HOME BUYER'S BOOK
Tom Ledbetter
Advantage Realty
47800 Gratiot Ave.
Sterling Heights, MI 48313
Office: 586-262-2000
E-mail: tom@MLSMAX.com
Lisa Whitman
47800 Gratiot Ave.
Sterling Heights, MI 48313
Office: (586) 997-3533
Cell: 586-817-8339
E-mail: lwhitman@mortgageone.biz
TABLE OF CONTENTS
Our
Mission.............................................................................................3
Our
Services............................................................................................4
Why
Buy.................................................................................................5
BEFORE THE
PURCHASE........................................................................6
Do a budget; monitor spending habits
Organize your documents
Mortgage Banker vs. Bank
What is mortgage pre-approval?
How much do we really need to save?
Cash for closing
What about credit?
Programs
Which loan is right for me?
Rates and how they work
Mortgage insurance
Mortgage terminology
FINDING A
HOME................................................................................18
How to choose an agent
Wants vs. Needs
Negotiation of the purchase agreement and
multiple offers
New Construction vs. Existing Homes
Townhouse/Condo vs. Single-Family Home
Difference between home inspection and appraisal
Making improvements and recovering the costs
DURING THE
TRANSACTION................................................................23
After the purchase agreement
Homeowner's insurance
What not to do during the purchase of a home
What is needed for closing
Preparing to move
AFTER THE CLOSING & BUILDING
WEALTH........................................26
Annual Mortgage Review
Your escrow account and transfer of servicing
Meeting your new financial obligation
What will happen after we own a home?
Offers that come in the mail and by phone
Property taxes
Managing your mortgage
Insurance coverage
Helpful hints
3
Our
Mission is to be on the cutting edge and provide innovative mortgage loan
products with exceptional service beyond our customers' expectations. Our
customers are the life-blood of the company, and by providing exceptional
service with integrity, we will create
Customers for Life.
Mortgage 1 is a Michigan-based mortgage lender with
multiple offices in Warren, Sterling Heights, Royal Oak, and Brighton to serve
all of your mortgage needs. Mortgage 1 also has alliances with local real
estate firms. We specialize in helping our clients realize the American Dream
of home ownership.
Mortgage
1 has a
wide variety of mortgage products including standard conventional
loans, zero down loans, low down payment
loans, government loans (FHA and VA), jumbo loans, non-conforming loans, and
everything in between. All you have to do is ask! We take pride in providing
our clients with top quality service, while at the same time keeping costs and
interest rates low.
Over time, we have developed lasting relationships with real
estate agents and borrowers who understand our commitment to excellence and our
ability to get the job done. It is the referrals and the word of mouth
endorsements from those agents and borrowers that are responsible for Mortgage
1's rapid growth and continuous success in an extremely competitive industry.
OUR SERVICES
We are your OneStop Shop for
your entire mortgage, real estate and new constructions needs!
We offer all of the following at no cost to you. You can go to our website at
www.mortgageone.biz to access these services
Mortgage
Pre-approval –
Pre-approval 4–6 months before you buy a
home
is essential. This allows time to adjust any issues that may limit your
mortgage
program options. Some mortgage programs are credit score
driven.
The more options you have the better chance you have of buying
the
home you want. Our mortgage consultation meeting takes an hour and
costs
you nothing. This consultation will tell you what your options are,
exactly
what you currently qualify for, your monthly payment and cash
needed
for closing. We will also help you make a plan for what exactly
you
need to be doing between now and your desired purchase date.
Realtor Referral
Program –
We also have full-time professional and
experienced real estate agents on our team to
assist you with your home
search. We can arrange to have a Realtor,
specializing in your areas of
interest, at your pre-approval meeting with us
to save you some time. We
will work with any Realtor on your behalf,
should you choose not to utilize
this part of our services.
WHY BUY?
Many people share the same American dream, to
own a home where they can nurture and raise a family and entertain friends in
privacy, while gaining equity and building future wealth. The quality of life,
being able to pick your own décor, having a garage attached to your house,
owning your own washing machine, having a yard for kids and BBQ's are some of
the benefits to consider.
TAX ADVANTAGES
IT'S
A FACT! Most Americans feel hopelessly over taxed. One sure way to beat Uncle Sam is to
buy a home. The way you benefit is by taking the amount you pay in interest and
property taxes for the year as a deduction, reducing your taxable income. For
example, if you buy a $170,000.00 home at 6% interest with average property
taxes of $ 2,400.00 a year, you will have an approximate $12,600.00 non-taxable
deduction. For the average homeowner in a 28% tax bracket, that means a savings
of almost $300.00 per month or $3,600.00 per year in your pocket just for
owning a home. This savings can be realized on a monthly basis by changing the
allowances you claim at work (please be sure to consult with an accountant for
an analysis of your personal financial conditions before changing anything), or
you'll have a smaller tax bill or bigger refund at the end of the year. (This
formula is a generalization only, personal conditions will vary.) If you do not
have an accountant we would be happy to recommend a reliable professional.
