Buyer Guide - Version 1 by NAFMidwest

Buying Your Home

An in-depth guide to all things home buying

Welcome

My team and I want to thank you for allowing us to help you and guide you through the process of selling your home. We are truly passionate about helping people just like you sell their homes for top dollar in the quickest time possible. I have created this book as a guide to help outline the entire process of getting your home sold from start to finish.

Even though this guide describes in detail the selling process, know that I am here to help you every step of the way. My team and I are only a phone call or text away!

We look forward to guiding and working side by side with you to success!

Sincerely your agent,

Kelsey

TheHomeBuyingProcess

Get Pre-approved, we can introduce you to a great lender!

Schedule a meeting with my team where we will go over what you are looking for in your next home

Next , we will prepare your offer and present it to the seller!

OFFER ACCEPTED!

Next, we will go home shopping, and view homes that meet your criteria and pricing needs.

CONDUCT YOUR DUE DILIGENCE: HOME INSPECTION, TITLE SEARCH, SELLERS DISCLOSURE, HOA DOCUMENTS, ETC

Schedule a time with title company to sign final documents.

Yay the home is yours!

HOME APPRAISAL

LENDER APPROVES LOAN, SIGN LOAN DOCS, 3 DAYS TO REVIEW, LENDER SENDS DOCS TO TITLE.

GetPre-Approved For a mortgage what you need to

WHat you need to get pre- approved:

Proof Of Income - A lender will need to be be able to verify your income. they will ask for previous pay stubs, w2s and tax returns

Proof Of Assets - They will also verify that you have enough fund to pay the down payment and closing cost of the home you are purchasing

Credit Score - The lender will also pull your credit score, the better the score the better your rate will be. Your credit score shows the lender that you are trust worthy in paying back the loan.

Identification - Lastly the lender will need to be able to confirm your identity, you will need to provide photo documentation and your signature showing you authorize them to pull your credit.

The 4 most common

Mortgage Types

Conventional Loan

Lower rates for those with higher scores multiple mortgage insurance options for borrowers who borrow 80% LTV. no limits on income, area, or occupancy

Full documentation required

VA Loan

no downpayment needed primary residence only flexible credit guidelines must be a veteran

FHA LOAN

3.5% down payment more flexible credit guidelines then conventional primary residence only

Mortgage insurance required full documentation required

USDA LOAN

no down payment required flexibility with credit income limitations apply no PMI needed eligible areas only

GettingPre- Approved

One of the first steps you need to take as a home buyer is getting pre-approved for a mortgage. This step takes place before we view homes, so that we can clarify the price point and what loan you will be going with. Different loan options can put limitations on the types of homes purchased and even can put a limit on the location it is being purchased in. By taking the step to get approved, it takes the guessing game out of the shopping process. It also puts you in a strong position so that when we find you the perfect home you will be able to put a strong offer with the backing of a lender.

Your Home

MUST Haves

Lets break down your top 3 Must Haves in your next home

Is there anything you want to make sure the home does not have?

SHomehowing Tips

viewing your first few homes can be super exciting and daunting at the same time. as your agent I am here to walk you through the hard parts of home buying to make you feel at ease. Below are some tips to help you during the showing process: always remember that we are walking through peoples home, some homes may have security cameras, so always treat the showing and things you say (both good and bad) as if you are on camera for the seller to see. when viewing multiple homes its great to keep notes of each home, sometimes at the end of the day the homes can blur together. keeping detailed notes of what you liked and didn't like can really help you narrow down your list! If you find a home you love, be ready to make a move! the market is hot and ever changing. chances are if you love the home, someone else does too! you don't want to miss out on your dream home by sleeping on it!

Home Showings Score Card

Address:

Bedrooms: Lot Size:

What I Like:

What I don't like:

Bathrooms:

Over All Score (circle)

Notes:

Making A Offer

The first step in making an offer is to determine what price you want to offer. My team and I will go over the multiple factors that come into play when determining a good offer price with you. Those factors include variables such as how long the home has been on the market, local comparable homes and what they have sold for, if there are any other offers being put in on other homes, etc. Once we determine the price we will decide the other factors that go into the contract, for example any contingencies like a home inspection. And the financing terms and acceptance period. Once we both feel great about the offer terms we have written up, you will sign the offer and we will submit it to the seller. Then its the waiting game to see when they accept it! If the seller wants to change anything about the offer they will submit a counter offer. If we receive a counter offer, I will go over the changes with you and we can decide together if those changes will work for you! Once everything is agreed upon the seller will sign the contract, and everything will be executed! Yay!

