Buying
a Home at-a-Glance
Simplify
Your Home Buying Experience
Buying
a home can seems to be an enormous undertaking, be sure to
retain the services of a qualified Realtor. You can trust
our Realtors to always keep your interest first and foremost.
As qualified professionals, they’ll guide you through
the entire home buying experience and assist you in being
an informed buyer.
Simplify
Your Search
What features
do you require in a home to satisfy your lifestyle now and
in the future?
Knowing your range of affordability you can explore your needs
from design preferences to neighborhood choices.
Moving
Forward
Once you
have found the home that is right for you, move forward to
present an offer. This will consist of earnest money to be
held in an escrow account and a written agreement. This agreement
will set forth your terms of the purchase and a schedule of
events in order to own the property. This extremely important
document is a legally binding agreement and should be carefully
prepared by knowledgeable Realtors who are qualified to cover
all your interests.
Final
Steps
Upon your
complete satisfaction, arrangements will be made to attend
a closing. Coordinating the closing will usually be a title
company who has your escrow money in account. After furnishing
the down payment and whatever other applicable fees have been
agreed upon prior to closing, final papers will be signed.
The deed and mortgage will need be recorded in the state Registry
of Deeds, and you will be a homeowner.
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Rewards
It is
highly rewarding to buy, own and maintain your own home. Whether
this is your first home or you have experience with the home
buying process, we can help. When you have the tools at your
fingertips, you can be confident in your ability to search,
finance your home, negotiate terms and be prepared at closing.
Challenges
Purchasing
a new home can be overwhelming. Without the right resources
and information, the buy process can be stressful and frustrating.
With our online services, you can avoid the pitfalls. We’ll
be there to help every step of the way.
Resource
Tools
Money Matters – the most important part
of financing is your knowledge of the options available.
Consider the following questions as a basis for determining
your financing needs.
- How
much mortgage can I afford?
- What
down payment is needed?
- What
is the difference between pre-qualification, pre-approval
and approval?
- What
interest rates are available?
- What
is mortgage insurance and is it required?
- What
type of documentation will I need?
- How
do 15- vs. 30-year terms compare?
- What
are points and do I pay them?
- What
is difference between a fixed rate mortgage and adjustable
rate mortgage?
- What
closing costs will I incur?
- What
is being locked-in?
- How
long will the mortgage process take?
- What
is included in a mortgage payment?
- What
would the payments be?
- When
would the payments being?
Make Your Mortgage The Right Fit!
Mortgages to meet everyone’s needs. These summaries
will help you narrow your search.
Adjustable
Rate Mortgage
A mortgage,
which allows the lender to adjust the mortgage's interest
rate periodically on the basis of changes in a specified index.
Interest rates may move up or down, as market conditions change.
The change in interest rate will result in a change in the
periodic payments due under the mortgage. ARMs are attractive
when short-term interest rates are trending lower.
 Balloon
Mortgage
Usually
a short-term fixed-rate loan that involves small payments
for a certain period of time with the balance due in a single,
large payment at a time specified in the contract. Whenever
the balloon mortgage becomes due, the entire unpaid balance
is due. Generally, the homeowner must either refinance or
sell the property.
Buy-Down
The payment
of extra money on a loan now so as to provide a lower interest
rate over either a given period or over the life of the loan.
To buy-down a mortgage, the buyer pays additional points to
the lender, which will decrease the interest rate for a specific
period.
Conforming
Loan
Conventional
home mortgages, first mortgages up to loan amounts mandated
by Congressional directive, which meets the qualifications
for sale or delivery to either the Federal National Mortgage
Association (FNMA) or the Federal Home Loan Mortgage Corporation
(FHLMC).
Construction
Loan
A structured,
short-term loan to provide funds necessary to begin construction
on buildings or homes.
Conventional
Mortgage
A mortgage
loan made by an institutional lender without the inclusion
of government guarantees such as VA or FHA loans.
Convertible
ARM
The convertible
ARM is a combination of both fixed-rate and adjustable rate
mortgages, allowing the best of both options in one package.
Deferred
Interest Mortgage
A mortgage
in which the payment is not sufficient to cover the principal
and the interest and the payment portion of the interest is
postponed until a certain date at which time the interest
postponed is added to the principle owing.
Federal
Home Loan Mortgage Corporation (FHLMC)
The Federal
National Mortgage Association, which is a congressionally
chartered, shareholder-owned company that is the largest national
supplier of home mortgage funds.
It is commonly known as Freddie Mac. The company buys mortgages
from lending institutions, pools them with other loans, and
sells shares to investors. Detailed information may be found
at http://www.freddiemac.com.
Federal
Housing Administration (FHA)
An agency
of the federal government, the Division of the Department
of Housing and Urban Development, both sets standards for
the underwriting of private mortgages and insures residential
mortgages made by private lenders.
Federal
Housing Administration (FHA) Loans
Federal
Housing Administration (FHA) low-rate loans are available
to Americans with smaller incomes who are interested in modestly
priced homes. Down payment requirements are usually lower
than the prevailing ones.
Federal
National Mortgage Association (FNMA)
The U.S.'s
largest supplier of mortgages to home buyers and owners, a
corporation established by Congress and owned by stockholders.
It is commonly referred to as 'Fannie Mae,' this government-sponsored
enterprise is chartered by Congress
This federally chartered agency buys mortgages from lending
institutions, pools them with other loans, and sells shares
to investors. Detailed information may be found at http://www.fanniemae.com
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Fixed-Rate
Mortgage
The interest
rate you pay and the monthly principal and interest payments
are agreed upon from the outset and will not change throughout
the entire term of the mortgage.
