Keller Williams Capper's Club 2018 & 2019 "Red Shoe Award" Recipient 2021 Top Individual Award
MEET THE TEAM
Shanna Buster
EXECUTIVE ASSISTANT LISTING MANAGER NOTARY (336)547-6537 Admin@kellywalters.com
Pamela Pasion
DIRECTOR OF MARKETING SOCIAL MEDIA GRAPHIC DESIGN
STAGER DESIGNER PROJECT MANAGER (336)706-6328 soldonstaging123@gmail.com Deana Flowers
Katy White
TRANSACTION COORDINATOR NOTARY
(336)688-7584 kathrynwhite@kw.com
PREFERRED PARTNERS
When it comos to the key people involved in your journey to home ownership, you have many choices. These are a few of the partners that I've worked closely with over the years. Your buyer packet includes several other recommendations
TRACY RICH SENIOR MORTGAGE LOAN OFFICER UHM NMLS #2229 LO NMLS #70494 NC I-179468
(336)689-5301 trich@uhm.com
JASON MOSS CLOSING ATTORNEY (336)660-0235 closings@mosswoodslaw.com
DARCY HUNTER INSURANCE AGENT (336)633-8747 darcy.hunter@ncfbins.com
"LET ME TAKE CARE OF IT!"
WHAT I DO
There are many components to buying a home.
Consultation and needs analysis
Recommend lenders and service providers
My team will coordinate & manage each of them so you can focus on your move!
Schedule showings
Prepare and review all contract and disclosure documents
WHAT YOU DO
Transaction Management from contract to closing
Select a lender and get a preapproval letter
Schedule closing, inspections and appraisals
Complete the buyer questionnaire
Provide quotes for repairs and cosmetic improvement
Negotiate repairs and seller concessions
Drive by potential homes before requesting a showing
I have a strong reputation for getting a great outcome for my clients!
Start Packing
THE PROCESS OF BUYING A HOME
PHASE I
PHASE II
PHASE III
Ensure all documents are received and signed properly Deliver due diligence fee Contract Coordination
Get Pre-approved
Start Shopping
Browse listings online Tour open houses Drive through neighborhoods Prospect for off-market sales Eliminate properties based on needs analysis
Apply for mortgage Provide all requested financial documents Review loan options Get preapproval letter
& earnest money Schedule closing
Provide any missing documents to lender
Initial consultation
Define agency relationship Establish agency services Sign buyer agency agreement Establish timeframes Review market conditions
Review Professional Services Disclosure Inspections & appraisal Title Search Clear loan conditions Get insurance quotes Negotiate repairs or concessions Remove contingencies Due diligence period ends Due Diligence Period
Schedule Showings
3-5 houses typically Schedule 24 hours in advance, when possible Provide feedback
Preparing an offer
Determine budget Set search criteria
Review disclosures Material Facts search Request payment estimate from lender CMA to determine value Establish offer terms & contingencies Negotiate counter-offers Offer accepted!
Closing
Confirm moving dates Set up utility accounts Schedule movers Verify repairs Final walk-through Review closing disclosure Wire funds to closing attorney Sign paperwork Get keys!
GETTING PREAPPROVED
1
Credit Score Debt ratio Identity Theft Collections/Judgments REVIEW CREDIT REPORT
To find the best mortgage lender, you need to shop around. Consider different options like your bank, local credit union, online lenders and more. Ask about rates, loan terms, down payment requirements, mortgage insurance, closing cost and fees of all kinds, and compare these details on every offer.
