Renee Heine Home Buyer Guide

home THE ROAD TO

A HOME BUYER'S GUIDE

Renee Heine

608.220-0440 | RENEE.M.HEINE@GMAIL.COM

Committed to bringing you the most professional, informative, trustworthy & dedicated service.

My responsibility is protecting the interests of my clients in every transaction.

WELCOME POWERFUL RESULTS. REAL PEOPLE Lauer Realty Group is a full-service residential brokerage, specializing in home sales in the most desirable neighborhoods in Madison, Dane County and beyond. It takes more than a computer and MLS access to move you when and where you want to go. The best real estate transactions happen with a great realtor at your side, and gives you the edge in the process. We bring our clients the latest information, technology, and our mastery of the industry. In using our expertise, you’re tapping into the top performing 1% of realtors in Dane County for over two decades.

At your side and on your side. Our Madison real estate agents live, work, and play right here in the Madison area and are deeply tied to the communities where you’re looking to purchase. We know the perks and quirks of each neighborhood, and we’ll work hard to honor the unique hopes and dreams you bring to the table when searching for a home.

At Lauer Realty Group we believe that being the best isn’t something you say, it’s something you are. We believe the most important thing is that we listen to our clients’ wants, needs, and expectations and deliver on them every single time. Thank you for your interest in our firm and we look forward to delivering a superior real estate experience that exceeds your every expectation.

Cheers, Liz Lauer

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FIND THE RIGHT AGENT

NINE STEPS TO BUYING A HOME

Why hire us?

PREPARE FINANCES Pre-approval and types of loans

GET PRE- APPROVED

Income qualifications and needed documents

START HOME SHOPPING Start your home buying journey

MAKE AN OFFER Making your offer stand out

ORDER AN INSPECTION Ordering, reviewing, and making decisions

APPRAISAL ORDERED Approval and final loan terms

SCHEDULE THE MOVE Your moving timeline

CLOSING DAY

Final Steps And Recommended Resources

HOME WISHLIST & MUST HAVES

Buying a home is one of the most significant purchases in a lifetime. It is essential to have an experienced agent in your corner, always looking out for your best interest. A buyer agent’s fiduciary responsibility is to represent the buyer and to ensure that they are protected.

After all, a seller has someone in their corner. A listing agent has an allegiance to the seller. Their goal is to get the seller top dollar for their home.

There is incredible value in having someone working for YOUR best interests when buying a home.

GETTING YOU IN THE DOOR

We will narrow down the homes that fit your unique wants and needs and get you in the door! I look at dozens of homes every week, and I can help you identify potential problems within a home.

HANDLING CHALLENGING CONVERSATIONS

When repairs or changes in price need to be made, I will be your guide and handle requesting any repairs or changes in price to the sellers.

STAYING ON TOP OF THE PAPERWORK

Buying a home involves many types of documentation. I have experience and knowledge navigating real estate contracts, ensuring that nothing is overlooked, and that you truly understand what a paper means before ever signing on the dotted line.

ON YOUR SIDE

A buyer’s agent will represent your best interests. With a pulse on the local market and a sound understanding of how various amenities effect the value of a home, we will make sure we submit a competitive offer on the right house for you.

NEIGHBORHOOD EXPERT

I work daily in neighborhoods with inspectors, contractors, and negotiating with sellers. I have the market knowledge you need to get you the home of your dreams at the best price! Understanding the local real estate market is essential when it comes time to make an offer on a house.

PROBLEM SOLVER

I will work hard to protect all of your interests and take on any issues that may arise throughout the entire process. I work tirelessly to make sure buying a home is a fun and stress-free as possible.

AFFORDABILITY AFFORDABILITY

The seller typically pays the commission for both the seller’s agent and the buyer’s agent.

