up buyer packet 2014 (1)
DESCRIPTION
Making a Smooth MoveTRANSCRIPT
GuideBuyer
PSelecting Your Realtor you . Efficient, quality
urchasing a home is at once an exciting and fun experience and also a time
of major decision making. Buying a home is the single largest financial deci-sion most people make in their lives. It is not surprising then that a tremend
ousamount of anxiety and stress is generated. It is a time when moving might
becomplicated by a new job, relocation to a new area and perhaps a time whenyou are moving away from friends and/or family.
are working. Texas law requires all real estateservice and a willingness to go the extra mile are alicensees to give the Information About Brokeragemust in a real estate transaction. Prompt follow- Services to prospective buyers, tenants, sellers andup and attention to detail are important factors landlords.to look for in a REALTOR. There are sometimeshundreds of people involved in a single homepurchase and your REALTOR should be a coor-dinator of all those events and details. Look fora knowledgeable individual with a willingness tolisten and understand your needs combined witha work ethic that will serve you well during theprocess of locating the home of your choice. Fromthe initial home-search through the offer andcontract, on to closing and beyond, you will wantsomeone to be with you every step of the way.
Information About Brokerage Services
.Before working with a real estate broker, youshould know that the duties of a broker dependon whom the broker represents. If you are a pro-spective seller or landlord (owner) or a prospectivebuyer or tenant (buyer), you should know
that thebroker who lists the property for sale or lease isthe owner’s agent. A broker who acts as a sub-agent represents the owner in transaction.A broker who acts as a buyer’s agent representsthe buyer. A broker may act as an intermediarybetween the parties if the parties consent in writ-ing. A broker can assist you in locating a prop-erty, preparing a contract or lease, or obtainingfinancing without representing you. A broker isobligated by law to treat you honestly.A copy of Information About Brokerage
Services shouldbe furnished to you by any Realtor with whom
Establishing Your Needs. Determining someof the basic absolutes you would like to have inthe home you purchase, combined with some ofyour “wish list items,” is a major first step in thehouse-hunting process. Consider such basics asdistance from work, new construction vs. resale,single family vs. townhome and numerous otherinfluences that are important to you. The “HouseHunting Priorities” page is a general guideline tohelp you organize some of these details.
Loan Pre-Qualifying. An important tool toutilize in your home purchase process is to obtaina “pre-approval” from a mortgage lender. It will
simplify your house-hunting by giving you financ-ing options, information about possible down-pay-ments, price ranges, terms, and funds necessaryfor closing. Pre-qualifying with a loan officer willalso give you a distinct advantage in getting youroffer accepted by a seller when you are able toprovide a “pre-approval” letter from your lender.
Selecting Your Home. Review your prioritiesand focus your home search in areas and priceranges that meet the particular needs you haveestablished. Discuss options, likes and dislikes,needs and wants with the Realtor working withyou and the hunt for your new home has well andtruly begun.
Buying Your HomeLoan Application. Comparing types of loansand then making a loan application are importantsteps in the home buying process. At the time ofloan application, the lender typically charges anapplication fee. This fee tends to cover the lender’scost of pulling your credit report and the cost ofa professional appraisal on your property. Oncethese loan application tasks have begun, the fee isnot refundable.Making an Offer. When you have found thehome of your choice it is time to write an offer.The offer is usually written on a contract formpromulgated for Realtors by the Texas Real EstateCommission. When buying new construction,however, the builder might require his or her owncontract form.The contract form details the many aspects ofyour transaction and upon acceptance serves asan instruction booklet to the Title Company andothers involved in the transaction. Decisions needto be made at the time of the offer regarding suchitems as the closing date, terms, conditions, pos-session, sales price, down-payment, an option timeand fee, a request for repairs or inspections or an
offer without a repair request. Your Realtor willwork through the many details with you.When you start your home search it’s a reallygood idea to ask your Realtor for a sample copyof the forms…and don’t hesitate to ask questions.Negotiating to Contract. The market willgive you many clues about the best way to beginnegotiations with a seller. If it is a “seller’s mar-ket” and properties are selling quickly, perhapswith multiple offers, it would probably be best tomake your very best offer initially or risk havingthe property go to someone else. The seller is notobligated to respond to an offer. If another offeris received which meets the seller’s needs, theremight not be an opportunity for you to negotiate.However, if the market is soft and supply is great,the opportunity to negotiate the terms and condi-tions of your offer are much greater.When negotiations are complete and an offer isaccepted and signed by the seller, it becomes alegal binding contract.
