Homebuyer's Guide

The Ultimate First Time HOME BUYER'S GUIDE

MEET YOUR AGENT

Brief Description

Buying a home is a big decision. A home is the single most expensive asset most people acquire in their lifetime. The more prepared you are at the beginning, the less overwhelming and chaotic the buying process will be.

My goal is to make the process as efficient and seamless as possible. It is my job to support you in finding the right home with the best possible terms, and to assist you through the entire buying process.

I have prepared this package for you, to help explain the process of buying a home.

This material will help to familiarize you with the various activities, documents and procedures that you will experience while purchasing your home.

It is very important that you work with someone you feel comfortable with and that you trust will take good care of you. Working with a real estate agent while purchasing won't cost you a thing, the seller pays the agents commission.

Crystal Watt

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

an introduction

TO BUYING YOUR FIRST HOME WHAT YOU SHOULD KNOW

Contrary to popular belief, beginning the home buying process is actually quite

simple! The information included in this Home Buyers Guide should give you a good starting point and idea of what to expect when purchasing your dream home.

GENERAL DISCLAIMER

If you plan on purchasing out of state, just note that each state may have a slightly different process from the information included in this guide, and each professional you talk with will have a slightly different approach. I recommend that you speak with the professionals in the area you plan on purchasing in to get the best “full picture".

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

MAKE YOUR PLANS &

set your priorities

After answering the following questions, you will be in a great position to research your housing and mortgage options as well as create an action plan and timeline.

SET YOUR PRIORITIES 1

What do you want from a home?

2

What does your family want?

3

Do you want a turnkey home or would you prefer to renovate?

4

Choose the top five ‘must-haves’

5

Choose the top five ‘would-likes’

6

Are you pre-approved for a mortgage?

7

What can you afford each month?

8

When is the ideal time to move?

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

HOME BUYING PROCESS

in nine simple steps 1

Prepare finances

2

Get pre-approved

3

Start home shopping

4

Make an offer

5

Deposit earnest money

6

Order inspection

7

Escrow process

8

Schedule the move

9

Closing Day

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Preparing Your Finances HOW MUCH CAN YOU AFFORD?

Don't overextend yourself - you should aim to be as realistic as possible about your budget before falling in love with a home you can't afford. A good rule of thumb is to keep your housing costs (mortgage, insurance, etc.) to 30% of your income. However, most professionals will even suggest aiming for 25%. A mortgage lender will help you determine exactly what you can afford and, therefore, which houses you should be considering.

DEVELOP A BUDGET Use receipts and your banking transactions to create a budget that reflects your actual habits over the last several months. This approach will better factor in unexpected expenses alongside more predictable costs such as utility bills & groceries. You’ll probably spot new ways to save!

REDUCE DEBT Lenders typically look for a debt load of no more than 36% of income. This figure includes your mortgage, which ranges between 25-28% of your net household income. So you need to get monthly payments on the rest of your installment debt (car loans, student loans & credit card debt) down to 8-10% of net monthly income.

INCREASE YOUR INCOME Now’s the time to ask for a raise! If that’s not an option, you may want to consider taking on a second job or side hustle to get your income at a level high enough to qualify for the home you want.

SAVE FOR A DOWN PAYMENT Designate a certain amount of money to put away in your savings account each month. Although it’s possible to get a mortgage with less than 5% down, you can usually get a better rate if you put down more. Aim for 20% of the purchase price.

KEEP YOUR JOB While you don’t need to hold the same job forever to qualify for a loan, having a job for less than 2 years may result in a higher interest rate.

ESTABLISH A GOOD CREDIT HISTORY Get a credit card, make payments on time, and pay off entire balances as quickly as possible. Get a copy of your credit report, which includes a history of your credit, bad debts, and late payments. Ensure that it’s accurate and correct any errors immediately.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Mortgage Financing Credit scores play a huge role in the loan qualification process.

Increase your chances of success by following these guidelines: DON’T OPEN NEW CREDIT

If you’re applying for a mortgage, having too much available credit can actually lower your score. You'll want to speak to a professional, but it's best to avoid opening new credit cards when applying for a mortgage.

AVOID ANY BIG PURCHASES

Although you might be tempted to order new furniture, appliances and decor for your future home, you'll want to avoid making any big purchases until you close on the property.

PAY MAX CREDIT CARD BALANCE

In order to secure a loan, you'll need to stay on top of credit card payments.