BUYER AGENT BENEFITS SERVICES & DUTIES PROVIDED

SELLER’S AGENT

BUYER’S AGENT

Arrange Property Showings

X

X

Assists with Financing

X

X

Provides Accurate Information

X

X

Explains Forms and Agreements

X

Monitors Escrow and Closing

X

Provides Information about Listed and Unlisted Properties Gives Advice in Your Best Interest

Completes a Thorough Analysis of the Property You’re Interested In

Promotes and Protects Your Best Interest

Negotiates the Best Price and Terms For You

Points Out Reasons Not to Buy Specific Properties

Writes the Offer With Your Best Interest In Mind

X

X

X X

X

X

X

X

X

PREPARING FOR A HOME LOAN

HOW MUCH HOUSE CAN YOU AFFORD? Mortgage lenders recommend you do not buy a home that is more than 3 to 5 times your annual household income. If you are not purchasing a home with cash, you will need a mortgage preapproval provided by your mortgage lender. A lender will work with you to get a loan that meets your needs. Some buyers are concerned with keeping their monthly payments as low as possible, others want to make sure that their monthly payments never increase.

CHECK YOUR CREDIT A mortgage requires a good credit score. You can improve your score by: Paying down credit card balances Continuing to make payments on time Avoid applying for a new credit card or car loan until after closing Avoid making big purchases until after closing If possible, avoid job changes until after closing

SAVE CASH FOR A DOWN PAYMENT & OTHER EXPENSES In order to make your dream of buying a home a reality, you will need to save cash for your down payment, earnest money, closing costs & home inspector.

A Down Payment is typically between 3.5% to 20% of the purchase price Earnest Money is money you put down to show you’re serious about purchasing a home.

It’s also known as a good faith deposit.

Closing Costs for the buyer run between 2% to 3% of the loan amount A Home Inspection costs $400 to $700

Being pre-approved, which is very different from being pre-qualified, means you've actually been approved by a lender for a specific loan amount. You will need to provide documented financial information (income, statements, assets, debt & credit reports etc.) to be reviewed & verified by the lender.

INCOME QUALIFICATIONS QUALIFYING INCOME

NON-QUALIFYING INCOME

W-2 Income/Salary Income from part-time jobs Income from a second Job Overtime & Bonuses Seasonal jobs Self-employed Income Alimony & child support (Documentation required)

Income from the lottery Gambling proceeds Unemployment pay Single bonuses Non-occupying co-signer income Unverifiable income Income from rental properties

NEEDED DOCUMENTS W2’S FROM THE PAST 2 YEARS 3 MONTHS OF PAY-STUBS BANK STATEMENTS (PAST 3 MONTHS) PREVIOUS 2 YEARS OF TAX RETURNS LIST OF YOUR DEBTS & ASSETS DIVORCE DECREE ADDITIONAL INCOME DOCUMENTS

TYPES OF LOANS

TYPES OF MORTGAGE LOANS WHO QUALIFIES

DOWN PAYMENT

UPFRONT MORTGAGE INSURANCE

MONTHLY MORTGAGE INSURANCE

MINIMUM CREDIT SCORE

CONVENTIONAL

ANYONE WHO MEETS THE MINIMUM CREDIT AND INCOME LEVELS.

AT LEAST 3% OF PURCHASE PRICE

NONE

REQUIRED

620

USDA DEPARTMENT OF AGRICULTURE

SOMEONE WHO IS BUYING A HOME IN A USDA -DESIGNATED RURAL AREA.

NONE

1% OF THE LOAN AMOUNT.

REQUIRED

620

FHA FEDERAL HOUSING ADMINISTRATION

ANYONE WHO MEETS THE MINIMUM CREDIT AND INCOME LEVELS.

AT LEAST 3.5% OF PURCHASE PRICE

1.75% OF LOAN AMOUNT

REQUIRED

580-640

NONE

0-3.6% OF LOAN AMOUNT

NONE

580

AT LEAST 3.5% OF PURCHASE PRICE

1.75% OF LOAN AMOUNT

REQUIRED

580-640

VARIES FROM 10% -20%,

NONE

REQUIRED

700

VETERANS

VA DEPARTMENT OF VETERAN AFFAIRS

PERSONNEL WITH HONORABLE DISCHARGE RESERVISTS & NATIONAL GUARD SURVIVING SPOUSES

203K FEDERAL HOUSING ADMINISTRATION

JUMBO

ANYONE WHO PLANS TO PURCHASE A FIXER-UPPER OR NEEDS TO RENOVATE THEIR HOME AND MEETS CREDIT & INCOME REQUIREMENTS

ANYONE WHO MEETS LENDERS CREDIT, INCOME & DEBT LEVEL REQUIREMENTS

START SHOPPING

START TOURING HOMES IN YOUR PRICE RANGE Time to start shopping! We will take notes on all the homes we visit.

