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Home Buying Guide

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Home Buying Guide Provided by Erin Rundall, Realtor Licensed to sell real estate in the State of Iowa. www.erinrundall.com
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  • Specially prepared for:Clients Of Erin Rundall

  • Congratulations!

    Buyingahomeisoneofthebiggestinvestmentsandfinancialdecisionsyoucanmake.Whileitisa majorcommitmentand

    responsibility,itisalsoaveryexcitingtimeinyourlife.I'mproudthatIwillgettoplayapartinitandamexcitedaboutsoon

    havingtheprivilegeofhandingyouthekeystoyournewhome!

    .

    Withthatsaid,it'simportanttokeepinmindthathomebuyingisacomplicatedprocess.Iwillbe workinghardtomakesure

    thateverythingisasrewardingaspossible,guidingyouateverystepandmakingsurethatyourneedsanddesiresaremet.

    .

    Thisguidewasdesignedtoinformyouaboutallstepsofthehomebuyingprocesssothatyoucanfeelconfident,make

    informeddecisionsandactasaneducatedbuyer.Itwillalsohelpbothmeandyouunderstandthethingsthatyou'relooking for

    inahomesothatoursearchcanbemadeaseasyaspossible.

    .

    Pleasetakesometimetoreviewcarefullyalloftheinformationpresentedhere.Ifyouhaveanyquestionaboutthetopics

    discussed,Iwillbegladtogooverthemwithyouindetail.Sinceeveryrealestatetransactionisunique,youwillmostlikely

    havequestionsorconcernsnotpresentedhere.That'swhatI'mfor toassistyouateachstep,to answeryourquestions,andto

    helpyoufindthehomeyoudesire!

  • AnnualSalary MaximumHomeValue AnnualSalary MaximumHomeValue$50,000$60,000$70,000$80,000$90,000$100,000

    $125,000$150,000$175,000$200,000$225,000$250,000

    $110,000$120,000$130,000$140,000$150,000$160,000

    $275,000$300,000$325,000$350,000$375,000$400,000

    PreliminaryFinancingConcerns

    Mosthomebuyersfindthattheyneedtofinanceatleastpartoftheirhomepurchase.Therefore,the firststageinfindingtherighthomeistoreviewyourpersonalfinancialsituationandmakeaninformedestimateofyourtruepurchasingpower.Yourpurchasingpowerwilldependon:

    YourIncomeYourCreditRatingOtherMonthlyExpensesYourDownPaymentAvailableInterestRates

    HowMuchHomeCanYouBuy?Thenextfourstepsdiscussedwillhelpyoureviewhomefinancingandgetyoupreparedtospeakindetailwithalender.Amorethoroughoverviewofthefinancingprocessiscoveredlaterinthisguide.

    Step1:Makearoughestimateofhowmuchhomeyoucanaordbasedonyourincome.Hereareafewmethodsthatwillgiveyouanapproximatestartingpointforhowmuchhomeyoucanafford.Method1:Thepriceofyourhomeshouldn'tbeanymorethan2.5timesyourannualsalary.

  • AnnualSalary MaximumHousePaymentGrossMonthlyIncome$50,000$60,000$70,000$80,000$90,000$100,000$110,000$120,000$130,000$140,000$150,000$160,000

    $4,167$5,000$5,833$6,667$7,500$8,333$9,167$10,000$10,833$11,667$12,500$13,333

    $1,250$1,500$1,750$2,000$2,250$2,500$2,750$3,000$3,250$3,500$3,750$4,000

    HowDoesYourScoreRate?

    Great

    Exceptional

    Good

    Fair

    Low

    Above780

    740780

    690740

    620690

    Below620

    TheaveragecreditscoreintheUSis678.

    Method2:Ahousepaymentshouldbenomorethan25%ofyourgrossmonthlyincome(beforetaxesanddeductions)

    Keepinmindthattheseareguidelines.Therearemanyotherfactorsthatdeterminehowmuchhomeyoucanafford.

