TIPS

BUYING TIPS!

• When purchasing a home, look through the open house listings to get a feel for home pricing by size and neighborhood.
• Select a Real Estate Agent that you are comfortable working with.
• Make an appointment with your mortgage loan officer to get pre-approved. This will give you an idea of the price range of homes to look at. It can also make an offer more attractive to a seller if they know you already qualify for the loan.
• Let your Real Estate Agent know what price range you are looking in and any amenities you desire to have included. They can then prepare a list of home listings that fit these criteria.
• Make sure to preview at least 5 houses before making any offers.
• When you are interested in making an offer, request a second showing.
• When requesting information from a lender, be sure to ask for any related costs in addition to the interest rate.

1.  Get Your Finances in Order. - 

Often when people are considering buying a home whether it be a first time investment or another home, they believe they can just purchase one like buying a new item for a kitchen. That is not usually the case. Here are some things you should do before you buy a home.

Check with a lender to see what you qualify for.

You should know facts such as:

Annual Income
Amount of Cash you have for a down payment*
Other Home Loans
Credit Card Balances
Other Loan Balances (Vehicles, etc.)
School Loans
Other factors affecting your income e.g. child support, tax payments, dividends, etc.

*Note: Some first time home buyer loan programs do not require a down payment.

2.  It is generally a good idea to get pre qualified.

Many sellers require a pre-qualification letter with your offer to purchase.  So you should  have that readily available when it comes time to make an offer. In general it will make your offer look stronger.

3. There is no cost associated with getting pre qualified.

4.  Pre-qualification is where you have spoken to a lender about a possible home loan.

This is when you have spoken to a lender, usually over the phone. You will provide him with the information described above. They in turn will give you an estimate of what they believe you would qualify for if all the information you have given them is accurate.

IT DOES NOT MEAN YOU ARE APPROVED!!

People often think because they are pre qualified they can get the loan when they find the home of their dreams. That is not true. At this point in the loan process they have not run a credit check, or verified any of the information you have provided. There may be things on your credit report that are inaccurate or that you have forgotten about that may inhibit the loan process, or affect the loan amount.

When we find a home we like how do we buy it?

        Buying a home is a multi-step process, here is a brief overview of the process

You will need an earnest money check to accompany the Offer to Purchase. This may be in the form of a personal check, or in some cases a certified check. A minimum of 1% of the sales price is deemed adequate in most cases. When your written Offer to Purchase is presented to the seller, he has three choices:

1. He can accept your offer
2. He can reject your offer
3. He can make a counteroffer.

Negotiations after the initial written offer are conducted verbally until an agreement is reached. When the seller accepts your offer, or you accept his counteroffer in writing, you have a binding contract for sale on that property. Your earnest money will be deposited in the listing broker's trust account to be held until closing.

 Is it best to make a really low offer at first?

It is important to remember that if you make a low offer on a home and the offer is rejected or countered, another prospective buyer may submit an offer that may be accepted by the seller before you have the opportunity to submit another offer or accept the seller's counter to your offer. I have even heard of experiences where a buyer made a low offer to the seller, and the seller was insulted and refused to entertain any more offers from the client.

Would it be in my best interest to work with several Realtors and not just one?
          

It is in YOUR best interest to work exclusively with a professional real estate agent.

They have access to every home that is in South the Multiple Listing Service and they will be paid only when they find the right home for you (Seller always pays commission).

 

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SELLING TIPS

 

First Impressions Last. 

Buyers want to inspect your house and neighborhood for the things that are important to them. Buyers always over estimate the cost of painting and repairs. It is always preferable that you prepare your home to look its best resulting in a faster sale at a higher price. Leave your house and trust your professional Realtor to show and sell it for you.

The Front View Greets the Buyer.

Make sure it is inviting. Keep your lawn well manicured and your gutters cleaned. Power washing the house, sidewalks, decks and driveways will greatly improve curb appeal. A new coat of paint on the front door and porch rails will give your entrance a fresh look!

Dust & Dirt Reduce Appeal. 

Inspect for cobwebs in the corners, dusty ceiling fans, dirty baseboards and carpets. A small investment in time and good cleaning will make your home look its best and give the greatest return.

Make Rooms Look Larger.

Remove excess furniture, pictures and posters. Neat, orderly rooms and closets will make rooms look larger!

Soft Music and Sweet Aromas are Inviting.

Have the intercom or stereo tuned to a station of soft background music. Scented candles and potpourri give the home a pleasant aroma.

Kitchens and Bathrooms Sell Homes. 

Check and repair caulking around tubs, showers, sinks and countertops. Remove as much from countertops as possible and place remainder neatly on a tray or in a basket. Make these rooms sparkling clean.

Display the Full Value of Your Storage Space.

