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THe ABeCEDArY Of BUYInG YOUr FIrSt HOmE
THe ABeCEDArY Of BUYInG A HOmE
BeWARe
CLoSInG COsTs
DOWnPAYmEnT
Lenders need to see a 2 year job history in the
same line of work. Gaps in employment over the past 24 months will need to be
explained, and second jobs are often not factored if they have not been held
for 24 months or more.
You should have 5-20% of the sale price of your home in cash in order to
qualify for a conventional loan. Expect
to secure mortgage
insurance for any down
payment less than 20%.Getting a mortgage
requires paying closing costs or fees charged by lenders and third parties. Typically, home buyers will pay between about 2-5% of the purchase price of their home in
closing costs
Buying or selling a home is a major
financial (and emotion-al) undertaking. You
need an expert at your side helping to
negotiate a complex deal and lending knowledge and
expertise throughout the process.
EmPlOYmEnT HIStOrY
Some agents will offer to list your
home well above the selling price of comprables in the
neighborhood. BEWARE! False hope won’t get your home sold
faster. It may even drag out the
process months longer than necessary.
C
GeT YOUr HOmE ReADY
HOmE APpRAIsAL
INsPeCTIoNRealize that
you probably won’t get
everything you want when purchasing a
home. If a house meets most of your needs, look beyond cosmetic flaws. They can be remedied.
A home inspection is an objective visual
examination of the physical structure and
systems of a house, from the roof to the founda-tion, insuring the home meets safety and city
codes.
ome appraisals provide an estimate of how much your home is worth on the current market. State licensed experts evaluate the home’s size, type,
condition and the overall real estate market in the
area.
Clean it up! A house that
"sparkles" on the surface
will sell faster than its shabby
neighbor, even though
both are structurally well-main-
tained. h
i
LoCATIoN
Option Period is the time during which the buyer can cancel the
contract for any reason, without penalty. Use
this time wisely!
Different neighborhoods will have different
characteristics. You'll want to pick the one that is the closest fit to your
lifestyle and personality - a place where you'll feel
comfortable. Kid friendly? Lots of green
spaces?
Worried about purchasing your dream home before you’ve sold your current home? Opt for a Kickout
Option, which adds a stipulation to the sales
contract stating that the seller can continue to
market the house while still under a contingent contract
based on the prospec-tive buyers selling their
current house.
Find a home close to the places you visit frequently,
like your job, shops, grocery stores and
preferred schools. When considering resale value,
ask yourself—is this a place where a wide
variety of people want to live? As the saying
goes, “Location! Location!
Location!”
MoRtGAgE
A mortgage is a loan that a bank or lender gives you to help finance the
purchase of a house. To get the best rates, aim to borrow 80% or less of the
value of the house.
MK
oL
G
KICKOUt nNeIGHbOrHoOD
JJUGgLIng EXpeCTAtIOnS
OpTIoN PeRIoD
FInD THe FACtS
Don’t buy a home blindly; have your real estate agent provide
market research so you can have all the facts before purchasing a
home. Sellers’ market? Go in STRONG on your offer, or you might lose
the home..
AAGeNt
!
F
PAInT
QUALIfY FoRA LoAN
RePAIrS
SCHoOl DIStRICts
Even if you don’t have kids at home, a great
school district has huge benefits to home buyers.
Not only does a great school district boost your home’s resale
value, it also provides some protection against price fluctuations in the
market.
Making minor repairs before listing your home
for sale can make a major impact! Replace cracked
floor or counter tiles; patch holes in walls; and fix leaky faucets so that
your home is fit and ready for move-in day!
When trying to sell your home, remember that
color is very taste specific. Neutral hues
such as off-white, beige, or light earth tones won’t
alienate potential buyers.
qTypically lenders
approve home loans that are between 28% to 44%
of the borrower’s monthly income. Your
credit score also plays a role in determining the amount loaned and its corresponding interest
rate.
VISIoN
WALK-THrOUgH INsPeCTIoN
ZoNInG
There are A LOT of documents required in buying a home. Get all
of your documents organized in a folder
before meeting with your real estate agent or
lender. For instance, on closing day you’ll need:
- Proof of home insurance
- Your driver’s license or photo ID
- A certified or cashier’s check
Zoning can be an unexpected headache when neighbors run a
disruptive home business or block your lake view with a second story addition. Find out
about zoning laws before you close and avoid nasty zoning
surprises.
Before closing, you’ll want to take one last
walk-through of the home and make certain that it’s
in the condition you agreed to buy -- that
agreed-upon repairs, if any, were made and
nothing has gone wrong with the home since you
last saw it.
Don’t let horrible paint and bad art distract you from seeing a house with good
bones. Instead, use future vision--seeing the home for what it
could be when you’ve made all of those
cosmetic changes.
Don’t wait to find out if your home is subject to
multiple property tax authorities. Not only
states, but also counties, cities and special
districts--such as local water--sewer or school authorities, may wield
annual taxation powers.
YEArLY TAX RAtEs
X ALl THe BoXEs
UPDAtEs
Y
TArGet
Emotions can easily cloud the home-buying
equation, so it’s important to stay on target through-out your search. Make a 2 to 3 item list of must-haves
and use this list as a measuring stick with which to sort the good fits from the
bad.
A few updates can go a long way when selling
your home. Investing in a few updates--such as new countertops in the
kitchen--may make all of the difference in winning
over hesitant buyers.
S
X
P
Visit briggsfreeman.com and �nd your luxury dream home.