    Step2:Takeacloselookatyourcreditreport.YourCreditHistoryisoneoftheprincipalmeasuresusedbyalendertodetermineyourinterestrate.Thebetteryourcredit,thebetterlendingtermsyourbankorlendinginstitutionwillbeabletoofferyou.Ahigherinterestratetranslatesintoahighermonthlymortgagepayment,andsoyourcreditscorewilldirectlyaffecthowmuchmoneyyoucanborrowandatwhichhomesyoushouldbelooking..Youshouldbeawareofwhatinformationisonyourcreditreportbyobtainingandreviewingcopiesofyourcreditreportfromthethreemaincreditreportagencies.

    Equifaxwww.equifax.com1.888.766.0008

    TransUnionwww.transunion.com1.800.888.4213

    Experianwww.experian.com1.888.397.3742

    Rememberthatthereareseveralfactorsthataffectyourcreditreportincludingyourpaymenthistory,yourcurrentratioof debt

    toincomeandsignsofresponsibilityandstability.Andsincenotallcreditorsreporttoallthreeagencies,it'sbestto

    orderareportfromallthreeinstitutions.Yourgoalinorderingallthreecreditreportsistomakesurethatalloftheinformationstatedoneachreportisaccurateandcorrect..Ifthereareanydiscrepanciesonyourcreditreport,it'simportantthatyoucontacttheratingagenciesandhavethoserecordscorrected.Takingthetimetoverifyandcorrectyourcreditreportbeforeyouspeaktoalenderwillhelpeliminatehassleslateron.

  • Step3:GathertheDocuments/TakealookatyourAssetsandMonthlyExpensesYourlendinginstitutionwillaskyoutogiveacompleteprofileofyourfinancialsituation.Inadditiontoyourincome,yourexistingassetsanddebtswilldeterminehowmuchmoneythatyoucanborrow.Belowyou'llfindalistofdocumentsyoumayberequiredtoproduceregardingyourfinancialsituationwhenyouspeaktoalender.Itisagoodideatogatherthesethingsnowandhavethemonhand.Youwillneedtoprovidethisinformationforallprimaryandcoborrowers.

    SocialSecurityNumber W2Formsfromtheprevioustwoyears PayStubs(mostrecentmonths) EmploymentHistorySummary Bankstatementsforcheckingandsavingsaccounts(past3months)

    CreditorInformation.Thisincludesdebtslike:

    StudentLoans AutoLoans CreditCards ChildSupportPayments

    FederalTaxReturns(forthepast2years) CompleteRecordofAssets

    Stocks,bond,andinvestmentaccounts IRA/Retirementplan Lifeinsurancepolicies Automobilesowned Constructionloan Giftletters Documentationofotherincome

    Improvinganyoftheseareaswillhelpyouqualifyforbetterlendingterms,sokeepthatinmindbeforeyouspeakwithamortgageprofessional.Ifit'spossibletopayoffacarloanoracreditcardbalancebeforeyouseekfinancingforyournewhome,thepreferentialfinancingtermsthatyoucouldreceivemaysaveyouthousandsofdollarsoverthelifeofyourmortgage.

    Step4:TalktoaQualiedLenderAfterlookingatthisinformationforyourself,it'stimetospeaktoaqualifiedlender.Aprofessionaladvisorwillnotonlybeabletogiveyouinformationonthebestratesandtermsavailableinthecurrentmarket,butheor shecanalsoexplaintoyouwhatoptionsyouhavegivenyouruniquefinancialsituation.

    Talkingtoalenderatthistimewillhelpyougetamoreaccurateideaofwhatyoucanafford.Whenwebegintolookseriouslyathomesyou'llgobacktothelenderandshoparoundforthebestloanavailable.Ifyou'restilllookingforaqualifiedandexperiencedlendingprofessional,Iwillrecommendsomeforyoutospeakto..

  • SingleFamilyDetachedDuplexCondominium/TownhomeApartmentOther

    AirconditioningCarpetedfloorsHardwoodfloorsTiledfloorsWalkinclosetsOther

    Extensivecabinet/counterspaceHometheaterFireplaceBasement

    ElementaryschoolMiddleschoolHighschoolLocalparkRecreationcenter

    LargeyardSmallyardFencedyardGarageCarportOther

    Patio/DeckPoolOutdoorspaExtraparking

    Home Type

    LotFeatures

    InteriorFeatures

    CommunityFeatures

    Price Location Size Other

    Nowthatyou'vedetailedyouridealhomeit'stimetoputyourprioritiesinorder.Whatisthemostimportantthingforyou,

    whatareascanyoucompromise?Chancesarethattheperfecthomeforyouwon'tbeexactlywhatyouputdownonpaper.Rank

    thesefiveareasofyourhome'sfeatures/benefitsfrom15,1beingthemostimportant,5beingthe leastimportant:price,

    location,size,amenities&design,others/special.