It can be hard to remember all the details of each home, so take pictures or video to help you remember each home, and review the notes you have written. Once we have found THE house for you, we will present an appropriate offer based off of recent sales and current buyer activity in the area, as well as the value of the property in its current condition.

TIP Evaluate the neighborhood and surrounding areas Are the surrounding homes well maintained to your liking?

How much traffic is on the street, does it matter to you?

Is it conveniently located to schools, shopping, restaurants, & parks?

MLS SEARCH AREAS IN MADISON

SAMPLE PROPERTY INFO SHEET

MAKE AN OFFER

WHEN TO MAKE AN OFFER:

So you have found THE house! Congrats! In today’s market when the demand is higher than the amount of homes available it is important to act fast!

HOW MUCH TO OFFER:

We will sit down and look at recent sales and current buyer activity in the area, as well as the value of the property in it’s present condition. Putting all this information together, we will determine the price that you would like to offer.

SUBMITTING AN OFFER:

There are some components to an offer that makes it more appealing to the sellers.

• Put Your Best Foot Forward

We will work together to discuss your options and create your very best offer. Depending on the circumstances, you may have only one chance to make a good impression.

• Put Down an Earnest Deposit

A healthy earnest money deposit written into the offer shows the seller you are serious.

• Cash Talks

A transaction that is not dependent on receiving loan approval is often more attractive to a seller.

• Shorter Inspection Periods

Try shortening the inspection period to 10 days or limiting the objections in your offer.

• Contingencies If the market is very competitive we may discuss the needed contingencies vs what to expect if you choose to exclude any.

• Offer to Close Quickly Many sellers prefer to close within 30 days.

THE PROCESS AFTER YOU SUBMIT AN OFFER THE SELLER COULD • ACCEPT THE OFFER • DECLINE THE OFFER This happens if the seller thinks your offer isn’t close enough to their expectations to further negotiate.

• COUNTER-OFFER A counter-offer is when the seller offers you different terms. If this happens, you can: • ACCEPT THE SELLER’S COUNTER-OFFER • DECLINE THE SELLER’S COUNTER-OFFER • COUNTER THE SELLER’S COUNTER-OFFER You can negotiate back and forth as many times as needed until you reach an agreement or someone chooses to walk away.

OFFER IS ACCEPTED - CONGRATS! You will sign the purchase agreement and you are now officially under contract! This period of time before closing is called the contingency period.

Now inspections, appraisals, or anything else built into your purchase agreement will take place.

During the inspection period, you will schedule an inspection with a reputable home inspector to do a thorough investigation of the home. Once this is complete, the inspector will provide us with a list of their findings. You can accept the house as-is or request the seller to address some or all of the findings. We are usually reasonable about smaller items, while being very cautious and vigilant of potentially significant issues.

The home inspection may reveal issues, defects or concerns and those tend to result in another round of negotiations for credits or fixes 1. Ask for a credit for the work that needs to be done.

Likely, the last thing the seller wants to do is repair work 2. Think “big picture” and don’t sweat the small stuff.

Tile that needs some caulking, or a leaky faucet can easily be fixed. Repairs are still up for negotiation and perhaps a small credit would help with closing costs.

3. Keep your poker face.

Typically it’s just you, me and the inspector present during inspections, however occasionally the seller and/or list agent may be present. Revealing your comfort level with the home could come back to haunt you in further discussions or negotiations.

Your lender will arrange for a third party appraiser to provide an independent estimate of the value of the house you are buying. The appraisal lets all parties involved know that the price is fair. The loan file then moves on to the mortgage underwriter.

