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MASTER BEDROOM14-0 X 16-6
BEDROOM13-10 X 12-5
LIVING ROOM12-0 X 22-0
DINING ROOM16-1 X 12-9
CL
CL
CL
DW
WC
MASTER BATH11-0 X 12-2
P.R5-6 X 5-2
W/D
KITCHEN11-6 X 9-8
FOYER
BATH9-7 X 5-6
WIC5-8
X 5-3
WIC3-11
X 4-11
Home
BuyersGuide
Home Buyers GuideHow to Secure the Home of your Dreams
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everythingrealestateny.com / Top Producer Step-by-Step
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MASTER BEDROOM14-0 X 16-6
BEDROOM13-10 X 12-5
LIVING ROOM12-0 X 22-0
DINING ROOM16-1 X 12-9
CL
CL
CL
DW
WC
MASTER BATH11-0 X 12-2
P.R5-6 X 5-2
W/D
KITCHEN11-6 X 9-8
FOYER
BATH9-7 X 5-6
WIC5-8
X 5-3
WIC3-11
X 4-11
Home
BuyersGuide
Introduction ... 3
Guidelines for buying a new home ... 4
Expect great service from your real estate broker .. 7
Getting Pre-approved ... 9
Your home buying team ...... 12
Searching for your new home ... 15
Make an offer . 22
Negotiating the deal . 23
Signed, sealed and delivered: Closing the deal .. 27
A home buyers glossary .. 31
CONTENTS
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Introduction
Whether this is your +irst or third experience, buying a new
home is a serious undertaking. It requires dedication, planning,
and research to +ind the perfect place for you. Is the path to home
ownership stressing you out? Relax owning a home comes with many
perks, which makes the whole process worthwhile, and Jermel
Singleton of Douglas Elliman Real Estate wants to be your partner
through it all. Hes here to help make your house hunting experience
as enjoyable and stress-free as possible. There are so many factors
that go into buying a new home, which is why many +ind the task
daunting. You most likely will need to secure a mortgage and will
need to pre-qualify to learn what price range you can afford and
+igure out other +inances such as down-payments and closing
costs.
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You will need to +ind a real estate agent to help you with the
hunt and secure the best offer, and, of course, +ind that perfect
home for you and your family. And thats just the tip of the
iceberg! Jermels goal with this guide is to provide you with
insight during this stressful, yet very exciting time. Youre on
your way to achieving the American Dream, and Jermel is with you
every step of the way. Guidelines For Buying A New Home As you
embark on this journey to homeownership, there are a few items to
be aware of prior to purchasing a home. These tips will help
prepare you to avoid the bumps in the road on the way to locating
your new place. Identify your must-have list. Unless you are
building a new construction home, most homes will require you to
compromise, whether on its location, square footage, price, or that
mudroom for the kids. As you begin your search, identify your
must-have items. Remind yourself of these items and why they are
important for your life in your new home when you begin
visiting
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potential homes. Avoid major purchases before buying a new home.
This includes a new car, vacations, electronic equipment, etc. You
dont want to allocate all your funds on something and leave little
money for one of the largest purchases youll make in your lifetime!
Remember you may need to buy window treatments, yard equipment and
a ladder when your new home becomes a reality. And besides, maybe
youll want a new state-of-the-art refrigerator for your new home
versus that trip to the Bahamas. Think of time frames. Do you need
to be out of your current place by a certain time? Are you looking
to move because your family is expanding in nine months? In
addition to your decision to buy a new home, think about the time
frame you are allotting for you and your family to locate a new
place and set expectations for meeting that time frame. Come up
with a backup plan if you arent able to +ind your new home within a
certain period of time. Dont move money around.
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When you go through the approval process for a loan itll be
easier for the bank to check your credit history and banking
statements if youve had a consistent bank for the last few months
and steady funds within those accounts. Dont change jobs. This
might seem basic but its certainly something to think about. Buying
a home can take months. If youre looking to switch jobs, think
about whether you want to also buy a home at the same time. Lenders
want to see stability when considering a mortgage approval and job
changes can decrease your credibility with the lender. Anticipate
surprises. There is always a potential for hiccups to happen when
buying a home. There are many factors that go into securing a
mortgage lender, a trustworthy real estate professional, +inding
that perfect home and of course making an offer to purchase the
dream home. There are a lot of steps and room for error. As such,
prepare yourself for this journey that will have a couple missteps;
but know that its completely normal, and that ultimately you will
be able to +ind the home of your dreams!
