BUYERS PROCESS Once you've found the home of your dreams and you're ready to make it yours, the real excitement begins. If you don't already have a real estate agent, now is the time to find one. Although the seller's agent can help you, their job will be to look out for the best interests of the homeowner, so it's wise to have an expert to make sure you're getting a fair deal too. Your agent may recommend that you retain a real estate lawyer as well, and in some cases, it's mandated by law. Each region can have additional stipulations and regulations, but this quick guide will help you understand how the overall process of buying a home works. Getting StartedYou have decided to start the process of buying a home and achieving the American dream. Deciding what kind of home you wish to buy is the first step when trying to buy a home. Consider: What area you wish to live in? How close is it to parks, shopping, work, transportation, etc? How many bedrooms, bathrooms, and garage stalls you need? What style of home you wish to buy? Choosing Your REALTOR®Hiring a professional REALTOR® is the most important step when buying a home. Your agent represents you, working in your best interest, educating you about the real estate home-buying process, and providing their negotiating experience to get you the best home. There are many relationships you can have with a real estate agent. Contact me to learn more about how I can help you achieve your home-buying dream. What Can You Afford?Rule of thumb: you can afford a home that costs about 2½ times your yearly income. Some other factors that will help you determine how much you can afford are: How much money do you need for bills? (Be sure to include utilities, doctors, groceries, car payments, insurance, etc.) How much do you have for down payment? (The typical minimum down payment is 3-5% of the total loan amount.) How much will you need for closing costs and other payments? (Be prepared to get out your checkbook. There are several costs — along with down payment — that will arise, such as earnest money, inspection, appraisal fees, and insurance binders.) Qualifying for a loan: do not confuse loan qualification with loan approval. Even before you begin looking for a home, meet with a lender to determine how much you qualify for. Keep in mind that prequalifying with a lender does not bind you to that lender. Do not sign any paperwork that would obligate you to a lender at this point. Viewing HomesOne of the most exciting aspects of buying a home is looking at different properties in your price range and seeing houses in all sizes, conditions, and styles. It's the best real estate education of all. Finding homes to see has never been easier; you can: Work with your REALTOR® and have them send you properties directly Take the reins and search for homes online on my website. Click here to view properties. Ask me questions about any properties that you are interested in It is recommended to always try to schedule showings 24 hours in advance. Last-minute showings are possible but should not be the norm. Preparing An OfferYou will work with your agent to create a formal offer to be submitted to the homeowner or their agent. If you're happy with the home as-is and are willing to pay the full price, creating an offer is fairly straightforward. However, you may request a lower price, ask for changes to be made, and add specific stipulations to the deal. A typical offer contains many of the things detailed below: The price you're willing to pay for the home The date you want to close on the home The date you want to take possession of the home A list of items you want left in the home (such as specific appliances and home equipment) Things you want to have happen before you sign (like a home inspection, pest inspection, or any repairs) Contingencies (specific things that must happen in order for the deal to take effect, like your loan approval) Approval and NegotiationOnce you've submitted an offer, the homeowner usually responds in one of three ways. They may accept it, in which case you can move on to the next step. On the other hand, they may also deny your offer or provide you with a counteroffer. In either of the last two situations, there is often room to negotiate. Your agent will help you sort out what's fair, and will have a good idea as to what the homeowner may negotiate further on, though you ultimately have total control over what alterations you're willing to accept. Once You're ApprovedGetting your home ready for closing is very important. There are many steps that still occur behind the scenes, and many agents will play a role in closing the sale of the home. Again, your real estate agent will likely introduce you to each of these individuals and monitor progress for: Hiring a reputable home inspector who will spend several hours scouring through your new home to ensure that there are no surprises (consider hiring an inspector who is a member of one of the major home inspection associations) Removing contingencies (sometimes it's required that any stipulations are officially removed from the