Deposit of Earnest Money. The Realtor youare working with will follow up to see that title isopened on the property you are purchasing. Atthis point, the earnest money will be depositedwith the Title Company. This will typically hap-pen within 24 to 48 hours of the final signing ofthe contract. When the Title Company opens titleon a property, their “plant” will research the his-tory of the property and issue a title commitment.This commitment will detail items that mightneed to be cleared before issuing a title policy.Mortgage Details. During this time your loanofficer is finalizing any items needed for your finalloan approval and ordering an appraisal of theproperty. Loan approval details will vary depend-ing on the type of loan you are obtaining. Thelender will also order the survey.Repairs. If repairs have been requested andagreed to by the seller they will typically be com-pleted between loan approval and closing.Closing and Funding. The lender will draw the
papers needed to create your new loan and sendthem to the Title Company to be reviewed bythe escrow officer. The final details such as homeinsurance, tax escrow, survey and funds necessaryto close will come together at the Title Company.The escrow officer will complete a “HUD” State-ment, which details all of the financial obligationsfor the buyer and the seller. Ask your Realtor tohave the Title Company provide a copy of the“HUD” at least 24 hours prior to your closing.When you go to closing at the Title Companyto sign loan papers it is necessary to bring “goodfunds” to cover your costs. Examples of “goodfunds” would be either a certified check or wiredfunds. If in doubt, check with your Realtor or theescrow officer at the Title Company.Coordinator of Events. The Realtor withwhom you are working is the Coordinator ofevents and will be with you every step of the way,helping to solve any difficulties or delays thatmight occur.
Up-front CostsMaking an offer:
Resale1. $1000 or 1% of sales price made payable to Title Company for earnest money. This
money will be credited back to you at closing if you move forward with contract.2. $100 option $ that will be made out to Sellers and cashed upon execution of contra
ctNew home1. $2000 or 1% of sales price made payable to Title Company for earnest money. This
money will be credited back to you at closing if you move forward with contract.2. No option fee
After execution of contract1. Structural and Mechanical Inspections—$350-$4252. Termite Inspection—$75-$1253. Credit Application fee with lender—$65-$3504. Appraisal fee—$350-$400
The Hunt BeginDeciding where you want to live goes a long w
ayin determining the type and style of house yo
u’relikely to find. If you like inner-city life for in-stance, your search could include properties
verydifferent from those in some of Houston’s pla
nnedcommunities such as Greatwood, Cinco Ranch, Kingwood or The Woodlands.Whether new construction or old, inside or ou
t-side the Loop, one story or two, under $100,0
00or over $1,000,000, Houston ha
s something spe-cial to offer the first-time, move
-up or move-downhome buyer.Narrowing the SearchNo doubt, a house has to feel ri
ght. But emotionscan change quickly if a house d
oesn’t work right,too.Once a home makes it onto you
r “seriously con-sidering” list, you want to make
a good prelimi-nary personal inspection. Scruti
nize the house
with an eye toward how well it will work for you.
No house will be perfect. Your job is to make sure
that you can live with any problems (or repaircosts). Here are some of the things to look for:Outside the Home• Do trees and shrubs appear healthy?• Does the yard slope so that water will dra
in?Look for low spots near the house.
• Are sidewalks and driveways in good condi-
tion? Will water drain?• Are the surface materials of the house in
good repair?• Do windows, doors, and chimney sit plum
band square?
• Is the roof free from sags and dips? Areshingles in good repair?
• Are gutters and downspouts in good shape?
• Check to see if weep holes are clear andabove ground level.
• Does the main entry lead you to the living
room, or did you have to pause to figure out
• Are eating areas, including those outdoors,easily accessible from the kitchen?
• Does kitchen traffic flow outside the workarea?
• Are the stove, sink, and refrigerator arrangedin an efficient triangle?
• When appliance doors are open, do theyblock access to other appliances, cabinets, ordoorways?