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Expect great service from your real estate broker In becoming a
real estate broker an individual must complete a variety of courses
and regularly update their professional education. They also have
access to a wide array of optional courses, seminars and
certi+ications. They must adhere to a strict and rigorously
enforced Code of Ethics. On top of all that, through experience,
they truly become local real estate market and community experts,
as well as masters of property marketing, networking and
negotiation. In working for you, a real estate broker will: Outline
their professional responsibilities to you, including complete
Disclosure, Loyalty, Con+identiality, Obedience and
Accountability.
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Help you determine the best initial offer price. Conduct
extensive research of home values in order to make knowledgeable
sound offers and negotiate. Schedule appointments with listing
agents and offer proven advice on how to select the best home based
on your needs. Assist you, if necessary, in +inding any
home-related services you need. Regularly communicate with you to
keep you fully informed of everything they do to +ind your home.
Ask for feedback from all showings and open houses. Update you on
both real estate and lending changes that could affect your
prospective purchase. Promptly present each offer and discuss
counter-offers with you. Negotiate the lowest possible price and
best terms for you.
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Manage contractual, title and transaction details and keep you
informed. Ensure that important items are signed, sealed and
delivered on closing day. Arrange for a moving company and
relocation agent, if required. In short, theyll provide you with
comprehensive, high-quality service. So when you decide to purchase
your home, be sure to take advantage of the knowledge, experience
and professionalism of a real estate broker.
Getting Pre-Approved Getting pre-approved is a necessary +irst
step as it lets you know how much youll be able to afford as well
as the down payment for which to budget. Not only this, it prepares
you for the monthly mortgage payment and what type of loan you are
going to use to +inance your new property. There are so many
different loans to apply for as a homebuyer; it all depends on what
youre looking for. There are many types of mortgage loans to suit
your needs. Do your research and see which +its best with
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your situation. If you refer to my First Time Home Buying
checklist, there are seven (7) items to check for when receiving a
pre-approval letter. 1. Loan Amount: Base loan amount and gross
loan amount 2. Status and Expiration Date: The majority of
Pre-Approval Letters are good 90 days from when credit report is
run 3. Mortgage Type: FHA, VA, USDA, Traditional, Jumbo 4. Term:
40-, 30-, 20- or 15-Year Fixed 5. Occupancy: Owner Occupied,
Secondary Residence, and Investment 6. Contact Info: Lenders Name
and Address 7. Conditions: Document and Funding Requirements Prior
to AcceptanceAlways use mortgage calculator so you can estimate
what youll be able to afford, but I always recommend contacting a
professional. Sellers take you more seriously when youre
pre-approved for a loan because that makes you more quali+ied for
buying a home.
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is backed by the Federal Housing Administration. Another common
government loan is the VA loan, which is backed by the Department
of Veteran Affairs. Mortgage Options 15 or 30-Year Fixed A fully
amortizing mortgage loan where the interest rate on the note
remains the same throughout the life of the loan. As a result,
payment amounts and the duration of the loan are +ixed and the
person who is responsible for paying back the loan bene+its from a
consistent, single payment and the ability to plan a budget based
on this +ixed cost.
Two Kinds of Loans Conventional Loans: Not insured or guaranteed
by the federal government. Typically these have higher down payment
and credit score requirements than government loans. Government
Loans (FHA loans or VA loans: Backed by the federal government.
Most popular is FHA, which
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Adjustable-Rate Mortgage A mortgage loan with the interest rate
on the note periodically adjusted based on an index which re+lects
the cost to the lender of borrowing on the credit markets. There
are many types of mortgage loans to suit your needs. Do your
research and see which +its best with your situation. Home Buying
Team To assist you in +inding your new home, having a team is
extremely bene+icial. I advise that you learn enough so that you
can evaluate these people and make a good hiring decision. It is
never a bad idea to do your own research +irst. There are many
tasks, important deadlines, documents, and responsibilities that
need attention while buying a home. Your agent, loan of+icer, and
home inspector should all effectively communicate with one another
to make this process easier for you. Trust is key, so +ind a team
in which you can put your trust in one hundred percent. Their goal
should be to help you by making this process easier.