Pay off as much of your balance as you can each month, as well as paying your bills on time.

SUBMIT APPLICATIONS AT ONCE

Having too many credit applications can lower your credit score. On the other hand, multiple credit score inquiries from the same type of lender are counted as one if they are submitted over a short period of time.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Do's & Don'ts During the Loan Process There are certain "Do's & Don'ts" which may affect the outcome of your loan request.

These remain in effect before, during and after loan approval up until the time of your loan is funded and recorded. Many times credit, income, and assets are verified the hour before you have signed your final loan documents. Here is a list of things you should comply with:

MAKE SURE THAT YOU DO NOT do anything that will alter your credit and risk you obtaining your loan. These may also put you in default of your Sales Contract, may put your ESCROW deposit at risk and may put you at risk of being sued.

DO NOT continue to shop your loan after 30 days. Your credit is pulled and takes a hit every time this is done. If your score is borderline, it is possible you will no longer qualify for the loan.

DO NOT quit your job or change jobs. If this happens consult with your loan office and agent immediately.

DO NOT make any major purchases until after escrow closes. New purchases may affect your credit score and debt ratios and my reduce the amount of a home loan for which you qualify.

DO NOT apply for other credit. Do not apply for a new credit card, major retailer credit card, or any other credit related account. Even if you do not plan to use it until after you are in your new home, it will affect your score now.

DO NOT make large deposits that cannot be documented.

DO NOT pay any judgments/collections unless instructed by lender. You may have a judgment, collection or lien or your credit and want to pay it off. Do not do this unless instructed by the lender. Call your lender before you buy or pay on anything while in a transaction.

DO NOT charge abnormal amounts to your current credit.

DO NOT send in late payments.

DO NOT co-sign for anyone. This will change your DTI ratio.

MAKE SURE THAT YOU DO

DO inform your real estate agent of ANY changes. This can be in employment, income, assets, credit cards, or loans. You should have the same job when they verify employment on funding day as you did when you submitted the application.

DO continue to make all payments on time.

DO return phone calls from any party involved in the transaction. This includes your agent, loan officer, loan processor, title company, etc.

Time is very crucial during this process so it is very important to return these calls ASAP. DO inform your agent if you are connected to a short sale or foreclosure. If you are renting a home in foreclosure during marriage, or if you are taking a mortgage interest deduction on a home that is pending foreclosure, inform your agent.

DO inform your agent of any student loans that have been deferred but are due within the next 3 years. This needs to be counted against your debt to income ratio.

DO document all gift funds. You must show paperwork of money coming into and out of your funding account.

Get Pre-Approved Before you walk into your first meeting with a real estate agent, you’ll want to

offer proof that you have the income, credit score, and the budget for a home purchase. In short, you need to be pre-qualified and pre-approved.

A mortgage pre-approval tells real estate agents working on behalf of

sellers that you will likely be approved

for a loan. It means that your offers will

be taken more seriously, and could even lift you above others eyeing the same homes as you.

Both pre-qualification and pre-approval are steps on the way to lender approval.

Typically, the pre-qualification phase

comes first, while the pre-approval—a

more intensive process—is the next step.

Before you put in your first offer, aim to be pre-approved.

During pre-approval, you’ll submit

financial records to the lender to provide evidence of your total net worth—your assets, income, and current debts, as

well as your credit score. So long as you

don’t buy a big-ticket item or take out a new loan, you’ll most likely have no

issues getting the funding you seek.

Many lenders do pre-qualifications and pre-approvals over the internet.

The next page will give a more in-depth comparison on being pre-qualified vs. being pre-approved.

linktr.ee/crystalwattrealtor | contact Crystal at 832.253.3898

Documents Needed for Loan Application Personal Information

Copy of Social Security Card Copy of Driver's License Marital Status

Number and age of dependents

Current address and phone number Addresses for past 7 years

Current housing expenses (rent, mortgage, insurance, taxes) Name and address of

landlord/mortgage holder (past 2 years only)

Full names of purchasers as they are to appear on the title

Divorce decree if applicable Employment History & Income

2 years of employment history with details of each position

Copies of pay stubs for last 30 days Copies of W-2's and Tax Returns for past 2 years

Tax returns and financial statements if self-employed

Records of dividend and interest received

Proof of other income

If own 25% or more of a business,

need company tax returns for last 2 years

Documentation supporting money received from social

security/retirement trust income, i.e. copies of direct deposit statements, awards letters, evidence that the income will continue

