SoldByDenise · Arrange for Home Owner’s Insurance Pack and arrange for a moving truck Transfer...
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Transcript of SoldByDenise · Arrange for Home Owner’s Insurance Pack and arrange for a moving truck Transfer...
Homebuyer's Handbook (801) 602-9552
SoldByDenise.com
As your BUYER’S AGENT, here is what you can expect from me:
UNDERSTANDING
OUR RELATIONSHIP
I will search through all available
listings, not only from our own
extensive listing base, but properties
for sale from ANY real estate
company or agent in Utah through
the Multiple Listing Service (MLS).
I can show you all new
construction homes which
may meet your needs.
Nearly every builder will
work with me at no
additional cost to you.
I can show you homes that
are for sale from a “For Sale
By Owner.” Even in these cases,
I will contract with the seller to
pay the sales commission.
I often know of sellers who want to sell,
but didn’t want their property actively on
the market. These are properties only I
know about that I can show you.
I will make appointments with Sellers to
view homes which match your needs.
I will point out the strengths and
weaknesses, of which I am aware,
and prepare a price analysis so that
you can make an informed and
educated purchasing decision.
I will negotiate on your behalf. Once
you’ve found the home you want to buy, I
will write up the offer and negotiate with
the seller (usually through the Seller’s
Agent.)
I allow you to make your own decisions. I
always remember that I work for you and
will respect your opinion and directions.
I will not force my opinion on you or make
you feel uncomfortable.
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UNDERSTANDING
OUR RELATIONSHIP
In return, what I ask of YOU:
Keep me informed as to any homes you’re interested in through visiting an
Open House, on an Internet search, driving by a “For Sale’ sign (whether listed with a real estate company or By Owner), or at a new home development.
Inform other real estate agents and builder
representatives that you are working with me as
your Buyer’s Agent so they do not violate the
laws of agency.
Be honest with me about what you
like, or don’t like, about any house you
are shown – my feelings won’t be hurt!
Tell me if I’m showing you homes or
areas you don’t like.
Give me as much notice as possible if
you can’t make a showing appointment.
As a courtesy to the Sellers, I need to
cancel when we can’t make scheduled
appointments.
Thoroughly investigate homes you are
interested in and ask plenty of questions.
You should make a wise and informed
purchasing decision.
Homebuyer's Handbook (801) 602-9552
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HOME BUYING PROCESS
FLOWCHART
Homebuyer's Handbook (801) 602-9552
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CHECKLIST FOR
BUYING A HOME
Work with the SoldByDenise.com Team
Meet with a lender and get pre-approved for a loan
Preview homes and make a selection
Submit a Real Estate Purchase Contract (REPC)
Negotiate with the Seller on counter offers (Addendums)
Apply for a mortgage and submit all required documentation
Conduct Buyer Due Diligence
____ Review the Seller’s Disclosures
____ Inspect the home (professional recommended)
____ Optional Radon, Termite, Roof, or other inspections
Negotiate repairs or price reduction
Arrange for Home Owner’s Insurance
Pack and arrange for a moving truck
Transfer utilities from old residence to new
Attend Settlement (bring cashier’s check and ID)
Obtain your key and move in
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What is the first step of the home buying process?
Answer: The Mortgage Pre-approval
Before we begin searching for a home, your first step is to obtain loan pre-approval. Why?
To determine how much home you can afford.
To calculate a monthly payment you are comfortable with.
Because many sellers do not consider offers from buyers that are not pre-approved.
I work with several lenders that have proven to offer exceptional customer service and competitive
interest rates. You may use one of these or choose one of your own.
How long does it take to buy a home?
Answer: Usually 30 – 45 Days
That is, after you find the home you want to buy, which can take anywhere from one day to a month or
two. Once you have a home under contract, the financing, inspections, and title work takes around 30 –
45 days.
Do I need to go through the listing agent to see a property?
Answer: No.
I can show you every home listed by any Realtor via the Multiple Listing Service (MLS). The MLS is a
centralized database of all listings taken by all Realtors along the Wasatch Front. I can thoroughly
search through all available listings, make appointments to show you any, and then negotiate on your
behalf to make sure you get the best price and terms.