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I believe the three most important people to have as part of the
team would be your real estate agent, loan of+icer and home
inspector. It doesnt matter if your real estate agent works for a
big company or a small company. What matters is that he or she is
knowledgeable, motivated, and a good communicator. The loan of+icer
that you choose needs to have the same qualities as your real
estate agent, (knowledgeable, motivated and a good communicator)
but the company that they work for is important as well. Pick a
mortgage company that is either locally-owned or national. Either
way, make sure that you have heard of them before, as a no-name
mortgage company or an internet only lender might not know the
market well enough. Use a home inspector that has a reputation for
being thorough. Do your research and read the online reviews about
them. This is not the time to use a friend; it is too
important.
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Keep in mind, that in some markets the listing agent will try to
prevent or block buyers from having your own real estate agent
because they prefer to keep 100% of the sellers commission. If this
is the case, its an immediate red +lag and I would be very cautious
because they are putting their +inancial interests ahead of their
sellers. If you are unsure, you might consider hiring your own
agent who knows the market well. After all, this might save you in
the long run considering it likely will be the largest purchase of
your lifetime. Another red +lag to be cautious of are referrals
from the listing agent. Again, the listing agent represents his or
her seller and not you. Whenever, I provide referrals I usually
give three (3) names, so the client actually makes the best
decision. You should also consider bringing a close friend or
family member when shopping for a home as he/she can help you look
at things you may overlook. Once you have your team assembled,
youre ready for the next step in the home-buying process.
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Searching For Your New Home More and more home buyers are
shifting the way they search for new homes. While some prefer to
look at the homes for sale in publications on newsstands, other are
searching online and or browsing apps and websites on their mobile
phones while theyre on the-go. As you start searching for your new
home, here are some tips to help you get started: Online, Mobile
Apps, and Social Media: Searching for a home online has many
advantages. It allows you to quickly see a vast number of
properties on the market and crucial details about each of those
properties, such as photos, asking price, square footage, etc. To
make the process easier, there are a couple options that you can
use for searching for a new home online. One in particular,
www.elliman.com, makes searching for a new home effortless. You can
search based on city or neighborhood and browse thousands of homes
for sale. You can also save your searches or share them via email
with family and friends to get their input. As an added bonus, you
can also set up alerts to be noti+ied when a homes price
changes.
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Additionally, streeteasy.com, real estate broker websites,
social media, blogs, etc., and direct contact with listing agents
are far and away the main sources of home information for buyers
(at 89% and 88%, respectively) Other sources are yard signs, open
houses, newspaper, postcards, banners and real estate magazine ads,
home builders and television.The latest phenomenon is the mobile
application. Mobile applications, such as Elli helps buyers who are
already convinced on a speci+ic town, neighborhood, or street to
search within the vicinity. Some key features of Elli include:
interactive maps to instantly +ind nearby homes or rentals with a
GPS driven location +inder; full-screen photos that allow you to
scroll through vivid, photos of the homes youre interested in; and
turn-by-turn driving directions from your current location to the
property of interest so you can go see that home as soon as
possible! Check this must have app out at www.meetelli.com.Find The
Right Home Finding that perfect home can be a lengthy and dif+icult
process. There are many factors that go into the decision, such as
family needs, pets, the locations proximity to work sites, as well
as nearby schools and shopping centers. Here are four factors that
will lead the way in +inding the perfect home.
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Safety/Condition of Home When shopping with infants or toddlers,
make sure all dangerous areas (kitchen, stairs, pool, etc.) can be
out+itted with safety gates. Check that the windows locks are in
working order as well. See that all safety mechanisms are in place,
the pool is in working order, and that the stairs are sturdy and
secure. Find out the age of the homes water heater, air
conditioning unit, and roof, as these are costly
replacements.School and Education Opportunities Finding the right
school system for your children is important, and choosing a home
that is close to your childs school (as well as your work) will
save you time during the commute process. Check to see if the area
has a local YMCA or any other facility that offers after school
programs, tutoring, and enrichment activities, such as youth
athletics leagues.