• Do bedrooms have two uninterrupted wallsurfaces to make furniture arrangements easy?
• Are there enough baths for the size of yourfamily? Is access convenient?
Inside the Home• Are there signs of excessive dampness or
flooding?• Do exposed beams and joists appear to be in
sound condition?• Is the attic well-insulated? Any water damage
from a leaky roof ?• Are floors even and sturdy?• Are walls free from large cracks?• Do all windows and doors work smoothly?• Are bathroom fixtures in good condition?
Does the water flow remain steady when tapsare on and toilets are flushed? Does waterdrain well?
• Are there enough electrical outlets in all therooms?
• Is the capacity and recovery time of the waterheater adequate for your family?
• Are kitchen appliances in good repair? Whichones come with the sale? Will your appliancesfit if need be?
• Do the furnace and air conditioner appear tobe well-serviced?
When interest turns to decision-making and anoffer is written, plan to bring in a professionalinspector of your choice to help you determine ifthe property meets your needs and requirements.Several choices concerning repairs are built into
the TREC contract.
House Hunting PrioritiesGetting Started. House hunting doesn’t have to bean agonizing process of elimination or a series ofwild goose chases. Use this checklist to help youset priorities and determine exactly what you wantin your home.LocationGeneral location_______________________________________Distance from work_______________________________________Close to schools_______________________________________Other location features______________________________________________________________________________Overall Features______ One story______ 1.5 story______ Two story______ Single Family Home______ Townhouse______ Condominium______ Average-size lot______ Large lot______ Wooded lot______ Patio______ Deck______ One/two/three car garage______ New Construction______ Pre-Owned (Age Range)______ Other:______________________________________________________________________________Interior Features______ Number of bedrooms
______ Master bedroom suite______ MB Rm. up or down
______ Number of baths______ Average-size kitchen______ Extra-large kitchen______ Eat-in/country kitchen______ Family/great-room______ Office/den______ In-house utility room______ Formal living and dining rooms______ Fireplace______ Walk-in closetsStyle & Decor______ Exterior elevation: contemporary,
traditional, colonial, other______ Brick exterior______ Wood exterior______ Formal or informal interior______ Open floor plan
______ Wood floors______ Tile floors______ Fully carpeted______ Built-insGreat Extras______ Pool______ Greenhouse______ Skylights______ Hot tub______ Exercise room______ Media room______ Wet bar______ Burglar-alarm system______ Quarters______ Other:____________________________________________________________________________
Buying Your HomeLOAN APPLICATION
MAKING AN OFFER
NEGOTIATING
EXECUTED CONTRACT
DEPOSIT OF EARNEST
OPTION PERIOD
INSPECTIONS
APPRAISAL
TITLE COMMITMENT
LOAN APPROVAL
REPAIRS/NEW CONSTRUCTION
SURVEY—IF NEEDED
CLOSING & FUNDING
MOVING DAY !!!!!
Mortgage Options and InfoAs a homebuyer, you have many kinds of mort-gages from which to choose. Before you can startcomparing rates and lenders, you’ll need to decidewhat type of home loan suits you best.30-Year Fixed Mortgage. This is one of the mostpopular loan options with first-time homebuyers.Because of the longer term this mortgage offersone of the lowest possible fixed monthly pay-ments. This long term also causes it to be more
expensive over the length of the loan because theinterest accrues for much longer. It is important toknow however that extra principal payments canbe made which would reduce the overall term ofthe loan and decrease the total interest paid.15-Year Fixed Mortgage. For those looking tobuild equity quickly this loan is an excellent op-tion. Interest rates are about a half percentage
point lower than on a 30-year fixed note. A bor-rower will pay only about half as much interestover the life of a 15-year fixed loan vs. a 30-yearfixed loan.Two-Step Mortgage. This is usually a 30-yearloan with a rate that adjusts after seven years. Thebenefit is the low initial interest rate, but at thepoint of adjustment, the rate can climb severalpercentage points, often to just above the averageinterest rate for a 30-year fixed loan. This mort-gage is an excellent option for those who plan tomove within the seven-year period.A wide variety of other types of loans are alsoavailable to the home-purchaser. Examples ofsome of these financing options are as follows:
• Jumbo Conventional Loans to 5 Million
• FHA Loan Programs• VA Loans• Portfolio Loans• Construction Loans
If you’ve ever shopped for a home loan, you havediscovered that rates vary from lender to lender.The benefit of a low interest rate might be offsetby higher lender costs. To help in comparingrates, lenders are required by law to divulge theAnnual Percentage Rate (APR). The APR is thecalculation that combines rates, points and relatedfees to more accurately reflect the costs of theloan.With the mortgage market constantly changing, itis imperative that you find a reputable lender. Alsovisit www.hud.gov for other financial questions.For most mortgages, paperwork is a basic neces-sity. Because missing paperwork can delay theprocess, it’s important to have the following docu-ments in order as soon as possible:
• Earnings statements or proof of self-employment (W-2 form, pay stubs andtax returns)
• Debt information, such as car notes andcredit cards
• Bank statements for the most recent 2months, all pages.
