Things not to do before purchasing a home
- No Major Purchases
- Don't Buy a Car
- Lenders loan on a debt-to-income ratio or a percentage between what you owe to what you earn. Major purchases and car loans reduce the amount of available cash you can afford to pay for a mortgage payment.
- Remember buying a home is historically a much better investment than buying a car.
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Steps to Home Ownership
- Mortgage Payment Determination
First, determine for yourself just how much you feel comfortable paying for a mortgage payment. Take into consideration your life style and past ability to save.
Find out how much you can afford to buy before you start looking at homes. Interview several lenders and find the best packages available for you. Links to several local lenders are available on this website, which can provide lot of good information.
- Ask about closing costs and down payment
Ask about closing costs and down payment and get an estimate as to what "out of pocket" expenses you will have, for the maximum price you can afford. See the sample below. This is provided for informational purposes only. There are many ways to shave "out of pocket" expenses, like rolling them into your mortgage. Your lender will be able to help further. Down payment requirements may be different based upon the program you choose. Typically, the greater the down payment and the shorter the loan's term, the smaller the interest. Use our link to a loan mortgage calculator to play around with mortgage payments, interest rates and loan amounts. You may choose to buy less than you are qualified for, if your lifestyle dictates otherwise.
Example of Mortgage Pre-Qualification Form
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First Time Buyers
- First time buyers are often afforded opportunities not available to others
For those of low income, consider contacting Snow Belt Housing at 376-2639. They often have programs which can include up to $20,000 in grant money for first time buyers.
For Veterans, mortgage programs are available for you once you have received your "certificate of eligibility." Contact your local VA office for more information.
(Fanny Mae) programs are also available.
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How to Select a Real Estate Firm
- Interview agencies to find which firm offers the most in depth information about property.
- Determine if the firm is multiple listed, where listings of property of other agencies are provided so you will have a greater number of homes to choose from.
- Check to see if the office offers a website with property listings.
- Check to see if the firm is a member of the state and local associations of realtors. Each has rules of professional standards the members must follow.
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How to Select a Real Estate Agent
- Interview an agent to determine how comfortable you feel with this individual.
- Determine whether the agent will work with you as a seller's agent or as a buyer's agent. An agreement will be provided for your signature, designating which. This does not require you to buy from the agent, but does tell the sellers who is working for whom.
It is most common for an agent to represent the seller. The seller pays his or her fee.
- Explain what price range you have been qualified for, the area/school district you require, a list of the most important features you need. A search will be conducted to see what is available. Ask for a free copy of the current Multiple Listings Catalogue, a listing of all currents listings for sale in the MLS system. Ask the agent whether or not you should ask for information on another agency's listing. He or she will provide you information on other agencies' listings whether or not they are multiple listed. Your best agent will work to find you your new home no matter who has the listing.
- Ask lots of questions.
- Expect that an agent will work hardest for you if the requirement to buy is within the shortest time frame.
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View a Seller's Disclosure
- For any property you view, ask to see a "Seller's Disclosure." This form is signed by the seller indicating any and all problems they are aware of regarding the property.
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Once You Find a House
- After the right house is selected, a purchase offer will be introduced. The contract is a legal binding agreement which sets forth the terms of the purchase. It is not uncommon to offer the full price, but you may choose to offer less.
- If unsure, you may employ an appraiser, at the suggested rate of $275-$350 to give you an independent professional opinion of the home's value.
- Make sure all is explained to your satisfaction. You are encouraged to take the agreement to an attorney for review. Once the agreement is signed, it is binding.
- A deposit will be requested between $100 - $1000 or more depending on the property, though no deposit is state or federally mandated. It is normally refunded if the mortgage is not obtained.
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The Mortgage Process
-----> Mortgage Calculator
- Take copies of the purchase offer and addenda to the mortgage company. Let the agent know who your attorney will be and request a copy to be sent there as well.
- Make your formal application and be quick to forward any and all lender requested personal information. The quicker the paperwork is completed the greater the chances the house will be yours on time.
- Once all the paperwork is in, call the lender periodically to receive a status report.. There is likely some additional information that will be needed.
- Before closing, review all the paperwork thoroughly to make sure there are no mistakes. In most cases there are none, but it is good to check.
- Call up and ask about anything that does not make sense. The only bad question is the one left unasked.
