Real Estate Buyers Guide for buying a home

Buying a home is one of the “BIGGEST” investments you may ever make financially. Sounds like a lot of pressure, commitment and responsibility….. Yes…. But think of all the fun that comes along with owning your own space, the thrill of the purchase and the start of something to call your own. With that being said, I would like to congradulate you on your decision to buy a new home. It is always a privilege to hand the homebuyers the keys to their “New Home” and to be their for that first moment of celebrating ownership.

Whether it is your first time or your 21st time, you may still have questions. Buying a new home can seem like a daunting process, but I want to assure you that my goal is to make the process as easy, carefree and rewarding as possible.

Over the past 14years I have worked with many buyers in the Bridgewater area such as yourself. I have had many home buying experiences with all kinds of buyers from all areas moving to Bridgewater. It is my goal to share some of mine & my buyers experiences to help you make informed decisions. This Guide was put together with that focus in mind. This will inform you on what to expect & what is expected of you as a buyer. You’ll find many helpful suggestions to make informed decisions, as an educated buyer, through each step of the purchasing process.

You should use this a tool, bring it with you on showings for quick access to refer to something. I encourage my clients to use the blank pages of this booklet for jotting down questions as they come to mind.

I know that all your questions will be answered, don’t be afraid to ask. Every situation is unique and some may get answered along the way, that is part of the process. That is the best part of having a Real Estate Agent such as myself, it is my job to get you the home and the answers.

As you embark on this mission to find the perfect home, remember that I will be with you every step of the way.

Now lets start the “HOUSE HUNTING”


Finances First

Yes it is a topic that many don’t like to discuss, obviously for this venture, it is the most important. It has been my experience to get this right out of the way and have it dealt with first. The buying experience usually goes smoother if financing is secured before you start searching.

Most homebuyers find that they need to finance at least part of their home purchase. So, in many respects, owning your dream home hinges on your ability to get the financing you need, in a price range you can afford.

As a Real Estate Agent I work with many Mortgage Brokers. If you would like I could recommend you to someone who works in the area and can meet with you in the comforts of your home, office or their office. The lenders we deal with are extremely well versed in the process and work with us on a daily basis, thus giving us the ability for better and more efficient correspondence.

Banks VS Brokers

While there are many people who prefer to deal only with their regular banking institution, it is suggested that you shop around to find a lender and a loan most suited to your needs. There are so many different options available to consumers today, and with today’s competitive market, it may literally pay you to do as much homework as possible upfront. Banks are not the only source anymore for obtaining a loan to buy a home: there are plenty of others options available as well.
Private Lenders, Credit Unions, Finance companies, Mortgage Lenders & Banks


Pre-Approval

Once you narrow down which type of lender can best meet your needs, the next step is to get pre-approved for a mortgage.

Pre-Approval is a more firmer commitment on behalf of the mortgage company and a more formal process that includes a credit check & employment verification. During a pre-approval, the mortgage company does most of the full work of a full approval. There are a few exceptions. The lender obtains a credit check to verify monthly payments on installment loans & credit cards, and to check payment history on these loans.

If you have been pre-approved, you can shop for a house with more certainty and less anxiety because you’ll be able to sail thought the entire process without having to worry about whether the mortgage will be approved. This can give you an advantage as a buyer in the market place, especially when the seller is considering multiple offers.

However, a pre-approval doesn’t always guarantee a mortgage. Lenders still need to see an appraisal (if necessary), verify information, re-check credit & if the property meets there qualifications for lending of the finances. It is still good to make sure you have your pre-approval done, it does save a lot of headaches once an offer has been made.

When you go for your pre-approval below is a check list of information that will help to assist your lender.

- Pay Stubs & Employment history ( Employers Name, Address, dates of Employment)
- Social Security numbers
- Bank Statements from the past 3 months, including names, addresses, account numbers, and balances of depository institutions.
- Credit information Ie: Credit card balances, payments, account numbers, and creditors names.
- Tax Returns
- Stocks, Bonds, Investment accounts
- Automobiles Owned, Make, Model and Year of each vehicle.
- Other Income

And if you are:

- Renting ( landlords name, address, monthly rental payment history.
- Self Employment ( 2 Years and current year-to-date profit and loss statement and balance sheet.
- Divorced & Separated ( copy of divorce agreement, along with amendments and a 12-month payment history of alimony/child support payments)

Some lenders may require more information depending on their criteria. It might look like you are being interviewed by the FBI with all the information that is required of you. Times certainly have changed and the financial institutions are getting more and more strict as the economy changes.

Interviewing your lender

Some people find it helpful to use a mortgage broker. Mortgage brokers don't work for any specific lending institution. Their role is to find the lender with the terms and rates that will best suit the buyer.
Although, lenders have many questions, and sometimes even stringent, guidelines that you must conform to, do not forget that you too have the option of “Interviewing” your lenders to make sure they meet your needs as well. After all it is your money that you are giving them. I have compiled a list of questions below that you might want to ask your lender. If you haven't already gone through the mortgage pre-qualification process, you will need to find a good lender to assist you during the purchasing process and for as long as you have your mortgage.

