the key to buying your dream home

Rita CoxKeller Williams Realty

10 Steps in the Home Purchase10 Steps in the Home Purchase

1. Initial Buyer Consultation2. Pre-Approval by Lender3. Home Search4. Make Offer / Negotiate Contract5. Inspection of Property6. Appraisal of Property7. Final Approval of Loan8. Final Walk Thru of Property9. Closing on Loan & Home10. Move In!

Step 1: Lender Pre-ApprovalStep 1: Lender Pre-Approval

Have You Spoken to a Lender◦How Much House Can You Afford?◦What Type of Loan – FHA, VA, Conventional◦Information on Down Payment Assistance◦Interest Rate Information, Terms, Etc.◦Get Pre-Approved Upfront

Step 2: Meeting With The RealtorStep 2: Meeting With The Realtor

Discussion of Your Needs & WantsBe Prepared to Discuss “Why” ???Indicate Which Items Are “Deal Killers”Go Over The Buying ProcessDiscuss CostsCover Buyer Brokerage

House Hunting CriteriaHouse Hunting Criteria

Needs: Wants:

No. of BedroomsNo. of BathsArea of TownRanch vs. 2 StorySize of YardSubdivision

Extra BedroomBasementHardwood FloorsGranite CountertopsCorner LotFenced Yard

Costs of Buying a HomeCosts of Buying a Home

Down Payment on Home 3.5% of Sales Price - FHA Earnest Money $1,000 and up Inspection $300 - $400 Appraisal $350 - $450 Turn on Utilities – Foreclosures Varies Closing Costs Varies – Ask Lender for Good Faith

EstimateRanges from 3-5% - Seller will pay a portion.

Step 2: Buyer BrokerageStep 2: Buyer Brokerage

BUYER BROKERAGE:Agreement Between the Agent & BuyerMust Be In WritingOutlines Responsibilities of Both PartiesCan Be Terminated by Either PartyCreates Loyalty & Trust Between Parties

Step 3: Shopping For A HomeStep 3: Shopping For A Home

Ways to Search: On-Line Sites … Realtor.com, Trulia, GeorgiaMLS.com Automatic Updates from Your Realtor via E-Mail Mobile Apps Send Listings to Your Phone Realtor Selections Based on Initial Consultation

Schedule Showings: Show 5-7 Homes per Outing Each Showing is Scheduled the Day Before

You Will Know The Right OneYou Will Know The Right One

EVALUATING EACH HOME:Area – Proximity to Work, Family, Other InterestsNeighborhood – Swim, Tennis, Number of HomesCurb Appeal of HomeCondition of the Home Does it “Feel” Like Home

Types of Home SalesTypes of Home Sales

Buying a Traditional ResaleBuying a Traditional Resale

Traditional Sales – Can be Personal SalesExpect Faster ResponsesResearch on Recent Sales Before to Making An OfferBe Prepared for Multiple Offer Situations

Buying a Bank ForeclosureBuying a Bank Foreclosure

Homes Are Sold “As Is”Utilities May Not Be Turned On - Homes Usually Need Cosmetic Repairs… Carpet, PaintEach Lender Has Their Own Set Of ContractsMust Inspect Within 7 Days Of Contract AcceptanceBanks are Aware of the Condition of the HomeBe Prepared for Multiple Offer Situations

Buying a ‘Short Sale’Buying a ‘Short Sale’

Short Sales Can Take Up to 3-4 Months to CloseDon’t Make Lowball Offers – Know the AreaLender Can Still Decline/Counter Your OfferSeller Can Decline Bank OfferHomes are Sold “As Is”

New Home ConstructionNew Home Construction

Sales Price is Usually Not NegotiatedBuyer Upgrades May Be AvailableBuilders Usually Have Their Own LendersCan be a Penalty for Failure to Close On TimeThe On-Site Agent Works for the BuilderThere Are Scheduled Walk Thru

Times for the Buyer

Step 4: Anatomy of An OfferStep 4: Anatomy of An Offer

Making An Offer Agent Pulls Area Comparables Evaluate the Time the Listing has been on Market Look at Time Needed to Close Look at How Much You Need in Closing Costs Are the Utilities On? Ask for Them to be Turned On

Step 4: Anatomy of An OfferStep 4: Anatomy of An Offer

The Art of Negotiation

Multiple Offers – “Highest & Best” Counter Offers The Seller Does Not Have to Accept Your Offer They May Counter – Price, Closing Cost, Closing Date Time Is Of The Essence – Respond Quickly This is not an Auction – Make a Reasonable Offer Make it a “Win-Win”

Step 4: Accepting An OfferStep 4: Accepting An Offer

Accepting An OfferBinding Agreement Date – The date that the offer is

officially accepted by all parties.

Due Diligence Period Begins– Once the contract is “binding” You have 7-10 days to look over the house completely

Watch The Dates

Steps 5-7: Accepting An OfferSteps 5-7: Accepting An Offer

What’s Next?

Home Inspection Termite InspectionOfficial Loan ApplicationGood Faith EstimateAppraisalLoan Approval !!!!

Steps 5-7: Accepting An OfferSteps 5-7: Accepting An Offer

Other Issues:

Homeowner’s Insurance Is the Home in a Flood Zone?Get a Copy of Community CovenantsLine Up Your MoversGet Utilities Turned On In Your Name

Step 8: Final Walk ThruStep 8: Final Walk Thru

FINAL WALK THRU:Make Sure Everything is Still There

No Vandalism or Theft

Everything is Like It Was When You Made Your Offer

Step 8: Final Walk ThruStep 8: Final Walk Thru

FINAL WALK THRU:

I found this on the morning ofa closing:

Step 9: The Closing!Step 9: The Closing!

CLOSING DAY:

Bring Your Driver’s LicenseBring Certified Funds Closing Takes About An HourReview the HUD-1/ Settlement StatementSign Your Security / Loan Documents“You Pay – You Stay”/ “You Don’t – You Won’t”Get Your Keys!!

Step 10: Moving Day!!!Step 10: Moving Day!!!

MOVING DAY:

My Contact InformationMy Contact Information

Rita C. CoxAssociate BrokerKeller Williams Realty – Atlanta Partners

1957 Lakeside ParkwayTucker, GA 30084

(678) 252-1900 Office(678) 467-1229 Cell

(404) 751-2798 E-Fax

www.RitaCoxRealtyGroup.com www.TheHomebuyerBlog.comAtlanta Real Estate News on Facebook