When approved you will receive your final commitment letter that includes the final loan terms & percentage rates.

Property Title Search

Homeowner's Insurance

This ensures that the seller truly owns the property, and that all existing liens, loans or judgments are disclosed.

You'll need insurance for the new home prior to closing.

This will protect against things like fire, storms and flooding

AFTER SIGNING Finalize mortgage Schedule a home inspection Get quotes for home insurance Declutter! Sort through every drawer, closet, cupboard & shelf, removing items you no longer need or like. Donate or sell items that are in good condition Make sure to have copies of all important documents and have them safely stored to easily find when needed Create an inventory of anything valuable that you plan to move Get estimates from moving companies

4 WEEKS TO MOVE Give 30 days notice if you are currently renting Schedule movers/moving truck Buy/find packing materials Start packing

3 WEEKS TO MOVE Arrange appraisal (Your lender will do this).

Complete title search (The title company will do this) Schedule a closing time

2 WEEKS TO MOVE Secure a home warranty Schedule a time for closing Contact utility companies (water, electric, cable) Change address: mailing, subscriptions, etc.

Minimize grocery shopping Keep on packing

1 WEEK TO MOVE Obtain certified checks of closing Schedule and attend the final walk through Finish packing Clean Pack essentials for a few nights in new home Confirm delivery date with the moving company. Make sure to give them directions to the new home, along with your cell phone number

CLOSING DAY Closing is when you sign ownership and insurance paperwork and you receive your new home’s keys! Typically, closing takes four to six weeks after the accepted offer. During this time, make sure to make no big purchases or job changes that could affect your loan approval prior to closing day. Funds are brought the day of closing to complete the purchase.

CLOSING DISCLOSURE Lenders are required to provide you with a closing disclosure, at least three days before closing. This will show you what your final loan terms and closing costs will be. You will have three days to review the statement.

This is done to ensure that there are no surprises at the closing table. If there is a significant discrepancy between the loan estimate and the closing disclosure, we must notify your lender and title company immediately.

FINAL WALK THROUGH We will do a final walk through of the home within 3 days of closing to check the property’s condition. This final inspection takes about an hour.

We will make sure any repair work that the seller agreed to make has been done.

We will be sure to: Make sure home is clean Seller removed any and all personal property that was not discussed in offer Any included items in offer have remained on property CLOSING TABLE Who will be there: Your agent The seller The seller’s agent A title company representative Your loan officer (Sometimes) Any real estate attorneys involved in the transaction The closing typically happens at the title company. You will be signing lots of paper work so get your writing hand warmed up! Some of the papers you will be signing include: the deed of trust, promissory note, and other documents.

CLOSING COSTS Closing costs can vary depending on your home’s purchase price and where you are located. Your lender should be able to help determine the closing costs as well. You can generally expect your closing costs to be around 2% to 3% of the home’s sale price.

BRING TO CLOSING Government-issued photo ID Homeowner’s insurance certificate A certified check for the rest of your down payment and closing cost (personal checks are not accepted at closings) RECEIVE YOUR KEYS Congratulations! It was a lot of hard work but you now own your new home! Time to throw a party and get to know your new neighbors!

SAMPLE CLOSING STATEMENT

FOCUS ON ENERGY ® INCENTIVES AND RESOURCES FOR HOME ENERGY IMPROVEMENTS Good news - our agents are focus on energy ambassadors! That means they can connect you with great resources and exclusive offers to improve the comfort, health and energy efficiency of your home.

Focus on energy partners with natural gas and electrical utilities across Wisconsin to offer incentives that help lower the cost of energy saving home improvements. Each step you take to save energy and boost comfort helps both your home and your community by supporting a more energy independent Wisconsin.

FOR YOUR HOME, FOR WISCONSIN Since 2001, Focus on Energy has helped millions of home owners make simple changes that make a big difference. For example you can receive: Free energy efficient product packs Free refrigerator and freezer recycling Rebates and discounts for heating and cooling equipment, smart thermostats, insulation, light bulbs and more

A WARM WELCOME: GET $125 OFF A FURNACE TUNE-UP Getting started with Focus on Energy is easy, and since our agents are ambassadors it’s even easier and more rewarding for you. Be on the lookout for a special Welcome Kit from Focus on Energy and your real estate agent.

