Issuu on Google+

Especially prepared for Mr. and Mrs. Craig Buckmore

Lilo Carroll, Associate Broker CRP, CRS, e-PRO, GRI, RECS, RFC, RRC ERA Colonial Real Estate http://www.lilocarroll.com Cell 254-554 -1292 Office 254 213 6990


Estimated Timetable The following timetable is suggested to give you an idea of the timing of the different events in the home-buying process. It is meant to be a guide and if you have any questions, please ask me. First Week     

Deposit earnest money check Make loan application Pay for appraisal and lock-in fee Arrange for property inspections Arrange for exterminator inspection Second Week

    

Make property inspections Make exterminator inspections Make repair request to seller Make sure all information mortgage company requested has been submitted Arrange for movers Third Week

 Call to find out if repairs have been completed  Call to find out if mortgage company needs additional information

Fourth Week     

Walk-through to verify completed repairs Arrange for cashier’s check for closing Arrange for settlement, signing of papers Arrange for transfer of utilities Arrange for exchange of keys and personal items


Contract Check List

 Order termite inspection  Order mechanical inspection  Notify landlord  Order insurance policy  Transfer utilities  Order telephone service  Make final walk through  Make appointment with movers  Make extra keys/change locks  Order cable TV service  Order new checks  Change driver's

license/credit cards


Questions to Ask When Writing an Offer

Has the owner completed a property disclosure statement? If yes: May I have a copy? What type of financing is available on this property at this time? Do you have quote sheets available? What would be a reasonable repair expense amount for this home? Has there been an appraisal made on this home? Could you run comparables of recent sales in the area? Are you aware of anything that might affect the present or future value? Would you prepare an estimated closing cost statement and figure the approximate house payments? Would you prepare a comparison of an adjustable rate mortgage and a fixed rate mortgage and a Homeowner's Analysis?


Things to Consider When Buying a New Home Decide What Type of House You want 1. Begin by listing features that match your lifestyle. For example, do you prefer a one story home of multiple levels? You may want an open kitchen, a garage, or a large yard. If you know what you want, it helps narrow your search. Your agent will assist you.

Determine Your Price Range 2. Record your current assets and available funds to determine the down payment potential that you have (typically 5% of the home price for conventional, 3% for FHA financing, no down payment for VA loans). Then estimate the mortgage payment you can afford. Generally, your mortgage payment should not exceed 28% of your total gross income (conventional financing). Your agent will assist you.

Select a Neighborhood 3. A key consideration is location. Talk to people in neighborhoods you are considering to find out if they enjoy living there. Consider factors such as drive time to work, schools, police, and fire protection, etc. Your agent will assist you.

Select a Builder 4. Ask friends for recommendations. Visit a variety of builder models and, if possible, owners of specific builders’ homes to identify whether the owners are satisfied with their purchases. Most builders can provide references if you request them. Your agent will assist you.

Sign a Purchase Agreement 5. Once you find the home you want, you will want to formulate a purchase agreement (consult with your real estate agent) and place a deposit on the home. Put everything in writing.

Secure a Mortgage 6. Contact various lenders (your agent will assist you and advise you on this aspect as well) to identify the best interest rates and terms. Rates can change daily, so be sure your information is current. You might also explore various types of mortgages as well as compare adjustable mortgage vs. fixed. Your agent will assist you.


Make Your Selections 7. Usually you will be able to choose your colors as well as multiple components within the builder’s allowance or “upgrades” (you will be charged the difference), i.e. floorcoverings, paint, appliances, lighting and plumbing fixtures.. The easiest way to choose exterior features usually is to drive the neighborhood and mark the colors you like, i.e. brick (or stone), roof shingle color, trim colors, front doors, etc) Ask your agent for assistance.

Hire an Inspector 8. Even though your builder will offer you a builder’s warranty you may want to hire a professional property inspector to ascertain that all building components are functioning as intended. Your agent will be happy to provide a list of inspectors for you.

Prepare for the Walk-Through 9. The time to identify any problems in your home’s construction is during the walkthrough. Don’t be afraid to look at every detail in the house, focusing on vital components such as window seals, foundation or floor cracks, appliances, and faulty outlets or light switches. Your builder would rather be aware of problems before settlement, rather than three months after closing. Your agent will assist you.

Complete the Settlement Process 10. If there are items during the settlement (or closing) process that you don’t understand, ask questions until you get sufficient answers (again your agent will be able to explain the documents as well as the various charges). Your agent will also ascertain that you have copies of the sales contract, warranty, owner’s manuals, survey, title and house insurance policies, deed and mortgage instruments, as well as home maintenance instructions.

