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BUYER’S GUIDE

WELCOME

I am your Trusted Real Estate Expert in Philadelphia and South Jersey.

With nearly three decades of invaluable experience in mortgage underwriting, I bring a wealth of knowledge and expertise to the real estate market in the vibrant Philadelphia and South Jersey areas. As a seasoned real estate agent, I have established myself as a go-to professional for clients seeking unparalleled guidance throughout their home buying or selling journey.

My extensive background in mortgage underwriting sets me apart, allowing me to offer a unique perspective to my clients My in-depth understanding of the financial intricacies involved in real estate transactions ensures that my clients receive sound advice and strategic insights to make informed decisions.

Known for my commitment to excellence and unwavering dedication to client satisfaction, I prioritizes building lasting relationships based on trust and integrity. My approach combines a keen eye for detail, strong negotiation skills, and a passion for helping individuals achieve their real estate goals.

I am deeply rooted in the local community, and my extensive network allows her to stay ahead of market trends, providing my clients with a competitive edge. Whether you are a first-time homebuyer, a seasoned investor, or looking to sell your property, I am here to guide you through every step of the process.

When you choose me as your real estate partner, you gain access to a professional who understands the intricacies of the market and has the experience to navigate any challenges that may arise. Trust me to make your real estate journey a seamless and successful experience in Philadelphia and South Jersey.

#1 Brokerage in Philadelphia for Unites Sold, Total Volume, and Market Share.

Our Mission

At KW Empower, our vision is to redefine the real estate experience by empowering individuals and communities to achieve their dreams. We envision a future where every home is a sanctuary, every transaction is a seamless journey, and every client is a lifelong partner. Guided by integrity and a commitment to excellence, we strive to elevate the standards of the real estate industry. Our passion for creating positive and lasting impacts drives us to be a beacon of trust, transparency, and transformative success. Together, we are not just in the business of real estate; we are in the business of empowering our clients and agents to build legacies.

Our Impact

In 2023, our agents were involved in 1 out of every 5 transactions closed of in the City of Philadelphia, and together our agents sold almost $3 Billion worth of real estate last year. We have 18% Market Share in Philadelphia County –more than the next two highest market share holders combined. No other brokerage in the region has the kind of impact we do on the industry.

The home buying

PROCESS

1 PREPARE

1. Are you ready to buy?

2. How much can you afford?

3. Save for a down payment and closing costs

4. Get pre-approved for a mortgage

4. Create a home buying wishlist

6. Start touring homes

7. Utilize my technology

CONTRACT

Make an offer

Finalize mortgage

Get homeowners insurance

14. Close on your new home!

P R E P A R E

1

Are you ready to buy?

Whether it’s your first home or a starter home, purchasing property entails significant financial commitment and roots being planted.

Consider your future goals over the next few years. Are you purchasing with a partner? If so, are your financial priorities aligned? Is there a possibility of relocating for work? Are you planning to start a family?

These overarching questions can influence whether now is the ideal time to buy a home, adding to the considerations beyond just financial aspects.

2 How much can you afford?

Once you’ve decided to buy a home, the next step is to establish a budget. Start by calculating your Debt-to-Income (DTI) ratio, which involves assessing your current debts and income to determine a feasible monthly mortgage payment.

Owning a home comes with additional expenses that renters don’t typically face, such as property taxes and homeowners insurance. Be sure to factor these costs into your budget to accurately determine how much you can afford.

Mortgage lenders prioritize DTI as a key factor in loan approval because it helps predict the risk associated with mortgage applications. Understanding your DTI ratio is essential for navigating the home buying process effectively.

Save for a down payment and closing costs. 3

There are various methods to save for your home purchase, such as investing and maintaining savings accounts. If family members are willing to contribute, gift money can be used towards your down payment (ensure to provide your lender with a gift letter).

But how much should you save before purchasing a home? Consider the significant expenses associated with the purchase and plan accordingly.

DO I NEED A 20% DOWNPAYMENT?

Your down payment is a significant initial payment towards buying a home, often required by lenders to reduce their risk if the borrower defaults on the mortgage.

