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Search homes online 24/7….www.RandyQuinby.com

Search homes online 24/7….www.RandyQuinby.com

I hope this guide was helpful to you and your family. It is my intent to guide you through the home buying process as simply and easily as possible.

THE HOMEBUYER’S GUIDE TO THE BASICS

If you know someone who may also benefit from this guide, please don’t hesitate to contact me with their information. I will follow-up and be sure to get them an electronic or hard copy of this guide.

Compliments of: Randy Quinby

Good luck and Happy Home Buying! Visit my website, www.RandyQuinby.com to search all homes available for sale in your area. If you have further questions, or would like to begin your home search today, give me a call at 267-377-6233.

Scan this QR Code with any mobile phone to be directed to my website and begin your Home Search.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

2607 Keiser Blvd. Wyomissing, PA 19610 610-372-3200 x. 3376 267-377-6233 www.RandyQuinby.com Randy@RandyQuinby.com

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Foreword

My goal in creating this guide is simple: to inform buyers of

Search homes online 24/7….www.RandyQuinby.com

Moving, Contd. Dine In. Clearing out the pantry before moving means less heavy, perishable items to worry about on moving day.

what to expect throughout the process of purchasing a home. For many people, this task is very daunting, especially for first-time buyers or people who haven’t purchased a

Copy serial numbers and create an inventory of your belongings if you are using a mover.

home in several years. Those feelings are normal and can be eased by using a competent and professional agent

Contact the local DMV if you are moving from another state.

throughout the process.

Fortunately, as your trusted professional, I can help you

Set aside a day after moving to locate the closest hospital, police and fire stations, and schools.

through each step of the transaction and help create a more enjoyable and relaxing experience for you. This guide is not intended to be a comprehensive resource or substitute for legal advice, rather as a reference throughout the process.

Flip through the pages and let my experience help guide you through this exciting time in your life. I hope you find it helpful. ~Randy Quinby

267-377-6233

610-372-3200 Randy@RandyQuinby.com

Have a plan. Mark boxes with specific rooms for the new home. This way, when family and friends are helping to move you into your new home, they know where to put each box and it help things go smoothly.

With some planning and preparation, moving day can go by relatively painlessly and quickly. However, without planning, it can also be a very difficult experience.

Prepare, Prepare, Prepare!!!

267-377-6233

610-372-3200 Randy@RandyQuinby.com


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9 Steps to Buying a Home I. Taking the Plunge: Making the decision to buy is obviously an important first step. After evaluating your needs, you will know what features you are looking for in a home. You should make a list of “needs and wants” to help determine areas of compromise. II. Paying for it: Most people don’t pay for homes by simply writing a check. They need to obtain financing from a trusted lender. You can contact your own financial institutions, or I have several competent lenders that can help you through the process as well. This way you’ll know how much you are qualified to borrow. Be prepared for some invasive questions and always be honest! III. Finding the Right One: Once we know how much you can afford, I can help you to find the perfect home that meets your needs. We can discuss different areas, values, the market, features, and pinpoint specific targets of interest. IV. Making the Offer: Once you have selected a home that you like and can afford, it is time to present the offer. I can guide you through the available options for financing, inspections, contingencies, appraisals, and more at this point. You will also need to put an earnest money deposit with the offer so the seller knows that you are a serious buyer working with a great agent.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

Search homes online 24/7….www.RandyQuinby.com

Getting the Keys Typically, a closing is coordinated by an agent for a title company, although in certain states and situations, an attorney’s presence is required or recommended. You should have received your settlement/closing statement (HUD-1) form at least a day or two prior to closing. This form provides an itemized list of costs and/or processed for the seller and buyer. It is at the closing when you must bring a cashier’s check for the balance between your down payment and the closing costs.

The closing date is a term of the agreement that is negotiated between the buyer and seller. Typically if both sides are eager to close and all conditions are met, closing can be moved up. Depending on several factors, closings can take place in as little as 2-3 weeks, or as long as 3-6 months. Most occur between 30-60 days after the offer is accepted.

The cost associated with settlement (closing costs) is sometimes the biggest hurdle for potential buyers to overcome. Many can afford the monthly payment and have good credit, yet do not have enough funds to pay for closing. Remember that as a buyer, you generally cannot borrow money for closing costs, but may be able to receive a “gift” from a friend or family member. Ask me or your lender for more details and specific programs.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


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Insurance Homeowner’s insurance rates can vary widely based upon location, credit history, claims history, deductible, age of the home and the type of construction used. Regardless, if you do some research, you’ll find a difference in overall coverage and the premiums you will pay for it. Get quotes from several different providers. However, make sure that you are comparing two policies that are equal in protection.