Government
National Mortgage Association (GNMA)
 A
government-owned corporation within the U.S. Department of
Housing and Urban Development, it is also referred to as 'Ginnie
Mae,’. This government agency guarantees the payment
of principal and interest on all of its pass-through securities,
and its guarantee is backed in turn by the full faith and
credit of the US Government.
Graduated
Payment Mortgage (GPM)
A mortgage
that usually starts the borrower with low payments that are
gradually increased over five to ten years, before leveling
off for the remainder of the term of the loan until the loan
is fully amortized. Negative amortization usually occurs until
the payment reaches the level payment stage. Usually government
insured loans (VA or FHA)
Growing
Equity Mortgage (GEM)
This is
a long-term mortgage whereby the borrower agrees to increase
his payment each year by an agreed amount. The added money
per payment is applied directly to the outstanding principal
on the mortgage. The mortgage thereby is paid off in a shorter
number of years.
Renegotiable
Rate Mortgage (RRM)
Similar
to an Adjustable Rate Mortgage, this type of mortgage allows
the interest rates and payments to be adjusted periodically
according to an index.
Reverse
Annuity Mortgage (RAM)
A type
of mortgage where the property's equity serves as security
for periodic payments made by the lender to the borrower.
Mortgage is generally paid out upon the sale of the property.
Rollover
Mortgage (ROM)
A mortgage
where the payments are only guaranteed for three, four, or
five years. The borrower is allowed to refinance at the end
of the term at the interest rate then applicable.
Shared
Appreciation Mortgage (SAM)
It is
a loan arrangement where two or more parties participate in
the purchase of real estate and share the appreciation and
tax deduction. Similar to shared equity mortgages.
Veterans'
Administration Loans
Mortgage
loans to veterans by banks, savings and loans, or other lenders
that are guaranteed by the Veterans' Administration, enabling
veterans to buy a residence with little or no money down.
Wraparound
Mortgage
A secondary
financing option in which a new larger mortgage is created
to encompass the first mortgage. This large second mortgage
is used to preserve the low interest rate on the first mortgage
for a potential buyer.
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Know
Your Needs! Finding The Right Location
DriveTo
Learn – evaluate as you drive though a community.
Consider the following questions as a basis for determining
your location needs:
- Where
is the nearest shopping center, bus line, police station
and Library?
- What
schools are available and school district are you in?
- What
types of homes (single family, apartments, condominiums)
are in the neighborhood?
- How
far apart are the homes?
- How
far is it to your work?
- What
community resources are available?
- Generally,
where are the cars parked (driveways, garages, street)?
- Do
you notice a lot of noise, traffic or pollution?
- Are
the homes in good repair and the landscaping well kept?
Finding The Right Home
Keep your eyes open and your notebook in hand as you walk
through a potential home. Consider the following questions
as a basis for determining your needs as a homeowner:
- How
long has the home been on the market?
- Why
is the home being sold?
- What
is the asking price of the home?
- Has
the price been lowered?
- Is
the price comparable to other homes in the neighborhood?
- What
is the down payment required?
- Is
the house structurally sound?
- Is
there room enough for the present and the future?
- Do
you like the floor plan of the home?
- What
condition is the yard in?
- What
improvements must be made?
- Will
the seller repair or replace any items that need repair
or replacement?
Think carefully about each house you see and don’t
be in a hurry. Your real estate agent can point out the
pros and cons of each home from a professional standpoint.
Making an offer to buy a home entails many factors. You
and your Sales Associate will discuss the following factors
prior to putting the offer on the table:
- Amount
of earnest money
- Down
payment
- Price
you are offering
- Details
of financing
- Proposed
move in date
- Proposed
closing date
- Details
of the sale
- How
long the offer is valid
The seller will either accept the offer as presented, or
make a counter offer and ask you to resubmit a proposal.
When all the parties involved have agreed upon the details,
initialed any revisions and signed the final agreement then
an offer becomes a contract.
Contract
Review
Sales
contracts may differ significantly yet all should clearly
set forth the responsibilities and privileges of all the
parties involved. It is a legally binding document that
protects each party. Carefully review the terms of the contract.
The sales contract should include the following:
- Legal
description of the property and the exact street address
- Selling
price of the property
- Amount
of earnest money and who is holding it – often it is
held in an escrow account by a third neutral party.
- Amount
due at settlement
- Specifics
of the mortgage (amount, rate and terms)
- Title
company – either a title company or attorney must be
agreed upon by buyer and seller
- Details
of the closing, when and where
- Home
inspection – to ensure again structural and unknown
defects, to be completed in a specified time period
- Inclusions
and exclusions - examples would include washers, dryers,
drapes, etc.
- Pest
Inspection – and who is responsible if there is damage
or an infestation
- Warranties
– get the description of any that are included with
the house
- Repairs
– unless you are accepting as-is, state who is responsible
for repairs, with a date for a walk-through inspection
- Well
and septic – they must past a test, if applicable
- Date
of possession – when you take possession of the property
- Acceptance
date – either an acceptance or counter-offer must be
responded to by a specified date
Processing
the Sale
Once
the contract is signed, your Sales Associate will continue
to be your advocate and ensure that your best interests
are served. Some of the details they will be available to
handle are:
- Schedule
all necessary pre-closing inspections.
- Check
finances are deposited according the contract specifications.
- Keep
you informed of any unseen problems that may arise and offer
solutions
- Present
a list of utility companies available for service
- Schedule
and attend-the pre-closing walk through.
- Prepare
for and attend the closing.
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