Do you do all the searching or do I keep looking myself?
Answer: Both
While I will regularly monitor the market, I recommend you continue to search on SoldByDenise.com
yourself. I have even set-up a 'Listing Flash' system to automatically notify you whenever a new listing
matching your criteria becomes available. Sign-up, then simply call, text, or email me whenever you see
a home that interests you and a showing will be arranged.
How much do I have to pay you, my Buyer’s Agent, as the homebuyer?
Answer: Nothing
When a home is listed on the MLS, the Seller agrees to pay the Buyer’s Agent’s Commission. Thus you,
as the buyer, do not need pay any additional commission to use my services. Whether you purchase
through me or through the listing agent, the home’s sales price will be the same.
THE 10 MOST COMMON
HOME BUYER QUESTIONS
1
2
3
4
5
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Do I have to pay other fees besides the Down Payment?
Answer: Yes – Closing Costs
In addition to your down payment, there are several costs associated with purchasing a home. The
lender has several fees, the Title Company charges for a Title Policy and for closing your transaction, and
you will need to pre-pay for your homeowner’s insurance and property taxes. All together, these fees
typically add up to between 1.5% to 3% of the sales price. In some cases, you may be able to get the
seller to pay for your closing costs.
Do I have to submit any money prior to Settlement?
Answer: Yes – Earnest Money, Home Inspection, and Appraisal
Upon making an offer for a property, you will need to pay an “earnest money deposit.” This is typically
$1000, $2000, or even 1% of the sales price. This goes towards your down payment. Home inspectors
require payment prior to conducting an inspection. This is generally $350 - $600. Prior to ordering your
appraisal, your lender will collect a fee of between $350 - $600.
What is a Homeowner’s Association (HOA)?
Answer: A legal entity created to manage and maintain the common areas of a community.
Typically these "common areas" consist of things like pools, clubhouses, landscaping, parks, streets, and
snow removal. For condominiums, maintenance also includes the exterior of the structure, including the
roofs. HOAs come with a set of rules called "Declaration of Covenants, Conditions, and Restrictions"
otherwise known as "CC&Rs." One of the primary functions of the HOA is to ensure that these "CC&Rs"
are adhered to by the individual homeowners. The guiding principles of these regulations are normally
to help maintain property values and the quality of life within the community.
How can I be sure I’m not purchasing a “money-pit?”
Answer: Conduct Inspections
Having your home checked by a certified and licensed inspector is probably the most important step in
making certain that you are getting the best value and house for your money. He will spend up to four
hours inspecting every visible detail including the roof, foundation, electrical and plumbing systems, the
appliances, and the furnace/AC. If you discover anything unacceptable, we will negotiate a solution or you can cancel the contract and your earnest money deposit will be returned to you.
What is your best advice for first-time homebuyers?
Answer: Be brave.
Buyers often second-guess themselves as to whether or not they made the correct home-buying
decision. This normally occurs shortly after making an offer. You’re not alone. Take some time to let your
emotions subside and balance it out with logic. Remember you have the entire Due Diligence Period to
rethink and confirm your decision.
THE 10 MOST COMMON
HOME BUYER QUESTIONS
6
7
8
9
10
Homebuyer's Handbook (801) 602-9552
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TOP 10 QUESTIONS
ABOUT MAKING AN OFFER
Homebuyer's Handbook (801) 602-9552
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TOP 10 QUESTIONS
ABOUT MAKING AN OFFER
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SWEET AND SIMPLE MORTGAGE
APPLICATION CHECKLIST To ensure your loan is completed in a timely manner, here is a list of items you need to provide the mortgage
lender when you make your loan application
IDENTIFICATION: Copy of current, unexpired, Government issued Photo I. D. for all applicants. (ie: Driver's
License, Passport)
PAYSTUBS: Original paystubs covering the most recent 30 days, for all applicants. (If paid twice a month, bring
the two most current pay stubs.)
W-2s: Original W-2s/1099s for the last two years for each applicant. (If you are using Social Security income, you
will also need your most recent awards letter/benefits statement that you would have received in December.)
