Home Buyers Guide

Checklist For Moving

BEFORE YOU LEAVE

Address Change

Bank

Insurance

Utility Companies

Delivery Service

Medical, Dental, Prescription Histories

Schools

Pets

AND DON'T FORGET TO:

AND ON MOVING DAY:

AND AT YOUR NEW ADDRESS:

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Closing Costs

Settlement costs will vary, depending on the financing arrangement and on selling price of the home. Typically, closing costs paid by the buyer include:

LOAN ORIGINATION FEE

1% of the loan amount.

 

DISCOUNT POINTS

1% to 2% of the loan amount, depending on the mortgage interest rate.

 

APPRAISAL FEE

$350 conventional; $300 FHA

 

CREDIT REPORT FEE

$50

 

PREPAID MORTGAGE INTEREST

The interest prepaid by the purchaser for the period between the closing date and the end of the current month.

HAZARD INSURANCE PREMIUM

Lenders require that the hazard insurance be prepaid for one year and that two additional months'; premium be held in escrow to cover the first two months of the following year. The first year's premium is approximately .3% of the selling price.

 

CITY/COUNTY PROPERRTY TAXES

A reimbursement to the seller for prepaid property taxes covering the period between the closing and the end of the tax period.

 

TITLE EXAM/CLOSING FEE

The attorney's fee is generally $350 to $500.

 

TITLE INSURANCE

A one-time premium, approximately .4% of the selling price.

 

PRIVATE MORTGAGE INSURANCE

Insurance required by lenders, paid for by purchasers, for loans with loan to value ratio greater than 80%.

 

RECORDING FEES AND TAXES

These fees cover recording of the deed and the mortgage with the City or County and the State. They are approximately .4% of the selling price.

 

SURVEY

The fee for the survey, if required, will be in the range of $200 - $250. The figure will be higher if acreage is involved.

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Methods Of Taking Title

In recent years, there have been extensive changes made in Virginia law concerning methods of taking title. Please consult your real estate attorney with any questions.

TENANTS IN COMMON :  

Ownership by two or more persons who hold undivided interests, not necessarily equal, without any right of survivorship. The interests of each may be conveyed, mortgaged, devised by will, or passed to heirs if no will is left, and is subject to judgments at law or in equity.

JOINT TENANTS :  

Joint tenancy exists when two or more persons obtain an interest in property by one instrument. In joint tenancy, a deceased party's interest in the property goes to the surviving owner or owners, and not to the deceased person's heirs or next of kin. Each interest may be conveyed to a third party, and such conveyance would sever the right of survivorship, creating a tenancy in common. Each interest is subject to judgments.

 

 

TENANTS BY THE ENTIRETIES :  

This is a joint tenancy between husband and wife. Ownership to the whole property is taken by the survivor and is not subject to partition or to a judgment against either individual co-tenant.

FEE SIMPLE :  (In the name of an individual.)  

Ownership can be by one person, regardless of marital status, such interest is subject to the existing laws of the Commonwealth. Currently, there are no dower or courtesy rights.

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Notice To Prospective Real Estate Purchasers

BEFORE ENTERING INTO AN OFFER TO PURCHASE, YOU SHOULD KNOW:

LEGAL REQUIREMENTS: Virginia Law requires that in order to be enforceable, all contracts for real property must be in writing. There is a contract form that can be shown to you. The form a REALTOR® recommends you to use can be modified in any way to accommodate the needs of the parties. You have the right to legal counsel and may seek such at any point.

FINANCING AND INSURANCE: Mortgage rates and associated charges vary with financial institutions in the marketplace. You have the right to select a lender and the right to negotiate terms and conditions of the loan.   Such terms may be subject to the lender's requirements. Once the seller and you have agreed on the terms of the contract, you may not change the loan terms without the written consent of the seller. The lender will require you, the purchaser, to buy hazard insurance on the property from the insurance company of your choice, subject to the lender's approval, and may possibly require that you purchase private mortgage insurance (PMI). You will also be required to purchase lender's title insurance, and you may wish to purchase owner's title insurance.

