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RealStar's Buyer Guide
Congratulations! You've just
taken the most important step to attaining your new home. You've contacted
RealStar's team of experts to help you! RealStar is one of the few
agencies offering (You the Buyer) complete representation in any real
estate transaction. From the initial search of properties, through contract
negotiations and all the way to settlement, you will have an agent
specifically committed to representing your best interests. Since
commissions are paid by the Seller, this occurs at No Cost to You!
NEED TO COMPARE
The key to making
the homebuying process easier and more understandable is planning. In doing so,
you'll will understand what is required of the seller and you the buyer. You
will know what question to ask and be able to anticipate requests from lenders,
lawyers and a host of other professionals. Proper planning will ultimately save
you frustration, time and more importantly, money.
WHERE'S THE MONEY?
Homes can be purchased with very
little and sometimes no money down. The amount of money a buyer contributes
toward the total purchase price is usually called the down payment. A portion of
the down payment that is usually given at contract and held in escrow is called
earnest money. The amount of money (the balance) a buyer borrows from a bank or
lender is usually called financing.
In addition to a down payment,
purchasers also need cash for closing costs (the final costs associated with
closing the loan). Several newer loan programs not only allow the purchase of a
home with no money down, but also underwrite closing costs.
For the
first time buyers where money is tight it is sometimes a little assistance is
often needed. Your RealStar Sales Consultant can show you how to buy with No
Money Down AND, even how to get a Seller to pay part of Your closing costs!
Of course some people don't want to use low down programs. With today's
fast paced real estate market it has become even more important that buyers
become familiar with all their financing options. That is why it makes good
sense for any buyer to spend time with a qualified loan officer and get
pre-approved for one or even two loan programs.
WHAT IS YOUR PRICE
RANGE?
Shopping for a home is easier when you know exactly how
much you can afford to spend. Set your sights on the right price range according
to your financial status: a good rule of thumb is that your monthly house
expenses, including taxes and insurance payments, should not be more than
approximately 1/3 of your gross monthly income. However, in today's complex and
versatile financial world, and depending on your lifestyle or on the projected
length of time you expect to be in the house, your situation may be
substantially different, therefore you should talk with a lender and see which
program is right for you.
Your RealStar Sales Consultant works with a
variety of lenders familiar with the most aggressive finance programs around.
They would be happy to share that knowledge with you.
WHAT DO YOU WANT?
Whether you are a first-time homebuyer or a repeat buyer, you need to ask
yourself Why, What, Where and When to buy. Are you moving for a job or lifestyle
change? Are you moving to a new community? Will you be moving immediately or
down the road?
Prioritize your requirements (i.e. price range, location,
type and size of house, etc.) Make notes as to your needs and wishes and keep
them separate. As an example, being close to transportation may be a need or a
wish. On the other hand, few people have a true need for a fireplace in the
Master Suite. Be open to compromise, as it is often impossible to find a perfect
match.
WHY USE A
PROFESSIONAL?
Working with a real estate professional can save
you endless amount of time, frustration, and most importantly, money. Each and
every RealStar Sales Consultant is a member of The National Association of
REALTORS® (NAR) an organization bound together by a strong Code of Ethics,
extensive training opportunities and a wealth of information.
Purchasing
a home is the most significant financial investment you are likely to make. Home
prices exceed hundreds of thousands of dollars. If you had a $100,000 dollar
legal question you would seek the advice of an attorney. Don't buy a home
without professional Realtor Assistance either.
KNOW THE MARKET
Like everything else, you should spend some time studying the real estate
market in the area where you want to buy. Your RealStar Sales Consultant will
keep you updated on current prices, market and interest rates trends.
SALES CONTRACTS
Your RealStar Sales Consultant can provide you with facts and information
you need to make the purchase decision, including the sale prices of comparable
properties. In addition to the basic terms of the sales contract, there are a
variety of contingencies which may be included in the contract. You and your
RealStar Sales Consultant should discuss the negotiation strategy: Remember that
he or she is representing you. Sometimes however, the agent is acting as a dual
agent, representing both the buyer and the seller. Take advantage of his or her
expertise!
CONTRACT PRESENTATION
Your agent will present your contract to the seller's agent and seller,
along with the earnest money. He or she will relay to you the seller's counter
contract and keep advising you during the entire negotiation, until an agreement
is reached. Depend on your RealStar Sales Consultant for advice and assistance.
CONTINGENCIES
Once an agreement has been reached
all documents are signed & initialed. Next, certain contingencies must be
met by specific dates, e.g. attorney's approval, home inspection, financing
approval, etc. These dates are specified in the sales contract.
- Loan Contingency: If any of the terms of the loan, as specified in
the loan contingency rider cannot be met, you have the right to withdraw the
contract, and the earnest money will be refunded up to the closing date.
- Attorney Review: Even though an attorney is not, required by law, it
is advisable for you to hire one. He or she will review the sales contract and
all riders, insuring that everything is correct. The attorney's approval
contingency must be made part of the sales contract: changes must be requested
in writing and within the time limits of the sales contract.
- Home Inspection: Even though an inspection is not, required by law,
it is advisable for you to do one. The inspection needs to be done within the
specified number of days (usually five) from the date of acceptance. After
thorough review the inspector creates a written report describing the home's
condition and any existing or potential problems. Often times they may explain
how to address them.
- Additional Inspections: Other inspections (i.e. termite, radon, VA,
FHA, etc.) might be called for and be explicitly made part of the contract. Be
sure to consult your professional RealStar Sales Consultant for advice.
LOAN
APPROVAL
Well done, you have found a home, offered a contract,
and agreed on price and terms. The next step it to immediately apply for the
loan. You must have final approval by the date specified in the sales contract.
Your RealStar Sales Consultant can recommend the some of the best lenders in the
area for your specific situation.
You will be asked to provide a great
deal on information to your lender. Be responsive to their wishes. Most
importantly, stay in touch with them. Call them once or twice each week.
PREPARING FOR CLOSE
About a week prior to closing you will need to call the utility companies to
have the gas, electric, water and sewer, garbage and telephone services etc.
transferred to your name as of the closing date.
The Walk-Through
A few days prior to closing your professional real estate agent will
schedule a final "walk-through" of the property to make sure that everything is
in working order and in the same condition as when the contract was signed.
CLOSING
Closing is the act of transferring ownership of a
property from the seller to the buyer. Depending on where you live, the lender,
attorney, title company, or escrow agent makes sure that all terms and
conditions of the transaction are met.
Congratulations! After all
documents have been signed by all parties the title transfers to the new owner.
You! Thanks to the hard work by you and your RealStar Sales Consultant you now
own a piece of the American Dream! |
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