Ask your insurance agent or the seller if any claims have ever been made against the property. Claims made in the past 5 years could cause your premiums to increase.

Get adequate coverage. Instead of just opting for the industry standard “Limited Replacement Cost.” Be sure to price a policy with “Full Replacement Cost.”

Taking a larger or smaller deductible will affect the price of your annual premium as well. Ask your insurance agent how this will affect you.

One last piece of advice….Ask about bundling your auto and home policies. Many companies offer a discount for loyalty programs as well.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

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9 Steps to Buying a Home, Contd. V. Due Diligence: I recommend that almost every homebuyer gets their property inspected by a qualified Inspector. I will guide you through the process so you fully understand each step. VI. Getting the Best Deal: Perhaps this is the most important job I do for my Buyers. I will negotiate with the other agent to get any issues addressed that weren’t resolved previously. VII. Insurance: Research the cost and availability of homeowner’s insurance. You may need special coverage. You may need additional coverage such as flood or natural hazard insurance, depending on your particular situation. I work with several companies or you can use your trusted insurance agent. VIII.Getting the Keys: Upon the acceptance of your offer, as a buyer you can choose the title company to handle the closing process. This is where all the documents will be signed and keys are exchanged. IX. Moving: Preparation, Preparation, Preparation! This can be a very stressful time of the move, but with proper preparation, this can go seamlessly. See this section for more information.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


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Finding Your Next Home Needs vs. Wants Evaluating your Needs vs. Wants is very critical to the process. Before you set off on your search, it is important that you make a realistic list of features that you “need” vs. features that you “want”. This will help narrow down the properties that I show you as an agent. Finding a home can be very time consuming if you don’t have those specific parameters set in advance. I have seen too many buyers confuse needs with wants, and this often results in dismissing properties that may have worked out very well for them. Make sure that you differentiate between what you want in a house, because you don’t want to end up having a home with everything you’ve ever wanted, but nothing that you need. Your budget is going to be the determining factor here.

NEEDS: -Enough square footage for your family. - Enough bedrooms for everyone. - Enough garage space - Handicap Accessibility -Enough Storage Space

267-377-6233

WANTS: -Pool or Hot Tub -Hardwood Floors -Custom Decorating -A Specific Style or Era of Home - A Scenic View -Finished Basement

610-372-3200 Randy@RandyQuinby.com

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Negotiating Contd. Normally if a seller has given a substantial amount off of the price and/or a large seller’s assist (usually capped at 6% of the sale price), they may not be willing to give a lot of concessions for repairs that the inspector is suggesting. If the buyer is closer to the selling price and asked for little or no repairs, then the seller is usually going to be more motivated to repair the property and allow the transaction to proceed.

It is very important for buyers to be realistic when putting an offer on a home. An “older” home is going to have some issues and repairs that are recommended to bring it up to current standards. However, thinking that the seller will make every repair without complaining is probably unrealistic and not a smart choice.

Final Walk-Through The contract grants the buyer reasonable access to conduct a final walk-through of the property prior to closing. This is not a contingency for the sale of the property, but for satisfying the buyer that any repairs requested have been completed and that the property is in the reasonably same condition as it was when first viewed.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Negotiating

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Taking the Plunge Keeping the Future in Mind:

Your agent should make you aware of the current market conditions and market value of the property that you are looking to purchase. Negotiating the purchase of a home is, for the most part, very similar to negotiating any major purchase and is grounded on some basic ideas.

Understand the marketplace in which you are operating. This relates to real estate by determining whether it is a better time to be buying or selling the particular property you are looking to purchase.

Keep in mind, everything in the offer is negotiable. From dates to price to terms, all of this is usually the subject of negotiations. Remember that you will probably get a counter offer and don’t be offended by it. It is normal.

One of the first things you should determine is whether you are buying a home to stay in for a long time, or just as a “step” on the property ladder. There are many reasons this is important to determine, most importantly is regarding the resale of the property. Being smart about the way you purchase the home today can make the difference between big amounts of equity and financial dilemmas for years to come.

Smart financial decisions are key when you are looking to purchase a home. Some poor decisions I’ve seen people make are: 1) “It’s not perfect but I think it will work”...this can translate into a difficult property for you to sell later with a buyer less flexible than yourself. 2) Buying the nicest home in an area or overpaying compared to comparable properties in the area. 3) Making a purchase based solely on emotions.

