WHAT SHOULD I KNOW ABOUT BUYING A HOME?

Finding your new home can be an exciting time. Before you start your serious house-hunting, take some time to make sure you’re prepared for the home buying process. Wachovia can help you with your home financing needs, whether you’re staying in town or relocating.

Benefits of Buying

Buying a home is a big decision. When making this leap, it’s good to remember the benefits of this investment. If you're currently renting, buying a home may be an added tax benefit (consult a tax advisor). Because your home can build equity every month, you could make money when you sell it.

Wachovia can streamline the mortgage process. We offer personalized service from a mortgage professional who can help you determine the appropriate loan amount and program for you.

Wachovia Mortgage Loan Products

Wachovia Mortgage Rates

Wachovia Mortgage Rate Alerts

Costs of a Home

Do a little personal assessment before you walk out your front door. Review your budget and factor in the costs of owning a home. Are you able to maintain a home and make the needed repairs? If you’re thinking of a bigger home, are you factoring in bigger utility payments as well? Don’t forget your down payment and closing costs. Often, owning a home can be cheaper than renting.

Article: Buying Your First Home

Credit Check

If you’re looking at getting a loan for your new home, you’ll want to look at your credit. It might be a good idea to run a credit report on yourself and do a little credit clean up before you speak with a lender. This will give you a chance to make sure that your payments are current, and correct any misinformation promptly.

Debt Consolidation Guide

Pre-approval

If you haven’t already gotten a pre-approval letter, now is the best time. Wachovia can help you research mortgage options early so that you won’t be scrambling once you find the home you want. Getting pre-approved will let you know how much home you can afford, and it will let sellers know that your offers are serious.

Wachovia Mortgage Online Application

Making an Offer

All your searching has paid off and you’ve found the home you want. But before you start thinking of the perfect place to put your sofa, you need to get your offer accepted. Knowing how much to offer may take some thought—after all, the market conditions really affect sale prices. You or your real estate professional need to do a comparison market analysis on recent home sales. You may be able to find the sales information online through your county tax office or you may have to make a trip to the courthouse. Real estate professionals have an advantage since most of the sales information is recorded in the Multiple Listing Service for your area. If you are working with a real estate professional, ask to see the residential property disclosure on the home and find out:

• What’s the difference in asking price versus selling price in recent sales?
• How long are the houses in the neighborhood typically on the market?
• How long has the house you’re considering been on the market?
• Has the price been reduced and by how much?
• Do you know of any prior offers on the home?

You need this information to make a reasonable offer. Everybody wants to feel like they got a deal, but a seller may not take a low offer seriously enough to counter. It’s not uncommon in some areas for homes to sell well above the asking price. Be prepared to go back and forth during the negotiation process until a final number is agreed upon. Remember that generally verbal offers concerning real estate are not binding, so make sure that all changes to your offer to purchase contract get made in writing and are initialed by all parties.

Purpose of Earnest Money Deposit

You need to include with your offer an earnest money deposit to show “good faith” that you intend to buy the home. The exact amount is up to you and the seller, but usually is 1 to 4% of the offer price. At closing, your money is applied toward the purchase price or closing costs of the home.

Obtaining a Loan

In order to close the deal, you need to secure the necessary financing for the home. Set up some time to get your personal papers in order:

• Current pay stubs, including year-to-date income
• Current W-2 or tax returns, if self employed
• Bank account statements for three months
• Credit card information—lenders are looking to see if your account is current along with the number of open accounts, outstanding balance and monthly minimum payments due
• Other loan information—car, existing mortgage, student loans, home equity lines—the same guidelines apply as for credit cards
• Investment Information—include any account numbers, current values, and three months of statements

And as with most lenders, Wachovia requires that the home you want to purchase pass an inspection and your loan amount will be based on the lesser of the appraised value or sales price.

First-Time Home Buyer Tools and Information

Closing on the Home

Keep your composure and look over your figures carefully. Your closing agent will prepare a closing statement detailing all of the expenses for the day of closing. Be sure that you know ahead of time how much money you need for closing costs—the funds must be in the form of a certified check. Plus, you’ll need to provide a copy of your homeowners insurance policy and evidence showing you’ve paid one year’s worth of homeowner’s insurance.

Your closing agent will also ensure that the title to your home is being transferred clear of any disputes, blemishes, or liens. Ask for the receipts in case you should need to contact the provider in the future. All that’s left is the exchange of keys and you’re ready to move.

Financing your home requires thought, research and planning. We offer several calculators that can help you determine which type of mortgage may be right for you. By using these calculators, you can research payment amount, mortgage programs, affordability and more.

Mortgage Calculators

Relocation Tips

We understand that as you prepare to move, you’re joining more than 43 million Americans who will relocate this year. We are well equipped to help you make a successful financial transition. However, we also realize that in all the excitement, that you’re not only worried about financial items, but all the other little details that accompany a move. These details can be easily overlooked. Here are two tools we’ve created to help make sure you have everything covered:

Move Easy with Wachovia
Have a personal Real Estate Coordinator assist you through the entire home-buying process and you could get cash back after closing.

Wachovia Moving Checklist 

The information provided in this Web site is not intended to be nor should it be construed as tax or legal advice. As with any tax planning matter or strategy, please consult with your attorney and/or tax advisor.



Banking and financial services offered by Wachovia Bank, National Association and its affiliates. See specific product pages for details.

Mortgage loans are originated by Wachovia Mortgage, FSB, and are subject to credit approval, verification and collateral evaluation. Products not available in all states and are subject to change without notice. Certain restrictions apply.

Mortgage loans not available in all states.

Mortgage loans are originated by Wachovia Mortgage, FSB, and are subject to credit approval, verification and collateral evaluation. Products are not available in all states and are subject to change without notice. Certain restrictions apply.

Apply Now
All Application Forms

Personal Finance Customer Service