    I'vemadeacommitmenttohelpyoufindahomethatsuitsyourwantsandneeds,sonowit'stimeforyoutoarticulateexactlywhatthosewantsandneedsare.Bysittingdownandconsideringthekindsofthingsyou'rereallylookingfor,youcansavealotoftimeandfrustrationbyavoidinghousesthataren'tforyou.

    Whatareyoulookingfor?

  • Apreapprovalletterfromalenderwillalsogiveyouanedgewhenmultipleoffershavebeenmadeonahouse.Preapprovedbuyersgenerallycloseescrowmorequickly,sincemostofthepaperworkhasalreadybeentakencareof.

    PreQualicationvs.PreApproval

    PreQualificationisonlyaloanagent'sopinionthatyou'llbeabletoobtainfinancing.Noverificationsaremade,soformalapprovalisnotissued..PreApprovalmeansyourloanapplicationhasbeentakenthrougharigorousprocedure.Preapprovalsavesyouthetimeoflookingathousesyoucan'tafford..Preapprovedbuyersareaheadinthehomebuyinggame.Ifyoumakeanofferonahomeandthenapplyforaloaninsteadoftheotherwayaround,youareatthemercyofthelenderwhonowknowsthatyoudon'thavetimetoshoparound.

    MortgageOverview

    Whenconsideringyourfinancingoptions,you'llwanttoreviewmanydifferentthingsabouttheloansofferedtoyou.Inthisnextsectionyou'llfindabasicoverviewof

    homeloanfeaturesandthethingsyoushouldconsiderasyoushopforalenderorloan.

    Whatkindoflenderareyouborrowingfrom?

    Homeloansareavailabletoconsumersfromthriftinstitutions commercialbanks,mortgagecompanies,creditunionsandmortgagebrokers..AMortgageBrokerisunlikeotherlendersinthatthebrokerdoesnotlendmoneytoyoudirectly.Abrokerwillhelpfindyoualenderandsecurethetermsofyourarrangement.

    MortgageBrokervs.TraditionalLender

    ABrokermayhaveaccesstoseverallendersandthereforecanofferyouawiderselectionofloanproductsandterms.Heorshecanhelpyoushopforthebestdealbasedonyourcircumstances.(ABrokerisnotobligatedtofindyouthebestdealpossible,sobesuretoaskquestions.).Fortheirwork,brokersarepaidafeeinadditiontothelender'soriginationfees.Brokerssettheirowncompensation,soyou'llneedtoaskanyoneyouspeaktohowtheirfeesaredetermined.

  • 1.Evenifyoudecidetoworkwithatraditionallender,askifabrokerisinvolved.Manynancialinstitutionsactasbothlendersandbrokers,soyoushouldaskifabrokerisinvolvedonanyloanyouareoered..2.Askyourmortgagebrokerhowtheirfeesareassessed.Sometimesthesefeesmaybenegotiable.

    Whatarethetermsoftheloan?

    Allthetermsofaloanmatter,notjusttheinterestrate.You'llwanttogetacompletepictureandbreakdownofwhatagivenoffermeanstoyouonamonthlybasisaswellashowmuchmoneyyou'llbespendingoverthelifeoftheloan..Ataminimum,youshouldrequestquoteswithafewdifferentscenariosandcomparethefinancialimpactofeachsituationbeforeyoudetermineyourbestcourseofaction.

    LoanType/RateTypesFixedRate(Traditional)Loan

    AdjustableRateLoans(ARMs)

    FederalHousingAdministration(FHA)Loans

    VeteransAdministration(VA)GuaranteedLoans

    Points

    Theseloansareusuallystructuredwithrepaymenttermsof15,20or30years.Thelenderwillagreetochargeafixedinterestrateoverthelifeoftheloan.Withthisloantype,yourmonthlymortgagepaymentswillremainthe sameforthelengthoftheterm.