Contrary to popular belief, a 20% down payment is not always necessary, which can be unrealistic for many firsttime buyers. Fortunately, there are multiple options for those who can’t afford a 20% down payment. Conventional loans can be obtained with as little as 3% down, while Federal Housing Administration (FHA) loans require a minimum of 3.5%. Additionally, Department of Veterans Affairs (VA) and United States Department of Agriculture (USDA) loans allow eligible borrowers to put down 0%.

However, making a larger down payment has its advantages. It typically expands your mortgage choices, lowers your monthly payment, and secures a more favorable interest rate. Plus, putting down at least 20% on a conventional loan eliminates the need for private mortgage insurance (PMI).

Save for a down payment and closing costs.

CLOSING COSTS

You’ll also need to save money to cover closing costs, which are the fees associated with obtaining your loan. The amount you pay for closing costs can vary based on several factors, but it’s wise to budget for approximately 3% to 6% of the home’s purchase price. For example, on a $200,000 home, you might expect to pay between $6,000 and $12,000 in closing costs. The specific closing costs you incur will depend on factors such as your loan type, lender, and location. Typical expenses include appraisal fees and title insurance. If you opt for a government-backed loan, you may also need to pay an upfront insurance premium or funding fee.

Get Pre-approved for a mortgage 4

When you’re ready to begin house hunting, obtaining a mortgage preapproval is essential. This involves applying with your lender, who will assess your credit, assets, and income to provide a pre-approval letter stating the approved amount. You can then share this letter with your real estate agent to focus your search within your budget.

The pre-approval process typically includes detailing your income, assets, and the prospective home details. It serves as a crucial step akin to a mortgage trial run, allowing you to make serious offers on homes. Pre-approvals are typically valid for 90 days and can be renewed if needed.

It’s important to note that while pre-approval sets expectations, it doesn’t guarantee final mortgage approval or interest rates. After obtaining preapproval, refrain from opening new credit lines or making significant debt payments that could impact your credit score.

Getting pre-approved provides a clear financial picture as your lender gains comprehensive information about your finances, including a hard inquiry on your credit report. Applying with multiple lenders simultaneously within a short period will only count as a single hard pull, minimizing its impact on your credit score.

S E A R C H

Wishlist

Create a checklist of essential features for your future home. Consider the number of bedrooms and bathrooms required, and determine your ideal amount of living space. Evaluate the desired size of the kitchen, and assess whether ample closet and cabinet space is necessary. Consider whether a spacious yard is needed for children and/or pets to play. In addition to home features, think about the neighborhood you prefer, the quality of local schools, commute times to work, and nearby shopping amenities.

Backyard

Bathrooms

Neighborhood,Schools,etc.

Bedrooms Other

Tour Homes and Take Notes

KW Empower has nearly a 20% market share on current inventory in the city of Philadelphia. A massive value add to my clients is our Private Exclusive Platform which will give you a acess to much more inventory that is not available to the public.

One of the first places we will look for your dream home is within this platform to view it prior to everybody else.

Exceptional Customer Experience: My personal KW app is fueld by real-time date that will help me better serve you. Use this app to search by neighbo hood, zip code, school district, landmarks and much more.

Make an Offer

Before making an offer on a house, ensure you have three key elements in place:

Mortgage Pre-Approval Form: Firstly, obtain a mortgage pre-approval from at least one lender. Ideally, secure this before starting your house hunt to understand your affordability. While gathering the necessary documents may take time, a pre-approval signals to sellers that you’re serious and capable of closing the deal promptly, which can be advantageous in competitive markets.

Know the Market: Secondly, familiarize yourself with the market to make a competitive offer. Use comparable sales, market research, or a comparative market analysis from your real estate agent to gauge appropriate pricing. Aim to offer slightly less than your pre-approval amount to allow room for

The Offer Process

SUBMIT FIRST OFFER 1 2

The buyer’s agent writes the initial offer to submit to the seller’s agent. The seller’s agent can either accept or decline the offer.

COUNTER

REPEAT

You can negotiate back and forth as many times as needed until you reach an agreement or someone chooses to walk away.

If your initial offer is declined, the seller’s agent can counter with new terms. The buyer can either accept or decline the counter offer.

ACCEPT THE OFFER

Once both parties agree on all terms, you are officially under contract.