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Functionality When buying a home, think about how long youll be
living there. Will you be starting a family in the next couple of
years in this home? Make sure the home has the amount of rooms and
square footage that you desire. Also be sure to check the storage
capacity the home offers. Clutter is never fun. Is there enough
room for your tools? Kids toys? Shoes and clothes? Make sure the
home has plenty of storage solutions or offers places for
improvement when needed. A special place is also an important
factor to consider. A special place could range from a den, garage,
a craft room, a nursery, basement, or maybe even a tree house. Find
something within the home that makes your heart happy. Ensure that
there is enough room to create those unforgettable family memories
as well as showcase them. No one likes feeling claustrophobic.
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Location Check out the local area to see what it has to offer.
Is there a playground nearby? Can you walk to it? Maybe even
consider how many children live in the area so that your children
will be able to easily make friends. What other attractions are
available? Find out where the nearest grocery store and dry
cleaners are located. How long is your commute? 75 percent of home
buyers said that travel time inNluences their home buying
decisions, pushing them to choose homes that are closer to their
work. Proximity to other family members for any emergency. Make
sure that you love the things that you cant change about your home.
Location and +loorplan are critical. You can change the +inishes of
your home at anytime, but you cant change the street that you live
on, how close the neighbors are located or the +loorplan,
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In trying to determine where you want to buy, start by setting
your expectations for what you can actually afford, you should: 1.
Try to be impartial. Unfortunately, the market is not interested in
what you want to pay for your home as the market will determine the
price. In addition, your dream home may have features that you
highly value, but which might actually increase the price leaving
it outside your budget or limiting the number of potential homes.
2. Remember you might have to sacriNice. When you shell out a lot
of money you will want to get everything you want in return.
Unfortunately, your dream home might not be on the market or might
fall outside your budget. Buyers are left either sacri+icing one or
two things in order to achieve the dream of homeownership. Again,
if you are going to make a major sacri+ice, make sure its on things
that you can change. Location and school district are things you
might not want to sacri+ice on if they are important to your
situation.
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3. Research online and in person. You can +ind out a lot about
your local market through research at websites like
www.streeteasy.com, www.elliman.com, as well as by going to open
houses in your area and making comparisons with your home in terms
of location, size, features and condition.Important: Stay Prepared
and Available For Showings Particularly during the spring and
summer months, there are a lot of buyers in the market and they are
all looking for the most spacious and desired homes. It is
especially important during this window of opportunity, when
interest will be at its highest, that you make yourself available
for showings, preferably at open houses. Occasionally, this may
pose an inconvenience for you, but youll certainly want to maximize
the number of homes you see. Indeed, doing so just might make a big
difference in when you're ready to make an offer. Along these
lines, you should do your best to ensure that you are ALWAYS ready
to see new properties. You never know when the right property will
come to the market! Try to come up with a predictable schedule with
your real estate agent.
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Make An Offer At this point you have probably toured countless
homes and have +inally found the perfect home that meets all of
your needs! What do you do now? Make an offer! Not entirely sure
how to do that? Dont worry your agent is there to make the purchase
process run smoothly, including making the initial offer. Your
agent will be your partner in this process; he/she will consult
with you on where to start with an offer and what items should be
included in order to help you negotiate the best deal. The real
estate professional is a valuable part of this process because
he/she brings years of knowledge to the bargaining table from their
brokerage. Most sellers will price their homes a little high,
knowing there will be some bargaining involved. Your agent will
assist you in looking at a variety of factors in a comparable
market analysis (CMA) for properties nearby to help you determine
what price point is fair. That said, the decision is ultimately
left up to you to offer what you are comfortable with. If there is
an opportunity for negotiation, there are ways to get the seller to
care about you as opposed to the number youre offering. For
example, putting a human face to the offer can also assist in
getting your offer accepted. Sellers have an unexplained desire to
know that the house they are selling will
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fall into the hands of a worthy buyer. With that sentiment in
mind, sending a photo or a short story about your family and your
life in that home might help the sellers to form a connection with
you. Additionally, writing a clean and positive offer with your
agents credentials will be appealing to the selling agent. Itll be
easier to process the offer and make working with your agent
desirable if they know your agent has a strong, credible background
and history of willingness to cooperate. What happens if there are
multiple offers? This may bring you into a bidding war. You can
increase your bid, make your offer +irm, or sadly, let the home go.
