Buying a home is a very exciting time and I love guiding buyers smoothly through the process.  Whether a first time buyer, or a home buying veteran, there are a number of steps you need to take to start the ball rolling.  Once you have all of your financial papers in order, you've been pre-approved for a mortgage and you've calculated your budget, THE FUN BEGINS!  Can you picture your dream house?  Does it have a huge backyard? Lots of land?  Do you want to live by a lake, river or in town?  The more you know about what you're looking for, the quicker I'll be able to find you the PERFECT MATCH!

There is no need for you to go it alone as a buyer!  I will work as your agent and advocate, looking out for your interests while navigating through the transaction WITH you.  Research shows that buyers working with an agent almost always pay significantly less than those who let the Seller's agent handle their transaction.  AND THERE IS NO COST TO YOU AS A BUYER!  My fee is paid by the seller at closing!  Here is a general Checklist for Buyers to help you get started in the process.  Call me today and let me get to work for YOU!

HOME BUYING CHECKLIST

Preparing to Make an Offer

Confirm basic information about the house that you are interested in buying.  After you have found a house that you like and believe that the asking price is within reason, it is wise to check out a few problem areas.  Before making an offer, consider these items:

 ________        Inquire about any unusual title matters that may affect the owner's ability to transfer "fee simple" title to buyer.  For example, are there any heirs of prior owners that may claim an interest or any extraordinary liens (e.g., tax liens or mechanic's liens?  Are there any other would-be buyers who may claim a contractual right to purchase?

 ________        Inquire about structural integrity of house.  Are there any known structural problems, such as roof problems or foundation defects?

 ________        Inquire with the local zoning and building codes administrators about pending zoning changes and possible construction in the neighborhood.  Sometimes home owners are motivated to sell because a zoning change or new construction, other than single family homes, may make an area less attractive.  If you are looking at a house in an area where these kinds of changes are possible, make sure nothing is in the works that could affect the appeal of the neighborhood or its market value.

 Negotiating the Deal

Once you have satisfied yourself that serious problems do not appear to exist and that the asking price is within your range, it is time to see if you can strike a deal.   A Real Estate Agent can help make negotiations between the buyer and seller and draft a contract to be signed by the involved parties.

 Applying for a Loan

Although you do not need to wait until you have a signed contract to apply for a mortgage, most people wait until they have a contract to seek a loan.  Whenever you apply, be prepared to supply a great deal of information about your financial history.  Following is a checklist of the items nearly every mortgage lender requires.

 ________        A check for credit report and appraisal fees.  These fees vary, but plan on at least $50 for each individual credit report and $300 for the appraisal.

 ________        Social Security number(s)

________        Residency information for past 2 years

Addresses

Name and address of landlord, if applicable and/or letter from parents

Name, address and account number of Mortgage Company, if applicable

 ________        Employment information for past 2 years

Name, address, and telephone number of employer(s)

Dates of employment

 ________        Income from employment (Have copies of tax returns for prior two years)

Base gross income (i.e. before taxes)

Amount of overtime for past 2 years

Amount of commissions for past 2 years

Amount of bonuses for past 2 years

1 month of paycheck stubs

W-2(s) for past 2 years

 ________        Income from self-employment

If partnership or incorporated with 25% or more ownership:           

Tax returns for past 2 years (personal and corporate)         

Business year to date profit and loss statement                    

Current balance sheet for business                                      

Most recent paycheck stub

Last year's W-2 statement

Business credit report ($50)

If sole owner:

Personal and business tax returns for 2 years

Year to date profit and loss statement

Current balance sheet        

 ________        Other income

Amount of dividends/interest for past 2 years (provide tax returns)

Child support (provide divorce decree and evidence of payment) -must continue for at least 3 years

Rental income (provide a copy of lease and name, address and account number for lender or if no lease, copies of last two year's income tax return, schedule E)

 ________        Assets

Names, addresses, account numbers, and balances of all accounts at banks, savings and loans, credit unions, brokerage firms, etc.

Copies of most recent 3 months statements from asset accounts

Stocks and bonds - number, description, and value.  If using these funds for down payment and/or closing costs, please provide evidence of ownership.

Life insurance - cash value and face amount.     

Vested interest in retirement fund (provide statement if available)

Make, year, and approximate value of vehicles

 ________        Liabilities

Loans:   names, addresses, account numbers, payments and balances

Credit cards:  names, addresses, account numbers, payments and balances

Child support/alimony:  provide divorce decree and payment printout

 ________        Real estate currently owned or owned in the past two years

Property type:  single family dwelling, raw land, lot, etc.

Disposition:  sold, sale pending, rented, etc.

Market value

Annual tax and insurance amounts

Name, address and account numbers of any mortgages, if applicable    

If owned free and clear, copy of the current insurance policy

 Pre Closing

After the contract is signed and the loan application process is underway, it is time to think about preparing for "closing".  Closing is simply the "event" where the seller and buyer come together to make the final delivery of their respective obligations.  For the seller, this means delivering possession and a deed to the house that conveys title as called for in the contract.  The seller should also, in most cases, deliver a title insurance policy.  For the buyer, it means delivering the funds necessary to complete the purchase.  Buyers who have never purchased before are especially encouraged to have legal counsel to assist at this stage, as well as throughout the process. 

 ________        Arrange for inspections.  These should at least include inspections for termites and other wood destroying pests, as well as a mechanical inspection.  With older homes or those where some structural concerns exist, you may want to consider a full-blown structural inspection, or at least a more focused inspection of problem areas such as the roof or foundation.

 ________        Review title information.  Most real estate sale contracts call for the seller to pay the cost of a homeowner's title insurance policy.  This special kind of insurance protects a buyer from problems with title (i.e., clear and unchallenged ownership) to the house.  Note that a buyer should receive a title insurance commitment from the title insurance company in advance of closing.  This document should identify who owns the property, how the title policy will be issued, and any exceptions to the policy coverage.  Exceptions may include easements (rights of way) to utility companies or others, matters arising between the date of the commitment and closing, and existing mortgages and other publicly filed liens.  In those cases where an abstract of title will be provided instead of title insurance, it is important to get a formal written opinion about the title from a local real estate lawyer.  If you receive a title commitment and have any questions, consult your lawyer.

 ________        Make moving arrangements. 

 ________        Contact utilities, telephone company and cable TV providers to arrange for services in your new home.

 ________        Send change of address notices. 

 ________        Review deed and other closing documents.   

 ________        Identify the items you will need to produce at closing.  Personal identification is a must and any money owed must be paid in the form of a certified cashier's check.

 ________        Remember to let your agent work for you.  They will make arrangements with the Title Company and Mortgage Company to ensure that the process of buying a home is as smooth as possible.