Welcome to the Power Home Buyer Course:

Transcription

1 Learner Handbook

2 Welcome to the Power Home Buyer Course: In this course, you will learn about the home buying process from real estate professionals. We will be taking you through the steps of buying a home. Included in this packet are all the PowerPoint slides from the training, the major talking points, and some sample documents that you will see in the process of buying a home.

3 Curtis Stoaks Cell: Fax: Web: MLS Search: Ron Segroves Cell: Fax: Web: MLS Search:

4 Get Pre-Approved for Your Mortgage: This may not be the first step in your home ownership journey, but it should be close to the top. A pre-approval will provide you with a budget and confidence that you have the buying power to make an offer on a home. Many home owners do not want real estate agents showing their home to buyers who have not been pre-approved for a mortgage. The only exception is when the buyer has proven that they can purchase the home without a mortgage. You will want to contact your Mortgage Loan Officer and complete your loan application. Your loan officer will be able to give you an answer very quickly and will make the process as painless as possible! If you are not approved for a mortgage your loan officer can explain what steps to take to be able to qualify.

5 Home Search Websites: Zillow.com Trulia.com & Realtor.com are great websites for searching available properties. You may find that these websites are not 100 percent accurate. Zillow and Trulia for instance can show homes as available when they are not on the market. Provides an industry leading MLS search interface Ability to create an account - Save Searches Set Favorite Homes - Request Information on Properties Request Showings and Communicate with Curtis and Ron right from the website or our free mobile app! Automated MLS Notifications: Your agent can set up an automated notification if a home that matches your search criteria is listed.

6 Working with a REALTOR Real estate agents are licensed by state and can sell properties anywhere in a state they are licensed in. Your real estate agent can help you purchase any home listed in any MLS in the state they are licensed in. They can also help with any home listed for sale by owner in the same state, provided the home owner is willing to work with your agent. Home buyers typically do not pay for real estate agent services. (The home buyer s agent is paid through a cooperation agreement with the listing agent and the home seller.) There may be rare times where an agent will ask you to pay for certain services. Comparable Market Analysis: Your agent can provide information on homes you are interested in and provide you with comparable homes that have sold in the area. This data will help you determine if the home is priced within market tolerances. Scheduling Showings: Once you have decided on some homes you want to go and see, discuss with your agent a schedule that will work for everyone. Some homeowners will need more notice to prepare for a showing than others. Be Aware of The Following: Cameras and Listening Devices may be in use at the property Wear shoes that are easily removed and put back on Stay together and with your agent Keep children with you always

7 Some loan programs have minimum property requirements or MPR s these MPR s are mostly to ensure the safety, sanitation, and structural integrity of the home. Below are things I always look for when at a home showing to determine if a home will be acceptable to these loan programs. While in the home make special note of: 1. Any water damage: In Cabinets, Under Sinks, Ceilings, Flooring around toilets, showers, bathtubs, Roof Soffits 2. Look for any visible exposed wiring and open electrical boxes 3. Peeling Paint: inside and out 4. Roof Condition: Curling or missing shingles 5. Be aware of the neighborhood condition (This not related to the loan specifically but something to be aware of.)

8 You found a home you want to buy! This is a good time to request the Comparable Market Analysis that we talked about above. You and your agent should discuss what a reasonable offer would be for the home based off current market conditions. Earnest Money Deposit: You will need to provide a good faith deposit with your offer. Your agent will be able to help you decide how much your earnest money deposit should be. Loan Pre Approval Letter: You will need to provide a loan pre-approval letter from your lender with your offer as well.