If you choose to increase your bid make sure that you dont let your
emotions get the best of you, causing you to offer a higher bid
than you can reasonably afford. Also, be sure to set an expiration
date for your offer so you dont fall into the waiting game.
Typically offers stand for 48 hours but, depending on the
situation, they could stand longer. Negotiating the deal With rare
exception, negotiating the transaction is the most complex part of
buying a home. At the same time, its the one that can involve the
most creativity. Thats why its important to have an experienced and
savvy real estate agent, who has successfully worked through many
different transaction scenarios.
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What follows is a brief description of the negotiation process
and a few strategies for negotiating the best possible deal you
can. This includes: keeping in mind your situation, priorities and
needs, not giving your situation away to the seller and listing
agent, trying to understand and respect the priorities of the
seller, being creative and, where necessary, willing to compromise
to get the deal done. The Basic Process Your real estate broker
will deliver the offer to the listing broker, wholl present it to
his or her seller. They can then accept the offer, reject it, or
counter it to initiate the negotiation process. Successive
counter-offers, with deadlines for responding and meeting various
contingencies and special conditions (e.g. a home inspection, the
buyer securing +inancing), will be exchanged between you and the
buyer until a mutually satisfactory pending agreement is reached or
the negotiations collapse. Dont Show Your Hand Even in a buyers
market, its crucial to keep certain aspects of your buying
situation (e.g. your +inances, why youre buying, how many
properties youve seen, etc.) as concealed as possible from the
seller and listing agent. Remember, its the job of the listing
agent to get the best deal they can for the seller, so any
vulnerability you show could end up compromising your position and
costing you thousands of dollars.
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This is not the same, however, as expressing your priorities
very clearly throughout the negotiations. Properly done, the +irm
statement of your priorities will strengthen your position. It is
the responsibility of your real estate broker to make sure the
seller and listing agent only know what theyre legally entitled to
know and, beyond that, what you want them to know. Understand And
Respect The Sellers Priorities If, during the negotiations, you can
+ind out more about the sellers priorities youll not only improve
your position, but youll also be able to resolve any obstacles more
creatively and sensitively. For instance, if a seller is adamant
about a higher than normal downpayment or non-contingency bank
approval perhaps because they want to assure closing they might be
more +lexible about the price or willing to make concessions about
some other terms. There are no one size +its all approaches to
negotiating, particularly in the current market. In principle,
though, the more you know about the sellers priorities, the more
youll be able to work with them in order to achieve your own
priorities. Have You Really Found The Right Buyer? If So, Make The
Deal Happen
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Particularly in a market where reasonably priced homes can be
hard to come by, once you +ind one you should be willing to make a
few compromises to seal the deal. You just never know when the next
deal will come along or what it will cost you to wait for it. That
said, here are a few basic principles of successful negotiation to
consider if youre committed to completing your purchase: Remember
your priorities and respect the sellers. Dont let small things get
in the way of your better judgment. Ask questions. Offers may
contain complicated terminology, sometimes three or more addenda.
Your real estate broker can help clarify everything for you. Stay
calm and be patient. At all times keep communication civil and
agreeable, even if the seller gets tense, or you might loose your
purchase. If necessary, defer until later. If small issues get in
the way of big ones, focus on and consolidate your agreement on the
big issues and come back to the small ones later. Meet halfway. At
the end of the day, if there are disagreements about relative small
expenses, split the difference and smile.
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Take care with contingencies. When youve found the right place,
your agent should prepare a written offer including any
contingencies, this document is the basis for the contract of sale.
Rely on your real estate broker. Its your agents responsibility to
represent your best interests every step of the way. Your success
is their success. The reality is that most negotiations proceed
without much problem. In the event that there are dif+iculties but
youre still committed to buying, remember: where theres a will
theres a way. Signed, sealed and delivered: Closing the deal If you
and the seller have both ef+iciently taken care of your respective
contractual obligations associated with +inalizing the sale, the
process of completing the transaction known variously as the
closing, escrow or settlement will go smoothly with no surprises.