TAX RETURNS: Copies of last two years signed tax returns with all schedules for personal and business. After
April 15 of current year, you must either have a current return or a signed extension. If self-employed, Year-to-
Date Profit and Loss Statement and Balance Sheet along with the Business Tax Returns for all entities where
income is derived.
BANK STATEMENTS: Copies of all pages of bank statements (even blank pages) for the past 60 days for all
checking and savings accounts you list on the application. You may provide computer print-outs of any of the
above documents, providing that they are dated and contain your full name, the institution’s name, and the full
account number.
INVESTMENT STATEMENTS: Original 401K, Investment, and IRA statements (if applicable.) The most recent
Statement (all pages) within the past 90 days will be required. If not available, a verification will have to be
mailed.
COPY OF PURCHASE CONTRACT AND ALL ADDENDA: Must be signed by all buyers and sellers.
MISCELLANEOUS ITEMS:
IF RENTING: We will need verification of rent from your landlord – a letter from the landlord that states when
you moved in, how long you've been there, how much your rent is, and that you have not been late in the past
12 months.
IF YOU OWN YOUR CURRENT RESIDENCE: Copy of current homeowner's insurance with paid-in-full receipt,
paid real estate tax receipt for previous year’s taxes, and a copy of the current mortgage statement.
IF YOU HAVE DECLARED BANKRUPTCY IN THE LAST 7 YEARS: Copies of petition, decree, schedule of
creditors, Copy of Discharge, and a Letter of Explanation of why you had to file for bankruptcy.
IF YOU OWN RENTAL PROPERTY: We will need a signed copy of the lease agreement/rental agreement along
with copies of the last two year's tax returns, paid real estate tax receipt, and a copy of your current hazard
insurance policy.
Homebuyer's Handbook (801) 602-9552
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10 MOST COMMON
MORTGAGE LOAN QUESTIONS
Homebuyer's Handbook (801) 602-9552
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10 MOST COMMON
MORTGAGE LOAN QUESTIONS
Homebuyer's Handbook (801) 602-9552
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Keep all financial originals and have access
to all of your pay-stubs, bank statements,
and other important financial documents.
Don’t make any purchases on credit
during the mortgage process, such as
furniture or a car, or even on your credit
card. Wait until after closing.
Keep records of all bank transactions,
especially if you make any large
transactions.
Don’t consolidate credit cards, close
credit cards, or apply for a new credit
card (even if pre-approved.) This could
significantly affect your credit rating.
Line-up a Homeowner’s Insurance with
coverage equal to the replacement value
of your home.
Don’t pay-off collections or charge-offs.
This can actually cause your credit score
to drop (strange, we know.)
Continue to live in your current residence
and to pay rent or mortgage payments
on-time. Consult with the loan officer
before giving the landlord notice.
Don’t change jobs or become self-
employed during the loan process. You
need to show a 2-year job history.
Protect your credit score. Continue to pay
every bill on-time.
Don’t open a new cell phone account or
cause any other credit inquiries. Don’t
co-sign on any loan. Don’t bounce any
checks.
Notify your lender if you plan to receive
gift funds or down-payment assistance.
Don’t change your overall financial
picture. This could include
opening/closing accounts, transferring
funds, or making non-traceable deposits.
DO’s DONT’s
DO’S AND DONT’S DURING
THE MORTGAGE PROCESS
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WHAT MAKES UP
MY HOUSE PAYMENT
Homebuyer's Handbook (801) 602-9552
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CREDIT SCORE
RANGES
Most credit scores range from 300 to 900, with the majority of people in the 600 to 800 range. To get the most
favorable interest rates, you will need a score of 720 or higher. On average, a person with a credit score of 520
will get interest rates on loans that are three to four percentage points higher than rates given to a person with a
credit score of 720.
What Determines My Credit Score?
Homebuyer's Handbook (801) 602-9552
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BUYER’S AGENT
Represents you and your best interests.
Acts as your adviser during the entire home buying process.
Educates you on the current market conditions.
Searches and shows you the best properties
Researches recent home sales in the area to determine
whether a specific home is accurately priced.
Negotiates on your behalf for the best price and terms.
Counsels you on discovered repairs needed prior to closing.