- Just before closing, call your real estate agent and ask to do a walk through. This is where you have the opportunity to walk through the property one last time to see that there are no material changes.
- Overall the mortgage process is not as difficult as one might think. Most of the work is done for you, Just make sure to keep in regular contact with your lender, and should there be required information from the seller that your agent can provide, make sure that your agent knows. The hallmark of a smooth mortgage transaction is good communication.
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How to Choose the Right Broker
- Interview several agencies. Ask specific questions about:
- Marketing Plans
- What is their advertising budget in newspaper?
- Are they multiply listed?
- Is there a website? If so, will your home be displayed on it?
- Is there a video taping program?
- Are there brochures made for properties? If so, where are they displayed?
- Does the company advertise on the radio?
- Is there national franchise support? If so, how much of the advertising budget goes out of the area?
- Is the company affiliated with Realtor.com (the nations premier real estate web system.)
Relocation Departments
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- What is their relocation program?
- Is there a relocation director?
- How much relocation activity is actually done in Lewis County?
- Staffing
- Ask for a company brochure
- What are the office hours and staff to maintain them?
- What are the experience levels of the brokers and the agents?
- Do they use cell phones and/or email to keep in contact?
- Office Facilities
- Is the office located in Lewis County? What kind of location do they have?
- Check out the physical office?
- Determine whether or not the physical presence on the street and tools available within are substantial enough to provide the greatest exposure and support to marketing your property
Remember
The marketing of your home is not dependent on the number of times your home is advertised in the newspaper. It's the amount of exposure your chosen realty firm has to the public overall. The greater the number of tools within their marketing strategy, the greater the likelihood the public will look to your realty office to find a home. Exposure creates sales.
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Determining Your Asking Price
- You may already know what your property is worth from your knowledge of the neighborhood.
- Consider having an appraisal. An appraisal is an unbiased opinion of the market value. An appraisal in our area is likely to cost between $275 - $350. An abbreviated form may be offered for less.
- Otherwise, contact your broker to see some comparable sales information. Here you should be able to see similar property and what they sold for, matching feature for feature.
- If no comparable sales are available at the given time of your listing, an appraisal is your best bet.
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Getting Ready to Sell/Adding to Your Homes Value
- Clutter makes the house feel smaller. Remove extra furniture and items not necessary to the functionality of the house.
- Be super-sensitive about keeping your home neat and clean.
- Scrape, prime, and paint all flaking painted surfaces, inside and out. Not only does this help your home show better, but such is likely to be a required repair item of an appraiser.
- Paint surfaces with neutral colors.
- Replace worn carpeting if possible.
- When choosing areas to spend "sprucing up dollar" attend to the kitchen and baths. Both are likely to yield the highest returns.
- Repair any leaky pipes or fittings, broken or missing siding, stairs, door knobs, broken windows, and the like.
- Keep all pathways clear and open during the winter.
- Keep lawns and shrubs trimmed in the summer
- Place hand rail on steps four steps or more. This is a requirement for VA and FHA.
- If you have a well, have it tested for quality and quantity.
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Preparing Your Home on the Day of Showing
- Be sure everything is clean and neat. This can never be overstated.
- Baking before a showing provides familiar and pleasant aromas, likely to enhance your homes appeal. Other suggestions are; light scented candles, boil water with cinnamon sprinkled in it, or spray with scented room fragrance.
- Play soft music in the background
- If possible, leave the home prior to showing. This is especially so, if the agent showing the home has previewed the house. If not, you'd better stay.
- Put pets out or tend to them
- Most agents would prefer that you do not walk around with them.
- Leave out special pictures of your home for others to see
- Leave a copy of tax receipts and utility bills out to see, if you have not already provided your agent with them.
Information Needed for Mortgage Loan Application
- Social Security Numbers
- Residence Address(s) for the past two years
- Employer’s name(s) and address(es) for the past two years
- Tax returns and W2s for the past two years; and four current pay stubs
- Most recent 3 months statements of all checking, savings and investment accounts
- Names, addresses, account numbers, balanc4es, and monthly payments of all open loans
- Address(es) and loan information on all other real estate owned
- Estimated value of furniture and personal property
- Certificate of Eligibility or DD214’s (VA only)
- Money for credit report and appraisal
If self employed, ask your loan officer for requirements
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