FulNilling Contingencies And Special Conditions A pending sales
agreement nearly always includes contingencies and special
conditions that have to be ful+illed by the buyer and seller by the
closing date, which usually falls 30 to 60 days after both parties
signed the agreement.
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Typical contingencies and conditions may include: You securing
+inancing. A Title Search an historical review of all legal
documents relating to ownership of the property to ensure that
there are no claims against the title of the property. The
purchasing of Title Insurance in case the records contains errors
or there are mistakes in the review process. A professional
appraisal of the home, requested by the lender to ensure that the
homes actual value justi+ies the loan amount. Any additional
contractual promises made in connection with sale, buyer
incentives, home improvements, etc. An independent inspection of
the homes structural and functional condition (foundation, roof,
electrical, heating, plumbing, etc.). A +inal walk-through You are
given the chance to look at the home to make sure that its in the
same condition as when the sale agreement was signed.
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Its important to review the sales agreement with your real
estate broker, so you understand your obligations. Any shortfalls
or mistakes at this point can be very costly. Your real estate
broker can discuss and remind you of these obligations, as well as
help arrange for their ful+illment and prepare you for the
closing.Completing The Transaction While different areas handle the
+inal settlement in slightly different ways, generally the closing
agent a third-party professional, often a lawyer, who conducts the
proceedings reviews the sales agreement and does the following:
Determines the total amount due from the buyer and collects the
check. Determines all the adjustments (e.g. seller prepayment of
taxes, utilities, etc.) and ensures that theyre factored into
transaction. Assures that the transaction costs (closing, legal
fees, etc.) are paid. Determines the sellers and buyers payments,
credits and adjusted net proceeds.
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Witnesses the buyer signing of the property title and all other
documentation associated with the transaction. Collects the keys
and any other necessary items from the seller. Provides the seller
with the net proceeds as well as copies of the documentation
pertaining to the sale. Ensures that the your title is properly
recorded in the local records of+ice along with any mortgage
liens.The closing happens when the homes ownership is transferred
from the seller to the buyer. A successful closing requires that
all of the key players come together with numbers and +igures that
match. The closing signi+ies the highly-anticipated time in which
you +inally get the home you want. Get your pens ready and crack
your knuckles because, as the buyer, you will have a lot of
paperwork to sign. (There is a reason why you hear closing a home
feels like signing your life away!) In most cases, you will be able
to take possession within a couple days of the Closing Date.
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BuyersGuide
A home buyers glossary: When buying a home, its important to
understand some of the key concepts and terms. Throughout the
buying process, your real estate broker will be available to
explain any unfamiliar terms you encounter. That said, here is a
short list of terms youll want to know: Abstract of Title A
complete historical summary of the public records relating to the
legal ownership of a particular property from the time of the +irst
transfer to the present.Adjustable Rate Mortgage (ARM) Also known
as a variable-rate loan, an ARM is one in which the interest rate
changes over time, relative to an index like the Treasury index.
Agreement of Sale Also known as contract of purchase, purchase
agreement, or sales agreement according to location or
jurisdiction. A contract in which a seller and buyer agree to
transact under certain terms spelled out in writing and signed by
both parties. Amortization The process of reducing the principal
debt through a schedule of +ixed payments at regular intervals of
time, with an interest rate speci+ied in a loan document.
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Appraisal A professional appraisers estimate of the market value
of a property based on local market data and the recent sale prices
of similar properties. Assessed Value The value placed on a home by
municipal assessors for the purposes of determining property
taxes.Closing The +inal steps in the transfer of property
ownership. On the Closing Date, as speci+ied by the sales
agreement, the buyer inspects and signs all the documents relating
to the transaction and the +inal disbursements are paid. Also
referred to as the Settlement. Closing Costs The costs to complete
a real estate transaction in addition to the price of the home, to
include: points, taxes, title insurance, appraisal fees and legal
fees. Comparative Market Analysis (CMA) A real estate brokers
prepared document, typically included in a listing presentation to
a prospective seller, designed to help the seller set a strategic
asking price for their home. Drawn from the local Multiple Listing
Service (MLS), a CMA presents pricing and property information for
homes similar to the sellers that recently sold, failed to sell, or
are currently on the market.