APPRECIATION & BUILDING WEALTH
Appreciation
is an amazing thing. We have encountered many people who believe they need to
save a 20% down payment before even considering a home purchase. Fact is,
depending on your ability to save, it's almost certain the price for a home in
the range you are comfortable with will no longer be comfortable! We have seen
people who bought a home 5 years ago double their money, and it looks like the
only way to go is up. With the shortage of affordable housing, the demand
appears to continue increasing. Sometimes, people think it won't matter if they
wait a year, or two, to buy a home. Appreciation (increase in property value)
through real estate is the number one way people build wealth.
BEFORE THE PURCHASE
Before
writing a purchase agreement, it's important to look at how you spend your
money and determine what, if anything, you are willing to give up to own a
home. You should also consider the advantages of having a home and how much
more additional time you would spend in your own home cutting down on
entertainment expenses.
Going
through the exercise of constructing a budget is very useful when considering
home ownership as well as keeping spending in line in the future. Making sure
you buy a home that has a comfortable payment for your lifestyle is of utmost
importance, regardless of what you can qualify for on paper. A budgeting
worksheet is included in this booklet for your convenience.
People
earn income every month and have very different ways of handling that income.
Some people spend it all and then some. Others have had the ability to save
quite a bit and feel they can add that monthly savings to a house payment. The
average American saves only 5% of their income. To detail exactly what you have
spent over a 3 month period on everything from coffee to candy bars can be a
real eye opener. With a little planning and budgeting, it's amazing how much
money flows through your household that you don't even notice. Once realized,
saving that money isn't really that hard!
ORGANIZE
YOUR DOCUMENTS
There
are several things you may need along the way for documentation. It's important
to locate these things ahead of time, because not being able to provide the
right documentation can delay your pre-approval or closing. The most common things
are listed below:
1.
Most recent pay stubs, covering 30 days,
along with the past 2 years W2's for each borrower.
2.
If you are self-employed (have greater
than 25% ownership) or receive commission income, the past 2 years' individual
federal income tax returns, all pages, and 2 years' corporate returns, all
pages, if applicable.
3.
2 months' most recent asset statements,
all pages, for checking, savings, investments, IRA, 401K, etc.
4.
For VA loans, a certificate of
eligibility or DD214.
5.
Complete bankruptcy documents if there
has been a bankruptcy in the past 7 years.
6.
Divorce decree if alimony or child
support are paid or received.
7.
Legible copy of your drivers' license.
8.
If
you are not a U.S. citizen, provide a copy of your green card, front and back.,
If you are NOT a permanent resident, provide us with your H-1 or L-1 visa.
HELPFUL BUDGETING HINTS
plan.
NOTES
MORTGAGE
BANKER VS. BANK
The main difference between a mortgage banker
and a bank is, as being a banker; we have the ability to look at pricing and
programs from many different lenders, offering you many more options.
There are no extra finders
fees involved in working with us, being a broker. We find that this
seems to be one of the biggest misconceptions amongst the public. As a broker,
we qualify many people for a variety of mortgage programs based on their
financial needs, and all of the programs are not offered with just one lender.
Working with us, you have a variety of programs available from many different
lenders at your fingertips. You do not have to go through the hassle of
pre-qualifying with many different lenders just to find out what programs are
available. We work with all types of loans: FHA, VA, and a variety of Conventional
financing, including zero-down and first-time homebuyer programs.
Real Estate and Mortgage Lending are both very
complex businesses. It is wise to have experience working for you vs. someone
that just started in the business 6 months ago and does not have the experience
or the training under his/her belt (which you probably wouldn't
find out about until it's too late). Our Broker house, has over 100 years of
combined experience in the mortgage lending industry in this metro area. We
manage a team of professionals to research and secure the best possible
mortgage program to suit your long and short-term goals.
WHAT IS MORTGAGE PRE-APPROVAL?
Getting pre-approved is a process that includes
verification of your credit, income, assets and liabilities. It is highly
recommended that you get pre-approved before you start looking for a house.
This will help you by:
Finding out the maximum house you can buy and also insure ensuring you are
comfortable with the monthly payment.
Discussing program options and differences in payment, down payment and closing
costs.
Putting you in a stronger position when you are negotiating with the seller,
because the seller knows you can buy.
Helping you close quicker.
Call us to schedule your mortgage pre-approval
meeting. It costs you nothing and only takes an hour. We have day and evening
appointments available for your convenience.
HOW
MUCH DO WE NEED TO SAVE?
Many people are under the impression you have to
save 5% 20% to get a home, which is simply not true. There are such a variety
of programs these days, some of which require no out-of-pocket cash. As a
matter of fact, even if 20% down is a possibility, that's not always the best
use of your money; restructuring or paying off debt may make much more sense.
The only way to know for sure what is possible
is to come in for a consultation and make a plan. Everyone's situation and
goals are very personal, and looking at where you want to be in 15 years vs.
just playing it year by year with no plan, will make your dreams a reality.
It's best to come in early in the process, 6 12 months before you plan to buy.
CASH
FOR CLOSING
Waiting to buy until you save up significant
funds can wind up costing you thousands of dollars in the long run as property
prices continue to rise. The trend of higher housing prices in the Metropolitan
Area is not expected to reverse any time soon. There are many mortgage programs
available these days designed to minimize or eliminate cash.
For example, here are several zero down programs
that allow the sellers to pay all of your closing costs so you do not have to
have any money to close. If you opt for a program that requires some cash to
close, some sources of cash include, (but are not limited to): gift money,
loans against your 401k, and a GRANT PROGRAM that's been working well for
several of our clients. All programs are subject to qualifying of course.
