For Buyers

Buying a home is an exciting time in one's life. Choosing a realtor is your first step to ensuring that your new home and community meets your needs. My services and experience range from financial aid to helping you find the home that best suits you and your family. I pride myself on repeat business and hope you'll come to understand why once we have our initial consultation.

As Your Agent, I Will:

• Assure that you see all the properties in the area that meet your criteria.
• Guide you through the entire home buying process, from finding homes to view, to getting the best financing.
• Make sure you don't pay too much for your new home and help you avoid costly mistakes.
• Answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and much more.

Buying a home:

Creating your home wish list
What is a BUYER'S agent?
Eight important questions to ask your agent
Mortgage application checklist
Financing options
Mortgage calculator
Questions for your lender
Improve Your Chances of having your offer excepted
After the contract is signed

Creating your home wish list

Before the home search begins, your real estate agent will want to know as much as possible about the features and amenities you desire. To help your agent better serve you, analyze what you want and what you need in a home's features and amenities.

Features:

• Age: Do you prefer historic properties, or newer ones?
• Style: Do you have a special preference for ranches, bungalows, or another style of construction?
• Bedrooms: How many?
• Bathrooms: How many? Are they updated?
• Living and Dining Areas: A traditional, formal layout, or a more open, contemporary plan?
• Stories: How many?
• Square feet: How much space?
• Ceilings: How high?
• Kitchen: How big? Recently updated? Open to other living areas?
• Storage: Big closets, a shed, an extra-large garage?
• Parking: A garage or carport? Room for how many cars?
• Extras: Attic or basement?

Amenities:

• Office
• Play/exercise room
• Security system
• Sprinkler system
• Workshop/Studio
• In-law suite
• Fireplace
• Pool
• Hot tub
• Sidewalk
• Wooded lot
• Patio, deck, or porch
• Laundry room

What is a BUYER'S agent?

A real estate buyer's agent represents the consumer who is purchasing a property in the transaction. This agent owes full responsibility and loyalty to the homebuyer. He or she has solely the buyer's best interests in mind throughout the entire transaction process. The agent is compensated by the buyer through a negotiated fee or in some states by the commission based on the selling price of the property. It is important for the consumer to discuss the buyer agent's compensation and for the parties to agree to terms with a written contract prior to viewing properties. This agreement should detail the responsibilities of both parties throughout the process of buying a home. It should be noted that in some states legislation has been enacted to protect the buyer to the point that without a written agreement, the agent represents a seller throughout the entire transaction. Be sure to consult your real estate agent for complete details when you first start the search for purchasing any real estate property.

There are many benefits to using a buyer's agent. These agents will:

• Evaluate the specific needs and wants of a homebuyer and locate properties that fit those specifications.
• Assist the buyer in viewing properties and either accompany the client on the showings or preview the properties on behalf of the client to insure that the identified specifications are met.
• Research the selected properties to identify any problems or issues to help the consumer in making an informed decision prior to making an appropriate offer on the property.
• Present the offer to the seller's agent on behalf of the client.
• Negotiate on behalf of the buyer to help obtain the property at the best possible price.
• Review and explain all legal documents to their clients.
• Recommend and assist in securing adequate financing.
• Provide a list of potential qualified vendors such as movers, attorneys, home inspectors, etc.

Most importantly, when working with a buyer's agent, the homebuyer will know and trust that they are fully represented throughout the entire transaction process.

Choose your agent wisely. Working with a professional real estate agent is a must. Ask questions of your agent. Find out how knowledgeable he or she is about houses currently for sale in your price range and also of houses that have recently sold. Can your agent recommend a good lender that has the reputation of excellent customer service and low rates? Does your agent ask questions of you to have a full understanding of what you are looking for to help you get the most home for the money?

Eight important questions to ask your agent

Qualifications are important. However, finding a solid, professional agent means getting beyond the resume, and into what makes an agent effective. Use the following questions as your starting point in hiring your licensed, professional real estate agent:

• Why did you become a real estate agent?
• Why should I work with you?
• What do you do better than other real estate agents?
• What process will you use to help me find the right home for my particular wants and needs?
• What are the most common things that go wrong in a transaction and how would you handle them?
• What are some mistakes that you think people make when buying their first home?
• What other professionals do you suggest we work with and what are their credentials?
• Can you provide me with references or testimonials from past clients?

Mortgage application checklist

The following are some items you should have with you when applying for a mortgage:

• Copy of your Purchase and Sale Agreement.
• Your present mortgage information.
• Two-year history of employment and verification of all income sources.
• If self-employed, copies of past two years Federal Income Tax Returns.
• Information about your checking, savings and credit card accounts.
• Name, account number and outstanding balance of each of your debts.
• Application deposits.
• Information about any assets, including information regarding any other assets that will be used as funds to close.
• If FHA - Copy of Social Security card and photo ID.
• If VA - Certificate of Eligibility or DD214If Employee Relocation Client.
• Include relocation information and copy of offer, promissory note and copy of check on bridge loan.

Financing options

There are many types of financing options available to homebuyers. Here are some of the most common:

Fixed Rate Mortgage - The interest rate on a fixed rate mortgage stays the same throughout the term of the loan, usually 15 or 30 years. This means the principal interest portion of your payment remains the same. Payments are stable but initial rates tend to be higher than adjustable rate loans and often cannot be assumed by a subsequent buyer.