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Contingency A clause in the purchase contract that describes
certain conditions that must be met and agreed upon by both buyer
and seller before the contract is binding. Counter-offer An offer,
made in response to a previous offer, that rejects all or part of
it while enabling negotiations to continue towards a
mutually-acceptable sales contract.Conventional Mortgage One that
is not insured or guaranteed by the federal government.
Debt-to-Income Ratio A ratio that measures total debt burden. It is
calculated by dividing gross monthly debt repayments, including
mortgages, by gross monthly income. Down Payment The money paid by
the buyer to the lender at the time of the closing. The amount is
the difference between the sales price and the mortgage loan.
Requirements vary by loan type. Smaller down payments, less than
20%, usually requires mortgage insurance.
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Earnest Money A deposit given by the buyer to bind a purchase
offer which is held in escrow. If the property sale is closed, the
deposit is applied to the purchase price. If the buyer does not
ful+ill all contract obligations, the deposit may be forfeited.
Equity The value of the property, less the loan balance and any
outstanding liens or other debts against the property. Easements
Legal right of access to use of a property by individuals or groups
for speci+ic purposes. Easements may affect property values and are
sometimes part of the deed. Escrow Funds held by a neutral third
party (the escrow agent) until certain conditions of a contract are
met and the funds can be paid out. Escrow accounts are also used by
loan servicers to pay property taxes and homeowners insurance.
Fixed-Rate Mortgage A type of mortgage loan in which the interest
rate does not change during the entire term of the loan.
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Free Market Evaluation An offer by a real estate broker, usually
presented in marketing materials, to provide a complimentary
assessment of your homes current market value. Home Inspection
Professional inspection of a home, paid for by the buyer, to
evaluate the quality and safety of its plumbing, heating, wiring,
appliances, roof, foundation, etc. Homeowners Insurance A policy
that protects you and the lender from +ire or +lood, a liability
such as visitor injury, or damage to your personal property. Lien A
claim or charge on property for payment of a debt. With a mortgage,
the lender has the right to take the title to your property if you
dont make the mortgage payments. Listing Presentation A
presentation given by a real estate broker to a prospective home
seller in hopes that the seller will allow the real estate broker
to represent their interests throughout the sales process.
Typically delivered in the sellers home, the presentation includes
the real estate brokers pricing, marketing and showing strategies,
as well as a suggested asking price.
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Market Value The amount a willing buyer would pay a willing
seller for a home. An appraised value is an estimate of the current
fair market value. Mortgage Insurance Purchased by the buyer to
protect the lender in the event of default (typically for loans
with less than 20% down. Available through a government agency like
the Federal Housing Administration (FHA) or through private
mortgage insurers (PMI).Mortgage Insurance Purchased by the buyer
to protect the lender in the event of default (typically for loans
with less than 20% down. Available through a government agency like
the Federal Housing Administration (FHA) or through private
mortgage insurers (PMI). Possession Date The date, as speci+ied by
the sales agreement, that the buyer can move into the property.
Generally, the it occurs within a couple days of the Closing Date.
Pre-Approval Letter A letter from a mortgage lender indicating that
a buyer quali+ies for a mortgage of a speci+ic amount.
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Principal The amount of money borrowed from a lender to buy a
home, or the amount of the loan that has not yet been repaid. Does
not include the interest paid to borrow. Purchase Offer A detailed,
written document which makes an offer to purchase a property, and
which may be amended several times in the process of negotiations.
When signed by all parties involved in the sale, the purchase offer
becomes a legally-binding sales agreement.Title The right to, and
the ownership of, property. A Title or Deed is sometimes used as
proof of ownership of land. Clear title refers to a title that has
no legal defects. Title Insurance Insurance policy that guarantees
the accuracy of the title search and protects lenders and
homeowners against legal problems with the title. Truth-In-Lending
Act (TILA) Federal law that requires disclosure of a truth-in
lending statement for consumer loans. The statement includes a
summary of the total cost of credit.
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Title Search A historical review of all legal documents relating
to ownership of a property to determine if there have been any
+laws in prior transfers of ownership or if there are any claims or
encumbrances on the title to the property.
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Jermel Singleton Licensed Real Estate Salespersonc.
917.554.4689e. [email protected]
Thank You!