The problem is, if you wait until you save up
$5,000.00 (for example) to buy a house, in another year that same house could
cost another $15,000.00, or more, in one year with the way the prices keep
going up!
Look at all your options early. Most people who prepare
early find they can buy much sooner than they ever thought they could!
LOOK
AT ZERO DOWN FINANCING. There are programs that allow you to finance your closing
costs as well. Obviously, this creates more of a risk for the lender to finance
a house over the appraised value; therefore, expect a higher rate and the
requirement of very strong credit.
GET
A GIFT. FHA loan guidelines state the down payment can be from a gift. The gift donor
is usually a blood relative, but there can be exceptions. The gift letter
simply states there is no obligation to repay, not that you can't. With FHA
loans, you only need 3% down, and the seller can pay the rest. None of the 3%
needs to be your own funds; it can all be a gift!
ASK
FOR SELLER CONCESSIONS. Although all programs vary with on how much is allowed for
seller concessions, it is very common to incorporate help from the seller. The
seller is probably going to want a higher sales price to compensate for the
additional costs. The importance of a professional realtor, who knows how to
negotiate, can make a big difference in what actually happens in your favor.
We'd be happy to recommend a reputable realtor for you.
GRANTS
ARE SOMETIMES AVAILABLE. It is possible with FHA financing to get the entire
investment from a program that has recently become available; however, it takes
a special situation because the seller actually contributes to a non-profit
organization that distributes the money to you. Again, the seller will most
likely want a higher sales price for the house.
GET A LOAN. The guidelines on this
are pretty specific for most programs. You can borrow against your 401K. What's
convenient about that is, most of the time, the loan carries a very small
monthly payment, and it doesn't count against you in qualifying for the
mortgage. The downside of borrowing is your money isn't in the stock market;
but, then again, that hasn't been fun for a long time! You can also borrow
against an asset that has equity in it such as a car, a cabin, an investment
account or insurance policy. The value of the asset will need to be proven and
the monthly payment documented for qualifying purposes. It is not unusual to
take cash against a vehicle and extend the term out one year longer, thus; not
causing any increase in the monthly payment..
WHAT ABOUT MY CREDIT?
Most people know that credit scores are
important, but they are not exactly sure what their score means or how it
affects their mortgage options. We are finding many credit reports have some
kind of error (s) on them that borrowers are unaware of and without taking
action to fix it; they may not have as many options for financing. Some
programs are completely credit score driven; which means, if you have an error
dragging down your score, you simply are not eligible for certain mortgage
programs.
As part of our no-cost pre-approval process, we
can pull an in-file credit report for you and offer some suggestions on how to
fix errors and improve your score. It can take a significant amount of time for
changes to filter through the system, so, it is never too early to get started
on examining your credit scores. Make sure to take the time to have the most
financing options available to you, so that, when the time comes to make an
offer on the home you really want, you are totally prepared.
What exactly is a credit score? The best-known
system is called the FICO score (Fair Issacs & Company). FICO scores range
from 300 to 900. The number is determined by a person's past credit history and
is used by lenders to predict the borrower's ability to payback the mortgage in
the future. The lower the number, the higher the chance of a default. Paying on
time does not necessarily guarantee high scores; there are many factors that
enter into the picture. For instance, someone who has an insufficient amount of
credit to calculate a score is 14 times more likely to default within one year
than someone who has a 700 score.
Someone who has recently applied for a
significant amount of credit (inquiries on the credit report) may pose a higher
risk due to the possibility of increased debt. In all, there are 33 variables
that are used to calculate the score, and they are grouped into 5 categories:
35%
Previous credit performance
30%
Current level of indebtedness
15%
Length of time the credit has been in use and current balance vs. credit limit.
15%
Opening date and types of credit
5%
Inquiries, pursuit of new credit
A Score can be changed over time since they are
just a snapshot of current conditions. Any changes in credit can affect the
score. Credit scores are generated using data from the three largest
repositories where credit is stored. Creditors regularly report consumer credit
information to these repositories. This information includes: inquiries,
balances, defaults and account usage, all of which can impact the scores. This
information is then used to generate the scores. The scores can vary from
different repositories since some creditors will report to one and not the
other two. When applying for a mortgage, scores are pulled from all three
bureaus and most loan programs use the middle score to qualify a borrower. If
you do not have enough credit established to generate a credit score, you may
still qualify for a mortgage; however, you will have more options if your
scores are improved before purchasing.
There are pre-emptive steps to take that can
improve your score before you buy. One of the most important steps is to get
any mistakes corrected as soon as possible! Errors are calculated into the
score. Closing unused accounts and limiting the application for new credit can
also help. The best way to know for sure is to come in for a consultation and
review your credit. If you would like to get the ball rolling, call us for a
pre-application meeting or apply online through our website at
www.mortgageone.biz. Call us to schedule your consultation.
CREDIT SCORE FACTORS
Credit score factors range from 300-850, and are
used as a measure of credit worthiness or risk. Generally a score below 620 is
considered poor, but workable. A score of 680-720 is good, and 720 or higher is
considered very good. A score above 720 means most programs will be available
to you.
