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WHY CONSIDER MY SERVICES AS YOUR BUYER'S AGENT?
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Purchasing a home can feel overwhelming and complicated. There are also legal issues involved that can not be neglected. Having your own personal agent offers knowledge and expertise for what could be the largest investment you ever make, as well as comfort in knowing that answers to your questions are only a phone call away. You will receive loyalty, confidentiality, educated opinions, support and professional representation during the entire process. As your Buyer's Agent, I offer you the following services:
* pre-approval for a mortgage with C21 Mortgage Company or other lending institution of your choice.
* assessing your real estate needs and showing appropriate properties using mls as well as soliciting "for sale by owners".
* preparing a comparative market analysis for property before you make an offer on it.
* developing a negotiating strategy in order to purchase the property.
* arranging for a home inspection of the property.
* assistance using the services of an attorney for the Purchase and Sales Agreement.
* accompanying you to the closing.
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10 TIPS FOR FIRST TIME HOME BUYERS
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1. Be picky, but don't be unrealistic. There is no perfect home.
2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs.
4. Don't wait to get a loan. Talk to a lender and get pre-approved for a mortgage before you start looking.
5. Don't ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you'll buy as well as type of mortgage terms that suit you best.
8. Don't let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals.
9. Don't be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.
10. Get help. Consider hiring a buyer's representative. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. And often, buyer's reps are paid out of the seller's commission payment.
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Some Common Home-Buying Mistakes
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1. Trying to make a shrewd investment.
People need to buy based on what fits their family. Don't try to guess what will happen to the market.
2. Choosing a poor location.
Location Matters!
3. Not having the home properly inspected.
This is not the time for surprises.
4. Not getting what you want because you are impatient.
Impatient decisions can lead to mistakes.
5. Waiting for a better market and interest rates.
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5 Credit Mistakes Buyers Can Avoid
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1. Not leaving enough time to fix errors. Consumers should review their credit report at least once a year. Inaccuracies aren’t uncommon, and it takes time to set the record straight. Each of the three major credit reporting agencies – Equifax, Experian and TransUnion – provides one free credit report per year (www.annualcreditreport.com). There’s a charge, typically about $15, to see the actual credit score, but the cost is worth it.
2. Changing spending behavior. A surprisingly good credit score can tempt prospective home buyers to open credit card accounts or take out a loan for a new car. Such actions can damage their credit score during a critical time, making it harder to obtain the loan they want.
3. Seeking a subprime loan. Even those with a marginal credit score can qualify for conventional loans. Tell customers to apply for the best mortgage loan they can find and to remember that other factors besides their credit score, such as the size of their down payment, come into play when applying for a loan.
4. Confusing “pre-qualified” for “pre-approved.” Pre-qualification doesn’t require the lender to verify income and means very little in terms of a consumer’s ability to obtain a mortgage. Encourage customers to get pre-approved, a process in which the lender checks employment history, income, and bank funds, and reviews the credit report.
5. Forgetting about credit after the purchase. Your customers moved into their new home, happy they’ll never have to worry about credit scores again. Not so fast. If they decide to refinance or move, their credit will once again take center stage. Remind customers to keep their credit score in mind as they deal with the expenses of being a homeowner.
Source: 1,200 Great Sales Tips – National Association of REALTORS®
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Mortgage Application Checklist
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[ ] Copy of your Purchase & 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.
[ ] 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 DD214.
[ ] If Employee Relocation Client - include relocation information and copy of offer, promissory note and copy of check on bridge loan.
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Questions For Your Lender
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[ ] Are both fixed-rate and adjustable mortgage loans available?
[ ] What is the 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?
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?
( ) 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?
( ) Do I have to pay "points" to get a new mortgate? (A point is 1% of the loan)
( ) Will the lender require mortgage insurance?
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What Not to Overlook on a Final Walk-Through
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Be sure that:
*Repairs you've requested have been made. Obtain copies of paid bills and any related warranties.
*All items that were included in the sale price - draperies, lighting fixtures - are still there.
*Screens and storm windows are in place or stored.
*All appliances are operating. Intercom, doorbell, and alarm are operational.
*Hot water heater is working.
*HVAC is working.
*No plants or shrubs have been removed from the yard.
*Garage door opener and other remotes are available.
*Instruction books and warranties on appliances and fixtures are there.
*All personal items of the sellers and all debris have been removed.
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WHAT TO KEEP FROM YOUR CLOSING
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1. The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You'll need for income tax purposes and when you sell the home.
2. The Truth in Lending Statement summarizes the terms of your mortgage loan.
3. The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
4. The deed transfers ownership of the property to you.
5. Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
6. Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association's rules and restrictions.
7. Insurance policies provide a record and proof of your coverage.
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