Assets

Copies of checking and saving account statements for last 2 months (all pages)

Copies of quarterly or semi-annual statements for checking, savings, IRA's, CD's, money market funds, stock, 401k, Profit Sharing, etc Value of Life Insurance

Information about any cars you own, real estate or other significant property

Any assets used for down payment, closing costs and cash reserves

must be documented by a paper trail

If paid off mortgage in past year, need copies of CD Liabilities & Debts

Itemized list of all current debts: loan and credit cards and other bills (include account numbers and outstanding balances, monthly

payments). 12 months' statements for present mortgage

Written explanation of any past credit problems

Full details of bankruptcy during the

last 7 years, if possible (need copies of petition for bankruptcy and

discharge, including supporting schedule)

Alimony and Child Support: Copy of Ratified Decree and property settlement setting out terms

linktr.ee/crystalwattrealtor | contact Crystal at 832.253.3898

Pre-Qualified vs.

PRE-APPROVED

To improve the chances of your offer being accepted, you'll want to get pre-approved by your mortgage lender. This will also give you

a more accurate idea of what you can afford and make the home shopping process more affordable! But there's a big difference between being "pre-qualified" and "pre-approved". Let's discuss!

PRE-QUALIFIED

PRE-APPROVED

Offers a general estimate of the loan amount you can qualify for.

Offers a specific loan amount for which you've been approved.

Provide basic information to the mortgage lender, but not financial history.

Provide important details such as financial and employment history.

Makes realtors and sellers suspect that you're just a window shopper.

Has a better reputation, and let's realtors & sellers know you're serious.

Pre-qualification isn't strong enough to support a contract or offer.

Pre-approval is often required before a contract can be signed.

The process can be done either online or over the phone.

The process can be done either online or over the phone.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Start Home Shopping Shopping for your dream home is usually the most exciting part of the

process! However, it can also be a very stressful & tiresome experience.

Here's a few top tips to help you navigate the process.

GETTING STARTED

Your real estate agent will most likely get you set up on a search through the local MLS that will send you houses via email meeting the criteria that you gave them. You can browse through the listing photos and read through the descriptions for each property and then decide if you’d like to go check it out or not.

TAKE DETAILED NOTES

Take note of the things you do and don’t like about each potential new home to help you refine your search. Be brutally honest about your feedback on the home - this is a huge decision! If you're really not fond of the home layout, you won’t hurt your real estate agent's feelings by telling them that up front.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

New Construction Homes Shopping for your dream home is usually the most exciting part of the

process! However, it can also be a very stressful & tiresome experience.

Here's a few top tips to help you navigate the process.

There are many benefits to working with a Realtor on a new home transaction. If you are considering buying a new home, here are a few things you need to know.

New homes are more expensive to purchase than resale homes.

Resale homes depreciate each year. The actual cost of a home goes down each year because it is getting older. The property the house is on appreciates. In contrast, a new home is build at the current market rate for materials, which is always increasing.

New homes are more expensive to move into.

The model home you visit is shown with many upgrades. When you purchase a new home, it often does not include many of these extras. Purchasing a washer, dryer, refrigerator, window coverings and landscaping are added expenses you will incur.

These items are included with many resale homes.

For new homes, a buyer must use a seller's preselected Title Company Under normal circumstances, the buyer and buyer's Realtor choose the Title Company used in a transaction. Many Realtors prefer this choice, as it means they will work with title officers they know and trust.

New home builders want you to be pre-qualified with their lender, even if you are already pre-qualified with another lender.

You have to fill out additional paperwork and take another "hit" on your credit rating. New home builders want control over their buyers. Many builders make deals with the specific lenders ahead of time to ensure there are no financing surprises and to get better rates on their construction loans. It is normal for the builders to pay for closing costs or contribute towards it if you use their lender.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

New home builders have very specific rules about you using a Realtor.

Most homebuilders will pay a Realtor a commission only if the Realtor follows their strict rules from the very first visit to the model homes. If you don't follow the rules, you will be on your own and will not benefit in any way by having representation. Do not visit a model home without your Realtor and if you do, do NOT fill out anything!

Using a REALTOR means you have someone representing you.

When you buy direct from the builder, you encounter "Dual Agency". The builder's agent represents both you and the builder. You will not have someone looking out for your interests. As your REALTOR representative, we attend sales appointments with you, any subsequent meetings, the final walkthrough and the signing at the Title Company.