Score
Under
580 Requires substantial down payment and/or higher interest rate.
580-620
Reviewed heavily. Will need compensating factors to be approved.
620-680
Falls under standard rules. Less flexibility in choosing mortgage programs.
680-720
Scores in this range will have relative ease and more options available to
them.
720 & up Extended
extra credit, best rates, lines of credit. Requires less paperwork.
PROGRAMS
There are so many programs available today that
qualifying can vary considerably depending on your income, debt and assets.
Your debt to income ratio is calculated based on your proposed monthly house
payment along with all other long-term debt divided by your gross monthly
income. The best thing to do is schedule an appointment to review your
individual scenario.
One thing to consider about qualifying is that
there are many items that are not always accounted for in those debt-to-income
ratios, such as auto insurance, child care, health insurance and utilities to
name a few. You may be able to qualify for much more than you can comfortably
spend. Only you can really decide what your monthly payment should be.
Adjustable rate mortgages (ARMs) are a good
option in many cases. There are many varieties of ARM products to choose from.
ARM's can be especially advantageous if you do not plan to own the home for
more than a few years. People will also sometimes choose and ARM if they are
just beginning their careers and will have rapid income increases to offset a
possible increased payment in the future. Choosing an ARM can allow you to buy
a more expensive home you will be able to stay in longer, keeping the payments
low in the early years of owning a home. On the other hand, if you are a very
conservative person who doesn't like risk, no matter how good of a deal it
appears to be, it's not worth losing sleep over and causing yourself
unnecessary stress.
On a side note, if you are still a student or
have income that isn't considered stable enough to work into your
qualifications, FHA will allow a non-occupant co-mortgagor. For instance, your
parents can help you qualify for the monthly payment and no income is even
required on your part. This is very common when people are just starting out
fresh from college. We hope this information gives you a few ideas to help you
get into a home sooner vs. watching the house prices increase later!
RATES AND HOW THEY WORK
Many
different factors can affect rates, including program, credit score, length of
time you lockin a rate, and loan size. If the market is having a turbulent day,
rates can change more than once in a given day; therefore, until you have a
property picked out, it is impossible to make any decisions based on rates
alone.
As
rates have the potential to change more than once in a given day, by the time
interest rates make the evening news, the information reported is often no
longer current. Advertised rates whether it be on television, by phone, or on
the radio, are usually designed to create interest and get the phone to ring.
Anyone can say anything until you are actually ready to lock-in. The wrong
program, with what
appears to be the
cheapest rate, can wind up costing you thousands in the long run. The old rule
of thumb remains true; if
it sounds too good to be true, it usually is!
Trying
to time the market is not usually a very successful strategy. We've seen many
people insist on waiting until rates get below 6.0% before they will buy a
home. In the meantime, the home prices have gone up, in some cases, 30% or
more! Many unpredictable things can affect interest rates. Since the economy is
on a global scale, now more than ever before, something unexpected can happen
on the other side of the world while we are sleeping and affect our rates here
in the morning. After spending many years listening to highly paid economists
debate the rates, one can conclude that the economists are correct about 50% of
the time, at best. If anyone tells you they are sure the rates are going
up/down/sideways, don't take it seriously. No one can predict the market. So,
what is a good rate? Below is a chart detailing the history of rates over the
past 10-20 years or so.
Quite honestly, rates are a small part of a much
bigger picture. Tax deductibility and equity gained through appreciation are
just as important. With all the different mortgage programs available these
days, almost anyone can qualify to buy. If you are not ready now, we will help
you make a plan for the future. If you'd like us to review your situation, just
go to www.mortgageone.biz and apply online or print and complete the
pre-application form. Fax it back and we'll contact you within a few days to
schedule a consultation meeting to answer your questions. Don't forget to sign
up for your free "AUTOMATED HOME SEARCH" reports that can also be
accessed on the website. http://www.MLSMAX.com
MORTGAGE
INSURANCE
All programs have some type of mortgage
insurance with the exception of conventional loans with 20% down.
FHA FHA calls their mortgage insurance MIP,
or mortgage insurance premium. It is charged in 2 forms on every loan. The
financed premium in most cases is 1.5% of the loan amount, which is added
directly to the loan amount. The other portion is the monthly premium, which is
usually .50% of the loan amount divided by 12 months. For shorter term loans or
loans with bigger down payments, these percentages vary slightly. The process
of getting rid of FHA mortgage insurance was recently improved. Now when a
mortgage reaches 78% loan to value, the monthly premium is dropped. It's not a
very useful change, however. FHA will not recognize the appreciation of the
home over time so that 78% is figured only on reduction of principal or
documented improvements. So, in a nutshell, you'll probably never have that
mortgage long enough to benefit from this change. Most of the loans written on
FHA mortgages will be paid off long before removal of mortgage insurance due to
moving or refinancing into a conventional loan down the road. When refinancing
into a conventional program, the current value is used for determining the loan
to value.
VA VA calls their mortgage insurance a
Funding Fee. This percentage varies depending on the situation. There are a
multitude of things that affect the premium. It is waived for disabled vets.