How To

Compete with MultipleOffers

This market is crazy, so it'S good to be prepared for scenarios that there are multiple offers on a sing home. Below are some tips that could help you

win IN A MULTIPLE OFFER SCENARIO:

MAKE A LARGER EARNST MONEY DEPOSIT: EARNEST MONEY IS THE GOOD FAITH DEPOSIT YOU MAKE TO SHOW THE SELLER YOUR INTENT ON PURCHASING THEIR HOME. A LARGER THEN NORMAL EARNEST MONEY DEPOSIT MAY INDICATE TO THE SELLER THAT YOU ARE MORE SERIOUS THEN OTHER BUYERS OFFERING LESS

HAVING FEWER CONTINGENCIES: CONTINGENCIES INCLUDE, HOME INSPECTIONS, APPRAISALS, AMOUNG OTHER STIPULATIONS YOU MAY BE TEMPTED TO ADD INTO A CONTRACT. LOWERING THE AMOUNT OF TIME FOR EACH CONTINGENCY OR GETTING RID OF THEM ALL TOGETHER IS VERY ENTICING TO THE SELLER

LARGER DOWN PAYMENTS: SHOWING THE SELLER YOU CAN PROVIDE A LARGE DOWN PAYMENT SHOWS YOU ARE FINANCIALLY STRONG. WHICH ON THE LENDING SIDE OF THINGS TYPICALLY MEANS A FASTER AND SMOOTHER PROCESS.

COMING IN WITH A STRONG OFFER IN THE BEGINNING: YOU WILL WANT TO COME IN WITH YOUR FINAL AND BEST OFFER TO BEIGN WITH TO ENSURE YOU WONT LOOSE OUT ON THE HOME. TYPICALLY IN MULTIPLE OFFER SITUATIONS YOU WONT HAVE THE TIME TO GO BACK AND FORTH NEGOTIATING WITH THE SELLER. IF YOU REALLY WANT A GOOD CHANCE OF WINNING THIS HOME, COME IN STRONG WITH YOUR BEST FOOT FORWARD

Under Contract

finalize the contract and execute buyer deposits earnest money with the escrow agent

Buyer inspection Period

Title Work

Closing date and time set with the escrow officer to finish the transaction

GettingUnder Contract

WooHoo!! We got your offer accepted on the home of your dreams! Once we receive back a copy of the executed contract (meaning the copy that has both the buyer and seller signatures) we will need to drop off the earnest and option deposit with the title company. This will be step one in the process to secure the home. Next you will need to do your due diligence during the period negotiated in the contract, such as getting a home inspection and any other quotes or inspections you desire. Meanwhile the escrow agent will be getting all the title work together to ensure a smooth closing and clear title for you!

Inspections

when you as the buyer send an offer to purchase a home you will usually include an inspection period. During this time period you will want to do your due diligence on the home and have a licensed home inspector come to your potential home to do an in depth inspection of it. Sometimes with these inspections you may want to negotiate any repairs that may be need to be completed to the home. This will all be worked out if anything is needed during the inspection period negotiated in the contract.

TitleWork

Once title is given a copy of the contract they will open escrow and collect the earnest money. They will then do a title search to ensure the property is free of encumbrances and any liens. Once they are finished they will draw up a title commitment to show everything that they have uncovered or found in regard to the property. Title will also work with the lender to ensure all docs are received for every one to sign and close smoothly.

Closing Day

Yayyy! Its closing day, we have made it through all of the obstacles from inspections to financing and we are now at the finish line. Today is the day we will head to the title company to sign the closing paperwork. You along with the seller, will sign a lot of documents today. Once everything is signed you will be the official new home owner and funds will be disbursed from the title company to the seller.