EXPLORE LOAN PROGRAMS
Down payment requirements Interest rates
Mortgage insurance Estimated payments
DETERMINE PRICE RANGE
What you "qualify" for What you want your payments to be
SET YOUR BUDGET
INCOME QUALIFICATIONS
QUALIFYING INCOME
Income from the lottery Gambling Unemployment pay Single bonuses Non-occupying co-signer income Unverifiable income Income from rental properties NON-QUALIFYING INCOME
W-2 Income/Salary Income from part-time jobs Income from a second Job Overtime & Bonuses Seasonal jobs Self-employed Income Alimony & child support (Documentation required)
W2’S FROM THE PAST 2 YEARS 3 MONTHS WORTH OF PAY-STUBS BANK STATEMENTS (PAST 3 MONTHS) PREVIOUS 2 YEARS OF TAX RETURNS LIST OF YOUR DEBTS & ASSETS DIVORCE DECREE ADDITIONAL INCOME DOCUMENTS NEEDED DOCUMENTS
TYPES OF MORTGAGE LOANS
UPFRONT MORTGAGE INSURANCE
MONTHLY MORTGAGE INSURANCE
WHO QUALIFIES
DOWN PAYMENT
MINIMUM CREDIT SCORE
Veterans Personnel with honorable discharge Reservists & National Guard Surviving Spouses
VA Department of Veteran Affairs
NONE
NONE
NONE
580
2% of the loan amount. Can be rolled into loan amount.
Someone who is buying a home in a USDA -designated rural area.
USDA Department of Agriculture
640
NONE
REQUIRED
Anyone who meets the minimum credit and income levels.
FHA Federal Housing Administration
At least 3.5% of purchase price
1.75% of loan amount
580-640
REQUIRED
Anyone who plans to purchase a fixer-upper or needs to renovate their home and meets credit & income requirements first time home buyers (a buyer who hasn't owned in the last three years) can put 3% down with a Conventional 97 program. Depending on the program, available
203K Federal Housing Administration
At least 3.5% of purchase price
1.75% of loan amount
REQUIRED
580-640
Varies from 3%-20% of purchase price
CONVENTIONAL
NONE
REQUIRED
620
OTHER LOAN PROGRAMS MAY BE AVAILABLE
BUYER CONSULTATION
We have a few goals for our meeting:
You have several choices as to how you want a real estate firm and its agents to work with you. You may want them to represent-
ESTABLISH AGENCY
Review the Working with Real Estate Agency Brochure Define our agency relationship Sign the buyer agency agreement
only you (buyer agent) both you and the seller at the same time (dual agent) only the seller (seller’s agent/subagent)
DETERMINE SEARCH CRITERIA & BUDGET
Review questionnaire Review pre-approval
Some agents will offer you a choice of these services. Others may not.
SET EXPECTATIONS FOR FINDING & VIEWING HOMES
Online search tools & apps Off-market homes Open Houses Showing Assistants
FAQ: Does it cost me anything to have a buyer's agent? In most cases, NO! The fees are paid by the seller's listing firm. Can you help me purchase new construction? YES! Just register me as your agent when you visit a model home or new community. Can I get a better price if I work directly with a For-Sale-By-Owner? NO! The seller may just see it as an opportunity to make more money. Plus, sellers are not required to disclose material issues or abide by the Code of Ethics. North Carolina is a "buyer beware" state. If you find an issue after you buy the home, you'll be stuck with it. . If I see a home that I like, should I call the listing agent to show it to me? NO! Always call me so I can review the property information and schedule a private tour. Can I visit open houses without you? YES! Just be sure to register me as your agent and do not disclose any personal information that you would not want the seller to know!
REVIEW OFFER TERMS AND CONTRACT PROCESS
Understanding due diligence Deposits and fees Buyer and seller obligations Inspections Appraisal Closing process
START HOME SHOPPING
Drive by the homes you like:
How far is the drive Do you like the neighborhood Is the yard as big as it looked in the photos Do the surrounding homes appear to be cared for How much traffic is on the street Is it conveniently located to schools, shopping, restaurants, parks
Some things to keep in mind when scheduling a home tour:
After the initial consultation and needs analysis you will likely tour 3-5 homes before making a decision. A showing assistant from my team will meet you at the home. Try to schedule at least 24 hours in advance. Some sellers will require more notice. Please have all decision makers present. We are not always able to schedule a second showing for family members. Some sellers will restrict the number of visitors. If possible, do not bring children, friends or extended family members. Some sellers will ask that we remove our shoes and/or wear a mask inside the home. Be prepared to be courteous.
OFFERS
In this market, sellers often have several offers to choose from. Price is just one of their considerations. Here are some of the other factors that matter.