How much you put down, whether you are an active duty vet or a reservist,
whether it is your first time getting a VA loan or you are a repeat user,
whether it is a refinance and if so, a streamline or a cash-out refinance all
affect the premium, there is some sort of premium charged no matter how much
you put down. On a purchase, 90% of the time the veteran will finance the
premium on the loan. The seller can be asked to pay it, the veteran can pay it
in cash, it can be financed in the loan, however, the whole premium must be
paid by one method only.
CONVENTIONAL With conventional
financing, the PMI (Private Mortgage Insurance) can be figured in a multitude
of ways. The premium will vary considerably based on down payment, loan term
and loan type. With 20% down, there is no mortgage insurance. Sometimes it is
possible to structure the loan with no PMI without 20% down. It's called
splitting the mortgage, part or all of the 20% down will come in the form of a
second mortgage.
MORTGAGE
TERMINOLOGY
Buying a home is a major achievement in most
everyone's life. Pride of ownership, tax breaks and equity are just a few of
the many benefits you'll enjoy with your new home. Your home purchase will be
one of the largest purchases you will ever make. During the emotional
excitement of buying a home, you may encounter terms with which you are
unfamiliar. To ensure that you have complete confidence during your home loan
process, invest a moment and become familiar with the concepts and terms you'll
encounter. Knowledge is power: the more you know, the more successful your
decisions will be and the more soundly you will sleep at night having made the
right ones!
Adjustable Rate
Mortgage (ARM) A mortgage in which the interest rate is adjusted periodically based on a
pre-determined formula. There are many different ARM options available with
different terms and conditions.
Annual
Percentage Rate (APR) An interest rate that reflects the cost of a mortgage as a yearly rate. This
rate takes into account any points and fees, and is based on the loan
amortizing through full-term.
Closing The meeting at the
conclusion of a real estate sale in which the property and funds are exchanged
between the two parties involved. All costs and fees are itemized.
Debt-to-Income
Ratio The ratio that results from dividing a borrower's monthly payment obligation on
long-term debts including the new house payment, by the borrower's gross
monthly income. What must be counted in this calculation varies by lender and
program.
Discount Points A point is equal to 1
percent of the loan amount. This technique is sometimes used to obtain a lower
than market rate. It is basically interest paid up front in order to have a
lower rate and payment over the long term.
Down Payment Cash paid by the buyer
at closing that makes up the difference between the purchase price and the
mortgage amount.
Earnest Money Money given by a buyer
to accompany their offer as a deposit to show the seller you are committed to
the purchase of their home. Earnest money is subtracted from your bottom line
at closing and is normally escrowed with the real estate company. If you decide
to back out of the deal, it's possible you may lose your earnest money.
Equity The value an owner has
in real estate over and above what is owed against the property. Equity is fair
market value minus the current indebtedness.
Escrow Funds deposited with
the mortgage company, which will be held to cover payments such as tax or
insurance payments. You can normally only choose not to escrow when you put at
least 20% down on a conventional loan. There are some exceptions. Most lenders
will charge a fee to waive the escrow account requirement regardless of down
payment.
Fixed Rate
Mortgage A mortgage in which the interest rate remains the same throughout the life of
the loan.
Loan-to-Value
Ratio The ratio between the amount of the mortgage loan and the appraised value of
the property or sales price, whichever is less.
Market Value What a buyer is likely
to pay for a particular property based on what other similar properties have
recently sold for in the area.
Mortgage
Insurance Insurance that protects lenders against damages if a borrower defaults. The way
this is calculated depends on the program you choose. There are many programs
that no longer require any mortgage insurance at all.
Origination Fee A fee charged by a
lender for processing a loan application,; usually computed as a percentage of
the loan amount.
PITI Your house payment
including Principal, Interest, Taxes, and Insurance.
Underwriting The decision-making
process of granting a loan to a potential homebuyer. Depending on the program, this process may involve using an
automated system.
FINDING A HOME
We
work as a team. Tom Ledbetter is professional, experienced and a full
time
real estate agents we recommend. He signs a contract agreeing to service you by
the high standards we have established, Because we have offices in the same
building this creates ONE-STOP SHOPPING! Many of our customers have appreciated
this convenient and time saving benefit.
The
importance of a professional realtor you feel comfortable with holding your
hand during
the
transaction cannot be overstated. Many of our clients request the seller pay
some of their closing costs as part of the transaction. Eliminating a few
thousand dollars from the bottom line at closing can really be helpful. Some
agents do not like to present offers with these types of concessions. Tom Ledbetter
is well trained and experienced at presenting these offers. He will negotiate
the best price and terms on your behave.
19
WANTS VS. NEEDS
Searching
for a home can be exciting and fun if you are prepared and know what you are
looking
for and have realistic expectations. One of the first things to do in the home
search is construct a wants and needs list along with a can't-live-with
list of non-negotiable undesired traits. Most of the time, the first home is a
stepping-stone to the dream home, allowing you to gain some equity over a
period of time to help you afford a larger or newer home in the future.
Compromises are normally necessary. Identifying and communicating these things
with your realtor will make your home search more efficient. A WANTS &
NEEDS worksheet is included in this booklet for your convenience.
Keep track of the houses you've seen,
Tom Ledbetter can give you MLS information with a pictures of any home on the
market. Wear comfortable shoes and clothes. Don't go hungry and bring some
water. If you have small children, consider a babysitter.