Celebrate Your Purchase 11. A new home is an important investment that will provide enjoyment and good times for years to co


Your Right to know……. 1.) After finding a suitable home…. Before you make a written offer to purchase, ask your REALTOR to provide you with comparables in the area (homes that have sold) for the past 6 months. Compare the subject property to the homes sold by price per square foot. Example: $ 100,000 divided by the square footage (i.e. 1700) of the home. In this case it would have sold for $ 58.82 a square foot. Homes to compare should meet certain criteria. If subject property is 1700 s.f. with a tile entry, shade trees, full masonry fireplace, 2 car garage on a standard sized lot then the other properties should be similar. However, this is not always the case. An appraiser’s biggest influence is the s.f., then age, then amenities, so that should be what you look for. 2.) Critical areas a buyer should consider are: price, location, and condition. Next, appearance of the neighborhood/subdivision. How close and convenient are schools and shopping. Even if you don’t have children, you will want your home to appeal to the majority of home buyers should you need to resale. Your REALTOR will be able to provide you with that information if requested. 3.) Take a second or third look at the property you are considering. Look for foundational cracks and settling. Point these areas of concern out to your inspector. 4.) Drive through the neighborhood at night to see what kind of activity abounds. Better yet, try to drive through on a weekend. You may decide you don’t like that area after all. 5.) Try not to purchase a home in a residential area that is a thoroughfare for traffic. These homes are very hard to resale 6.) Hire a property inspector and make sure the contract is contingent on repairs found due the inspection.


Property Condition Check List Appliances

?

Comments

?

Comments

Range Oven(s) Dishwasher Disposal Microwave Trash Compactor Exhaust Fan Central Vac

Plumbing Gas Line Kitchen Sink(s) Bathroom Sink(s) Bathroom Tub(s) Bathroom Shower(s) Commode(s) Hot Water Heater(s) Utility Room Water Meter Outside Faucet(s)


Electrical

?

Comments

?

Comments

Panel Box Switches Outlets/fixtures Doorbell Intercom Bath Heaters Smoke Detectors Ceiling Fans Heating/Cooling Furnace Blower Air Conditioner Ducts Filters Humidifier Electronic Air Filter Fireplace Attic Fan


Please rate each home according to it’s benefits and features A-Excellent B-Good C-Fair D-Poor E-Not Satisfactory Features Property address Price Style Living areas Dining room Kitchen # of bedrooms # of baths Additional rooms Floor plan Additional features Garage Lot/Landscaping Utility room Information Location Meets your needs Overall rating

#1

#2

#3

#4

#5


Things Worth Noting

____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________


More Things Worth Noting ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________


At the Conclusion of the Home Search ... Lilo and the Proven Performance Team will: •

Prepare an Offer to Purchase agreement and explain each detail.

Provide you with copies of all the documents involved in the purchase agreement and

Assist you in determining the appropriate financing and help you select the best

Accompany you to the loan application if you so desire.

Provide you with a loan application checklist.

Provide you with an estimated cost of closing or settlement including points, title

Make arrangements for the mortgage application.

Coordinate any necessary inspections of property to evaluate the major elements of

Assist in securing interim financing if your present home has not yet sold.

financing.

financial institution to handle your mortgage.

insurance, appraisals, credit reports, etc. prior to the loan application.

the home.


Understanding Closing Costs

Application Fee:

Fee charged by lender to offset fixed costs related to mortgage loan processing such as appraisal, credit report, and underwriting.

Closing Fee:

The fee charged by the closing agent who prepares the closing documents and closes the loan on behalf of the lender.

Commitment Fee:

This is often called an origination fee and is generally computed at 1% of the mortgage amount.

Discount Points:

Each point is equal to 1% of the mortgage amount. Points are used by the lender to adjust the yield on the mortgage when it is sold to an investor. By paying more points, the borrower can obtain a lower mortgage interest rate.

Funding Fees:

Normally applicable on VA loans only, equal to 1% of the loan amount. The fee is due at closing or may be added to the loan amount and financed.

Homeowner’s Insurance:

One year premium is due in advance at time of closing.

Mortgage Insurance:

Insurance required by the lender when the down payment is less than 20%. In the case of loan default, this insurance reduces the lender’s loss.