Solves any transaction problems and issues as soon as they
arise.
Guides and coaches you through the entire process
Is present at the Settlement to ensure your interests are
protected.
LISTING AGENT
Represents the seller and his/her best interests.
Acts as Seller’s advisor during the entire home selling
process.
Negotiates on the seller’s behalf for the best price and terms.
Counsels the seller on which repairs to make prior to closing.
Coordinates with us to make sure the transaction closes on-
time.
Attends Settlement with the seller to ensure their interests
are protected.
Shares commission with us, the buyer’s agent.
As the Buyer, you pay no commission. Using us as your buyer’s agent doesn’t cost the seller
any additional fees since we and the listing agent share the commission paid by the seller.
LOAN REPRESENTATIVE
Pre-qualifies you for a mortgage loan.
Completes the application and collects documentation.
Follows your loan as it is processed to solve any problems or
issues.
INSURANCE AGENT
Consults with you on coverage options
Shops for the best policy at the best price
Sends insurance package to Closing Officer
APPRAISER
Inspects and measures the entire property for the lender.
Finds nearby comparable properties that have recently sold.
Determines if the value of the home matches the sales price.
Sends report to Buyer and Lender
HOME INSPECTOR
Spends 2 to 4 hours inspecting every accessible area of the
property.
Prepares a written report for you to review.
Consults with you about any questions or concerns.
THE TITLE COMPANY
CLOSING OFFICER (Escrow)
A neutral party that holds all documents and funds until
closing.
Conducts the Settlement
Distributes funds between the buyer, lender, seller, and lien
holders.
Records the Deed at the County.
TITLE COMPANY
Searches property title for any existing claims and liens
Prepares and delivers a Preliminary Title Report
Clears all Title issues
Issues a Title Insurance Policy
WHO’S WHO
WHEN BUYING A HOME
Homebuyer's Handbook (801) 602-9552
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10 TERMS HOMEBUYERS
SHOULD KNOW
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As a part of a Homeowner’s Association (HOA,) you have added financial obligations and community rules that you are
legally obligated to follow. I recommend you complete some research to know exactly what to expect.
IMPORTANT CONSIDERATIONS
IF THERE IS A HOA
Homebuyer's Handbook (801) 602-9552
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If you itemize deductions on you future tax returns, you may reduce your taxable income by deducting any interest paid
on your home mortgage. You may also deduct interest paid on up to $100,000 of home equity debt, regardless of how
you use the borrowed funds. Taxpayers who rent have no comparable ability to deduct interest paid on debt.
When you itemize deductions, you may also reduce your taxable income by deducting property taxes you pay on your
homes.
Here is an example of your homeowner income tax benefit:
AS RENTERS AS BUYERS
Married Income $ 55,000 $ 55,000
Itemized Deductions
State Income Tax $ 2,750 $2,257
Misc. Taxes - DMV $ 500 $ 500
Contributions $ 3,000 $ 3,000
Mortgage Interest $ 0 $ 7,658
Real Estate Taxes $ 0 $ 2,194
Standard Deduction Standard Exemptions $ 12,600 $ 12,600
Total Deductions Used $ 18,850 $ 28,209
Taxable Income $ 36,150 $ 26,791
Federal Income Taxes (15%) $ 5,423 $ 4,019
Tax Benefit State Income Taxes (5%) $ 1,808 $ 1,340
Total Taxes Due $ 7,231 $ 5,359
This is an example only and not intended to represent your actual tax benefits. Real estate agents are not licensed or
trained to provide tax advice. Please contact your accountant for the tax consequences of homeownership in your specific
situation.
TAX BENEFITS
OF HOME OWNERSHIP
Homebuyer's Handbook (801) 602-9552
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Which is Best for You?
You may be trying to decide whether to buy an existing home or a newly constructed house. Many times, this dilemma is solved simply
by viewing a fair number of each. One or the other may “feel right” and you will know which direction to go. If you are still unsure
which would be best for you, here are some factors to consider. I can show you both types and will represent you in either choice.
NEW VS.
EXISTING
Homebuyer's Handbook (801) 602-9552
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TIMELY ADVICE
FOR CURRENT RENTERS