If
the right home comes along, be prepared to make an offer. If you find yourself
looking for a home in a seller's market, it is a real possibility you will
not be the only perspective buyer. Multiple offers can happen and may even be
commonplace, especially on attractive homes priced right when they first come
on the market.
WANTS :
Tell Tom Ledbetter what you want and he will
find it. Fill out this page and fax to 586-477-4791 or email your request to tom@MLSMAX.com
Area – Cities ________________________________________________
________________________________________________
Cross Streets: ________________________________________________
________________________________________________
Price Range _____________ to
_____________
Newer Home Built after _______________
Home Type ___ Ranch ___ 2 Story ___ Split ___ Condo
Number of bedrooms ___1
___2 ___ 3___ 4___ 5
Number of bathrooms ___1 ___2
___ 3___ 4___ 5
Garage Car ___1
___2 ___ 3___ 4___ 5
Master bath _____Yes
_____No
Family room _____Yes
_____No
Formal dining room _____Yes
_____No
First Floor laundry room _____Yes _____No
Finished Basement _____Yes
_____No
Fireplace _____Yes
_____No
Central air _____Yes
_____No
Move-in condition _____Yes
_____No
Fixer upper _____Yes
_____No
Large yard _____Yes
_____No
Fenced yard _____Yes
_____No
Pool _____Yes
_____No
Other___________________________________________________________
____________________________________________________________
Name ______________________________________
Address ____________________________________________________________________________
Email ________________________________
Fax to 586-477-4791 or email your request to tom@MLSMAX.com
NEGOTIATION OF THE PURCHASE AGREEMENT
AND MULTIPLE OFFERS
Once you find a property you like, you may
decide to write an offer. The conditions can vary significantly. You may find a
home that was just listed on the market, very nice and priced right. Chances
are good you will not be the only one interested in that home. In that case you
may encounter multiple offers and have to act rather quickly. In such a case,
everyone submits his or her offer at the same time. The seller can only counter
or accept one offer, so you must make your best offer immediately and that may
include offering over the sales price. You may not get a chance to negotiate if
the seller just decides to take the best one. You may rethink asking for
concessions unless absolutely necessary or making your offer contingent upon a
home inspection. Only you can decide what any particular house is worth to you
and how far you want to go in a multiple offer situation.
On the other hand you may encounter a home that
has been on the market for several months. Maybe it needs some paint and
carpet. You would have a completely different strategy for making an offer on
this home. You may ask for some repairs or ask them to pay all your closing
costs. It may be appropriate to make an offer less than the asking price.
The most important part of writing the offer is
the assistance of an experienced and full time realtor who can help point out
all aspects of making the offer, good and bad. When you write an offer you will
write an earnest money check that will be deposited into the listing real
estate company's trust account. This is more or less a good faith effort to
show the seller you are serious and will complete the sale. The amount of
earnest money offered can sometimes make a difference in the seller's decision
to accept the offer. For instance, if you only send $500.00 earnest money with
your offer, that can be a red flag to the seller and the listing agent that you
are not as financially solid and prepared to complete the transaction as
someone who accompanies their offer with a $2,000.00 earnest money check. Your
agent will be able to advise you of what is typical. This is not an additional
cost to your home purchase; it is simply paid up front and credited back at
your closing.
NEW CONSTRUCTION
VS. EXISTING HOMES
Both have advantages and disadvantages.
New construction allows you to not have to be
concerned with immediate repairs whereas with existing homes, a variety of
things could come up. You will pay much more per square foot in a new home vs.
an existing home, but everything is new and clean. You will need to purchase
drapes/blinds that sometimes are included in an existing home.
New construction is much more subject to a
delayed closing due to unexpected weather, labor issues and road restrictions.
You may find yourself exceeding the base price of a new construction home
substantially by the time you are done. Dollar allowances are written into
the new construction contract for lighting, carpet, appliances and plumbing
fixtures to name a few. Sometimes these allowances are not enough to get what
you want and are at the very low end, you wind up with upgrade charges that
can add up quickly.
TOWNHOUSE OR CONDO VS. SINGLE FAMILY
With a townhouse, your grass is cut, your snow
is shoveled and your garbage is hauled away in exchange for an association
fee. This alleviates having to buy a snow blower, lawnmower and other lawn
equipment. Unlike an apartment, you cannot simply give your notice and move if
you wind up with a loud and obnoxious neighbor, you must sell first. With a
single family home, there is no association fee, but you will receive
additional bills for trash removal, water and sewer service. You can't choose
your neighbors and they will be very close by.
THE DIFFERENCE BETWEEN HOME INSPECTIONS AND APPRAISALS
When
you get a mortgage, an appraisal is required. The appraisal is simply a value
analysis. Normally the appraiser takes 3 similar homes from the area that have
sold within the last 6 months or so. Those homes are compared to the one you
are buying with adjustments made for the variables such as square footage, age,
lot size, etc. The appraiser is not responsible for knowing if the plumbing is
operating correctly or if there is a major structural defect for example.
You have the option to make your purchase
contingent upon having a home inspection. The additional cost is generally in
the $300.00 range and a very thorough assessment is made of all the mechanical
workings of the home, the foundation among other things. The inspector goes through
the home with the buyer in detail and a report is prepared. The inspection is
really designed to keep you from buying a home with major defects. If you are
not satisfied with the report, you can cancel the purchase agreement or counter
offer, asking the seller to take care of some of the items of concern. With any
used house, minor items should be expected.