contract) Renegotiating the offer (if there are any issues observed by the various agencies involved, you may be able to request a reduced price for the home and/or have repairs made) Securing your home loan. Your loan officer will work diligently to get the loan approved with the mortgage lender Locking in your interest rate if you haven't already done so (your loan officer will likely guide you as to when the best time is to lock in your rate to ensure you're getting the best possible terms) Obtaining an appraisal of the home if required or requested Considering obtaining insurance (such as title, home warranty, flood, and homeowners insurance) Steps Before ClosingEach of the aforementioned agents will play a role in closing the sale of the home. Again, your real estate agent will likely introduce you to each of these individuals and monitor progress for: Opening escrow (usually done through a third-party title company) Verifying title and obtaining insurance (may be done through the title company) Performing a walk-through so that you can confirm any necessary changes have been made and that the residence is as you expect Having an attorney verify documents are in order if required or preferred Funding your escrow account Sign and Make It YoursAlthough it takes a lot of work to get to the final signing, it's worth it. The documents needed to buy a home may be 100 pages or more, so plan to spend some serious time at the office reviewing them before you sign. All payments usually come out of the payment made to the seller, so after signing, you can accept the keys. Once you've signed, the house isn't yours just yet. You'll have to wait until you reach the occupancy date to move in. However, you can use this precious time to prepare to move into your new home and schedule services to start. Congratulations, you're a homeowner! Who's Involved?Your agent will be able to introduce you to key players and will help keep track of where you are in the chain of events. Oversee the various agents and entities, as they handle the tasks that will lead to a successful closing: REALTOR®: as your real estate professional, I am committed to helping you reach all of your real estate goals Mortgage lender: the bank or firm that provides your home loan Mortgage officer/broker: the person who works for the lender and helps you obtain a loan Home inspector: the individual who examines the home for hazards and defects Home appraiser: the person who gives an educated opinion as to what the home is worth Title company: the agency that makes sure the home can lawfully be transferred, issues insurance, and may maintain the escrow account Real estate attorney: optionally, you can choose to hire an attorney to review the closing docs

WHY BUY WITH A REALTOR® We live in a fantastic age where information is only a click away. There are plenty of places to look for the home of your dreams, and you probably have a good idea of what you want or need in your future residence. Nevertheless, there are many good reasons why nearly 90% of all people who purchase homes today opt to have a real estate professional on their side: Your Agent Will Represent You.The real estate professional you hire owes you fiduciary responsibilities that protect you, allowing you to be able to shop with confidence, and security. These are their responsibilities: Loyalty: Your REALTOR® must be loyal to you and work in your best interests only, even if that is above their own best interests. You are their #1 highest priority during a real estate transaction. Confidentiality: Your REALTOR® must keep anything you tell them private and confidential. In other words, your price, terms, motivation, and personal information are all kept under a tight lip. Disclosure: Your real estate professional has a vast wealth of knowledge about the real estate transaction process. They will share anything they've learned from their years of experience to help set you up for success. This allows you to know you are always making the most informed decisions. Obedience: Your REALTOR® must obey all of your lawful instructions. You are in the driver seat. Reasonable Care: As a client of your REALTOR®, you are the most important person to the transaction. They will always attempt to be available when needed and will make sure to help you locate the best possible home for your family. Accounting: The real estate transaction is a challenging process. Your REALTOR® is accountable for ensuring that the transaction runs smoothly, all the pieces fall into place as expected, the numbers match the offer, as well as the financing approval and closing docs are taken care of. The Real Estate Agent Selling The Home Has An Obligation To The Seller.In other words, if you walk into an open house, the person representing the seller is obligated to be loyal to the seller only. That agent's job is to secure the best possible deal for the seller, which may not be in your best interests. You deserve to have someone on your side who is looking out for you. Your Agent Has Extensive Knowledge Of The Current Market.Each neighborhood and each city