MASTER PLANS: In your purchase offer, you can include the right to review the applicable master plan for the location in which you intend to make your purchase, including maps showing planned land uses, roadways and highways, and the location and nature of proposed parks and other public facilities. This can be viewed at the various jurisdiction-planning offices and at some local libraries.

HAZARDOUS MATERIALS: Hazardous materials could affect properties you may inspect as a potential purchaser. Realtors generally do not have the technical expertise to advise you as to whether or not such materials are present. Information pertaining to hazardous substances is available from the United States Environmental Protection Agency (EPA), or the Virginia Department of Health. For further information, you can contact local health departments, the Virginia State Department of Health, and the U.S. Environmental Protection Agency (example: Radon Hotline @ 1-800-SOS-RADON). As a condition of a purchase offer, and at your expense, you may include the right to employ experts to inspect the property for various conditions and to provide an analysis of possible hazardous materials within that property, if such an inspection clause so specifies.

CONDITION OF THE PROPERTY: As a purchaser, you have the right to include in your purchase offer a provision to employ, at your expense, an expert or experts of your choice to inspect all components of the property including the soil and provide you an analysis of it's condition. If you desire to have a pre-settlement or pre-occupancy final "walk through" inspection of the property, it is advisable to include such a statement in your purchase offer.

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State Taxes

State taxes include a 4.5% sales tax, 1% of which is local tax, and a state income tax that varies from 2% - 5.75%.

City And County Taxes

Personal and real property are taxed by the City or County in which you reside. State law requires that they be assessed at 100% of the fair market value. The tax rate is set each year by the City Council or the County Board of Supervisors. The tax rates are as follows:

Locality	Real Estate Tax Rate*	Personal Property Tax Rate*	Contact Phone
Chesterfield County	$.95	$3.60	748-1321
City of Colonial Heights	$1.10	$3.50	520-9266
Goochland County	$.53 (certain localities differ)	$4.00	556-5806
Hanover County	$.81	$3.57	537-6029
Town of Ashland**	+$.09	+$.77	798-8650 x.230
Henrico County	$.87	$3.50	672-5580
City of Hopewell	$1.09	$3.05	541-2234
New Kent County	$.70	$3.75	996-9861
City of Petersburg	$1.35	$4.30	733-2318
Powhatan County	$.77	$3.60	598-5616
City of Richmond	$1.20	$3.70	646-5686

*Rate is per $100 of assessed value.

Real Estate Taxes are subject to change by each city and county. Links and phone numbers are provided to help you find the most up-to-date information.

Tax rates are as of September 2010.

**Ashland residents pay town real estate and personal property taxes in addition to Hanover County taxes.

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Steps In Purchasing A Home

AFTER YOU HAVE FOUND THE PERFECT HOUSE, WHAT WILL YOU NEED TO DO?

1.  Submit a sales contract to the seller along with an earnest money deposit, at least $1,000 or more depending on the purchase price of the property. This money is deposited in an escrow account by the purchaser's broker until closing, which typically takes place 30 to 60 days later. A settlement/closing date will be specified in your purchase contract. At closing, the earnest money deposit is applied toward your down payment.
2. The sales contract will be submitted to the seller. If accepted, it will be signed by the seller, if not, the seller may then make a counteroffer to you or simply turn down your offer and return your deposit.
3. If your contract is accepted, you will then, with the help of your Sales Associate, make application to a lending institution for a mortgage, if a mortgage is required to complete the purchase. You will need to make the application within the time frame specified in the contract and submit complete financial date including a statement of your assets and liabilities, credit card numbers and other credit references, bank statements and verification of your employment and income. The lender will have the property appraised. You, and the closing attorney you have selected, will be notified once your loan has been approved.
4. Should your purchase contract provide for inspections of the property, you will need to have the inspections completed within the time frame noted in the contract. Your Sales Associate will help you make these arrangements.
5. A real estate attorney or title company will need to be engaged to examine the title, order title insurance and a property survey (if required), coordinate closing documents with your lender and perform the closing. Your Joyner and Company, REALTORS® Sales Associate can provide you a list of closing attorneys or title companies should you need references.
6. You should plan to "walk through" the property prior to closing (usually the day before or the morning of closing) to inspect it before gaining title. You will need to notify (as with the seller) all utilities of the change of ownership and have the transfer to your name effective the day of closing.
7. The closing is usually held at your attorney's office or title company office and possession of your new home is typically at time of settlement unless otherwise provided for in the purchase contract.