Finalize Your Mortgage 9

Once you’ve identified the property you want to purchase and its associated costs, the next step is selecting a lender for your mortgage. You can stick with the lender who preapproved you or explore options with a different one.

Even with an online-focused lender, you’ll typically collaborate closely with a loan officer to complete the application process, which involves significant paperwork. Here’s what you’ll likely need to gather:

Finalize Home Insurance 10

Securing homeowners insurance before you officially own a home may seem unusual, but it’s usually required by lenders as a condition for granting your mortgage. It’s important to obtain enough coverage to completely replace the home, which may differ from its purchase price or appraised value. Typically, the insurance policy should be effective starting from your closing date. For insurance provider options, please reference the preferred vendor list in the back of this packet.

Order and Attend Inspection

A standard home inspection provides a comprehensive visual assessment of the property, identifying potential future issues and necessary repairs. This inspection covers all facets of the house and its systems, ranging from the foundation to the roof. If you have specific concerns such as mold or radon, you may opt for specialized inspections in addition to the standard one.

You select and finance the home inspection yourself. If the inspection reveals undisclosed problems, you may negotiate with the seller based on these findings.

Order an Appraisal

Once your home is under contract, proceeding with the sale hinges on a crucial appraisal process. This assessment can influence whether the transaction progresses to closing and whether the agreed-upon price aligns with the final settlement amount.

During this phase, we take proactive steps by meeting the appraiser at your home and providing a comprehensive information packet. This ensures the appraiser has all necessary details for a favorable appraisal outcome.

Avoiding a situation where the appraised value falls short of your negotiated price is critical. That’s why we meticulously follow a specific process to safeguard against this scenario.

Negotiate Repairs or Credits 13

While certain items, such as prorating property taxes or HOA fees, may have been addressed in your offer letter, there could still be negotiations remaining before closing.

Your negotiation power often depends on the current market conditions. In a robust seller’s market, securing concessions can be challenging as sellers may have multiple offers to consider. However, issues that are likely to arise with any buyer, such as essential repairs identified by home inspectors, can still provide leverage in negotiations.

Opting for a seller credit at closing instead of requesting the seller to complete necessary repairs can streamline the transaction process. In this scenario, the seller refunds you an agreed-upon sum for specified improvements. This approach can save you money during closing, and managing the repairs independently whether through DIY efforts or with professional assistance ensures the work meets your exact preferences and standards.

Four

C L O S I N G

Schedule Your Move

AFTER SIGNING

Declutter: Sort through every drawer, closet, cupboard & shelf. Remove items you no longer need.

Donate: Sell or donate items that are in good condition

Create an Inventory: Keep track of any valuables that you plan to move.

Get Estimates: from moving companies

Important Documents: Get copies of medical records and store with your other important documents.

4 WEEKS OUT

Give 30 Days’ Notice: If you are renting

Schedule: Movers and moving truck

Packing Materials: Buy boxes, storage bags, packing paper, etc

Start Packing

2 WEEKS OUT

Contact Utilities Companies: water, electric, cable

Change Address: mail, subscriptions, etc.

Continue Packing

1 WEEK OUT

Obtain a Certified Check: for closing

Final Walkthrough: Schedule and attend

Finish Packing

Pack Essentials: Set aside essentials for the first few nights in your new home

Delivery Date: Confirm this with the moving company Make sure to share your new address, directions, and your contact information.

Close on Your New Home!

CLOSING DAY

Closing is the final step where you sign ownership and insurance documents and receive the keys to your new home! Usually, the closing process spans four to six weeks. During this period, purchase funds are held in escrow, ensuring your money is securely held until the transaction is finalized.

FINAL WALK-THROUGH

Within 24 hours of closing, we conduct a final walkthrough of the home to verify its condition. This inspection typically lasts about an hour, during which we ensure that any agreed-upon repair work by the seller has been completed. During this final inspection, we meticulously:

Verify the proper functioning of all appliances.

Test faucets for leaks and water flow.

Operate garage doors with the opener.

Flush toilets to ensure they are working correctly. Run the garbage disposal and check exhaust fans. This thorough walk-through ensures that the home meets the agreed upon conditions before finalizing the transaction.