We can refer a licensed inspector to do a final walkthrough with you.

During the walkthrough, the contractor will identify issues of concern that might need attention. Typically, these are issues the builder would otherwise not point out to you. Once these items have been identified, the builder corrects them and then you can sign the final occupancy release.

You must do the following to qualify for our help with a new home purchase: Your REALTOR must go with you when you visit a new home development.

Failure to have your REALTOR with you on that first visit means that you will likely not be able to have our representation

If you want to visit the models but your REALTOR is not with you, do not sign anything, including the guestbook!!!

Sometimes you can visit the showrooms without signing in. However, the developers want you to sign in to receive brochures, discuss the development or get pricing information. This is information that we can also provide for you. If the office personnel insist that you sign in, tell them you have REALTOR and share your agent's business card. If they tell you that you no longer qualify to have REALTOR representation because your agent is not with you, do not sign anything and simply leave. We will come back with you and will help you sign up properly.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Short Sale Homes A short sale occurs when a homeowner needs to sell their home, but they owe moreon their loan than they will receive from the sale of the home. In other words, they will be “short” on the amount of funds required to pay off the outstanding loan. A shortsale requires the lender to agree to the sale of the home at a price lower than the remaining balance on the outstanding loan. In a short sale, the lender becomes a party to the transaction.

What is the difference between a Short Sale and an REO? An REO (Real Estate Owned property) is a home that has already gone through the foreclosure process and is owned by the lender or bank. The lender is highly motivated to sell the property as quickly as possible.

A Short Sale, on the other hand, is much more difficult to complete because the lender does not yet have control of the property. Rather than sell the property, the lender often tries to negotiate the loans and terms to keep from having to foreclose or incur a large loss through a short sale. Lenders may refuse to talk to REALTORS® until they are fully convinced that the homeowner’s only option is to sell. Usually, the homeowner must stop making payments for the lender to realize that they are serious about selling. Short sales, because of all of the intricacies involved, can take months to close. If you are in a hurry to get into a home, a short sale is probably not for you.

What are some typical reasons for a Short Sale?

Short sales normally occur in a depressed market where home values have dipped below what homeowners originally paid. Reasons for selling are varied, but the most common are that adjustable rates on a loan make the monthly payment unaffordable, loss of income, job transfers, or divorce.

Short Sales are purchased "As-Is".

Since the bank sets the terms for the short sale, they will not do any repairs. They will have you sign an “AS-IS” Addendum as a part of the contract. However, on rare occasion when there are catastrophic damages, a lender may issue some credit towards the repairs. You will need to pay for any inspections required, with no guarantee that you will actually end up owning the house. This is one of the substantial risks associated with short sales.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

What to Expect when Writing an Offer Here are some things to consider to ensure your offer gets accepted:

What type of Sale is it?

Foreclosure/Short Sale/Traditional Is it priced right for the market What is the buyer activity Are there offers on the home What other homes are for sale in the neighborhood What has sold recently in the area How long has it been on the market What is the seller's motivation?

Are they price driven or are there other terms that are important to them such as a lease after sale How soo do they need to close Do they need a lease back

CRYSTAL WATT JLA REALTY - THE WOODLANDS

Do you need concessions for closing costs?

Closing costs such as title, escrow, and lender fees usually cost between 1% - 3% of the sales price Are there multiple offers on the property?

This is common for homes priced right for the market and in great condition Often times the seller will ask for your "highest & best" offer. In other words, what is the highest price you will offer that if anohter buyer offered more you would not have any regrets because you gave it your best shot

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Make an Offer You’ve found a house you love, talked things over with your agent, and you're ready to approach the seller with an offer. For most buyers, this is when the butterflies really show up.

Once you’ve found a home you want your agent will work with you to craft an offer. Remember, the listing price is only a starting point. Your agent will understand the market and help guide you to make the most attractive offer, whether it’s below, at or above listing price. Are there any contingencies to your offer? Will you require an inspection? These are all things your agent will help you with.

Once you’ve submitted the offer you get to wait. You may get a simple yes, but you should be open to the possibility of it not working out, too. Don't let personal attachment get in the way of the nuts and bolts of the home-buying process, or you’ll most likely be disappointed. The time to pop the champagne is when the keys are in your hand. Not a moment sooner.