A cash offer is usually more appealing than a finance offer as the seller doesn’t need to worry about the bank approving the loan. ALL CASH BUYER A conventional loan is often the least complicated. This is an appealing choice for sellers. FHA, VA and USDA loans can cause delays because they require certain repairs and approvals. LOAN TYPE Assures home sellers that the buyer can get the loan they need. Using a local lender, with a solid reputation for closing on time, can also be a valuable asset. PRE-APPROVAL DUE DILIGENCE PERIOD A negotiable period of time, usually 2-3 weeks, to complete inspections, appraisal and discover any issues that would prevent you from moving forward with the sale. During this time, you have the option of terminating the contract "for any or no reason at all". DUE DILIGENCE FEE Non-refundable "option money" that's due immediately if the seller accepts your offer. If you cancel the contract, the seller gets to keep the due diligence fee. If you complete the sale, this will be credited toward the purchase price. Generally, a minimum of 3-4 weeks when financing is involved and 2-3 weeks for a cash purchase. Some sellers may need more time to move. The more we can accomodate the seller, the more favorable your offer will appear. CLOSING TIMELINE We can ask the seller to help pay some of your closing costs and/or provide a home warranty. However, sellers typically prefer a "clean, straight-forward" offer. CLOSING COSTS Of course, price matters too! We will consider the seller's asking price, time on market, condition, upgrades and comparable sales. In this market, it is not uncommon for seller's to receive offers well-above their asking price. OFFER PRICE
NEGOTIATING AN OFFER
THE SELLER CAN:
THE BUYER CAN THEN:
OFFER IS ACCEPTED:
You will sign the purchase agreement and you are now officially under contract. The due diligence period begins. Inspections and appraisals will take place. You have until the end of the due diligence period to cancel the contract for any or no reason at all.
Accept the counter- offer
Accept the offer
Decline the offer
Decline the counter- offer
If the offer isn’t close enough to their expectation and there is no need to further negotiate.
Counter the counter- offer
You can negotiate back and forth as many times as needed until you can reach an agreement or someone chooses to walk away.
Counter-offer
A counter-offer is when the seller offers different terms to the buyer.
INSPECTIONS
WHAT IS INCLUDED ROOF & COMPONENTS EXTERIOR & SIDING BASEMENT
FOUNDATION CRAWLSPACE STRUCTURE HEATING & COOLING PLUMBING ELECTRICAL ATTIC & INSULATION DOORS WINDOWS & LIGHTING APPLIANCES ATTACHED GARAGES GARAGE DOORS GRADING & DRAINAGE ALL STAIRS
During the due diligence period, we will schedule an inspection with a reputable home inspector to do a thorough investigation of the home. Once this is complete, the inspector will provide us with a report that includes photos, information about the systems, and a summary of any issues discovered. Depending on the findings, we may order additional inspections and/or consult with specialized contractors. Once your inspections are complete, you can accept the home as-is or request repairs and concessions from the seller. Remember, sellers are not obligated to address any issues so we will be mindful and reasonable on smaller items while being very cautious and vigilant of potentially significant issues.
ACCEPT THE HOME AS IS
OFFER TO RENEGOTIATE WITH SELLER
CANCEL THE CONTRACT
HOME APPRAISAL
If you are seeking a loan to purchase the home you will need to have an appraisal performed by the bank to verify the home is worth the loan amount. Your lender will arrange for a third party appraiser to provide an opinion of value for the house you are buying.
APPRAISAL COMES IN AT OR ABOVE SALE PRICE
You are in the clear, and closing can be begin!