follows different trends. Your local agent knows which homes are up for sale in the areas you desire, and may also be able to show you neighborhoods that fit your criteria but that you may have otherwise overlooked. Most of all, an expert knows what homes are currently selling for, and can better gauge if there's wiggle room in an asking price. You Will Probably Want To See Many Homes At Once.It's nearly impossible to call up a seller and ask for the keys so you can take a look at a home, and it's twice as difficult to make the arrangements with multiple sellers all in one day. Because your agent has the reputation and experience of a professional, they can make the arrangements to view homes much quicker than you'd be able to alone. Your Agent Can Help You Find Lenders Who Are Best-Suited To Your Needs.You may have a budget in mind, but getting financing can be difficult. Your agent knows which programs are available, and which lenders are currently offering the best incentives for borrowers. Your Agent Is A Valuable Asset During The Negotiation Process.Buying a home is an emotional process, and a neutral third party will look out for your interests so you get the best possible deal. Your Agent Provides An Extra Layer Of Protection During Home Evaluations And Inspections.When you have someone representing you who knows how things should be done, they tend to happen as they should. Without representation, it's easy to be taken advantage of during the home inspection process. When You're Ready To Close, Your Agent Can Help You Navigate The Process To Make It Easier.There's a lot of paperwork and people involved in the closing of a home. Your agent will keep track of everyone, so it will feel like all you had to do was sign. Your new home will likely be one of the biggest investments you ever make, so it's imperative to have someone looking out for you throughout the process. Your agent will make it easier, safeguard you, and help ensure you're getting a good price. It's not so much a question of whether you need one, but rather, of whether you can afford to accept the risks of not having an agent by your side. This is why you always want to work with a REALTOR®.

FIND THE RIGHT NEIGHBORHOOD There's a lot of excitement when it's time to buy a new home. It's a huge investment, and you'll probably live there for years, if not the rest of your life. This will be the place where you create memories and maybe even raise a family. So it's worthwhile to identify which neighborhoods are ideal before you start looking at individual homes. A real estate agent can help you pinpoint the best areas for your budget, but if you're examining options on your own, consider the following factors: What Kind Of Neighborhood Would You Like To Live In? Do you feel more comfortable in a busy city or a quieter suburb? Do you like modern homes or historic homes in established neighborhoods? Would you prefer that there are a lot of multi-family dwellings, or mostly single-family homes? How Tight Is Your Budget?If you're working with limited funds, a real estate agent can help you identify areas that offer incentives for newcomers or programs that help first-time buyers. If you're not sure how big of a loan you'll qualify for, it's best to figure out the financing before pinning down neighborhoods and homes. What Is The Crime Level Like In The Neighborhoods You're Considering?You can use free online tools to scope out potential problems, but you should also visit each neighborhood you're considering. Bear in mind that the feel of a neighborhood will vary based on the day of the week and the time of day you visit, so consider visiting multiple times. How Far Are You Willing To Commute For Work?Some cities have fantastic public transit, which may be able to get you to work faster than your car will. It's a good idea to limit your search to areas within a reasonable distance from your place of employment, but research other transportation options, as it may open up other neighborhoods to you. What Are The Schools Like?You may not have kids yet, but educational opportunities will be important if you plan to have a family in the future. There are many websites that rate schools, so you can read reviews or check the latest test scores. Are The Neighborhoods Close Enough To Your Family?People with close family ties will certainly want to keep this in mind, as it can be difficult to continually shuffle from one relative to the next, especially if you have children. What Facilities Do You Need To Have Access To?It's a good idea to create a must-have and a want list, which include things like: Grocery stores Hospitals Places of worship Fitness centers Parks Restaurants Entertainment Cultural attractions Freeways Alternative transportation When you've got it nailed down to a few neighborhoods, consult with a real estate agent. Keep an open mind, though, because your agent might be able to come up with other neighborhoods that you've overlooked. You may also find that you're willing to change your goals a little once you have a better idea of what's happening in your market.