WHAT IS EARNEST MONEY? Earnest money is, in short, earnest. It’s a sign to the seller that you want this house. Your real estate agent should be able to guide you on the benefits of an earnest money deposit, which is sometimes required by the seller and other times offered in good faith.

Earnest money typically ranges from 1% - 3% of the home’s price. And no, it doesn’t go directly into the seller’s pocket, regardless of outcome. If the deal ultimately falls through, in most scenarios the deposit will return to you. Earnest money is held in escrow until the day of closing, and is put toward the closing costs of the home purchase.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Order an Inspection If your offer called for a home inspection, this is a big day. Sure, you get to have a home inspector look over the home to make sure there are no defects you want to negotiate to have fixed, which will be discussed below.

But more importantly, this is the most time you’ll spend in your new home until closing. Start measuring things and figuring out what goes where.

This may be the last time you are inside the home until it's yours!

THE LOGISTICS OF A HOME INSPECTION The goal of the home inspection is to make sure that all major systems & structures in your prospective home are in working order.

A home inspector evaluates things like plumbing, electrical, HVAC, roofing, exterior walls and fireplaces. The inspector will follow a checklist and make notes of anything that may need early repairs or isn't functioning correctly.

You’ll want to be present during the last 30 minutes of inspection. Make every effort to coordinate schedules with the inspector and be there to ask questions towards the end. Don’t let anyone convince you into thinking “you don’t need to get an inspection.” A home is the biggest of big-ticket items, and due diligence is essential. You can expect a home inspection to run you $250 to $400—possibly more if the home tops 2,000 square feet.

Average home values by zip code and square footage are the biggest drivers of higher fees for home inspection minute.

If inspection results are unsatisfactory or an agreement cannot be reached as to who will pay for any necessary repairs, you have the option (during the option period) to terminate your contract.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

ORDER AN APPRAISAL

Tips and Tricks

During an appraisal, a licensed appraiser evaluates the home you want to buy in person and gives you an estimate on it’s worth. The appraiser is chosen by the lender but paid for by the buyer as part of the closing costs.

Appraisals cost around $400 (but can vary depending on home size and location) and the appointment usually takes an hour.

1. ASSESSMENT OF PROPERTY

The appraiser will walk through the home, taking note of its condition, finishes and location — you can somewhat think of it like a light inspection.

2. REVIEW OF COMPARABLE SALES

The appraiser will use the findings of their walkthrough to identify similar homes that have sold recently in the neighborhood. This will help them decide a fair market value.

3. FINAL REPORT

The appraiser will deliver a physical report on the fair market value of the home, including photos and descriptions of comparable sales. In most cases it’s just the lender and the buyer who will receive copies of the report. The seller may request a copy of the appraisal report, but in most cases you are not required to share it. Ideally, the appraisal will return higher than the agreed upon sales price. That indicates that you’re paying less than the fair market value and your lender will approve the loan.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

FINAL WALK-THROUGH

Preparing to Close

The last steps before closing typically involve a survey, appraisal, home inspections, and title search. If you're not paying cash, you will now be waiting on your financing to get finalized. The mortgage financing approval period takes on average 4-6 weeks to complete. During the process, be prepared to prove your finances, maybe multiple times! At a minimum, you will need the last two years of tax returns, two months of bank statements, and your most recent two pay stubs.

The lender will probably call your employer to check your current employment status right before closing. Once the underwriting of your loan is complete, and the lender feels you are qualified, they will give a Clear to Close. Each title company closes a little different, so they will provide your REALTOR® instructions on what they'll need for you to close. You will need to prove your identity, and in most cases, have funds wired to the title company in advance.

The day before closing, after the seller completely moved out of the house, you and your REALTOR® will want to do a final walkthrough of the home.

This walkthrough is to make sure the home is left as per the contract. You want to verify that all the appliances that are supposed to remain have been left in the house, all personal property has been removed, the home is clean, and that there was no

FINAL WALKTHROUGH

Check appliances Run water for possible leaks Flush all toilets Run garbage disposal Open & close garage doors

damage done to the home.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

THE CLOSING PROCESS

Finally, the closing day is here! Typically 72 business hours after you receive a Clear to Close, you can close on the property.

WHAT TO BRING TO CLOSING

Government issued photo ID Any outstanding documents

CLOSING DAY NOTES The day before closing, you will wire any funds that you will need to close to the title company or bring a cashier's check or money order on the day of closing.