    Alsoknownasvariablerateloans,ARMsoftenofferateaserratefortheinitialperiodoftheloan.Thisintroductoryinterestrateisusuallylowerthanratesofferedforfixedratemortgages.Theinterestratewillfluctuate overthelifeoftheloanbasedonmarketconditions.Changesinratehappenatcertaintimeperiods,andthelendercansetbotha maximumandminimumontherateoffluctuation.

    FederalHousingAdministration(FHA)insuredloansaremadebyprivatelendingintuitionssuchasbanks,savings&loans,ormortgagecompaniestoeligibleborrowersforthepurchaseofahome.TosecureanFHAloan,aborrowermustapplyandqualifywithacertifiedFHALender.Additionally,eligibleborrowersmustbeabletopayaminimum of3.5%ofahome'spurchaseprice.Iftheloanisapproved,FHAwillinsureaportionoftheloan'svaluetothelender.

    VAHomeloansareavailabletoqualifiedVeteransandtheirspouses.PrivatelendinginstitutionsissuetheloanswhichareinturnguaranteedbytheVeteran'sAdministration.TheVAdoesnotrequireanydownpaymentonVAGuaranteedloansandallowstheborrowertoreceiveacompetitive,fixedinterestrate.

    Thelenderorbrokercanchargeyoupointsonyourmortgage.Onepointequals1percentoftheloan amount.Thesearesimplyfeespaidtothelenderorbrokerthatareoftenlinkedtotheinterestrate,andareusuallypaidincashtothelenderorbrokeratclosing.Alendermayofferyoualowerinterestrate,butchargemorepoints,soit'simportantto compareoffers.

  • 1.Youcanaskyourlendinginstitutionforalistofitscurrentmortgagerates.You'llwanttoaskyourlenderwhetheryou'rebeingquotedthelowestrateforthedayorweek.2.Iftheratequotedtoyouonaloaninanadjustablerate,askwhenandhowyourloanpaymentwillvary.3.Askwhattheloan'sAnnualPercentageRate(APR)is.TheAPRwillexpressasayearlyrateallofthefeesassociatedwithaloanincludingtheinterestrate,points,brokerfeesandothercreditchargesyoumayberequiredtopay.4.Forbetterunderstanding,askyourbrokerorlendertoquoteyouadollaramount ratherthanjustanumber onanypointsyouarebeingchargedontheloan.5.Ifyouaresatisedwithaproposedinterestrate,youcanaskyourlenderifheorshecanlockinthequotedrate.Theremaybeafeeassociatedwithlockinginarateandtheagreementwillgenerallyonlylast60to90days.

    WhatAdditionalFeeswillberequiredinthisLoan?.Mostloanshaveadditionalfees.Youcansometimesborrowthemoneyneedtocoverthesefees,butthatwillobviouslyincreasetheoverallamountofdebtyouundertake.Somefeesarepaidupfront,andothersarenotdueuntilclosing.

    LoanOriginationFeesTheinstitutionthatactuallyloansyouthemoneywillgenerallychargeonoriginationfeeforprocessingtheloan.Theyareoftenexpressedasapercentageoftheamountoftheloan.

    UnderwritingFeesCertainlenderswillchargeafeetoinvestigateyourcreditworthinessanddetermineifyouarelikelytorepayyourloan.

    BrokerFeesTypicallypaidatclosing,amortgagebrokermaychargeyouafeeinadditiontotheoriginationfee.Ifyouareworkingwithabroker,besuretocheckwiththemwhattheirfeeis.

    Transaction/Settlement/ClosingCostsThesefeeslumptogetherseveralchargesfor:applicationfees,titleexamination,abstractoftitle,titleinsurance,propertysurveyfees,deedpreparingfees,othermortgagefeesandsettlementdocuments,attorneyfees,recordingfees,notaryfees,appraisalfeesandcreditreportfees.TheRealEstateSettlementProceduresActrequiresthatalendinginstitutionprovide aborrowerwithagoodfaithestimateofclosingcostsatthetimeofapplication.Thisestimatemust listeachexpectedcostasarangeorasanexactamountwhereapplicable.

