Buyer's Guide
Understanding Your Basic Allowance for Housing (BAH)
For service members living off base, Basic Allowance for Housing (BAH) is a vital benefit designed to help cover the cost of civilian housing. While many military families use BAH for renting, leveraging this monthly allowance toward purchasing a home can be a smart step toward long-term financial security and stability—especially when paired with a VA loan.
01Find an Agent
Set up a time to sit down with me to discuss the neighborhoods you’re considering and how I can help guide your search.
02Get Pre-Qualified
Before beginning your search, your first step is to get pre-approved for a mortgage loan (unless you will be paying the full price of your home in cash). I can recommend mortgage brokers. Based on your income and credit history, the mortgage broker will determine how much a bank will lend you, which will help determine the price range for your search.
03Visit Properties
Now is the time to consider your ideal home’s location and amenities. You will attend viewings and open houses spanning a range of areas and property types. Additionally, I will activate notifications for exclusive Coming Soon and Off-Market properties as they hit the market.
04Submit an Offer and Negotiate
Once you identify a home you like, you can put in an offer, which is an agreement to pay a certain price for the home. This offer is packaged with a Proof of Funds (POF) and Pre-Approval Letter. Note: if your offer is lower than the list price or with terms not acceptable to the seller, the seller can return with a counter-offer price or acceptable terms, which you can accept, reject, or make another counter offer. I will provide advice throughout.
05Attorney Review
Your attorney's job is vital to protecting your interests, and to review paperwork on your behalf. You will want to select an attorney who is familiar with these transactions. I can provide you with a recommended list of wellregarded attorneys in the area.
06Home Inspections
It is the buyer’s duty to select all desired inspections and determine the overall condition of the property within the agreed timeline and contractual contingencies. You will also review the disclosures and preliminary title report. You may approve or negotiate credits/repairs. Prior to closing, remember to schedule a final walk-thru of the property to verify property is still in acceptable condition and any negotiated repairs were done.
07Loan and Appraisal
Organize an appraisal with your bank. Your completed mortgage application with all supporting documentation should be submitted to your chosen lender upon receipt of the fully signed Purchase Agreement. The bank then issues loan approval. Consequently, you'll wire the closing funds with the homeowner’s insurance in place, and then the loan will be funded with clearance to close.
08Negotiations
A final walkthrough of the property is scheduled and completed just before closing. The walkthrough confirms that no damage has been done to the home since the time of inspection and that the major systems and appliances are in working order.
09Closing
Once all the conditions of the contract have been satisfied, the closing is held. The closing documents are signed, payment is exchanged, and you receive the keys to your new home!
10Welcome Home!
Congratulations! You are now a homeowner.
Key Terms
Appraisal
Assessment of the property’s market value, for the purpose of obtaining a mortgage and performed by a licensed appraiser.
Assessed Value
Value placed upon property for property tax purposes by the Tax Collector.
Closing Costs
Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, title insurance and escrow fees.
Contingency
Certain criteria that have to be met in order to finalize the sale.
Debt-to-income ratio
The percentage of an individual's monthly gross income relative to the amount of debt owed.
Earnest Money Deposit (EMD)
A good faith deposit the buyer makes with an offer to show that you are serious about buying the property. In exchange, the seller agrees to stop marketing the property.
Final Walkthrough
The buyer reviews the house just before closing to make sure everything is in the same condition and that all home inspection items are fixed.
Inspection
An expert conducts a formal review of the property to find visible issues that need to be repaired. Buyers typically make their offers contingent on an inspection, but sellers can conduct a pre-offer inspection to appeal to buyers. The buyer may choose to do additional inspections like radon and a sewer scope.
Lien Search
A background check on the property and the seller to ensure there are no outstanding debts or claims upon the property.
Pre-Approved
Advanced approval from a bank or other lending institution for a home mortgage.
Pre-Qualified
Potential buyers provide an overall financial picture and mortgage brokers provide an estimate of what level of loan you will likely be pre-approved for.
Title Insurance
Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.
Recording Fees
A fee paid to the local government to officially report a sale of a home; usually paid by the buyer.
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