Next to price and all that is related to it, including seller’s assist and earnest money deposit, the inspections are generally the most contested and negotiated part of the report. Seller’s assist is when the seller actually gives the buyer money at the settlement table, to help pay for some of the buyer’s closing costs.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

Taking the Plunge: Now that you’ve considered all of the variables, it’s time to buy! For many people buying a home is the single largest financial transaction of their lives. However, it usually leads to a wise financial move due to growing equity and tax considerations. Real Estate has always been a sound Long-Term Investment, and is still the single greatest way to build true wealth.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Mortgage Basics Mortgage Basics

Due Diligence Contd. Title Report Review

Once you’re ready, I can help connect you with a professional and competent mortgage originator. The could be with your bank, another bank, or a lending institution that specializes in home mortgages. In most cases, you’ll have the option to lock your home financing into current rates, or you might choose to let it “float” for 30 days or more, but waiting may mean rates could go up or down. After reviewing disclosures and paying any processing fees, the lender will order an appraisal to determine the fair market value of the home. This is an important step because lenders will only lend up to a certain percentage of the home’s value, regardless of how much you are qualified to borrow. The best advice I can provide for this is not to “get in over your head.” Give yourself room to save every month, for things like home repairs or renovations, retirement, vacations, or “rainy days”. Beware of closing costs. These are costs that come from many different places, such as title insurance, homeowners insurance, appraisals, loan fees, liens against the property, real estate taxes, filing fees, etc. Before settlement, you will receive a copy of the (HUD-1) Form, which will lists every cost associated with the transaction. These costs should be very close to the costs that your lender estimates for you during the application period.

267-377-6233

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610-372-3200 Randy@RandyQuinby.com

This is prepared prior to closing. It lets you know how the title is currently held and what kind of exceptions are included, such as easements, liens, and encumbrances. The title report will also list any exclusions, such as mineral rights, on the property. As a buyer it is important to review the title report with your realtor or attorney thoroughly because you might find a “blemish” on the title that the seller needs to clear up before settlement.

Boundary Line Survey This is important when buying land or a home on a lot that is not part of a formal subdivision. Boundary line surveys are vital on heavily wooded lots where borders may not be easy to identify and trees may cross into someone else’s property. You’ll also discover if there are any encroachments from neighbors such as buildings and fences.

Oftentimes buyers are trying to save costs, and may consider not getting title insurance on a property. Though virtually any lender requires that you purchase title insurance, it is money that is VERY well spent. I can tell you several stories of local homeowners who had issues arise that were easily resolved because they had title insurance. This is not a place to cut costs!

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Due Diligence

Search homes online 24/7….www.RandyQuinby.com

Mortgage Basics Pre-Qualification vs. Pre Approval

No matter how professional your real estate agent is, thorough your inspector, and meticulous your lender, you also need to put in an effort to make sure the property you are buying conforms to legal standards and your own. Here are some of the important components that you need to investigate before purchasing a home.

Hiring a Qualified Home Inspector I highly recommend finding a seasoned inspector, who will provide a complete written report, including pictures. You should try to attend the inspection as it will help you to make an informed decision of whether or not to go through with the purchase process. It will also provide you with information related to any repairs or maintenance that may be needed on your new home. A professional home inspection is designed to help you buy with confidence!

Zoning, Covenants, HOA Discover if these exist and how they affect the property you are about to buy. They can vary greatly from one neighborhood to another, and you want to know how much you’ll be paying for that wonderful condo’s fee or other charges.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

Many people confuse these two terms and use them interchangeably when in fact there is a big difference between the two. Pre Qualification simply states that you are “qualified” to purchase a home in a certain price range. A Pre Approval letter shows a mortgage lender’s commitment to lend a certain amount of money at a particular interest rate. It has become necessary for buyers to receive a preapproval letter from a local, reputable lender before putting an offer on a home, in order to prove to the seller that you are a serious (and able) buyer.

Down Money The money you “put down” on a home can save you thousand of dollars. The more money you are willing to put down usually means the better interest rate you will get. If you are unable to put down twenty percent of the purchase price, you will probably be required to buy Private Mortgage Insurance (PMI). This is required by most lenders without an 80% LTV ratio. LTV stand for Loan-toValue, and is very important. It represents the amount of your loan, as a percentage of the total value of the property.