    1.Neverhesitatetoquestionafeethatyoudon'tunderstand.Yourlendershouldgiveyouathoroughexplanationandmakesurethatyouknowwhatyou'repayingfor.2.Sometimeslenderslumpfeestogether.Youcanaskforabreakdowninthatlump.3.Certainfees,liketheBrokersfeeortheamountofPointsassessedonaloanarenegotiable.It neverhurtstoaskyourlenderiftheycangetyouabetterdeal.

  • InterviewQuestionsforyourLender

    1.Whatkindofloansdoyouoffer?

    2.Whatkindofloanwouldyourecommendforme?What

    aretheadvantagesanddisadvantagesofthisloanstructure?

    3.Whatisthecurrentmortgageinterestrate?Istherate

    quotedthelowestforthatdayorweek?

    4.WhatistheAnnualPercentageRate(APR)ofanoffered

    loan?

    5.Istheloanrateadjustableorfixed?

    6.WhataretheDiscountPointsandOriginationFees?

    7.WhatarealltheCosts?

    8.Iftherateisadjustable,howwillrateandloanpayment

    vary?

    9.WhataretheQualifyingguidelinesforthisloan?

    10.Whatisthelender'srequireddownpaymentforthis

    loan?

    11.Whatdocumentswillneedtobeprovided?

    12.Whataretheclosingcosts?

    13.WilltheLenderGuaranteetheGFE?

    14.Doesthelenderofferaloanratelock?Isthereafeefor

    theratelock?

    1.Besuretogetaclearindicationofthedownpayment

    percentagerequiredbyyourlender.Youwillalsowantto

    knowwhatkindofdocumentationyourlenderrequires

    toverifythatyouhavefundsforthedownpayment.

    .

    2.Ifyouarenotabletoputdownthetraditional20%on

    yourpurchaseandPrivateMortgageInsuranceis

    required,askyourlenderwhatthetotalcostofthe

    insurancewillbe,howmuchitwillincreaseyourmonthly

    payment,andhowlongyouwillberequiredtocarrythe

    insurance.

    Prepareforaloancomparisonworksheetthatyoucanprintoandusetocomparelendersandloanoptions.Icansendyouonetoday!

    TheDownPayment/PrivateMortgageInsurance

    Thelargestupfrontcostinpurchasingahomeisthedown

    payment.Mosttraditionallendersexpectborrowerstoputat

    least20%ofaloanstotalamountdown.Borrowerswhoare

    unabletodosoarerequiredtopurchasePrivateMortgage

    Insurance(PMI).Thisinsuranceprotectsthelenderincase

    ofdefaultbytheborrower.

  • LettheSearchBegin!

    Homeshoppingcanbebothexcitingandexhaustingbutdoingsomepreparationbeforeyouhitthestreettolookathomeswill

    helpouttremendously.

    Chancesareyou'vealreadystartedyoursearchonline.In

    additiontothesitesthatyou'vealreadyvisited,Iwouldsuggest

    youlookat:

    www.personalwebsite.com www.brokeragewebsite.com www.localmls.com www.realtor.com www.zillow.com www.trulia.com

    Whatsiteshaveyouvisitedinyourhomesearch?

    Whenyoufindalistingonlinethatyou'reinterestedin,[email protected]

    arrangeashowingtimeforustoviewtheproperty,IwillalsosearchtheMLSforsimilarpropertiessoyoucanlookat

    otherhomesliketheonesyou'vefound.

    Herearesomegreattipstokeepinmindwhenyou'rehomeshopping:

    1.Don'tviewtoomanypropertiesinoneday.

    2.Bringanotebook,penand/ordigitalcamerawithyouasyousearch.

    3.Keepafolderwithflyersorprintoutsonpropertiesthatyou'veviewed.

    4.Whenyoufindapropertyyoulike,visititatdifferenttimesoftheday.

    5.Don'tbeputoffbyinteriordecorations theycanandwillbechanged.

    15That'stheaveragenumberof

    housesahomebuyerwilllookatbeforetheychooseone.