MAKING
IMPROVEMENTS AND THE LIKLIHOOD OF RECOVERING COSTS
Sometimes, if you are handy or someone in your
family is a fixer upper is a great way to go. You can buy a larger home you can
afford and fix it up as you go building equity. A huge consideration in
purchasing any home is, whether you plan to make improvements or not, is it
consistent with the neighborhood? If you are considering significant remodeling
and improvement you surely won't want to purchase the most expensive house in
the neighborhood. If your home is one of the lowest priced homes in the area,
more significant improvements will have a much better likelihood of return.
There are some improvements that have a much
better likelihood of return than others and much of that depends on what other
homes in the area offer. If you live in a cold climate for instance, a swimming
pool may not add any value. It may in fact impact your value in a negative way,
especially if the property is not in a neighborhood of properties that are in a
price range that support having a swimming pool. They are expensive to maintain
and dangerous for small children, which can be a huge limitation for resale.
Personal choice is a completely different matter; if you plan to stay in a home
for several years, you will get your money's worth from your personal
enjoyment.
Some improvements that can supply a much better
rate of return are listed below, and the percentages are very general. The
length of time you keep the home and the conditions in your neighborhood at the
time you decide to sell have a significant impact on recouping your investment.
Kitchen renovation 100%
Bathroom renovation 80%
Bathroom addition 80%
Finishing living space on a lower level 50%
Fireplace 75%
Patio or deck 50%
Landscaping 50%
New Siding 50%
Poor rate-of-return items include window
replacement, new roof, home office and sunroom additions.
Before deciding on any major renovation or
improvement, a call to your realtor is a good idea. Most agents are
happy to take a look at the recent neighborhood
sales to give you some feedback on the likelihood of any improvement having a
good chance at adding value.
DURING THE TRANSACTION
AFTER THE PURCHASE AGREEMENT IS ACCEPTED
Once you are done with your negotiating and the
offer is signed, sealed and delivered, it is time to finish up the loan
process. You should connect with your loan officer to check on rates, go over
mortgage options again and decide if you would like to lock in your interest
rate. Rates can change at any time and often do more than once throughout the
day. You will have the option to lock in your rate or float. Locking in means
your rate will be what you locked at assuming you close on time. Your rate will
be guaranteed for a specific amount of time.
It may be necessary to update some of your
documentation at this point if it has been awhile since your preapproval
meeting. A new GOOD FAITH ESTIMATE will be completed. A check will be needed by
the mortgage company to pay the appraiser. This is a fee that is on your good
faith estimate and will be credited back to you at closing.
Once the purchase agreement is done and the appraisal
and title work are ordered, it may seem like nothing is happening. Behind the
scenes, we are orchestrating everything necessary for a successful closing,
following up on all the various pieces of the puzzle that come from many
different sources. You may be asked to update some financial documentation as
well. Once all information is updated and the appraisal comes back, the file
will be sent to the underwriting department for final approval.
***It is possible
at the time of final underwriting for the underwriter to request clarification
or additional information, so don't be alarmed should you get a call shortly
before closing requesting additional information. Please do not
pack financial documents until your loan is fully approved with the underwriter.***
HOMEOWNER'S
INSURANCE
Also, on your GOOD FAITH ESTIMATE is an estimate
for your first years worth of homeowner's insurance. Once you pick out your
house, you will want to decide where you will be purchasing your insurance.
Shortly before the closing, you will pay for your first year of homeowner's
insurance, and from then on, it will be included in your house payment along
with your property taxes. You only have the option not to have your taxes and
insurance included in your payment if you put 20% down. This expenditure will
also be credited back to you at the closing. Plan to have your paid receipt
faxed to your loan processor no later than 3 days before the closing.
WHAT NOT TO DO DURING THE PURCHASE OF A
HOME
It is critical not to make any financial
moves between the time of your loan application and closing without first
consulting us. Please do not:
Move money
around or make any unusual large deposits without checking with us first. If you are getting money from
friends or family please contact us first, before depositing.
Do not make any
major purchases without checking with us. Do not buy a car or furniture for example. Anything that
causes your debt to increase may affect your qualification.
Do not change
jobs without checking with us.
Do not pack or
shred your financial documents.
Do not go out of
town around the closing date. If you do plan to be out of town when your loan is expected to
close, you may want to sign a power of attorney authorizing another individual to sign on your behalf.
Respond promptly
to any requests for additional documentation. This is especially critical if your rate is locked or you plan to
close by a certain date.
WHAT YOU NEED FOR CLOSING
Finally the day will come when it's time
to get the keys. The following is a list of typical things to bring to the
closing although there may be other case-by-case requirements.
CERTIFIED CHECK You will get a
certified check made payable to yourself for any cash that you need for closing.
Just round it up to the nearest $100.00. If it's off a little either way, the
title company will give you a refund check or you can write a personal check
for the difference.
IDENTIFICATION You will bring your ID,
your proof of insurance and yourself. Please contact us in advance for
instructions if one of the purchasers will not be at the closing.
PROOF OF
HOMEOWNER'S INSURANCE Proof
will be in the form of what's called a dec sheet or declaration page which is
simply a receipt and it must show you have paid your insurance in full for the
first year.