Balloon Mortgage - A balloon mortgage is a loan that must be paid off after a certain period. The advantage they offer is an interest rate that is lower than a mortgage that is made for 30 years.

Adjustable-Rate Mortgage (ARM) - This interest rate is linked to a financial index, such as a Treasury security or a cost of funds, so your monthly payments can vary up or down over the life of the loan, usually 25 to 30 years. Interest rates can change monthly, annually, or every 3 or 5 years. Some ARM's have a cap on the interest rate increase, to protect the borrower.

VA Loan - The VA does not lend money; it guarantees a portion of the loan so that lenders who originate the loan feel comfortable with their risk. Qualified veterans can obtain loans up to $203,000 with no down payment. VA-guaranteed loans can be combined with second mortgages and are assumable upon qualifying by any future buyer.

FHA Loan - FHA does not lend money or make a loan; rather, it insures loans. The down payment can be as low as 2.25%. Either buyer or seller may pay discount points. FHA charges a 2.25% up front Mortgage Insurance Premium (or as little as 2% for a first time home buyer) that can be financed in the mortgage amount or paid in cash (no premium is required for condominiums). The borrower must also pay an annual Mortgage Insurance Premium or .5%, which is collected monthly.

Seller Assisted Second Mortgage - The seller of the house lends the buyer enough to make up the difference between the purchase price and the down payment plus first-mortgage balance (a commercial lender may also make this kind of loan). The terms including the interest rate are based on buyer/seller agreement. It is often a short-term (5 to 15 year) loan; sometimes "interest only" payments until the term date when the balance is due in full. A buyer can then refinance the home.

Assumable Mortgage - Buyer "takes over" or assumes the mortgage obligation of the seller (with concurrence of the lender). The interest rate doesn't change and is sometimes lower than current rates. Often the loan fees are less as well.

Mortgage calculator

Questions for your lender

The following are some good questions to discuss with your lender when applying for a home loan:

• Are both fixed-rate and adjustable mortgage loans available?
• What is the interest rate?
• How long can I "lock-in" the financing at the current interest rate?
• Is a float down lock available in case rates drop after I have locked in?
• What are the other fees a lender may charge me in conjunction with my loan?
• Are funds for a second mortgage available?
• On adjustable loans, how often will the interest rate be adjusted?
• Is there a maximum limit on each rate change?
• How often will the monthly payment be adjusted?
• Is there a ceiling on payment adjustments?
• Can the term of the loan be extended?
• What is the maximum rate that can be charged over the life of the loan?
• Is there any potential for negative amortization?
• Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
• What is the "grace" period?
• How late can a monthly payment be made before a late charge is assessed?
• What will happen if a payment is missed?
• If I sell my house, will the new buyer (if he/she qualifies) be able to assume my mortgage at the same interest rate?
• Do I have to pay "points" to get my new mortgage?
• Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.
• Will the lender require mortgage insurance?
• Is the loan serviced locally or is the servicing sold? Ask for a written "good faith deposit".

Improve Your Chances of having your offer excepted

Enhance your chance of getting the home of your choice by doing the following:

First, get pre-approved for the purchase. This takes very little time and is of great value. At this time, identify the price range for which you qualify and which fits your lifestyle.

Submit a strong competitive offer. Submit the offer as if there will be multiple offers. Include substantial earnest money deposit. Acceptance of an offer is sometimes determined by the amount of the deposit. A larger amount may signify a bigger commitment to the seller.

Minimize or eliminate contingencies; the fewer contingencies, the stronger the offer.

Make a buyer profile available. Include time on the job, flexibility, and reason for purchasing seller's home.

Be prepared to preview a new property quickly. Homes sometimes sell in hours. Be prepared to make decisions quickly and be accessible to change the terms instantly. Buyer and agent need to have instant communication access via office phone, voice mail, fax, pager or cellular phone.

After the contract is signed

You've signed the contract and are looking forward to moving into your new home, but there are a few steps that cannot be overlooked. By following these easy steps, you will ensure yourself a smooth move into your new home.

First, get the home inspected. Arrange a time to return to the property for the inspection, typically a few days after the contract has been signed. A professionally licensed inspector will accompany you through the home and point out repairs or discrepancies if they exist. The seller will then be notified of these problems and will usually agree to take on the repairs.

Set up an appointment with your mortgage consultant and be prepared with the following financial statements: W-2 forms or signed tax forms for the past two years, copies of your most recent bank statements (current and consecutive for at least two months), copies of your most current pay stubs or proof of income if self-employed. Be prepared to pay an appraisal fee at this time if you have not already done so.

Work with your real estate agent to choose a title or settlement company for you and provide them with the necessary paperwork. The settlement company has the responsibility of making your transaction legal. They will do the title work, examine the survey, prepare mortgage documents and all the necessary closing paperwork. After the settlement, they will prepare packages for your mortgage lenders, accounting and title insurance, life documents with the county, and release escrow.

You will need to provide proof of homeowner's insurance at this time. You have the right to choose your own insurance company. If you have not selected one, work with your real estate agent for a referral to a reputable company.

Obtain certified funds for the settlement. The title company will be able to tell you a few days in advance the exact fees that will be due.

Conduct a final walk through of the home. Be sure to note any discrepancies from the home inspection that has already been completed. By taking the time to go through this process in a detailed and timely manner, your transition into your new home will be easy and stress-free! Now is also the time to transfer all the utilities into your name.