  • Questions,Questions

    Whenyoufindahomeyoureallylike,therearesomemoreprobingquestionsyoumightwanttoask.Andremember,a

    professionalhomeinspectionwillbenecessarytocompletelyanswermostoftheseissues.

    General

    1.Whenwasthehomebuilt?

    2.Howmanyownershasithad?

    3.Howdoestheaskingpricecomparetootherhousesintheneighborhood?

    4.Whatdidthepropertysellforwhenthecurrentownerpurchasedit?Whatyearwasitpurchasedin?

    5.Istheexistingmortgageassumable?

    6.Whataretheannualpropertytaxes?

    7.Willthetaxesincreasewiththetransferofdeedandanewmarketprice?

    8.Isthereabuilder'swarrantyontheproperty?Whatarethedetailsofthatwarranty?

    9.Willtherebeadditionalstructuresbuiltaroundthepropertythatcoulddistorttheview?

    Outside

    1.Whatisthelevelofgroundmaintenancethatwillberequired?

    2.Arethereanystructuralanomaliesorproblemswiththeoutsideareaoftheproperty?

    Inside

    1.Aretheappliancesbuiltin?

    2.Isthereadequateinsulation?

    3.Whatimprovements/additionshasthehomeownermadetothepropertysincepurchase?

    4.Whatappliancesisthesellerofferinginthesale?

    MajorSystems

    1.Whatistheageandconditionofeachmajorsysteminthehome(plumbing,electrical,heating&cooling)?

    2.Whattypeoffuelisthehomeheatedwith?

    3.Whataretheaveragemonthlyutilitycosts?Whatarethewinterandsummerhighsandlows?

    4.Arethereanymajorrepairsthatwillneedtobemadebeforesomeonecanliveinthehome?

  • MakinganOer

    Whenyou'vefoundahomethatyou'reinterestedin,it'stimetomakeanoffer.Asyourbuyeragent,Iwilldrawupacontractwithyourofferingpriceandnecessarycontingenciesintoaformalcontract..Youwillwanttoreviewthisdocumentcarefullyandmakesureitstatesyourtermsexactly.Iftheofferisacceptedbyaseller,thiscontractwillbecomealegallybindingagreement..Inadditiontoanoffercontract,youwillneedtoprovideearnestmoney aswellasaletterfromyourlenderindicating yourqualificationtopurchase..EarnestMoney typicallyequalsbetween1%to3%ofthepropertypurchaseprice. Youwillnotbeatriskoflosingyourearnestmoneyaslongasyoudonotdefaultonyourcontract.Theamountwillbecreditedtowardsthepurchasepriceofthehouseatclosing..Afteryou'vemadeyouroffer,theSellerwillbeableto:

    1.Acceptyouroffer2.Rejectyouroffer3.Executeacounteroffer

    Inmostcases,asellerwillnotacceptyourinitialofferoutright.Typicalcounteroffersincludemodificationsto:

    Purchaseprice Closingdate Possessiondate Inclusions

    Whenyoumakeanofferonahouse,youshouldbepreparedforthenegotiationstogobackandforth severaltimesbeforebothpartiesagreetotheterms.Youmightalsohavetocompetewithotherinterestedbuyersincertainmarketconditions..Whenanagreementisreachedonallissues,andboththesellerandyouasthebuyerhavesignedtheoffer,youarebothunderalegallybindingcontract.

    Asabuyer,youwillbeinabetternegotiatingpositionif:

    Youhavebeenpreapprovedforamortgage Youarenotsellingahouseatthesametime Youhavenotloadedyouroerwithother

    contingencies

  • GettingtotheFinishLine

    Youroffer'saccepted!Nowit'stimetogettowork.Beforewecancloseonthepurchaseofyournewhome,weneedtotakeafewmorestepstomakesurethepurchaseisasounddecision.

    Step1:BuywithCondenceHomeInspectionAsthebuyer,youhavetheopportunitytohireaprofessionalinspectortoevaluatetheconditionofthehome.Aninspection

    clauseisincludedinthewrittencontractgiventotheseller.Thegoalofahomeinspectionisto giveyouanobjective,

    independentandcomprehensiveanalysisofthephysicalconditionofyourpotentialnewhomeandcheckforanysafetyissues

    thatmightotherwisebeunknowable.