Some loan programs offer smaller down payment options. I work with several lenders that can do FHA loans, which only require 3.5% down or USDA loans may require no money down.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

How Much can I Afford? This is the most important and common question you will ask during the entire transaction. Many people have different philosophies that they use to determine how much they can afford. A lender may tell you an amount they feel you are qualified to borrow, and you think “Wow, I can’t believe it is that high”. Family and friends may say to go ahead and go for it, “You only live once!”. Some Realtors may say “For only a few dollars more per month, you can afford that other house.” My advice is simple: Pick a number you are comfortable with and start living without that money each month. For example, if you pay $900/month in rent, and you think you can afford a $1500/month mortgage payment, start setting aside $600 each month into savings, and then additional money for taxes and insurance. If you can’t save it, you can’t afford it! You don’t want to be “House Poor” and not have money left over to save or pay utility bills, car payments, etc.

Search homes online 24/7….www.RandyQuinby.com

The Agreement of Sale In the State of Pennsylvania, an agreement of sale is at least 18 pages, and sometimes longer if additional addendums or contingencies are used. The language can be complicated and should be explained in detail by your realtor or an attorney. For the most part, the legal language of the contract can be summed up as follows.

The Agreement of Sale:

Identifies the property being sold Names the buyer and the seller States the amount of money the buyer will pay States the terms and conditions of the sale

Many financial advisors recommend an old standard known as the “28/36 Rule”. Using this rule, households should spend no more than 28% of their gross income on housing costs, including taxes, insurance, as well as your mortgage payment; and less than 36% of gross income on all recurring debt. This includes car payments, student loans, mortgages, medical debt, etc.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Submitting the Offer

Once you have identified the home that you want to write an offer on, the price should clearly be something you can afford and won’t burden you every month. The market will determine how strong your offer is relative to price, but there is more to an offer than just the price.

When you submit the offer, the seller will want to know if you earnestly intend to purchase the property. It is customary to include an “earnest money deposit” with the offer, also known as “good faith money”. This shows the seller you are serious. Consult with your real estate professional regarding this offer, but remember, the more you put down, the stronger your offer will appear.

If the offer is accepted, the earnest money is put into an escrow account. If the transaction does not take place and it is determined to be the fault of the buyer, then damages could be taken from that deposit. If the transaction does go through, the earnest money is usually applied to the down payment or closing costs at settlement.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

Search homes online 24/7….www.RandyQuinby.com

Types Of Mortgages Fixed Rate Mortgage: A fixed rate mortgage has an interest rate and monthly payments that never change. The mortgages offer stability because they don’t fluctuate up and down with rate changes over the life of the loan. Adjustable Rate Mortgage (ARM): ARM’s feature an interest rate that adjusts up and down at specific intervals of the mortgage term. FHA Loan: Loans actually insured by the Federal Housing Administration and designed to help the buyer get into a home with less money out of pocket. The credit requirements are often more relaxed as compared to conventional loans. Also ask about 203K loan options for making repairs. VA Loan: Insured by the Veterans Administration, these loans offer less stringent down payment and qualification standards. These loans are available only to Veterans of Armed Services.

Think wisely when considering 100% financing options. Though no down payment options can be attractive, be aware of the consequences of purchasing a home with no equity.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Search homes online 24/7….www.RandyQuinby.com

Use of the Internet Over the past few years, the number of homeowners using the Internet to find their next home has increased to over 90%, according to the National Association of Realtors. As a buyer, you likely already have an idea of what you are looking for in your next home. The search for that home can be enjoyable, but at the same time frustrating and exhausting. It is important that you enlist the help of a qualified real estate professional. You will find that many homes are available online, however, the Multi-List system that is only available to agents is the most up-todate and accurate information. I can set you up with an automatic search that will send you price updates, new homes on the market, and more, as soon as these changes occur in the marketplace.

Know Your Agent These are some of the basic questions you should ask any agent that you want to work with during your home search. Can You… 1) Help identify homes that meet my criteria using an MLS System? 2) Provide market comparables so I don’t overpay for my next home? 3) Provide estimated closing costs to me so I know how much money I need to buy this home? 4) Assist me through the pre-qualification process? 5) Provide up-to-date information about financing options and institutions. 6) Guide me to closing?

Working on your behalf as a Buyer’s Agent allows me to negotiate on your behalf, act in your best interest, and helps to ensure that you are finding the property that best fits your needs. Talk to your agent about agency relationships and how they affect the transaction. Most importantly, don’t be afraid to ask questions.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

7) Continue to provide service after I settle on the home of my dreams?

The answer to every question listed above should be YES! As an agent, this is the most basic services I provide to every single client I work with. Think about it, this is the largest purchase you’ll probably ever make. Don’t you deserve the best?