• What can I expect from the process?
• What lenders do you work with?
• What can I afford?
• What are closing costs?
• What are the Features to your different mortgages?
• What are your “rates” and “terms”
• What are the features in the mortgage when looking at penalties & allowances?
• What happens if a payment is missed?
• Will mortgage insurance be required?
• Will there be a payment adjustment at closing? How much?
• Can I pay my property tax with my mortgage payment?
• Does your lender offer any rewards to using them?
• When will the payment come out?
• Is there anything about you or your company that I haven’t asked that I should know?
• Can I have a copy of the contract?


Finding your dream Home!


Will you know the house of your dreams when you see it? A common reply is always


“ I’ll know it when I see it!”


If you logically analyze your needs ahead of time you can make an educated, informed decision, rather than an emotional one.

I have put together some things you should consider when starting the house hunting procedure. This will help you to prioritize which characteristics are most important to you in a home.

Surely you have heard the old Real Estate saying….. “Location, Location, Location!” While there are other important factors to consider when choosing a home for you and your family.

Geography

• Will it be in a town, semi-rural or rural area?
• Do you want to be with lots of people, or not so much
• Do you have a preference with regards to woods/trees/hills/
• Should you have water frontage, lake, stream, ocean.
• How long is your commute to work? Should you be close to work?
• Will your children be able to access there extra curricular activities easily?

Neighborhood Focus

• What is the general appearance of the area?
• Are the homes well maintained?
• What are the main types of homes? Would your style blend or stand out above the crowd
• Are the homes “Newer” or “Older”
• How far apart are the homes
• How well are the lawns maintained?
• Are there many visible property enhancements, pools, patios, decks, landscaping etc.
• What is in the area for shopping? Easy access to a supermarket?
• Are there emergency personal close by? Police/ Fire/ Paramedics
• How close is the nearest Hospital
• Are there “Restrictive Covenants”

Schools

• How will your children get to school?
• Are they equipped to handle special needs?
• What is the teacher : child ratio
• Are there after-school activities offered?
• What type of sports programs and clubs offered?
• What is the percentage of children that graduate?
• What is the percentage of graduating students that go onto college?

Work Issues

· How long will your commute be?
· How many methods can you use to get there, such as walking, driving, car pool, taxi bus
route, or train?

Recreation and Entertainment

· What forms of entertainment are offered?
· What types of indoor and outdoor sports facilities are available?
· Are there public parks, country clubs, and/or sports teams close by?


Community Involvement

· Do the neighbors socialize regularly? Do they hold block parties or picnics?
· Is there a Home Owner’s Association? How active are they in the community?
· Is there a PTA?
· Is there a Neighborhood Watch program in place?

Find out the answer to each of these questions, and then determine which items are important to you and which you can live without.


Selecting your Home

When choosing the house itself, which of the following features and amenities will be the ones you can or can't live without.

- House Style
- No. of Levels
- No. of Bedrooms
- No. of Bathrooms
- Gourmet Kitchen?
- Formal Dining Room
- Family Room
- Breakfast Nook
- Super Master Bedroom
- Master ensuite
- Walkin closet
- Fire place
- Basement
- Garage
- Porches
- Fenced Yard
- Large Yard
- Storage Room

The list could go on. Once you've gone throught the process of deciding on your home's features and amenities and sized up the neighbourhood characteristics that are most important to you, there is one more task to undertake:
PRIORITIZE!!!

Chances are that you may have to "trade-in" one or more features to take advantage of other more "prioritized" features. That's why it's important to look at the ""must haves"- the features and characteristics that you don't want to compromise or trade in no matter what. Then you'll have a definate picture in your mind of what you are looking for. Finding the Perfect House!

Ok, so I know there is no perfect house.. but Perfect to you. I know that you have evaluated your priorities, and you are ready to hit the streets. If you have done your homework to this point the acutal search should be the easy and fun part! SHORT & SWEET, I say!

The first thing we will do is put your criteria in the computer. I will put it in my Listing Finder and on the MLS web search data base. Within a few minutes we will have properties that match your desires.

Then we will narrow down the ones you actually want to view. I like to ask my clients to do a drive by of the property, take a day and drive the neighbour hood, check out the layout of the house, its neighbours and surroundings... Sometimes pictures can be decieving!
I also suggest you bring a notebook!

When you are having your co-pilot, or yourself pulled over to the side of the road ( we want you back in one piece ) ask yourself these questions~

- Is the yard suitable, size, landscaped etc.etc
- Do the surrounding homes look comparible
- What is the structural condition
- Are there any visable major repairs
- Age of the home

Then from there we will decided, take all things into consideration and see if it is worth a closer look.

I will make sure you have a cut sheet of the property. This will tell you the interior specs. and information surrounding the size, building details, taxes, etc.etc.

Don't be surprised if the first house you look at is the one you buy. On the other hand, don't be disappointed if, after looking at a dozen houses you still have not found the right one for you. We will keep looking until we find the house you want to call home!


Negotiating A Contract


Now that we have found you a house, it's time for me to do the job you have hired me to do!
First, we will sit down and put together an offer (contract) a sort of "WISH LIST" if you will, of all the things we are going to ask for and negotiate with the home you have chosen. You will want to review it carefully to be sure it includes all your terms, how much you want to offer and other items you hope to include in the offer.
It is in my experience to put every little thing you would like within the contract so as to not forget your requests later and so there are no doubts on what your wishes are.

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