    ..

    Aprofessionalinspectorwillcheckonthestructure,constructionandmechanicalsystemsofthehouse.Thisusuallyincludes

    checking:

    ElectricalsystemsPlumbingandwastedisposalWaterHeaterInsulation

    VentilationHVACSystemWaterSourceandQualityWasteDisposalPests

    FoundationDoorsWindowsCeilingsWalls

    FloorsRoofRadonGasAsbestosLeadPaint

    Youwillreceiveawrittenreportoftheinspectionandanestimateofthecostofanyandallrepairs.Ifyouchoosetobepresentduringtheinspection,youcanaskyourinspectoraboutuniquefeaturesofthepropertyandgethis orheropiniononthenecessarymaintenanceforeachdifferentarea..Dependingontheresultsoftheinspection,youwillhavetheopportunityto:

    Getoutofthewrittenofferifmajorproblemsarediscovered Renegotiatethepurchasespricetoaccountfornecessaryrepairs Negotiatethatrepairsaremadebythesellerbeforefinalpurchaseoftheproperty

  • PropertySurveyYourlenderwillrequirethatalegallandsurveybecompletedofanypropertyonwhichtheyissueamortgagesothattheycanobtainaclearlender'stitleinsurancepolicy..Asurveyorwilldetermine:

    Whetherthehouseiswithinthepropertyborders Whetherthereareanyencroachmentsonthepropertybyneighbors Theextenttowhichanyeasementsonthepropertymayaffectlegaltitle

    Step2:ClearingtheHomeTitleSimplyexplained,"title"istherighttoown,possess,use,controlanddisposeofproperty. Whenyoubuyahome,youareactuallybuyingtheseller'stitletothehome.Adeedisthewrittenlegalevidencethatthesellerhasconveyedhisor herownershiprightstoyou.

    Beforetheclosingmeetingwhentheactualtransferofownershipoccurs,anattorneyortitlespecialistgenerally

    conductsatitleexamination.Thepurposeofthetitle

    examinationistodiscoveranyproblemsthatmight

    preventyoufromgettingcleartitletothehome.Generally,titleproblemscanbeclearedupbeforesettlement,butinsomecasesseveretitleproblemscandelaysettlement,orevencauseyoutoconsidervoidingyourcontractwiththeseller..Some"cloudsontitle"canbecorrectedrelativelyeasilywhileotherscanbecomequitecomplicatedtoremove.Youshouldinsistonbeingkeptinformedofeverystepinthetitleexaminationprocess.Iftitleproblemsareuncovered,itisimportantforyoutounderstandyourlegalrights.

    Whatis TitleInsurance?Titleinsuranceisthebestwaytoprotectyourselfagainsttitledefectsthathaveoccurredinthepast,whichmaynotappearuntilafteryou'vetakenownershipoftheproperty..Beforeatitleinsurancepolicyisissued,atitlereportispreparedbasedonasearchofthepublicrecords.Thisreportgivesadescriptionoftheproperty,alongwithanytitledefects,liens,orencumbrancesdiscoveredinthecourseofthetitlesearch.Itisdifferentthancasualtyinsuranceinthatyoupayaonetimefeeanditprotectsagainstpast(asopposedtofuture)events..Titleinsurancewillprotectyouagainsttitledefectsthatwerenotdiscoveredinthecourseofthetitlesearch.Ifsuchadefectwerediscoveredlater,yourtitleinsurancewouldcoveryou.

    Thesurveywillalsoprovideyouasanewownerwithinvaluableinformation.Thereportwillletyouknowexactlywherethepropertylinesareandwillletyouknowifthereareanybuildingrestrictionsthatcouldpreventyoufromaddingnewfeaturestoyourhome,likeanewfence..Theamountofdetailprovidedinasurveyor'sreportvariesbasedonthekindofsurveyyouaskfor.Obtainingmoreinformationwillcostmoremoney..Iwillrecommendthreehomeinspectorsforyoutointervieworyoucanpickyourown.