Pre-payables:

Adjustment to escrow accounts from the date of closing to the date of the first payment. Interest is paid through the end of the month of closing, taxes are paid through the end of the month of closing plus the following month. Two months of PMI (Principle Mortgage and Interest) are collected. Two months of homeowner’s insurance may be collected. A homeowner’s insurance policy must be provided along with a receipt showing that the first year’s premium is paid.

Processing Fee:

Fees charged by the escrow processor, either working for the escrow company, title company, or real estate company, for administrative escrow services performed from the point of contract through closing.


Recording Fees:

Fees charged by state or municipal entities for entering the closing documents into the public record.

Survey Fee:

Is usually required and is used by the lender to check for encroachments from within or from outside the subject property.

Title Insurance:

Provides protection for lenders and homeowners against financial loss resulting from legal defects in the title.

Underwriting Fee:

Usually included in the application fee. However, practices vary from lender to lender.


CONTRACT PREPARATION, PRESENTATION, AND NEGOTIATION. Once you’ve made your decision as to which property your are interested in purchasing we will formulate the purchase offer, stating your offered price, type of financing, closing and possession dates, and additional contractual requirements. At the preparation I will discuss all the provisions with you and analyze the terms and closing expenses. I shall also provide you with updated market information on the property of your choice. When all the forms are signed and initialed I shall forward the offer to the listing agent to be presented to the seller, who will make the decision as to: • accepting the offer as written • countering the offer with his/her preferences • rejecting the offer If any changes are made to the offer it will then be returned to us, and you, in turn, may accept the counter offer, reject it, or re-counter. This negotiation process may continue until all the terms are accepted by both parties, or either buyer or seller rejects the terms and withdraws from the negotiation.


Once the contract has been accepted and dated, the option period (if applicable) begins, during which time you will arrange for the property inspection (I will provide you with a list of inspectors for you to review, interview and choose). The inspector must be licensed and bonded and will be paid by you. We will notify the listing agent of the day and time of inspection you may be present during the inspection (it is recommended that neither agent be present as to not influence the inspector in any way). Most inspectors are extremely thorough, and it may take up to 3 hours! After the inspection, the inspector will prepare the report and forward it to you (most likely via email). You will review it and determine which, if any, repairs you’d like the seller to complete on your behalf. We then formulate an amendment to contract to listing any individual repairs. This form will be presented to the seller, who again, may accept it as written, reject it (in which case you may terminate the contract), or counter and choose which repairs he is willing to complete. You, in turn, may choose to respond again, or accept it, or terminate the contract. Once the repair issues have been mutually accepted we’ll move forward towards the closing; the appraisal will be ordered, as well as the survey (if needed) and the termite inspection. You, the buyer, will need to make arrangements for house insurance (again, I’ll be glad to supply a list of insurance companies to you) for the transfer of utilities to become effective on the day of closing.


AFTER CONTRACT ACCEPTANCE FLOW CHART

• • • • • • • • • • • • • •

Property condition inspection Amendment to contract presented Repairs negotiated Option clause waived or contract is terminated Buyer’s loan commitment received Appraisal ordered Appraisal received Repairs ordered Survey ordered (if applicable) Wood destroying insect inspection ordered Warranty ordered (if applicable) Buyer’s walk-through inspection before closing Review of closing statement Closing appointment


After Finding Your Home: The Home Inspection It’s easy to make sure the home you’ve chosen is a smart buy.

By having a home inspection, the home’s vital systems are checked. A home inspection allows you to purchase your home with confidence. Lilo Carroll will help you set one up after you have chosen the home you like. Lilo Carroll recommends the following minimum standards when choosing an inspector: 1. Membership in ASHI (American Society of Home Inspectors) and adherence to its Standards of Practice and Code of Ethics. 2. Written report at the time of inspection.

Items on your inspection report will include: FOUNDATIONS, BASEMENTS, AND STRUCTURES Basement floor and walls, proper drainage and ventilation, evidence of water seepage. EXTERIOR SIDING, WINDOWS, DOORS Exterior walls, windows, and doors; porches, decks, and balconies; garage. ROOF Roof type and material, condition of gutters and downspouts. INTERIOR PLUMBING SYSTEM Hot and cold water system; the waste system and sewage disposal; water pressure and flow; and hot water equipment. ELECTRICAL SYSTEM Type of service, the number of circuits, type of protection, outlet grounding, and the load balance. CENTRAL HEATING SYSTEM Energy source, type of cooling equipment, capacity, and distribution. INTERIOR WALLS, CEILINGS, FLOORS, WINDOWS AND DOORS Walls, floors, ceilings, stairways, cabinets, and countertops. ATTIC Structural, insulation, and ventilation information. FIREPLACE Notes about the chimney, damper, and masonry. GARAGE Doors, walls, floor, opener. APPLIANCES Includes a wide range of built-in and other home appliances, smoke detectors, and television/cable hookups. LOT AND LANDSCAPING Ground slope away from foundation, condition of walks, steps, and driveway.