On closing day, you’ll sign contracts to finalize the mortgage, pay the seller, and pay closing costs. The property title will be transferred to you and you can move into your new home!

You'll get the keys to your new home at the closing once everything is finalized.

Remember if this is your primary residence to apply for a Homestead Property Tax Exemption the following tax year. You must occupy the property on Jan 1 of that year in order to file for a homestead exemption. I will send out a reminder a link in January of the following year.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

GUIDE TO CLOSING COSTS

Terms you should Know

Closing Costs: Fees paid at the end of the property transaction either by the seller, buyer or both parties. They include the taxes, insurance and any other lender expenses which will be discussed prior to closing.

APPRAISAL FEE

INITIAL ESCROW

RECORDING FEE

DISCOUNT POINTS

ORIGINATION FEE

TITLE INSURANCE

FLOOD CERTIFICATION FEE

PREPAID INTEREST

TITLE SEARCH

HOMEOWNERS INSURANCE

MORTGAGE INSURANCE (PMI)

TRANSFER TAX

HOMEOWNERS ASSOCIATION

PRORATED PROPERTY TAX

CREDIT REPORT FEE

The fee that is charged by a property appraiser to make a fair market value estimate of a property. *This fee is required by the lender.

Paid to lender at closing to reduce the interest rate over life of mortgage. *This will generally be around 1% of the total loan amount.

A check of public records to confirm that the seller owns the property and is free from unsettled items, liens or claims.

This is an insurance policy that provides coverage for home damage, as well as claims of negligence that result in someone's injury.

A maintenance fee applied to planned developments & condominium owners to maintain the common area. *Charged to each owner.

Funds held in an account that are to be used by the lender for property taxes, homeowners insurance and flood insurance.

A fee paid to the lender to evaluate credit & underwrite and process loans. *This is usually calculated in the form of points.

A required prepaid deposit that covers the interest due on your mortgage between the date of closing and the first mortgage payments.

Private mortgage insurance that protects the lender in the event that the borrower defaults. Required if down payment less than 20%.

The property taxes that are transferred from seller to buyer on the final closing date, until a new buyer purchases the property.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

A fee that is charged by the County Clerk to record the transfer of property from one owner to another via public record documents.

An insurance policy that is required by most lenders & protects against any errors or claims that may arise about ownership.

A check of public records to confirm that the seller owns the property and is free from unsettled items, claims or liens.

Transaction fee imposed on the transfer of property title. *Usually paid by the buyer and is based on the amount of the home mortgage.

A one-time fee that covers the cost of the credit report.

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

THE MOVING CHECKLIST

Prepare for the Move

NUMBER 1

Update your mailing address at USPS or fill out a change-ofaddress form at your local post office.

NUMBER 2

Change address with important service providers (i.e. banks, credit companies, subscriptions and others).

NUMBER 3

Create a list of people who will need your new address, either formally or simply by emailing those who should be informed.

NUMBER 4

Contact utility companies and make sure they’re aware of your move date, and arrange for service at your new home.

NUMBER 5

Ensure you have insurance coverage for any of the items your moving company won't be transporting for you.

NUMBER 6

Unplug, disassemble, and clean out appliances. This will make them easier to pack, move, and plug in at your new place.

NUMBER 7

Check with the condo board or HOA about any restrictions on using the elevator, exits or entrances for moving, if applicable

NUMBER 8

Pack an “Open First” box. Include items you’ll need most (i.e. toilet paper, soap, trash bags, chargers, box cutters, water)

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

CLIENT TESTIMONIALS

best client testimonials

“Crystal was very patient, informative and trustworthy. She always had our best interest as a top priority. Awesome realtor!

“Mrs. Crystal Watt was always extremely professional and courteous. She is very well knowledge about what going on in the market of housing. I anticipate on working with her again in the future.”

“Very thorough, prepared did her homework”

CLIENT TESTIMONY “Crystal was an excellent realtor. She showed pure professionalism. I wouldn't hesitate to recommend her to anyone I know that's looking for a realtor.

Thank you so much.”

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Frequently Asked Questions WHAT IS THE DEBT-TO-INCOME (DTI) RATIO?

A ratio used by lending institutions to determine whether a person is qualified for a mortgage. Debt-to-Income is the total amount of debt, including credit cards and other loans, divided by total gross monthly income.

HOW MUCH MONEY WILL I NEED FOR CLOSING?