It will land in your mailbox about one month after you close on your new home and have a chance to settle in.

Your Welcome Kit includes a $125 voucher for cleaning and tune-up of your heating and/or cooling system plus a helpful Home Maintenance and Energy Guide. It’s a great way to start feeling right at home in your new house.

WE’RE HERE FOR YOU

See all that focus energy has to offer you and your new home, from cash incentives to Trade Ally Contractors, at FocusOnEnergy.com

LENDERS & INSPECTORS

PROTECT YOUR LOAN APPROVAL DON’T buy or lease a new vehicle.

DON’T quit your job to change industries, start a company or go into business for yourself.

DON’T switch from a salaried job to a commission job or a 1099 independent contractor position.

DON’T transfer large sums of money between bank accounts.

DON’T forget to pay your bills, even ones in dispute.

DON’T open new credit cards.

DON’T make big purchases on existing credit cards.

(Buy furniture and appliances AFTER you own the home.)

DON’T close any credit card accounts.

DON’T accept a cash gift without filing the proper “gift” paperwork.

DON’T make random, undocumented deposits into your bank account.

DON’T spend the money you have set aside for closing.

DON’T omit debts or liabilities from your loan application.

DON’T do things that cause inquiries into your credit score.

This includes test driving cars.(they sometimes pull your credit) DON’T co-sign a loan for someone. This debt will change the ratios that qualified you for your loan.

These activities can void your loan pre-approval!

Should circumstances arise where you need to engage in these activities, consult your Lender first.

RECOMMENDED LENDERS The following Lenders are recommended by previous clients. You are not required to choose from this list and are encouraged to do your own research to determine the best Lender for you.

RYAN SMITH

ABBEY DENOBLE

Guild Mortgage Residential Lender Office: 608-234-5117 Mobile: 608-513-3942 Email: ryansmith@guildmortgage.net

Bell Bank Mortgage Residential Lender Office: 608-598-2283 Mobile: 608-234-0689 Email: adenoble@bell.bank

SCOTT COCHEMS

RICK MCKINLEY

Farmers & Merchants State Bank Commercial Lender Office: 608-655-1473 Email: scochems@fmsbwm.com

UW Credit Union Residential Lender Office: 608-232-5000 Email: rmckinley@uwcu.org

HOME INSPECTIONS When you are purchasing a property we recommend that you have a Professional Home Inspector conduct a thorough inspection. The inspection will include the following: Appliances Plumbing Electrical Air Conditioning and Heating Systems Ventilation Roof and Attic (if accessible) Foundation General Structure

The inspection is not designed to identify every minor problem or defect in the home. It is intended to report on defects that, at the time of the inspection, are identified as causing health or safety risks, or that affect the resale value of the property. Should serious problems be found, the Inspector will recommend that an additional inspection be done by a qualified professional (i.e. Electrician, Plumber, Roofer, ect).

Your home cannot “pass or fail” an inspection and your Inspector will not tell you whether they think the home is worth the money you are offering, or if you should or should not buy the home. The Inspector’s job is to make you aware of repairs that are recommended or necessary.

As a guideline, the Seller may be willing to negotiate; A.) The completion of repairs B.) A credit for the completion of repairs In addition to the overall inspection, you may wish to have separate tests conducted (i.e. well water, septic system or the presence of Radon gas).

When choosing a Home Inspector, be sure to select one that has been certified as a qualified and experienced member by a Trade Association.

We strongly recommend being present at the inspection. This is to your advantage, as you will be able to clearly understand the inspection report and know exactly which areas need attention. Plus, you can get answers to many questions, tips for maintenance, and general information that will help you once you move into your new home. Most importantly you will see the home through the eyes of an independent third party.

QUALIFIED INSPECTORS The following inspectors again are recommended from previous clients, as well as being inspectors we know are thorough and professional. Again, you are not required to use an inspector on this list and are welcome to do your own research and pick an inspector of your choice.