Home Inspectors Getting a home Inspection is very important. Although most home will be appraised, and the appraiser will be responsible for looking for Lender Required Repairs, the appraisers do no INSPECT the home in the traditional sense. If you are concerned about the Heater, Air Conditioning, Plumbing, Electrical, and other safety items, then get a Home Inspection.

Advantage Real Estate Inspection TAREI Shane Renkel

254-690-0594

Buyers Choice Real Estate Inspection TAREI Richard Clark

254-698-3584

Home Team Inspection Service Killeen Nolanville Garza’s Real Estate Inspection Service Steven E. Rinehart HomeSpec Real Estate Inspection Pro Data House Inspection TAREI Vince Johnson Pillar to Post - Professional Home Inspections Keith Evans TexStar Inspections, LLC Chris Coffey

254-200-0058 254-698-3302 254-690-1186 Cell 254-289-0204 254-394-0482 254-690-6897 Cell 254-371-3108 254-634-3482 254-616-9399


LIST OF INSURANCE COMPANIES ALLSTATE NEAL WHITE

634-5433

EXTRACO 200-3600 FARMERS INSURANCE GROUP HERRING INS. AGENCY

699-9600

STATE FARM NAN HAWTHORNE

699-6800

WESTERN INSURANCE 547-2626 USAA 1-800-531-8111


Prior to the Closing ... Lilo Carroll will: •

• •

• •

Confirm the mortgage loan approval, which may include the following: Loan Commitment Credit Report Appraisal Verification of Employment Verification of Assets PMI (Private Mortgage Insurance) Submission to underwriter Verbal approval Written approval Need to amend contract Provide you with a transaction checklist of items to prepare for the closing. Coordinate the following as applicable to your transaction: Occupancy permit Survey Home Warranty Application Special agreements Amendments Escrow agreements Lien Waivers City Letters Title Policy Closing/escrow statement Affidavits Authorization to deliver deed Provide you with a closing checklist of items to prepare for the final closing or settlement. Remind you to coordinate the following one week prior to final closing or settlement: Transfer utilities Check keys Check Electric Garage Door Openers


MAIL OUT CLOSING

• If your closing is a mail-out to YOU: – Be prepared to overnight the package to the title company the same day! – Locate a notary: some of the documents need to be notarized (most banks, real estate offices, or car dealers have notaries, as well as the military JAG office) – Access to a fax machine or e-mail address will expedite the process by a day or two, it will eliminate having to overnight the papers to you. – The packet will include full signing and return mail instructions (original signatures are required for recording of documents) – Include a copy of your picture identification (front and back!) – Include certified funds (if applicable)


The Closing Appointment Usually the seller will sign his/her documents before the buyer’s turn, as the seller is the one conveying the title to the property, and his/her number of papers that need to be signed are rather minimal. You will have to sign all the loan documents as well as title company disclosure forms, and the closing statement. The escrow officer will also need to copy your picture identification card. If you owe money you will need to supply a certified funds check if the amount exceeds $ 1,500 and/or you have an out-of-state bank account. Once the seller and you have signed all documents your lender will review all material before providing the escrow officer with a “funding number�; the transaction can then be disbursed, and you can either come by to pick up your closing documents and check (if you are due a refund), or the company can wire the funds to your bank directly if you prefer. Should funding be delayed for any reason, we need to submit a temporary residential lease agreement before receiving the keys and access to the property


CLOSING OF THE SALE

• Prepare for the closing appointment: Bring: – Picture identification – Original power of attorney (if applicable) – Certified funds (if applicable) – Arrange for “alive and well” call (if applicable) – Wiring instructions (if preferred) • Meet with escrow agent to sign closing documents – After you and the seller have signed, documents must be reviewed and approved by your lender before loan can fund (if it’s late in the day loan may not fund till the next day; in that case a temporary residential lease must be executed if you’re to have possession to the house that day!) • Once loan has funded you may call yourself a proud homeowner in the state of Texas!

CONGRATULATIONS!!


Property showing book Buckmore