HOME BUYER CHECKLIST Buying a home is a thrilling and emotional process. It's a good idea to work with an experienced real estate agent from the very start, so that it goes as smoothly as possible for you. However, if you're trying to do it on your own, or just want to know what the process is like for future reference, you can use this checklist as a guide. Figure Out The FinancesVery few of us have the luxury of buying a home with cash, so almost every step hereafter is dependent on getting good financing. Work it out ahead of time to make sure you're funneling your energy to the right places. Get your finances in order by: Checking your credit report and correcting any issues on it Finding out what incentives or programs you qualify for Determining what kind of mortgage you'd like to have Applying for pre-approval and shopping around for the best rates Hone In On Ideal NeighborhoodsOnce you've figured out how much you can afford to spend, the next step is to find neighborhoods that offer homes in your price range. When comparing neighborhoods, it's a good idea to think about certain features, including: Crime Commuting Schools The age of the neighborhood Access to services or supplies you need Make A List Of Wants And Needs For Your Ideal HomeTry to limit the list of things you need in your new home to no more than five things that are absolute deal-breakers for you. The rest can go on the list of things you'd like to have. Take some of the following things into consideration: Home type (apartment, co-op, single/family home) Square footage Cost Minimum bedroom and/or bathroom count Special features (single floor, office space, yard size) Learn The Background On Specific HomesIf you're searching independently, you can find a lot of the information online. If you are working with a real estate agent, they can help you verify which homes pose little risk. You will want to learn more about: HOAs Zoning Changes Liens Easements Assessments Restrictions Visit Homes You Have An Interest InBecause you've already done your homework, this is just to make sure everything is as presented and you feel comfortable there. Generate An Offer And Begin NegotiationsBy this point, your agent should be overseeing just about everything, so it's only a matter of hammering out the details. Run A Few Final Checks To Ensure Everything Is As It Should BeThere are many things one should consider about a home when choosing to buy: Property value study Home inspection Any other checks or inspections If Any Surprises Appear During The Inspections, RenegotiateA seller may be willing to make certain repairs, or may reduce the price of the home if it wasn't up to par. If changes were completed, you'll also want to schedule a time to make a final pass through the residence. Close On Your New HomeAgain, your agent will be invaluable at this time, as they will help make sure everyone has done as they should have, make arrangements for the final deal, and also help keep track of all the people involved in closing, as well as where you are in the process. Buying a home can feel like a complicated process, or it can be incredibly simple. It really depends on what problems you encounter along the way, and whether you have the expertise needed to navigate these issues as they pop up. Overall, it's an incredibly rewarding process, and keeping a pro on your side throughout makes it even easier.

MORTGAGE 101 It's a good idea to get pre-approved by a lender before you start looking for a home. Most will give you a free consultation. Once you're pre-approved, you'll know exactly what you can afford. Then you can act immediately when you find the home you want and sellers are more comfortable accepting your offer. What To Expect In Your First Conversation With A Lender?A mortgage lender will evaluate four areas of your financial history to determine your ability to secure a loan: Credit history/credit scores The amount of monthly credit you currently have Income/employment history Your financial assets (money in the bank, investments, retirement accounts, and potential gift funds) Routine documentation you should have available: Thirty days of pay stubs Two years of W-2s or two years of tax returns (if self-employed) Two months worth of bank/asset/investment/retirement account statements (all pages) Diploma or school transcript if a full-time student during the past two years Information on any real estate you may currently own A copy of recent mortgage statements or your current lease Explanations for any derogatory credit or gaps in employment you know you may have Any correspondence with creditors if you have disputed any debts Other items that would be helpful include: A social security card A driver's license The Loan MarketIt is important to know that most of the financial institutions making the loans sell almost all their loans on what is known as "The secondary market". The lender you work with is referred to as the 'originator'. Your loan is then sold in the 'secondary market'. The largest buyers of loans