KYLE BECKSTROM

MIKE HOESER

Madison Home Inspection

AmeriSpec

Office: 608-395-9689 Email: madisonhomeinspectionllc@gmail.com

Office: 608-276-8060 Email: mike.hoeser@amerispec.net

PAUL HUGHET Capital Inspection Services Office: 608-515-8950 Email: capitalinspectionservices@gmail.com

ABOUT US

LET'S CONNECT 608-220-0440

o l l he

RENEE.M.HEINE@GMAIL.COM LAUERREALTYGROUP.COM @RENEE HEINE REAL ESTATE @RENEEHEINE.REALESTATE

I AM RENEE HEINE YOUR LOCAL REAL ESTATE EXPERT

REALTOR®

I came to Lauer Realty Group with 14 years of experience of successfully working with both buyers and sellers, and investment properties in Madison and the surrounding Dane County area.

I am a born and bred Madisonian and I know Madison like the back of my hand! I have three adult kids, and a wonderful grandson named Noah who is my favorite person in the whole world! (Just don’t tell my kids that) My partner Gary and I live in the Willy St/Atwood neighborhood and enjoy spending time enjoying the great restaurants, festivals, and Lake Monona that this great neighborhood offers for fun! We also enjoy traveling and exploring new places and making friends from all over the world!

COMMUNITY OUTREACH We believe in and are committed to staying connected and involved with our local community. We love to give back and throughout the year we participate, contribute, sponsor, and donate time and resources to many wonderful organizations and causes.

You’ll be sure to find us volunteering in neighborhood festivals, walking in a community parade, and supporting local artists. Whether it’s fundraising with the Goodman Center for the Annual Thanksgiving Drive, or working with GSAFE to ensure LGBTQ+ youth and families thrive, we are dedicated and passionate about the community we live in.

#atLRGinthecommunity

REVIEWS & MORE

“Renee was a pleasure to work with, as a first time home buyer. While she is certainly responsive and knowledgeable about the Madison real estate market, I especially appreciated how honest she is in her approach. I never once felt pressured or rushed to buy, and she was often able to give good advice that ultimately made my first purchasing experience a breeze. She was prompt with completing paperwork, and was overall an enjoyable person to collaborate with. Her work and attitude set the bar high for any future real estate adventures I may have - highly recommend!”

“As first time home buyers, finding the right agent was really important! We were referred to Renee through a friend and are so grateful for that connection. Renee was extremely responsive when it came to explaining next steps, scheduling showings, answering our questions, and coordinating offers. We were a bit overwhelmed by the idea of house hunting but Renee made it easy and fun! We really appreciated her advice and guidance throughout the entire process. She helped us find the perfect home, even in a very competitive market. Thanks Renee.”

“Renee was a pleasure to work with and made everything so easy for a first time buyer like myself. She was responsive and patiently answered all the questions that I had throughout the entire process. I look forward to working with her again in the near future.”

"Renee was a pleasure to work with and made everything so easy for a first time buyer like myself. She was responsive and patiently answered all the questions that I had throughout the entire process. I look forward to working with her again in the near future."

“I loved working with Renee! There was zero pressure to settle for anything that I was not completely happy with. The weekend before I found my home, we looked at two places that were in my price range but very disappointing. She encouraged me not to give up, and the next day (Monday), the perfect place was listed. With Renee’s confidence and expertise, we moved quickly and I got the home of my dreams. I wouldn’t dream of working with anyone else and highly recommend Renee!”

"Renee was amazing to work with! As firsttime home buyers, we came in with very little knowledge of the home buying process or the Madison area market. Renee was available around the clock to answer our questions and was never afraid to tell us when “we could do better” on a home that wasn’t perfect for us. She took the time to get to know us and our situation (baby on the way and working from home) and helped us narrow down our options based on our needs. When it came time to write up a bid, Renee used her experience of the Madison market to guide us in crafting competitive offers that stood out to sellers resulting in the purchase of our new home. My wife and I couldn’t be happier with our new home and the experience we had working with Renee. We strongly recommend Renee to anyone looking to buy, but especially to first-time home buyers. "

GLOSSARY OF REAL ESTATE TERMS These terms represent a small portion of the jargon used in describing the purchase process for Real Estate. An important part of our relationship is making you more familiar with how these terms are part of your puchase and ownership of Real Estate. We have provided here a simplified, common language explanation of these terms limited to how they will most likley be used in your home puchase process.