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Search homes online 24/7….www.RandyQuinby.com

Use of the Internet Over the past few years, the number of homeowners using the Internet to find their next home has increased to over 90%, according to the National Association of Realtors. As a buyer, you likely already have an idea of what you are looking for in your next home. The search for that home can be enjoyable, but at the same time frustrating and exhausting. It is important that you enlist the help of a qualified real estate professional. You will find that many homes are available online, however, the Multi-List system that is only available to agents is the most up-todate and accurate information. I can set you up with an automatic search that will send you price updates, new homes on the market, and more, as soon as these changes occur in the marketplace.

Know Your Agent These are some of the basic questions you should ask any agent that you want to work with during your home search. Can You… 1) Help identify homes that meet my criteria using an MLS System? 2) Provide market comparables so I don’t overpay for my next home? 3) Provide estimated closing costs to me so I know how much money I need to buy this home? 4) Assist me through the pre-qualification process? 5) Provide up-to-date information about financing options and institutions. 6) Guide me to closing?

Working on your behalf as a Buyer’s Agent allows me to negotiate on your behalf, act in your best interest, and helps to ensure that you are finding the property that best fits your needs. Talk to your agent about agency relationships and how they affect the transaction. Most importantly, don’t be afraid to ask questions.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

7) Continue to provide service after I settle on the home of my dreams?

The answer to every question listed above should be YES! As an agent, this is the most basic services I provide to every single client I work with. Think about it, this is the largest purchase you’ll probably ever make. Don’t you deserve the best?

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Submitting the Offer

Once you have identified the home that you want to write an offer on, the price should clearly be something you can afford and won’t burden you every month. The market will determine how strong your offer is relative to price, but there is more to an offer than just the price.

When you submit the offer, the seller will want to know if you earnestly intend to purchase the property. It is customary to include an “earnest money deposit” with the offer, also known as “good faith money”. This shows the seller you are serious. Consult with your real estate professional regarding this offer, but remember, the more you put down, the stronger your offer will appear.

If the offer is accepted, the earnest money is put into an escrow account. If the transaction does not take place and it is determined to be the fault of the buyer, then damages could be taken from that deposit. If the transaction does go through, the earnest money is usually applied to the down payment or closing costs at settlement.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

Search homes online 24/7….www.RandyQuinby.com

Types Of Mortgages Fixed Rate Mortgage: A fixed rate mortgage has an interest rate and monthly payments that never change. The mortgages offer stability because they don’t fluctuate up and down with rate changes over the life of the loan. Adjustable Rate Mortgage (ARM): ARM’s feature an interest rate that adjusts up and down at specific intervals of the mortgage term. FHA Loan: Loans actually insured by the Federal Housing Administration and designed to help the buyer get into a home with less money out of pocket. The credit requirements are often more relaxed as compared to conventional loans. Also ask about 203K loan options for making repairs. VA Loan: Insured by the Veterans Administration, these loans offer less stringent down payment and qualification standards. These loans are available only to Veterans of Armed Services.

Think wisely when considering 100% financing options. Though no down payment options can be attractive, be aware of the consequences of purchasing a home with no equity.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

How Much can I Afford? This is the most important and common question you will ask during the entire transaction. Many people have different philosophies that they use to determine how much they can afford. A lender may tell you an amount they feel you are qualified to borrow, and you think “Wow, I can’t believe it is that high”. Family and friends may say to go ahead and go for it, “You only live once!”. Some Realtors may say “For only a few dollars more per month, you can afford that other house.” My advice is simple: Pick a number you are comfortable with and start living without that money each month. For example, if you pay $900/month in rent, and you think you can afford a $1500/month mortgage payment, start setting aside $600 each month into savings, and then additional money for taxes and insurance. If you can’t save it, you can’t afford it! You don’t want to be “House Poor” and not have money left over to save or pay utility bills, car payments, etc.

Search homes online 24/7….www.RandyQuinby.com

The Agreement of Sale In the State of Pennsylvania, an agreement of sale is at least 18 pages, and sometimes longer if additional addendums or contingencies are used. The language can be complicated and should be explained in detail by your realtor or an attorney. For the most part, the legal language of the contract can be summed up as follows.

The Agreement of Sale:

Identifies the property being sold Names the buyer and the seller States the amount of money the buyer will pay States the terms and conditions of the sale

Many financial advisors recommend an old standard known as the “28/36 Rule”. Using this rule, households should spend no more than 28% of their gross income on housing costs, including taxes, insurance, as well as your mortgage payment; and less than 36% of gross income on all recurring debt. This includes car payments, student loans, mortgages, medical debt, etc.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Due Diligence

Search homes online 24/7….www.RandyQuinby.com

Mortgage Basics Pre-Qualification vs. Pre Approval

No matter how professional your real estate agent is, thorough your inspector, and meticulous your lender, you also need to put in an effort to make sure the property you are buying conforms to legal standards and your own. Here are some of the important components that you need to investigate before purchasing a home.