Mortgage Companies
ZEUS MORTGAGESteve [email protected]
Gibraltar Mortgage ServicesChristine Boles281-773-3853 [email protected]
RMC Vanguard Mortgage Corp
Joe Paoly415-699-6346 [email protected]@rmcv.com
This list has been compiled as a service forthe client. The client needs to feel no obliga-tion to use any of the above lenders and mayuse any lender of their choice.
Home InspectionsA home inspection by a qualified inspector of the Buyer’s choice is a major component of most resi
den-tial real estate transactions. The inspector should be a person who regularly provides such service a
nd
who is either licensed as an inspector by the Texas Real Estate Commission or otherwise permitted by
law to perform inspections. Home inspections might include but are not limited to the following:
• Structural Systems foundation, roof,bracing-walls, framing, ceilings, floors,windows, screens, doors, water penetrati
on,fireplace and chimney, stairs and landing
s,attached balconies-decks and porches
• Mechanical Systems heating system,cooling system, built-in equipment: rang
e,oven, disposal, dishwasher, trash compac
tor,microwave, vent hood, exhaust fans
• Electrical main breaker box, attic wiring,switches, outlets, fixtures, circuit breaker
s,
• Plumbing water heater, tubs, showers,toilets, faucets, drains
• Other Systems swimming pool & equip-ment, spa, hot tub, sauna, lawn & garden,sprinkler system, alarm & fire detectionequipment, gas lines, outdoor cooking equip-ment
• Environmental lead based paint, asbestos,wetlands
ceiling fans, G.F.C.I. test, aluminum wiring
A typical home inspection might include structural, electrical, mechanical and plumbing inspections. Itis important for you, the buyer, to call and interview the inspector to arrive at an understanding of whatyour inspection will cover.Pest control inspections should be made by a company licensed to do so in the State of Texas. Environ-mental inspections are generally made by specialists.TEXAN INSPECTION
Ray Hinsley281-342-5762www.texaninspection.com
Pro Tex Property InspectionsRichard Burgess281-556-5608
Protexusa.com
Accu-West InspectionDennis Bowen281-392-0442
Insuring Your New HomeAsking key questions when shopping around for apolicy can lead to less expensive rates.How do you obtain a reasonably priced hom-eowner’s insurance policy without sacrificingprotection?A basic policy may cover losses to home andproperty due to fire, windstorm, hail, theft, andvandalism. Damage from nuclear radiation, flood,and war is typically excluded. Be sure to comparewhat a policy does and does not cover.In the Houston area it is important to check intoand consider the possibility of acquiring floodinsurance. This is a separate insurance policy andon some homes may be a lender requirement.You may want to look for a policy that auto-matically increases coverage to match inflation.Review it each year. The added value that remod-eling projects bring to your home is not coveredautomatically. If you think your house is overval-ued and you are paying too much, ask an age
nt todo a cost estimate.Because you’ll need to prove that you have homeinsurance at the closing, the best time to shop forrates is after the offer has been accepted and youare waiting to close.
Money Saving Ideas• Raise the deductible. By raising the deduct-
ible from $500 to $1,000, you could save on
the policy premium. Raising the deductible
to $5,000 might net an even larger savings.
This makes particular sense for high-value
properties where the dollar savings are more
significant.• Inquire about loyal customer discounts. Stud-
ies show that customers who insure long term
with the same company have fewer and lower
claims.