Appraisal - An estimate of the quanitity, quality or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value. (Most Lenders require an appraisal of a property before giving you a loan to confirm that the sale price reflects the market value of the home.)

Assessment - The imposition of a tax, charge or levy, usually according to established rates. (In Dane County, Real Estate taxes are based on the Municipality’s assessment or financial value assigned to a home and land. Ask us for the current tax rates in the areas you are looking.)

Buyer Agency Agreement - An agreement which allows a REALTOR® to represent the best interests of a Buyer throughout the search, negotiations, and purchase process.

Capital Gain - Profit earned from the sale of an asset.

Closing Statement - A detailed accounting of a Real Estate sale showing all cash received, all charges and credits accounted for, and all cash paid out in the transaction. This is the standardized form which is used as the final accounting at time of closing to determine the amount of funds due at the time of closing. (Also known as a Settlement Statement or ALTA.) Competitive Market Analysis (CMA) - A comparison of the prices of recently sold homes that are similar to a particular home in terms of location, style and amenities. (When we find you a home that you are going to make an offer on, we will look at the sale prices of comparable properties to help determine an offer price.)

Earnest Money - Money paid by a Buyer under the terms of an offer contract, held by the Listing Broker during the term of the contract, and credited back to the Buyer at time of closing. This money is understood to be forfeited if the Buyer defaults on their offer contract.

Easement - A right to use the land of another for a specific purpose, such as for a right-of-way or utilities. An easement can stay in place beyond the sale of a property, therefore any Buyer will receive Title Insurance to discover any recorded easements that will stay with the property.

Equity - The interest or value that the owner has in property over and above any indebtedness.

Escrow - The closing of a transaction through a third party called an Escrow Agent, or escrowee, who receives certain funds and documents to be delivered upon the performance of certain conditions outlined in the escrow instructions. (Brokerage companies, i.e. Lauer Realty Group Inc, acts as an Escrow Agent while holding earnest money.)

Fixture - An item of personal property that is attached to the Real Estate property or function of the property in such a way that it is considered part of that Real Estate (i.e. light fixtures, floorboards, furnace, water heater, doorknobs.

Lien - A right given by law to certain creditors to have their debts paid out of the debtor’s property. This is a debt that must be paid by the Seller prior to receiving any proceeds on the sale of a home and includes any debts for which the property is put up as collateral ( i.e. a mortgage).

PITI - Principle, Interest, Taxes and Insurance. This amount makes up the monthly payment normally due monthly to the home owner’s mortgage company.

Private Mortgage Insurance (PMI) - Insurance provided by private carrier that protects a Lender against a loss in the event of a foreclosure and deficiency. This is usually required when a loan amount exceeds 80% of the value of the property. Ask about loan program options that avoid PMI. Special Assessment - A tax or levy customarily imposed against only those specific parcels of Real Estate that will benefit from a proposed public improvement like a street or sewer. (It is important in a Real Estate transaction to determine who will be paying the balance if a special assessment is upcoming or currently due.)

Title Insurance - A policy insuring the owner or mortgagee against loss by reasons of defects in the title (ownership) of a parcel of Real Estate, other than encumbrances, defects and matters specifically excluded by the policy. It is also provided as proof of ownership of the property, usually provided by the Seller to a Buyer, which also shows any other liens or encumbrances which are attached to a property.

Truth-in-Lending - Act requiring credit institutions to inform borrowers of the true cost of obtaining credit.

unicorn HELPING YOU FIND YOUR

Renee Heine 608.220.0440 RENEE.M.HEINE@GMAIL.COM 2229 ATWOOD AVE MADISON, WI 53704 LAUERREALTYGROUP.COM