Hiring a Qualified Home Inspector I highly recommend finding a seasoned inspector, who will provide a complete written report, including pictures. You should try to attend the inspection as it will help you to make an informed decision of whether or not to go through with the purchase process. It will also provide you with information related to any repairs or maintenance that may be needed on your new home. A professional home inspection is designed to help you buy with confidence!

Zoning, Covenants, HOA Discover if these exist and how they affect the property you are about to buy. They can vary greatly from one neighborhood to another, and you want to know how much you’ll be paying for that wonderful condo’s fee or other charges.

267-377-6233

610-372-3200 Randy@RandyQuinby.com

Many people confuse these two terms and use them interchangeably when in fact there is a big difference between the two. Pre Qualification simply states that you are “qualified” to purchase a home in a certain price range. A Pre Approval letter shows a mortgage lender’s commitment to lend a certain amount of money at a particular interest rate. It has become necessary for buyers to receive a preapproval letter from a local, reputable lender before putting an offer on a home, in order to prove to the seller that you are a serious (and able) buyer.

Down Money The money you “put down” on a home can save you thousand of dollars. The more money you are willing to put down usually means the better interest rate you will get. If you are unable to put down twenty percent of the purchase price, you will probably be required to buy Private Mortgage Insurance (PMI). This is required by most lenders without an 80% LTV ratio. LTV stand for Loan-toValue, and is very important. It represents the amount of your loan, as a percentage of the total value of the property.

Some loan programs offer smaller down payment options. I work with several lenders that can do FHA loans, which only require 3.5% down or USDA loans may require no money down.

267-377-6233

610-372-3200 Randy@RandyQuinby.com


Search homes online 24/7….www.RandyQuinby.com

Mortgage Basics Mortgage Basics

Due Diligence Contd. Title Report Review

Once you’re ready, I can help connect you with a professional and competent mortgage originator. The could be with your bank, another bank, or a lending institution that specializes in home mortgages. In most cases, you’ll have the option to lock your home financing into current rates, or you might choose to let it “float” for 30 days or more, but waiting may mean rates could go up or down. After reviewing disclosures and paying any processing fees, the lender will order an appraisal to determine the fair market value of the home. This is an important step because lenders will only lend up to a certain percentage of the home’s value, regardless of how much you are qualified to borrow. The best advice I can provide for this is not to “get in over your head.” Give yourself room to save every month, for things like home repairs or renovations, retirement, vacations, or “rainy days”. Beware of closing costs. These are costs that come from many different places, such as title insurance, homeowners insurance, appraisals, loan fees, liens against the property, real estate taxes, filing fees, etc. Before settlement, you will receive a copy of the (HUD-1) Form, which will lists every cost associated with the transaction. These costs should be very close to the costs that your lender estimates for you during the application period.

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This is prepared prior to closing. It lets you know how the title is currently held and what kind of exceptions are included, such as easements, liens, and encumbrances. The title report will also list any exclusions, such as mineral rights, on the property. As a buyer it is important to review the title report with your realtor or attorney thoroughly because you might find a “blemish” on the title that the seller needs to clear up before settlement.

Boundary Line Survey This is important when buying land or a home on a lot that is not part of a formal subdivision. Boundary line surveys are vital on heavily wooded lots where borders may not be easy to identify and trees may cross into someone else’s property. You’ll also discover if there are any encroachments from neighbors such as buildings and fences.

Oftentimes buyers are trying to save costs, and may consider not getting title insurance on a property. Though virtually any lender requires that you purchase title insurance, it is money that is VERY well spent. I can tell you several stories of local homeowners who had issues arise that were easily resolved because they had title insurance. This is not a place to cut costs!

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Negotiating

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Taking the Plunge Keeping the Future in Mind:

Your agent should make you aware of the current market conditions and market value of the property that you are looking to purchase. Negotiating the purchase of a home is, for the most part, very similar to negotiating any major purchase and is grounded on some basic ideas.

Understand the marketplace in which you are operating. This relates to real estate by determining whether it is a better time to be buying or selling the particular property you are looking to purchase.

Keep in mind, everything in the offer is negotiable. From dates to price to terms, all of this is usually the subject of negotiations. Remember that you will probably get a counter offer and don’t be offended by it. It is normal.

One of the first things you should determine is whether you are buying a home to stay in for a long time, or just as a “step” on the property ladder. There are many reasons this is important to determine, most importantly is regarding the resale of the property. Being smart about the way you purchase the home today can make the difference between big amounts of equity and financial dilemmas for years to come.