• Ask about discounts for items like burglaralarms, smoke detectors, dead bolt locks,and fire extinguishers. Some companies offerdiscounts for an indoor sprinkler system or analarm system that reports to a central officeor police.
• Shop around. Check with friends to see whatkind of service they get when making claims,and read up on consumer publications.
• Ask about a non-smoker’s discount.Consider an umbrella policy that combines thehome, other real estate, and vehicles all in onepolicy. Having one policy may save on your totalinsurance premium.When shopping for home insurance - take care- if a policy seems too inexpensive to be true, it
probably is. A low premium isn’t much of a con-solation if you can’t get a claim paid.
Home WarrantiesYou may also want to consider a home warrantyprogram. Coverage typically includes such itemsas water heater, central air & heating systems,kitchen appliances, and some plumbing and elec-trical items. Optional coverage is also available foritems such as garage door openers, pool/spa andwhirlpool bath equipment and clothes washer anddryer.Review the policy carefully as the coverage, termsand conditions may vary based on the type ofcoverage requested or the company furnishing thewarranty.
Insurance CompaniesGibraltar Insurance Services
Devon [email protected]
State FarmManny Molinar(713) 266-4545
Katy Area UtilitiesELECTRICITYReliantSarah Flores
Power To Choosehttp://www.powertochoose.org
GASCenterpoint/Entex: 713-659-2111TELEPHONE/ INTERNET/ CABLEConsolidated Communications: 936-539-7296http://www.consolidated.com
Comcast/ XFinity 1-800-226-2278
AT & T Uverse (depending on area)http://www.att.com/shop/availability.html1-800-228-2200
Dish Network www.dish.com
1800-823-4929
Entouch 281-225-0598
Making a Smooth MoveSix to Eight Weeks Out: Set up a calendar for your move. Contact a moving company. Decide what goes with you, what to sell or
give away. Hold a garage sale. Begin packing seldom-used articles. Organize a list of individuals, companies and
institutions for change-of-address notices. Collect and keep important papers handy
(medical, insurance, etc.). Gather information on prescriptions. Organize a list of important phone numbers. Create a list of individuals, companies and
institutions to notify of change-of-address. Order a telephone directory for your new
area and inquire about phone connections.
Find out how much advance notice is re-
quired to set up utilities. Choose a new bank. Check school schedules and enrollment
requirements. Transfer records. If required, call the Department of Motor
Vehicles for information on changing your
drivers license. Inquire about activities for your children. Start collecting suitable containers and pack-
ing materials if you plan to do the packing
yourself.Four to Six Weeks Out: Begin to use up supplies of canned goods,
frozen foods and other hous
ehold items. Buyonly what you need.
Alert the post office that you will be moving.
Send out change of address cards. Visit some of the places that hold happy
memories. Hold an open house for friends to say good-
bye. Keep it simple. Arrange disconnect dates with local utilities. Set up a moving expense log.
Two to Four Weeks Out: Service your car, especially if traveling a
distance. Dispose of flammable liquids such as spray
paints, solvents, thinners and gas in lawnmowers.
Return/retrieve borrowed items. Clear up outstanding accounts. Transfer checking and savings accounts and
contents of safe deposit box. Help your children host their own going away
party. Have rugs and draperies cleaned. Return library books. Begin serious packing of items you won’t
need over the next few weeks.One to Two Weeks Out: Organize packing and moving of special
items such as: electronic equipment, lamps,china, crystal, fine furnishings.
Take pets to the veterinarian. Most statesrequire health certificates and rabies inocula-tions.
Pack an “Instant Aid” box containing thingsyou’ll need upon arrival: paper towels, pow-dered detergent, sponges, light bulbs, paperplates, toothpaste, trash bags, hand soap,hammer, and toilet paper.
One to Three Days Out: Pack suitcases for the trip to your new home. Empty the refrigerator and freezer so they can
dry at least 24 hours. Keep information lists, moving details and
phone #’s in an easy to find location. Collect and organize items that should be
packed together.Moving Day: Be on hand for the movers. Check and sign
the inventory. Keep a copy.
Each transaction is unique. The order of events may vary and the steps in one transaction may be very different from another. The infor-mation contained in this report was obtained from reliable sources.