are agencies called FNMA (Fannie Mae), FHLMC (Freddie Mac), and GNMA (Ginnie Mae). These huge organizations constitute the 'secondary market' and write the rules for loans that they will buy. A lender must then follow the rules these agencies have written in order for the loan (borrower and property) to qualify as conventional, VA, or FHA. During the loan process an Underwriter will evaluate your loan. Their job is to make sure that the loan fits the guidelines for a particular program (FHA, VA,  or conventional), so the loan can be sold. FHA Loans are government-insured loans that were instituted to assist buyers with minimal cash and first-time buyers to purchase a home. An FHA loan has more lenient guidelines for borrower credit history, allows for all or part of the funds needed by the borrower to be a gift, and has stricter requirements on the property's condition for the protection of the borrower. FHA loans do require inspections to ensure that the property meets the FHA guidelines. VA Loans are entitlement loans that are earned based on the number of years served in the armed forces. If you were an active service member at one time in the past. It is recommended to talk to the United States Department of Veterans Affairs to get more information about your VA entitlement. Just like FHA loans, VA loans also require inspections to ensure that the property meets the VA guidelines on the property's condition for the protection of the borrower. Conventional Loans meet the standards of the 'conventional' secondary marketplace. There are two types of conventional loans, conforming and non-conforming. Conforming Loans usually fit neatly into the box of rules and are under the prescribed maximum loan amount set each year. Both the borrower and the property fit the typical scenarios, and there is nothing unusual. Loans over the 'conforming' loan amount or loans that have some facet outside the box either related to the borrower or the property are called non-conforming loans. A loan can be non-conforming if the borrower is unable to document their income or assets, if their credit scores are low, if the property is unusual for the area, or if the loan amount or program is designated non-conforming. What's The Difference Between A Fixed Rate And An Adjustable Rate?Fixed rate mortgages are when your monthly principal and interest payment are always the same for the life of the loan. The benefit is that you always know what your principal and interest costs are. Fixed rate loans are usually amortized (paid in full) over a period of 30, 20, or 15 years. Your monthly payments are predictable over the life of the loan. (Keep in mind that your monthly mortgage payment may include principal and interest AND 1/12 of your annual property taxes and home owners' insurance. So although the principal and interest will remain steady, the taxes and insurance amounts can vary.) Adjustable rate mortgages (ARM) allow for the the interest rate to fluctuate, which makes the payment change during the life of the loan. ARMs start off with a fixed interest rate for a determined period of time (1, 3, 5, 7, 10 years), and then adjust annually after that. Typically, the shorter the fixed term is, the lower the initial rate. The lower rate means lower payments for that period of time. Once the rate adjusts, the payments can go up, if the interest rate is higher. Most loans adjust annually after the fixed rate period. Which Mortgage Is Best?There are literally dozens of loan products and hundreds of combinations of these products. A good loan consultant will listen to your needs, evaluate your situation, and recommend loan scenarios that fit your need. A home loan should fit into your overall financial plan, and help meet your long- and short-term financial goals with the desired monthly payment and equity position.Just calling around for the best rates on a 30-year mortgage could cost you thousands of dollars over the life of your loan if you don't get the loan that best fits your needs. There is so much more to the home loan process than just rates. A professional loan consultation is a vital first step in the process and is usually at no cost to you. Ten Questions To AskYour real estate professional can assist you in finding a lender for a consultation. Make an informed decision when selecting your mortgage lender. Consider asking: Are you a licensed mortgage broker, a mortgage banker, or both? Will I receive a loan estimate, and will it disclose fees that I must pay out of pocket? Do you have automated underwriting, or does my file need to go through a full underwriting process? Do you have a local underwriter? What are the approval conditions? How far in advance before closing does the mortgage package go out? How long does the full process take? Are you using a local appraiser? What is their time frame? Do you guarantee your closing date and closing costs? When can I lock my rate? Remember: if you need a referral to a reputable mortgage loan officer or mortgage broker, speak to your REALTOR®.