  • Iftitleproblemsaresevereenoughandnotcoveredbyinsurance,youcouldactuallyloseyourhouse.Atitleinsurancepolicyprotectsyouandyourheirsagainsttitledefectsforaslongasyouownyourhome..Irecommendpurchasingtitleinsurancefromthefollowingorganization:.TitleInsuranceContactInformationAddressAddressPhone

    Step3: Gettingan AppraisalOnceyouhavedeterminedthattherearenodefectsontitleandallinspectionconcernshavebeenresolved,itistimetoorderan

    appraisal..

    Anappraisalisanestimateofthevalueofapropertymadebyaqualifiedprofessional.Theappraisalofyourprospectivehome

    isasimportantasyourcredithistoryinobtainingamortgage.Afterall,thepropertyyouarepurchasingservesasthecollateral

    fortheloan..

    Althoughtheprimarygoaloftheappraisalistojustifythelender'sinvestment,italsoprotectsyoufromoverpaying.Your

    lenderwillgenerallyhiretheappraiserandwillchargeyouasthebuyerafeefortheservice..

    Iftheappraisalfallsshortoftheamountyouwishtoborrowyoumayberefusedamortgageorofferedasmalleramountonthe

    mortgage.Youroffercontractwillbecontingentonwhethertheappraisalcomesinatorabovethepurchasepriceyouandthe

    sellerhaveagreedupon.

    Step4: ClosingAllthepreparationiscomplete.Nowit'stimeforclosing!Closingisthelegaltransferofownershipofthehomefromsellertobuyer. Itisaformalmeetingthatmostpartiesinvolvedinthetransactionwillattend.Closingproceduresareusually heldatthetitlecompanyorlawyer'soffice.Yourclosingofficerwillcoordinatethesigningofdocuments andthecollectionanddisbursementoffunds...Inordertoensureasmoothclosingyouwillneedto:

    Obtainahomeowner'sinsurancepolicyandprovidethisinformationtoyourlenderand/orclosingagent. ReviewtheSettlementStatementorHUD1thatyourlenderorclosingagentwillprovideyou1to2daysbeforeclosing.

    Thesedocumentswillcontainadetaileddescriptionofallcostsassociatedwiththetransaction,includingtheexactdollar

    amountyouwillneedtobringtoclosing.

    Verifywithyourlenderand/orclosingagentanyotheritemsthatyouneedtobringwithyousuchasavaliddriver'slicense

    orotherformofidentification.

    Conductawalkthroughofthepropertypriortoclosing.Thiswillgiveyouanopportunitytoseethattheconditionofthe

    houseisthesameasitwasatthetimeofcontact.Additionally,youwillbeabletoensurethatanyrepairsagreedtobythe

    seller,basedontheinspection,havebeencompleted.

  • ErinRundall5153260369

    AgentBio

    Formoreinformationcontactmeat:ErinRundallRealtor,GRI10200HickmanCtSte100Clive,[email protected]

    Copyright2014KellerWilliamsRealty,Inc.Ifyouhaveabrokeragerelationshipwithanotheragency,thisisnotintendedasasolicitation.Allinformationdeemedreliable butnotguaranteed.EqualOpportunityHousingProvider.Eachofficeisindependentlyownedandoperated.LicensedinIowa.Clive,IA

    Erinlikestotreatothershowshewantstobetreated.

    Thatmeansthehighestlevelofservice,timelyresponses,diligencewiththebiggestsale/purchase ofalifetime,

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    Erinwasthisyear'sCircleofExcellenceAwardwinnerfromDMAARwithover$11Millioninsales.

    Only3%ofagentsinthenationperformatthislevel.

    Sheisatenaciousnegotiator,spendingcountlesshoursattendingtrainingsessionsthathavetaughtherthebest

    waystogettheresultsherbuyersandsellerswant!Erinworkshardtoearnthetrustandrespectofherclients

    bydisplayingthequalitiessheadmiresmostinothers,that'sdependability,loyalty,honesty,and asmartday's

    work.

    ServingAnkeny,Beaverdale,Bondurant,Clive,DesMoines,GlenOaks,Grimes,Johnston,Norwalk,Pleasant

    Hill,Saylorville,SouthofGrand,Urbandale,Waterbury,Waukee,WindsorHeights,andWestDesMoines.

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