Smart financial decisions are key when you are looking to purchase a home. Some poor decisions I’ve seen people make are: 1) “It’s not perfect but I think it will work”...this can translate into a difficult property for you to sell later with a buyer less flexible than yourself. 2) Buying the nicest home in an area or overpaying compared to comparable properties in the area. 3) Making a purchase based solely on emotions.

Next to price and all that is related to it, including seller’s assist and earnest money deposit, the inspections are generally the most contested and negotiated part of the report. Seller’s assist is when the seller actually gives the buyer money at the settlement table, to help pay for some of the buyer’s closing costs.

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Taking the Plunge: Now that you’ve considered all of the variables, it’s time to buy! For many people buying a home is the single largest financial transaction of their lives. However, it usually leads to a wise financial move due to growing equity and tax considerations. Real Estate has always been a sound Long-Term Investment, and is still the single greatest way to build true wealth.

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Finding Your Next Home Needs vs. Wants Evaluating your Needs vs. Wants is very critical to the process. Before you set off on your search, it is important that you make a realistic list of features that you “need” vs. features that you “want”. This will help narrow down the properties that I show you as an agent. Finding a home can be very time consuming if you don’t have those specific parameters set in advance. I have seen too many buyers confuse needs with wants, and this often results in dismissing properties that may have worked out very well for them. Make sure that you differentiate between what you want in a house, because you don’t want to end up having a home with everything you’ve ever wanted, but nothing that you need. Your budget is going to be the determining factor here.

NEEDS: -Enough square footage for your family. - Enough bedrooms for everyone. - Enough garage space - Handicap Accessibility -Enough Storage Space

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WANTS: -Pool or Hot Tub -Hardwood Floors -Custom Decorating -A Specific Style or Era of Home - A Scenic View -Finished Basement

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Negotiating Contd. Normally if a seller has given a substantial amount off of the price and/or a large seller’s assist (usually capped at 6% of the sale price), they may not be willing to give a lot of concessions for repairs that the inspector is suggesting. If the buyer is closer to the selling price and asked for little or no repairs, then the seller is usually going to be more motivated to repair the property and allow the transaction to proceed.

It is very important for buyers to be realistic when putting an offer on a home. An “older” home is going to have some issues and repairs that are recommended to bring it up to current standards. However, thinking that the seller will make every repair without complaining is probably unrealistic and not a smart choice.

Final Walk-Through The contract grants the buyer reasonable access to conduct a final walk-through of the property prior to closing. This is not a contingency for the sale of the property, but for satisfying the buyer that any repairs requested have been completed and that the property is in the reasonably same condition as it was when first viewed.

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Insurance Homeowner’s insurance rates can vary widely based upon location, credit history, claims history, deductible, age of the home and the type of construction used. Regardless, if you do some research, you’ll find a difference in overall coverage and the premiums you will pay for it. Get quotes from several different providers. However, make sure that you are comparing two policies that are equal in protection.

Ask your insurance agent or the seller if any claims have ever been made against the property. Claims made in the past 5 years could cause your premiums to increase.

Get adequate coverage. Instead of just opting for the industry standard “Limited Replacement Cost.” Be sure to price a policy with “Full Replacement Cost.”

Taking a larger or smaller deductible will affect the price of your annual premium as well. Ask your insurance agent how this will affect you.

One last piece of advice….Ask about bundling your auto and home policies. Many companies offer a discount for loyalty programs as well.

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9 Steps to Buying a Home, Contd. V. Due Diligence: I recommend that almost every homebuyer gets their property inspected by a qualified Inspector. I will guide you through the process so you fully understand each step. VI. Getting the Best Deal: Perhaps this is the most important job I do for my Buyers. I will negotiate with the other agent to get any issues addressed that weren’t resolved previously. VII. Insurance: Research the cost and availability of homeowner’s insurance. You may need special coverage. You may need additional coverage such as flood or natural hazard insurance, depending on your particular situation. I work with several companies or you can use your trusted insurance agent. VIII.Getting the Keys: Upon the acceptance of your offer, as a buyer you can choose the title company to handle the closing process. This is where all the documents will be signed and keys are exchanged. IX. Moving: Preparation, Preparation, Preparation! This can be a very stressful time of the move, but with proper preparation, this can go seamlessly. See this section for more information.

