First Time Homebuyer Package
Irena, Suzanne Realtors速 & Emma Aistrop Assistant Cell: 321-443-7535 Fax: 407-847-5419 Email: Iaistrop@aol.com www.IrenaSellsFlorida.com Dedicated to Providing a Level of Service That Far Exceeds All Expectations.
Dear potential homeowner, Have you ever dreamed about owning your own home? Contained in the following pages is information regarding purchasing a home. Everything from obtaining a loan to finding the right house to the day of closing is included. And of course, we shall be with you to help and guide you every step of the way. Kind regards, The Aistrop Team (Irena, Suzanne and Emma Aistrop).
What Is A Realtor And Why Do I Need One? When buying a home you are well advised to have a Realtor represent you with your purchase. As Realtors we are governed by a higher code of ethics than licensed real estate agents so you can rest assured that you will be represented efficiently, diligently and honestly, thereby ensuring that your real estate transaction proceeds smoothly from start to finish. As a buyer, our services to you are free as our compensation is paid by either the seller in the case of a resale or the builder in the case of a new build. There is not much in life that is free so please make the most of the services we have to offer. Do I Need To Meet With Multiple Realtors? Because Realtors are members of the Multiple Listing System, what we abbreviate to M.L.S., we are able to give you details of everything that is on the market no matter what company has the home listed for sale. Therefore you only need to work with one diligent Realtor. Once you are ready to view inside homes, we are able to arrange viewings for these homes and, should you find one to your liking, we are able to represent you in making an offer on that property. We are there for you through the various stages of your transaction until you finally complete on your home. When working with a Realtor it is customary to work with only one. That way they are able to help you smoothly from the first inquiry to completion. Cash or Financing? We feel that financing is the first consideration when considering any kind of purchase. This is even more important when you are considering a large purchase such as purchasing a home. Together with your down payment, you will be required to budget for the closing costs connected with obtaining financing. Your closing costs will vary according to the price of the property you purchase and the lending institution you employ. Closing costs include fees charged by those involved with the home sale such as your lender for processing the loan, the title company for handling the paperwork, a surveyor, an appraiser, home inspectors and local government offices for recording the deed. Closing costs, like the purchase price, are open to negotiation and, just as we can offer below the asking price, we can also negotiate that the seller pays some or even all of the buyerâ€™s closing costs. We are able to refer you to an efficient, trustworthy loan officer but we shall be happy to represent you regardless of whom you select to handle your financing. The loan officer will be able to supply you with a Good Faith Estimate outlining your funds to close and your monthly loan repayments which will enable you to decide the purchase price with which you are most comfortable.
You would be well advised to complete a mortgage application prior to beginning your search for a home so you already have a loan approval letter to submit with your offer once you have found your dream home. A loan approval letter adds strength to any offer you may make and many listing agents will not present an offer to the seller unless it is accompanied by a lender letter. The loan application process should not take longer than an hour. What is Included in My Monthly Mortgage Payment? Included in your monthly payment is P.I.T.I which equates to “principle”, “interest”, “taxes” and “insurance”. In regards to the taxes, each county has a millage rate and each property has an accessed value. The taxes are then calculated using the accessed value and the millage rate. When you finance a property, the taxes for the property will be divided up and added to your monthly payment. Therefore there are no “surprises” at the end of a year with a large tax bill. They are paid monthly to your lending institution who then pays your property tax bill when it is due. The approximate taxes for each home will be shown on the Multiple Listing System data sheet for each home approximately ¼ of the way down the page. When Do I Order Homeowner’s Insurance? Once you have a fully executed contract, you will be required to set up home owners insurance. Again we are able to refer you some of our leading home owners insurance providers so you are able to obtain some competitive quotes. Your lender will take care of paying your annual insurance bill for you, by adding a small amount to your monthly mortgage payment. Choosing Your Dream Home Once you have selected the price range you feel is most comfortable for you, we are able to show you what is available in that price range. Prior to your trip, if you are not already in Florida, we are able to send you, by email, everything that is currently on the market within your search criteria (number of bedrooms, bathrooms, age of home, location, etc). If you are already here, we are able to again email homes currently on the market or we are able to schedule an office appointment should you not have internet access. We are able to help you with the purchase of any kind of real estate be it a residential home, a commercial property or a vacant piece of land. The purchase of the latter two is more complicated if financing is involved whereas the financing of a residential property is fairly straight forward. Escrow Deposit and the Contract. Once you have an executed contract, you will be required to give an escrow deposit. Usually $1,000 is sufficient. You will see that deposit again on your HUD-1 Settlement Statement, forming part of your funds to close.
Your contract is always written contingent on you obtaining your financing, the satisfactory results of a home and termite inspection and the property appraising at or above the contract price. Understanding the HUD-1 Settlement Statement The HUD-1 is a form used by the settlement agent (also called the closing agent) at the title company to itemize all the charges imposed upon a borrower and seller for a real estate transaction and also any credits that may be due. It gives each party a complete list of their incoming and outgoing funds. Fees associated with the transaction but paid prior to closing are also included on the HUD. They are normally marked "POC", for Paid Outside of Closing. Professional Home and Termite Inspections? Once you are under contract to buy the home of your dreams it is strongly advised that you have a home and termite inspection performed on the home. We are able to refer you to an inspection company should you need. Most inspectors are licensed home and termite inspectors and both inspections combined will generally cost about $370. It is advised that the buyer attend their home inspection as it enables the inspector to detail any issues. It is possible to negotiate that the seller performs some or all of the repairs prior to closing. Most sellers expect to have to hand over their home in an acceptable condition and it is generally only in the case of bank foreclosures and distressed sales, where the seller just does not have the money for repairs, that you will be asked to accept the home in an â€˜as isâ€™ condition. If you are happy with the results of the inspections, the appraisal and survey will be ordered. Whatâ€™s an Appraisal? Your lender has an appraiser inspect the home and prepare an appraisal, which is a report estimating how much the house is worth. Your lender wants to make sure the house is priced right. They don't want to loan someone $180,000 to buy a house that is worth only $135,000. The appraiser bases their appraisal on the amount that similar houses in the same area have sold for. You can often have the cost of the appraisal added to the closing costs, but your lender might require that you pay for it up front. Since market values are in a state of flux, appraisers generally will only employ sold values on homes that have sold in the last six months when estimating appraisal value.
Whatâ€™s a Survey? The lender hires a surveyor to survey the property. The surveyor prepares an official diagram indicating property lines, sidewalks, public utilities on the property, etc. You will receive a copy of the survey at your closing. Neither you nor we need to be present when the appraisal or survey is performed. Where Do I Go For The Closing? As the seller normally pays for the Title Insurance, Title Search and Title Exam, the contract normally permits the seller to select the Title Company. The Title Company will generally be the one performing the closing and it will usually be held at their office. Income Tax Savings Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income. Please consult CPA for further details. For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest. If your first payment is January 1st, your taxable income would be almost $10,000 less â€“ due to the IRS interest rate deduction. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation. Again please verify all information by consulting with a CPA. What Do I Do If I Have Questions After We Close? Lastly, we should like to mention the importance to us and our customers of maintaining contact following the completion on your purchase. We have no intention of leaving Watson Realty, which is the largest Real Estate office here in Kissimmee. Those of you that get to know us well will know that we love our work, are extremely content here and plan to be Watson agents for many years to come. You can always rely on us being here to answer any of your post closing questions and help you obtain the maximum pleasure from your new home. We look forward to hearing from you soon and having the pleasure and privilege of assisting you with the purchase of your dream home. Warmest wishes, Irena, Suzanne and Emma Aistrop.