Remove all unnecessary articles from your closets. Perhaps now is the time to start packing for your move. Neatly stacked boxes look much better than cluttered shelves and floors.

Pay Attention to Details. 

Loose knobs, sticking doors, dirty air return filters, ovens, and tile grout, loose wallpaper seams and other minor flaws detract from your home's value.

Let the Sun Shine In!

Open blinds, shades, and curtains to show how cheerful your home is. Turn on every light in the house. Make sure light fixtures are clean. When possible, wash windows and remove screens -- this can increase light by 50%!

Pets in the home?

Many buyers are very pet sensitive. Keeping them out of the way-preferably out of the house is best. Pay special attention to pet odors. Removing of pets, beds, bowls and toys will reduce pet odor and buyer rejection.

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MORTGAGE TIPS

The mortgage process, if handled correctly, can help reduce some of the stress often felt during the home buying process. However, since there are several steps to completing the process, a professional can help you learn more about your options, keep the process on track and on time, and receive the Guaranteed Lowest Price Mortgage.

Overview of the loan process

If you are buying or refinancing a home

• If you are salaried: provide two years W-2 and one month of pay stubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.
• If you own rental property, please provide rental agreements and two years tax returns.
• If you wish to speed up the approval process, please also provide three months bank statements for each bank, stock and mutual fund account.
• Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.
• If you are requesting a cash out refinance please provide a letter explaining what you plan to do with the proceeds.
• Provide a copy of divorce decree if applicable.
• If you are NOT a US citizen, provide a copy of your green card (front & back), or if you are NOT a permanent resident provide your H-1 or L-1 visa.

If you are applying for a home equity loan

• If you are salaried: provide two years W-2 and one month of pay stubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.
• If you own rental property, please provide rental agreements and two years tax returns.
• Please provide a copy of the note on your first mortgage. This will normally be found in your closing loan documents.
• Please provide a signed letter explaining what you plan to do with the proceeds.
• Provide a copy of divorce decree if applicable.
• If you are NOT a US citizen, provide a copy of your green card (front & back), or if you are NOT a permanent resident provide your H-1 or L-1 visa.

        Get qualified

Getting qualified before you apply for a loan can help you understand how much you can borrow.

When buying a house, you may get pre-qualified or pre-approved. You can typically get pre-qualified over the phone or on the Internet in a few minutes. A pre-qualification is not as beneficial as a pre-approval where you have to go through a more rigorous process which includes verification of your credit, income, assets and liabilities. It is highly recommended that you get pre-approved before you start looking for a house. This will help you:

1. Find out the maximum house you can buy, so you don't waste time looking for properties you can not afford.
2. Puts you in a stronger position when you are negotiating with the seller, because the seller knows that your loan is already approved.
3. Helps you close quickly, since your loan is already approved.

Shopping  for a loan

1. Think about how long you plan to keep the loan. If you plan to sell the house in a few years you may want to consider an adjustable or balloon loan. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed loans.
2. Understand the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. So for example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower the rate you will get.
3. Compare different programs. Shopping for a loan can be difficult. With so many programs to choose from, each of which has different rates, points and fees, it's hard to figure out which program is best for you. That's where an experienced loan officer can help you make a decision that's best for you.

        Obtain loan approval

Once your loan application has been received the loan approval process starts immediately. This involves verifying your:

1. Credit history
2. Employment history
3. Assets including your bank accounts, stocks, mutual fund and retirement accounts
4. Property value

Based on your specific situation, additional documents or verifications may be required. To improve your chances of getting a loan approval:

1. Fill out the loan application completely.
2. Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
3. Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed. Anything that causes your debts to increase might have an adverse affect on your current application.
4. Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
5. Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.

Close the loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in front of a notary public. Be prepared to:

1. Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally not accepted.
2. Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate.
3. Sign the loan documents.

Your loan will normally close shortly after you have signed the loan documents. On refinance and home equity loan transactions federal law requires that you have 3 days to review the documents before your loan transaction can close.

Having your agent work in conjunction with your lender can take a lot of the hassle out of applying for a mortgage and also give you more control over the process. 

 

CLOSING COSTS

The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.

Buyer closing costs
When a buyer applies for a loan, lenders are required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Some typical buyer closing costs include:

• The down payment
• Loan fees (points, application fee, credit report)
• Prepaid interest
• Inspection fees
• Appraisal
• Mortgage insurance
• Hazard insurance
• Title insurance
• Documentary stamps on the note

Seller closing costs
If the seller has not yet paid for the house in full, the seller's most important closing cost is satisfying the remaining balance of their loan. Before the date of closing, the escrow officer will contact the seller's lender to verify the amount needed to close out the loan. Then, along with any other fees, the original loan will be paid for at the closing before the seller receives any proceeds from the sale. Other seller closing costs can include:

• Broker's commission
• Transfer taxes
• Documentary Stamps on the Deed
• Title insurance
• Property taxes (prorated)

Negotiating Closing Costs
In addition to the sales price, buyers and sellers frequently include closing costs in their negotiations. This can be for both major and minor fees. For example, if a buyer is particularly nervous about the condition of the plumbing, the seller may agree to pay for the house inspection.