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The Closing Process

Preparation and processing of all necessary documents for the transfer of ownership are prepared by the attorney/settlement agent and completed at closing. Be sure to select an attorney/settlement agent EXPERIENCED in title work and real estate settlements.

The attorney/settlement agent will examine the title and report upon it's condition, conduct settlement in accordance with terms of the purchase contract and, if applicable, the letter of instruction from the lending institution. The attorney/settlement agent will also apply for mortgage title insurance for the lending institution if such insurance is required as part of the transaction and obtain an owner's policy of title insurance for you. If required, a survey of the property will be ordered.

The attorney/settlement agent will account for all funds, including pay-off of any prior liens, and will disburse funds in accordance with the terms of the purchase contract and the loan instructions.

• The attorney/settlement agent will have received instructions from the lender as to the specific escrow expenses and will be able to provide you with the amount of the total cash needed to complete your purchase. Since it is necessary for you to bring a CERTIFIED OR CASHIERS CHECK, (generally made payable to the attorney/settlement agent) to closing, please contact your attorney/settlement agent at least two days prior to the actual closing date for the amount due.
• The lender will require hazard insurance on the property. Arrange for hazard insurance on your new property and provide your attorney/settlement agent or title company with the name of your insurance company/agent several weeks prior to closing.
• You must make arrangements for the utilities to be transferred to your name. We suggest that you contact them at least a week prior to settlement so that service will be assured on moving day. Your Joyner Fine Properties Sales Associate can provide contacts and phone numbers for connections, if needed.
• The Real Estate Settlement Procedures Act (RESPA), which applies to most residential real estate sales, requires that closing costs and all other costs associated with the sale, transfer and financing of the property be disclosed to you on a prescribed Uniform Settlement Statement. The various line items on the settlement statement are assigned to the purchasers or the sellers in accordance with provisions of the contract being settled. A copy of the Uniform Settlement Statement, sometimes referred to as the HUD 1, follows.

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The Loan Process

Most lending institutions require some confidential information as a part of the mortgage loan application. To facilitate and speed the process of loan approval, you may wish to bring the following information with you:

SOCIAL SECURITY NUMBERS

• For both borrower and co-borrower.

ASSETS

• Name and address of banks and/or credit unions for checking and savings.
• Checking and savings account numbers and balance.
• If stocks and bonds are to be cashed and used for down payment or closing, verification of such will require (copy of stock certificates, bond serial numbers or copy of transfer).
• Value of household furnishings.
• Make and model of automobiles and their value.
• If you are using equity form sale of previous property, a copy of the settlement statement is required.
• Amount of life insurance, monthly premiums and cash value, if any.
• "Gift Letter" if relative is providing gift of funds.

EMPLOYMENT

• Names and address of employers for past two years.
• Amount of base pay, commissions (if on a commission basis, copies of W-2 forms or tax returns for past 3 years* is required), auto allowance, expenses and/or bonuses.
• If self-employed, tax returns for the past 2 years and/or current audited profit and loss financial statement.

*Some lenders may require 7 years verification of employment and mortgage/rental payments.

LIABILITIES

• If applicant presently owns property, name and address of present mortgage company, loan number, approximate balance of loan and amount of monthly payment.
• Name of any firm, credit cards, etc., with outstanding balances and the account number and/or credit references with account number.
• Estimated cost of cars owned, the year and model. Name and address of lending company, loan number and balance.
• If child support or alimony is applicable to the purchaser, it will be requested that separation papers or divorce decree be shown.

VA LOANS

• A copy of Veterans DD-214 or Certificate of Eligibility is required

ON FHA LOANS

• Documented cost of child care is required.

