Buyer's Resources
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Overview of the Buying & Selling
Process |
Buyer |
1 |
Considers purchasing a home |
2 |
Selects a real estate agent |
3 |
Determines needs and wants |
4 |
Discusses financial issues |
5 |
Views & researches target homes |
6 |
Makes an offer to buy |
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Seller |
1 |
Decides to sell property |
2 |
Selects a real estate agent |
3 |
Determines needs |
4 |
Prepares home for marketing |
5 |
Agent markets the home |
6 |
Accepts, rejects or counters offer |
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7 |
Offer Accepted |
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8 |
Loan Application |
9 |
Inspections |
10 |
Title Search |
11 |
Appraisal |
12 |
Loan Approval |
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13 |
Closing Papers Signed |
14 |
Documents Recorded |
15 |
Funds Available To Seller | |
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Benefits of Home Ownership |
Credit: Owning a home helps you establish
financial credibility.
Independence: Owning your own home provides you
with independence and more privacy than renting. You are free
to paint walls, plant flowers, keep pets and anything else
within legal bounds.
Investment: As you make more payments and own
more of your home, you add to its investment value. Most
improvements you make will also add to its value.
Pride: A home reflects its owner's values and
lifestyle. Owning a home can provide you with a source of
pride, enjoyment and satisfaction.
Security: A home can provide security against
inflation because the value of your home increases as prices
go up.
Stability: Being established in a community
provides a sense of belonging, stability and security.
Tax Advantages: Interest on your mortgage loan is
deductible on your yearly personal income tax return. Many of
the closing costs associated with purchasing your home are
deductible, as are your property taxes.
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Finding the Right Home |
Real Estate Agents You can sit down with a real
estate agent and discuss your needs, type of area, style of
home, amenities and everything you really want in your next
home. Real estate agents can help you by accessing a Listing
Service which covers all properties listed for sale within a
specific area. Together, you can select the homes you would
like to see, set appointments and preview homes in a short
period of time. An agent can guide you through the entire
process.
Newspaper Ads/Internet Many people go through the
real estate classified section or browse the Internet to find
a home that appeals to them. However, your real estate agent
will have many listings available that may not appear in the
newspaper or Internet on a continuous basis. New listings come
on the market daily.
Multiple Listing Service Your real estate agent
should have access to the multiple listing service if it is
available in your area. It usually includes the following
details about homes and properties for sale:
- Location
- Price
- Photograph
- Utilities
- Amenities
- Annual property tax
- Current financing (when assumable)
- Listing company
When Previewing A
Home
- Write notes when previewing a home so you will be able
to discuss the details later with your real estate agent.
- Ask questions about the home and discuss any objections
or concerns you may have.
- Ask about the community - schools, shopping and
transportation.
- Ask specific questions about the construction of the
home; electrical, plumbing, heating, cooling systems, etc.
Have Fun Relax. Finding your new home can be a
rewarding experience. Have a good time and enjoy the
process.
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Home Shopping Tips |
Check For Properly Working
Appliances/Fixtures: |
- Bathroom
- Sinks
- Showers/tubs
- Toilets
- Vent fan
- Heating fan
- Appliances
- Dishwasher
- Stove
- Oven
- Ice maker
- Garbage disposal
- Range hood
- Refrigerator
- Freezer
- Microwave
- Trash compactor
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- Kitchen
- Kitchen cabinet doors
- Drawers
- Sinks
- General
- Lights (interior & exterior)
- Windows
- Heating system
- Ceiling fans
- Hot water system
- Air conditioning system
- Electrical outlets
- Door bells
- Doors
- Water purifier
- Fireplace damper
- Garage door
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Ensure House Is Well-Built & Systems Are
In Working Condition: |
- Exterior
- Brick bulging or cracking
- Shingles missing or broken
- Siding rotted or missing
- Gutters damaged or need to be cleaned
- Concrete cracked in sidewalks/driveway
- Basement
- Water seepage in basement
- Cracks in foundation
- Poor ventilation
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- Interior
- Sub-flooring damaged or loose
- Cracked walls or ceiling
- Cracked tiles
- Loose plaster
- Flooring damaged
- Soft, springy floors
- Water stains near windows
- Water stains on ceiling below bathroom
- Water stains in attic
- Pipe insulation missing
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Home Inspections |
What is an inspection? There are numerous types
of inspections. An inspection is meant to evaluate, at
minimum, the structural and mechanical condition of a
property. It is not the same as an appraisal which evaluates
the market value of a property. Persons involved in real
estate transactions need unbiased information about the
physical condition of property they plan to buy or sell and
your contract should include a contingency that you obtain a
satisfactory inspection report. Talk with your agent about the
types of inspections available.
Home Inspectors vs. Engineers Home Inspector: A
person who examines any component of a building, through
visual means and through normal user controls, without the use
of mathematical sciences.
Engineering: Analysis or design work requiring extensive
preparation and experience in the use of mathematics, physics,
chemistry and the engineering sciences. Finding a
qualified Inspector
- Referrals from satisfied customers
- Referral from a local real estate agent or mortgage
company
- Local consumer affairs office
- Yellow Pages under "Building Inspection Services"
Ask if she/he is a member of the American Society of Home
Inspectors (ASHI). The ASHI has established standards of
practice which include the specific services, limitations and
exclusions that can be expected from private home
inspectors.
What the inspection, at minimum, includes Every
inspection should include, but not be limited to, an
evaluation of at least the following:
- Foundations
- Plumbing and electrical systems
- Doors
- Ceiling, walls and floors
- Roof
- Hazardous materials concerns
- Heating and air conditioning systems
- Common areas (in condominiums)
- Insulation
- Ventilation
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Answers to Frequently Asked Questions |
What is the difference between "pre-qualified" and
"pre-approved"? If you are "pre-qualified" you have
determined, with a loan officer, what price you can afford
based on the down payment, your debts and the amount the
mortgage company will approve for your mortgage. Being
"pre-qualified" is only a determination of your probable
credit. If you are "pre-approved", your credit, employment and
funds have been approved by the lender.
What are closing costs? Closing costs are an
accumulation of charges paid to different entities associated
with the buying and selling of real estate. For buyers, they
are usually about 4-6% of the total sales price of a property.
Some of the closing costs you might encounter are: application
fees, appraisal fee, county taxes, credit report, discount
points, documentation fee, escrow fees, homeowners'
association fees, loan fees, mortgage insurance, origination
fees, tax registration and title insurance premium.
What is a point? One point is equal to 1% of the
new loan amount. Whenever government regulation, state usury
laws and/or competitive practices prohibit the lender from
charging a rate of interest that would make the real estate
loan competitive with other fields of investments, the lender
must seek some method of increasing the yield for the
investors. By charging "points", the lender can bring the real
estate loan up to those other investments.
What is earnest money? When you make an offer,
you will need to put up an earnest money deposit as a sign of
good faith that you are seriously interested in buying a home.
That deposit becomes a part of the purchase price and is held
in a trust account until there is full acceptance of the
offer. Typically, an earnest money is 3-5% of the offer
amount.
What is title insurance? Title insurance protects
the named insured against loss because of defects, liens,
encumbrances, adverse claims or other matters not shown or
disclosed to the new owner that attach before date of
policy.
Is VA or FHA financing unfair to sellers? FHA and
VA loans provide purchasers the opportunity to buy homes with
minimal cash investment and at lower interest rates. The
result is a larger market for sellers, who also benefit by
receiving all cash for their
equity.
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