APPRAISAL COMES IN BELOW SALE PRICE
You could bring additional funds to bridge the gap between appraised value and contract price
You could offer to renegotiate with the seller
You could cancel the contract during the due diligence period
SCHEDULING YOUR MOVE
AFTER SIGNING
Declutter! Sort through every drawer, closet, cupboard & shelf, removing items you no longer need or like. Donate or sell items that are in good condition Get copies of medical records and store them with your other important documents Create an inventory of anything valuable that you plan to move Get estimates from moving companies
4 WEEKS TO MOVE
Give 30 days notice if you are currently renting Schedule movers/moving truck Buy/find packing materials START PACKING
2 WEEKS TO MOVE
Contact utility companies (water, electric, cable) Change address: mailing, subscriptions, etc. Minimize grocery shopping Keep on packing
1 WEEK TO MOVE
Schedule and attend a final walkthrough Finish packing Clean
Pack essentials for a few nights in new home Confirm delivery date with the moving company. Write directions to the new home, along with your cell phone number
CLOSING DAY CLOSING DISCLOSURE
Lenders are required to provide you with a closing disclosure, at least three days before closing. Those are often not the "final numbers". We will need to verify the final numbers at least 24 hours prior to closing. If there is a significant discrepancy between the original loan estimate and the closing disclosure, we must notify the lender immediately. FINAL WALKTHROUGH We will do a final walk through the home within 24 hours of closing to check the property’s condition. We will make sure any repair work that the seller agreed to make has been done. We will make sure the home is empty, clean and in the same or better condition than it was when the offer was made. We will be sure to: • Make sure all appliances are working properly • Run the water in all the faucets and check for any possible leaks • Open and close garage doors with opener • Flush toilets • Run the garbage disposal and exhaust fans CLOSING TABLE Who will be there: • Your agent • Your closing attorney The closing typically happens at the attorney's office. You will be signing lots of paperwork so get your writing hand warmed up! Some of the papers you will be signing include: the deed of trust, promissory note, closing statements and other loan documents BRING TO CLOSING Government-issued photo ID Certified check if closing funds were not wired Checkbook (just in case) Spouse, if married. Even if they are not on the contract or mortgage. RECEIVE YOUR KEYS Congratulations! It was a lot of hard work but you are now officially homeowners!! Time to throw a party and get to know your new neighbors!
I’m not normally one to write reviews, but Kelly and Alex absolutely went above and beyond to make my first home buying experience a positive and memorable one. When I first met with Kelly, I was hesitant about buying a house and making such a big commitment after living in and loving the apartment lifestyle. What I thought was going to be a meet and greet turned into an hour and a half of Kelly educating and reassuring me by walking me through the process and answering all of my questions. Kelly and Alex bent over backward to make sure I was making the right decision and all of my questions were answered. Thanks to Kelly, I ended up in the house of my dreams. I could not be happier and truly can’t thank Kelly enough for all of the help and support and, quite frankly, the attention I didn’t even know I needed. - Lauren C. Kelly is the most professional, knowledgeable and thorough realtor that we have ever been associated with. She has artfully walked us through the process and left no stone unturned. There was never any doubt that Kelly made our interests her priority and communicated clearly with us regularly. We will highly recommend Kelly to anyone we come in contact with in need of a realtor. - Bob & Nancy L.
Kelly and Alex were exceptional through this first home-buying process. They were super easy to work with and anything but pushy. Kelly has such a confidence about her that encourages you that you’re making the right decisions. We made an offer on our house and because of Kelly's professionalism, we got the house rather than the other offer. Alex reached out immediately to the inspectors, appraisal company and got the ball rolling, I didn’t have to do anything- which I loved! Getting closer to closing, Alex sent reminders and lists of what to expect on the day which was extremely helpful and put some nerves at ease. I will absolutely be using Kelly and Alex for our next home purchase and highly recommend if you’re looking for a smooth, efficient home- buying process. - Amber G. Kelly came highly recommended by a trusted colleague and she did not disappoint. The entire team was extremely helpful and very professional. They walked us through every step of the process and made our experience seamless and stress-free…fun! If you’re looking for a realtor (and team) to make you feel like you are always their #1 priority then you want to call Kelly. - Melanie L.
K elly is beyond amazing! From day one she has been on top of everything and made sure we found the perfect house for our family. She is so easy to talk to and was understanding of our wants and needs. She has taken the time to do almost the impossible for us all while being very patient (mostly with my husband). My husband and I are very very grateful for her. She is as real as they come! - Amal A.
Buyer has the right to cancel the agency agreement at any time prior to going under contract. EASY EXIT AGREEMENT
A HOME BUYING GUIDE
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