Of paramount importance are the contractual requirements that you obtain financing within a specific period of time. When making loan application, in addition to the items mentioned before, you will also need:

• A check for the credit report, approximately $50.
• A check for the appraisal of the property, approximately $350.
• A copy of the purchase contract.
• Description of the house (number of rooms, number of baths, etc.), current real estate taxes for the property.

At the time of loan application or shortly thereafter, the lender will provide to you a "good faith" estimate of your closing costs. The lender will perform a credit check to verify all the statements on your loan application and order an appraisal on the property. While this is taking place, he will await prompt return of the employment and savings verification forms. When all of the above is complete, your application will go to the loan committee.

The length of time it takes to process your loan depends upon the type of financing you are seeking, therefore, prompt loan application and providing all information requested by lender in a timely fashion is essential. Additionally, you must make loan application within the time frame specified in the purchase contract.

You will be notified when your loan has been approved. The commitment and loan disclosure will be prepared by the lender and sent to you for your signatures. It is extremely important that you examine the contents of the commitment letter and make certain that all conditions, predications, and lender requirements are complied with. If the commitment is correct and satisfactory, sign and return it as soon as possible so that the attorney handling the closing can prepare for closing. Some lenders may require the payment of 1% loan origination fee upon acceptance of loan commitment.

Are you ready to speak with a lender now? Laura Stevens with New American Mortgage is our in-house lender. She will be happy to discuss your financing needs.

Laura Stevens
(804) 967-2450
laura.stevens@newamerican.com

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Utilities

Electricity - Dominion Virginia Power
888-667-3000

1. One full day's notice is required. Connections are not made on weekends.
2. Connection fee of $15.00 appears on your first bill.
3. A deposit of $90.00 - $180.00 will be waived if a credit check is satisfactory. The deposit will be returned after one year at current interest rate pending 12 months of continuous service and good credit.

 

Water:

Chesterfield	748-1291	3 days required for service
City of Richmond	644-3000*	2 days required for service
Hanover	537-4275	1 week required for service
Henrico	501-4275	3 days required for service

1. No deposit required for service if purchasing; $30 connection charge for Richmond.
2. *In Richmond, call 780-6350 to report water leaks.

 

Natural Gas:

Richmond Department of Public Utilities
644-3000

Serves Henrico and parts of Chesterfield; no service to Hanover

1. There is a $25.00 deposit (cooking only) to $100.00 (heated by gas) for new service if purchasing and a $25.00 - $100.00 deposit if renting. *
2. There is a $30.00 connection charge added to first bill.
   • Letter of credit from major utility company can waive deposit.

Commonwealth Gas Services (Chesterfield County)
800-543-8911

1. Forty-eight hour notice required for service.
2. A deposit will be waived with a satisfactory letter of credit from a major utility company.

Virginia Natural Gas (Hanover County)
330-2887

1. Twenty-four to forty-eight hour notice for service.
2. $180.00 deposit required for new service. A letter of satisfactory credit from a major utility company will waiver deposit.

Telephone:

Verizon
954-6222

1. Three to seven business days required for service. If residence currently receives phone service, Verizon can switch service overnight.
2. The one-time hook-up fee is $38.50.
3. Security deposit depends on credit history (credit report).

Cavalier Telephone
800-683-3944

 

Garbage and Trash Collection:

 

Richmond
780-6445

Trash is collected once a week, and one large rolling can is provided. The cost is $10.00 per month. The statement is sent with the water bill.

 

Chesterfield
748-1297

Trash is picked up every other week from cans placed at the curb by the homeowner. Each can must have a sticker which can be purchased at the treasurer's office. Cost is $1.00 per sticker. Service begins when stickers are purchased.

 

Hanover (for yard rubbish and grass clippings only)
537-6181

There is public trash collection in limited areas, only. Private contractors perform this service. Look in the Yellow Pages for private garbage collection companies that serve these areas.

 

Newspapers:

Richmond Times-Dispatch: 748-6389
Style Weekly: 358-0825
The Richmond Free Press (Weekly): 644-0496

 

Cable Television, Internet, etc.:

Comcast Cable: 1-800-COMCAST, 1-800-XFINITY
Verizon FIOS: 1-800-VERIZON 

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