Buyer's Resources
| Buyer |
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| 1 | Considers purchasing a home | | 2 | Selects a real estate professional | | 3 | Determines needs and wants | | 4 | Discusses financial issues | | 5 | Views & researches target homes | | 6 | Makes an offer to buy |
| | Seller |
|---|
| 1 | Decides to sell property | | 2 | Selects a real estate agent professional | | 3 | Determines needs | | 4 | Prepares home for marketing | | 5 | Agent markets the home | | 6 | Accepts, rejects or counters offers |
| | 7 | Offer is Accepted | | 8 | Loan Application | | 9 | Inspections | | 10 | Title Search | | 11 | Appraisal | | 12 | Loan Approval | | 13 | Closing Papers Signed | | 14 | Documents Recorded | | 15 | Funds Available To Seller |
| | | Back to the Top |
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 property values increase and as you make 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. |
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. It is usually recommended that at a minimum a buyer get a roof and termite inspection as these two items can be very costly if repair or replacement is necessary. 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. Back to the Top |
Answers to Frequently Asked Questions | 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/escrow money?
When you make an offer, you will need to put up an earnest/escrow 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 by the closing agentt until there is full acceptance of the offer. The deposit money will then be credited towards the amount due at closing. 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. Don't see the answer to your question?
Click on the Contact Me link above and I will be happy to answer any questions you may have. Back to the Top |
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