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9 Steps to Buying a Home I. Taking the Plunge: Making the decision to buy is obviously an important first step. After evaluating your needs, you will know what features you are looking for in a home. You should make a list of “needs and wants” to help determine areas of compromise. II. Paying for it: Most people don’t pay for homes by simply writing a check. They need to obtain financing from a trusted lender. You can contact your own financial institutions, or I have several competent lenders that can help you through the process as well. This way you’ll know how much you are qualified to borrow. Be prepared for some invasive questions and always be honest! III. Finding the Right One: Once we know how much you can afford, I can help you to find the perfect home that meets your needs. We can discuss different areas, values, the market, features, and pinpoint specific targets of interest. IV. Making the Offer: Once you have selected a home that you like and can afford, it is time to present the offer. I can guide you through the available options for financing, inspections, contingencies, appraisals, and more at this point. You will also need to put an earnest money deposit with the offer so the seller knows that you are a serious buyer working with a great agent.

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Getting the Keys Typically, a closing is coordinated by an agent for a title company, although in certain states and situations, an attorney’s presence is required or recommended. You should have received your settlement/closing statement (HUD-1) form at least a day or two prior to closing. This form provides an itemized list of costs and/or processed for the seller and buyer. It is at the closing when you must bring a cashier’s check for the balance between your down payment and the closing costs.

The closing date is a term of the agreement that is negotiated between the buyer and seller. Typically if both sides are eager to close and all conditions are met, closing can be moved up. Depending on several factors, closings can take place in as little as 2-3 weeks, or as long as 3-6 months. Most occur between 30-60 days after the offer is accepted.

The cost associated with settlement (closing costs) is sometimes the biggest hurdle for potential buyers to overcome. Many can afford the monthly payment and have good credit, yet do not have enough funds to pay for closing. Remember that as a buyer, you generally cannot borrow money for closing costs, but may be able to receive a “gift” from a friend or family member. Ask me or your lender for more details and specific programs.

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Moving As a buyer, you have spent the time researching and finding the perfect home, negotiated for the best possible deal, obtained a great interest rate and are ready for settlement. Don’t stop there; planning for moving into your new home is very important .

Here are a few tips: Go to the Post Office and fill out a change of address form or pay a small fee and do it online.

Change your address with the IRS, banks, and credit card companies. (Sensitive Information)

Contact utility companies in advance. Provide them with dates to establish accounts or close your existing accounts.

Rent a truck or schedule movers well in advance of your actual settlement.

Plan for how your pets will deal with the move.

Stock up on more boxes than you think you’ll ever need.

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Notes Use this space to take notes or write down questions you may have while reading this guide or while looking for your next home.

__________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________

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Foreword

My goal in creating this guide is simple: to inform buyers of

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Moving, Contd. Dine In. Clearing out the pantry before moving means less heavy, perishable items to worry about on moving day.

what to expect throughout the process of purchasing a home. For many people, this task is very daunting, especially for first-time buyers or people who haven’t purchased a

Copy serial numbers and create an inventory of your belongings if you are using a mover.

home in several years. Those feelings are normal and can be eased by using a competent and professional agent

Contact the local DMV if you are moving from another state.

throughout the process.

Fortunately, as your trusted professional, I can help you

Set aside a day after moving to locate the closest hospital, police and fire stations, and schools.

through each step of the transaction and help create a more enjoyable and relaxing experience for you. This guide is not intended to be a comprehensive resource or substitute for legal advice, rather as a reference throughout the process.

Flip through the pages and let my experience help guide you through this exciting time in your life. I hope you find it helpful. ~Randy Quinby

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Have a plan. Mark boxes with specific rooms for the new home. This way, when family and friends are helping to move you into your new home, they know where to put each box and it help things go smoothly.

With some planning and preparation, moving day can go by relatively painlessly and quickly. However, without planning, it can also be a very difficult experience.

Prepare, Prepare, Prepare!!!

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I hope this guide was helpful to you and your family. It is my intent to guide you through the home buying process as simply and easily as possible.

THE HOMEBUYER’S GUIDE TO THE BASICS

If you know someone who may also benefit from this guide, please don’t hesitate to contact me with their information. I will follow-up and be sure to get them an electronic or hard copy of this guide.

Compliments of: Randy Quinby

Good luck and Happy Home Buying! Visit my website, www.RandyQuinby.com to search all homes available for sale in your area. If you have further questions, or would like to begin your home search today, give me a call at 267-377-6233.

Scan this QR Code with any mobile phone to be directed to my website and begin your Home Search.

267-377-6233

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2607 Keiser Blvd. Wyomissing, PA 19610 610-372-3200 x. 3376 267-377-6233 www.RandyQuinby.com Randy@RandyQuinby.com

267-377-6233

610-372-3200 Randy@RandyQuinby.com


The Hombuyers Guide to the Basics