Likewise, a buyer may want to save on up-front expenditures, and so agree to pay the seller's full asking price in return for the seller paying all the allowable closing costs. There's no right or wrong way to negotiate closing costs; just be sure all the terms are written down on the purchase agreement.

Prorations
At the closing, certain costs are often prorated (or distributed) between buyer and seller. The most common prorations are for property taxes. This is because property taxes are typically paid at the end of the year for which they were assessed.

Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won't come due until the following year! To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.

 

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MOVING TIPS

Two Months Prior to Moving Day

• Get estimates from at least four moving companies if you will use a mover.
• Get costs from at least two truck rental companies if you will move yourself.
• Create a floor plan of your new home for furniture and appliance placement.
• Make an inventory of your household goods and begin to remove clutter (start with the basement, attic, garage, and other storage areas).
• Start a file for all your moving paperwork (estimates, receipts, etc.).
• Arrange to transfer school records.
• Choose a mover (or truck rental company).

Six Weeks Prior to Moving Day

• Obtain and fill out post office change-of-address cards.
• Subscribe to the paper in your new hometown to learn more about your new community
• Make arrangements for storage if necessary.
• Ask your doctor or health plan for referrals and obtain all medical records.
• Have antiques, pieces of art, and other valuables appraised.
• Clean all closets and drawers.
• Start using foods and cleaning supplies that cannot be moved.

Four Weeks Prior to Moving Day

• Contact all utilities for service disconnection at your old home and connection at your new home. Be sure disconnect is the day after you leave and connection is the day before you arrive.
• Contact all utilities for service disconnection at your old home and connection at your new home. Be sure disconnect is the day after you leave and connection is the day before you arrive.
• If you are moving yourself, reserve a rental truck.
• If you are packing yourself, obtain packing materials and start packing items you won’t need until after you arrive at the new house.
• Arrange for cleaning and repair of furniture, drapes, and carpeting.
• Arrange for special transportation of your pets and plants if necessary.
• Check with your insurance company to see how your possessions are covered during transit.
• Make any travel plans necessary for your move.
• Check to see if you need any moving permits.
• Plan your moving sale.

Three Weeks Prior to Moving Day

• Dispose of items that cannot be moved, such as inflammable liquids.
• Prepare auto registration for transfer (if moving to another state).
• If you are moving in or out of an apartment, arrange for use of the elevator.
• Make child-care arrangements for moving day.
• Hold your moving sale.

Two Weeks Prior to Moving Day

• Arrange for disposal of anything not sold at your moving sale.
• Service your car in preparation for the move.
• Return any borrowed items (including library books) and retrieve any loaned items.
• Cancel newspaper delivery.
• Notify any creditors of your move.
• Transfer prescriptions and be sure you have an adequate supply of medications on hand.
• Assemble a file folder of information to leave for the new owner of your home.
  

One Week Prior to Moving Day

• Transfer your bank accounts.
• Take animals to vet for immunization if necessary.
• Close your safe-deposit box.
• Settle any bills with local businesses.
• Drain power equipment of oil and gas.
• Drain water hoses.
• Find new homes for plants that will not be moved.
• Confirm any travel reservations.

Two to Three Days Prior to Moving Day

• Drain your waterbed.
• Defrost refrigerator and freezer, propping doors open.
• Let movers pack your belongings (unless it’s a do-it-yourself move).
• Disconnect and prepare major appliances for move.
• Set aside anything that will travel in your car so it will not be loaded on the truck.
• Pack a box of items that will be needed first at the new house. Clearly mark this box "Load Last."
• Obtain cash or traveler’s checks for the trip and pay the movers.
• Confirm arrival time of your moving van.
• If moving yourself, dismantle beds and other large furniture.
  

Moving Day

• If using a mover, be sure someone is at the old house to answer questions.
• Note all utility meter readings.
• Read your bill of lading and inventory carefully before signing. Keep this paperwork in a safe place.

Delivery Day

• Again, be on hand to answer any questions.
• Check your belongings carefully and note on the inventory any damaged items.
• On an interstate move, be prepared to pay the driver before your possessions are unloaded.
• Supervise unloading and unpacking.
• Be prepared to pay your mover with cash, certified check, or traveler’s checks unless other arrangements have been made in advance.

 

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