9 The Offer Document: Included with this handbook is a sample offer packet. RE-21 Purchase and Sale Agreement RE-14 Buyer Representation Agreement Agency Disclosure Brochure Inspection: Make sure that your agent makes the offer contingent on a home inspection and provides enough time to complete the inspection and for you to review CC&R documents, and Title Commitment documents. (More information to follow.) Title & Escrow: Tell your agent what Title Company and Escrow Officer you would prefer to work with. (If you are not sure your agent will have recommendations.) Closing Costs: Closing costs can include appraisal fee, title and escrow fee, title insurance, flood certification, tax service fee, loan origination fee, and others. Closing costs are typically around three percent of the purchase price of the home. Occasionally sellers will pay buyer s closing costs if requested in the purchase offer. Talk to your agent about what they feel is appropriate to request. Closing Date: You will choose a closing date typically 30 to 45 days from date of offer depending on how long your lender needs to complete the loan process. Homebuyers who use cash to purchase a homes can close in as little as just a couple of days. This is based off how long the current owner needs to vacate the property, home inspections, and title and escrow timelines. Offer Response Deadline: You will set a time limit for how much time a seller is provided to respond to your offer.

10 Home Inspections: 1. Use a certified home inspector 2. Expect to pay for the inspection at the time of inspection 3. Home inspections must be completed during the inspection contingency time frame. 4. You may attend the inspection 5. Ask questions of your inspector 6. Request for the seller to complete reasonable repairs (Sample Inspection Contingency Document Attached: RE-10 Inspection Contingency Notice) Covenants, Conditions, and Restrictions CC&R s: (Sample CC&R s attached)

11 If you are buying a home in a housing association there will be CC&R s. 1. Review the CC&R document 2. Complete the review during the inspection contingency time frame. 3. Be aware of HOA Dues, HOA Set Up Fees, HOA Transfer Fees Title Commitment: (Sample Title Commitment attached) You will receive a title commitment and title insurance policy during your inspection contingency time frame. 1. Review the Title Commitment document. 2. Complete the review during the inspection contingency time frame. 3. Ask your Title Officer any questions that you may have. 4. Be aware of easements and or liens against the property. Seller s Property Condition Disclosure: (Sample Property Condition Disclosure attached) Your agent will provide you with a seller s property condition disclosure form that has been filled out by the seller. This document will ask the seller to disclose any issues with the property to the best of their knowledge. Review this document during your inspection contingency time frame. Lead Paint Disclosure: (Sample Lead Paint Disclosure and Brochure attached) Houses built before 1978 are consider target housing for lead paint. Lead paint was commonly used in homes constructed prior to If you make an offer on a home built prior to 1978 you will be asked to sign a Lead Paint Disclosure and given a brochure on lead paint hazards. This should be done during the inspection contingency time frame.

12 Appraisal: Once the inspection process is completed to your satisfaction, it is time to order the appraisal. Appraisals can take a couple of weeks to be completed. Be aware that your lender may notify you that your appraisal is completed and may not tell your real estate agent. Underwriter s Review: Now that the appraisal is complete and delivered to the lender your loan file will be sent to the underwriter for final review. The underwriter will go through your file with a fine tooth comb and may ask for further information. (This happens often)

13 Clear to Close: Once the underwriter has completed the file review they will give the clear to close and send your loan documents to the Title Company.

14 Closing Day: It is finally time to close on your new home and get the keys! You chose a closing date when you wrote your offer to purchase your home. As the day approaches, work with your agent and escrow officer to set up a closing appointment. What to bring to closing: (A sample closing statement attached) 1. Photo Identification for All Contract Signatories 2. Cashiers Check in the amount requested by title and lending made payable to the Title Company 3. Each person who needs to sign the documents 4. Be ready to sign and initial a large stack of documents!

15 Final Steps That Must Happen Before You Get Keys: 1. Signed Documents Electronically Transmitted to Lender 2. Lender Final Review of Document 3. Lender Wire Transfers Funds to Title Company 4. Title Company Records Deed Transfer with County and State Congratulations you have just completed the home purchase process! It is time to start moving in and unpacking!

16 We hope you found this training helpful and full of information that you can use. If you need a team of real estate professionals that will put your needs above their own call us. We would love to hear from you!