CLOSING ON YOUR HOME Congratulations on beginning the process to home ownership! The closing process may seem baffling if you don't deal with it on a regular basis, but your real estate agent will be by your side to monitor progress and ensure each entity is completing the necessary steps. Your agent will likely be the one to help connect you to all the various entities involved in the process as well. Hire A Title CompanyYour real estate agent can recommend several different title companies to assist you with the closing on your new home. Each title company's fees can vary from company to company, so it is important that you review these fees prior to hiring your title company. Pull A Title ReportThe title company will pull a Preliminary Title Report that contains vital information, which may affect the willingness and the ability of the parties to close an escrow. The information includes ownership of the subject property, the manner in which the current owners hold title, matters of record which specifically affect the subject property or the owners of the property, as well as a legal description of the property and an informational plat map. The Preliminary Title Report indicates the type of title insurance to be offered by the title company, and the exclusions, exceptions from coverage based on the type of title insurance policy the company intends to issue. Exclusions and exceptions can include items such as: recorded deeds of trust, easements, agreements, covenants, conditions, and restrictions. The Preliminary Title Report provides you with an opportunity to review any impediments that would prevent a clear title from passing to you. When reviewing a Preliminary Title Report, it is important to check the extent of the ownership rights or interest you will be acquiring. The most common form of ownership interest is 'fee simple' or 'fee', which is also the highest form of interest an owner can have in real estate. Liens, restrictions, and interests of others will be listed numerically as exceptions in the report. You may also have to consider interests of third parties, such as easements granted by prior owners, which limit use of the property. Some buyers attempt to clear these unwanted items prior to purchase. A list of standard exceptions and exclusions not covered by the title insurance policy is also attached. This section includes items the buyer may want to investigate further, such as laws governing building and zoning. Open EscrowYour title company will open escrow on your behalf, or the two of you may do it together. This is when you enter into an agreement with a third party, usually the title company, which then holds funds, titles, and deeds until the sales transaction is complete. The title agency also performs other tasks, like verifying the property can be sold. Complete Any Necessary InspectionsBetween the time you finalized your offer and closing, the home inspector will visit the property to relay their findings. The loan agency will likely send out an appraiser as well, and sometimes an FHA inspection is warranted or necessary. Other inspections that can occur on a property are city inspections, often known as time-of-sale or truth-in-housing inspections. It is important to note that these inspections are for building code and hazards only. They are not as in-depth as a private buyer's inspection. Obtain Any Prudent Or Necessary InsuranceAlthough the title agency will likely handle title insurance, your lender may also require you to obtain homeowner's or other policies before providing you with a loan. Some jurisdictions mandate specific types of insurance are held as well, and your real estate agent can identify which ones you'll need. Issuing a title insurance policy is an extensive and exacting process. The title insurance company will work to eliminate risks by performing a painstaking search of the public records. They search for where public records, laws, and court decisions pertaining to the property and the parties to the escrow are maintained. This is done to determine the current recorded ownership, recorded liens or encumbrances, and other matters of record, which could affect the title to the property. Once a title search is complete, the title company issues a Preliminary Title Report detailing the current status of title. Remove Contingencies And Fund The Escrow AccountSometimes law mandates that contingencies of the sale are released in writing, but it's commonly done as a formality regardless. You'll also have to place the funds needed to purchase the home into the escrow account, and the agency will then release the money to the seller after the documents are complete. Sign The Final Documents And Receive The Keys!At long last, the home is nearly yours. You'll need to sign documents that say you're receiving the property and that you accept responsibility for the payments. You'll likely receive the title, though some lenders opt to hold onto it. In the background, the title company will file the necessary documents with the proper governmental agencies, like the register of deeds. Once everything is finalized, you'll still need to wait until the agreed-upon occupancy date to enter the home. During this time, you can pack, prepare for the move, and set up services like power, water, and Internet. Although your real estate agent will be with you every step of the way, you can always call them if you have questions or need help; before, during, and after the sale.