A general rule of thumb is to estimate between 2% to 3% of the purchase price for closing costs. Your down payment is also paid at closing (this amount varies depending on the loan you are using or any Down Payment Assistance).

WHEN MORTGAGE LENDERS REFER TO "PITI" WHAT ARE THEY REFERRING TO? PITI is principal, interest, taxes and insurance - the components of a monthly mortgage payment.

HOW DO I KNOW WHAT MY INTEREST RATE WILL BE? Your loan officer will search for the lowest rate and "lock" your rate. The "lock-in" guarantees the homebuyer an interest rate provided the loan closes with that buyer and specified property within a set period of time. The property lock-in also specifies the number of points to be paid at closing.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Frequently Asked Questions HOW MUCH CAN I EXPECT TO PAY UPFRONT?

You can expect to come out of pocket at least 3 times during the home buying process. After your offer is accepted you will need to pay Option Money ($100+), Earnest Money (1% of purchase price) and Inspection Fee($300+).

WHAT IS PRIVATE MORTGAGE INSURANCE (PMI)

PMI is insurance required to cover the lender should the borrower default on the loan. PMI is tax deductible. PMI can only be eliminated by having a down payment of at least 20%.

WHAT DOES MY LENDER MEAN BY PAPER TRAIL?

A "paper trail" is copies of all paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.

WILL I GET A COPY OF MY APPRAISAL?

The lender will send you a copy of the appraisal once their office recieves it.

WHERE DO I GO FOR CLOSING?

Your closing will take place at the title company. Your agent will send you the address and set up your appointment once your loan is Cleared to Close.

WHERE DO I SEND MY FIRST MORTGAGE PAYMENT? Refer to your "First Payment Letter" in your closing documents to determine where to send your first mortgage payment.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Mortgage Dictionary Amortization: The process through which the mortgage debt is altered, usually declining, as payments are made to the lender. "Negative-Amortization" occurs when monthly payments are too small to cover either the principal or interest reductions.

Annual Percentage Rate (APR): The rate of interest to be paid on a loan projected life; sometimes referred to as the "true" rate of interest.

CAP: A limit on how much a mortgage interest rate may increase or decrease for an adjustable rate mortgage.

Conventional Mortgage: A home loan that follows a fixed rate.

Default: Failure to pay the mortgage payments over a specified period of time.

Discount Points: A percentage of the mortgage paid to the lender to lower the interest rate on a loan. One point equals one percent of the mortgage.

Down Payment: The amount of cash you will be providing from your own resources towards the purchase price. Typically, the higher the deposit, the more attractive your offer. With a higher deposit you may be offered better rates and options from the lender.

Equity: The difference between the market value of a house and the amount still owed on the mortgage.

Escrow: A procedure in which a third-party acts as a stakeholder for both the buyer and seller, carrying out both parties' instructions and assuming responsibility for handling all paperwork and distribution of funds.

FHA Loan: A loan guaranteed by the Federal Housing Administration. FHA issues specific guidelines for mortgages.

Lien: A legal hold or claim on property as a security for a specified amount on specified terms.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Mortgage Dictionary Loan-To-Value Ratio (LTV): The amount of the loan divided by the purchase price of the house. If a refinance, the loan is divided by the appraised value.

Mortgage Insurance: Insurance designed to cover the lender should the borrower default on the loan. Depending on the loan to value, this may be required by the lender.

Paper Trail: Copies of all paperwork to cover the lender should the borrower default on the loan Prepayment Penalty: A fee imposed on a borrower who pays off a mortgage before its due.

Purchase Agreement: A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions. Also called a sales contract, earnest money, or agreement for sale.

Principal: The amount of the loan.

Title Company: A company that searches for titles and insurance claims. Your loan will close at a title company.

TItle Insurance: Assures owners that they are acquiring marketable title. It is designed to eliminate risk or loss caused by defects in title from the past.

VA Loan: A loan that is partially guaranteed by the Veterans Administration and made by a private lender. The borrower must have served in the Armed Forces.

CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898

Thank You! THANKS SO MUCH FOR YOUR TIME

Thank you so much for taking the time to learn about my services! Please do not hesitate to reach out if you have any questions or concerns. My goal is to make your home buying experience as smooth as possible. I look forward to working with you if you choose me as your REALTOR.

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CRYSTAL WATT JLA REALTY - THE WOODLANDS

LINKTR.EE/CRYSTALWATTREALTOR 832.253.3898