Hub Statement If a sale of your present home is required by your new lender, bring the HUD-1
Settlement Statement and a copy of the Warranty Deed.
Your loan officer will contact your
prior to your closing to review the closing documents in detail.
PREPARING TO MOVE
8
WEEKS BEFORE YOU MOVE
1.
Get estimates from movers if you plan to use a
professional, and get estimates from truck rental companies if you plan to move
yourself and reserve far in advance.
2.
Contact the local Chamber of Commerce to get
information on where you are going.
6
WEEKS BEFORE YOU MOVE
1.
If you
have a professional mover, discuss costs, insurance, the procedure for moving
and what will happen if they break something.
2.
Inventory
all your possessions to see what you don't want to go along, what can be sold,
what can be donated for a tax deduction.
3.
Make
arrangements to transfer school records.
4.
Go to the
Post Office and get a change of address kit. https://moversguide.usps.com/?referral=USPS
5.
Check
into tax-deductible moving expenses and keep good records.
4
WEEKS BEFORE YOU MOVE
1.
Arrange
for storage space if necessary.
2.
Clean
carpet and drapes if needed.
3.
Have a garage sale.
4.
Figure out how many boxes will be needed and where you are going to get
them, and think about a labeling system.
3
WEEKS BEFORE YOU MOVE
1.
Make sure
you have purchased all your packing materials, boxes, markers, scissors, labels,
packing string, newspaper or Styrofoam peanuts etc.
2.
Pack items you don't use much and won't need before
moving.
3.
Cancel your utilities at your old house and set them
up for the new house.
4.
If relocating, make travel arrangements and hotel reservations.
5.
Get car license, registration and insurance changed over.
2
WEEKS BEFORE CLOSING
1.
Make arrangements for moving pets.
2.
Get the telephone transferred.
3.
Cancel direct deposit or automatic payment withdrawals
for any bank accounts you are closing.
4.
Cancel any delivery services.
1
WEEK BEFORE CLOSING
1.
Transfer prescriptions to new pharmacy.
2.
Get babysitter for moving day if necessary.
3.
Return library books and videotapes.
4.
Check in with your loan processor to see if any additional info will be
necessary.
2
3 DAYS BEFORE THE CLOSING
1.
Defrost the freezer.
2.
Arrange for cash to close, certified check.
3.
Put your legal documents and valuables in the car with
you, not in the moving van.
4.
Leave out some clothes and toiletries to go with you.
DAY
OF THE MOVE
1.
Pick up the truck early.
2.
If you are using professional movers, keep all the
paperwork until all claims are settled if there are any.
3.
Clean apartment if applicable, and have the landlord meet you there to
check you out and OK everything. This will ensure there are no surprise disputes about returning your
full security deposit. It's not a bad idea to have your own checklist prepared
for the landlord to sign off on.
AFTER
THE CLOSING AND BUILDING WEALTH
ANNUAL MORTGAGE REVIEW
In most cases, once you sign your new mortgage,
the closing is done and that is the end of the relationship between the buyer
and the lender. We view our role quite differently than most lenders. Our
commitment goes far beyond the closing to help our clients reach their future long
and short term goals for years to come, while building wealth at the same time.
New and interesting mortgage programs come to our attention on a daily basis
from the 30+ lenders and banks we research.
Many of our clients benefit by using their mortgage
as an investment tool vs. just a big payment to
make each month.
We have created a program called the Annual
Mortgage Review..
Our clients are contacted on a yearly basis for this short review that will
allow us to recommend any adjustments that may benefit their long-term
financial strategy. It is also important for us to keep your file up to date in
the event an opportunity becomes available so we can reach you quickly. Many
times when rates drop dramatically, it can be over very quickly. Closing and
picking up the keys is only the start to smart mortgage management. This is
something very unique to our team, and we are confident you will find it
valuable, too!
YOUR ESCROW ACCOUNT AND TRANSFER OF
SERVICING
Once a borrower secures a mortgage, chances are
the loan will be bought and sold several times between various lenders.
"Servicing" is simply collecting the payments and disbursing the
taxes and insurance when the bills come. It can happen immediately after the
closing or any time later on.
This is very common and legal; your permission
is not required. The current servicer sends a letter saying your loan is being
transferred, and then you will eventually get a new payment book or statement
from the company that bought the servicing rights. Sometimes the payment
coupons will not arrive before the first payment is due. Make sure to keep the
introduction letter the new servicer sends so you have the information you need
to send the payment in on time.
The loan cannot be modified in any way and there
are limits as to how much can be kept as a cushion in the escrow account by
law, so it really makes no difference to the consumer who collects the
payments. Selling of the servicing has nothing to do with the quality of your
loan personally; these loans are bought and sold in bundles with many other
loans. It is the old servicer's
job to inform the insurance company and county to which you pay taxes of the
change in servicing. If you receive a letter or call from the new servicer
saying taxes or insurance are due but have not been paid, call the new servicer
to make sure they have correct information on your account. It's possible the
bill was sent to the old servicer and is easily straightened out. Don't be
alarmed if you get a letter from the servicer saying they have put their own
insurance on your property and quote an unbelievably inflated rate. Once your
insurance company proves you were covered during the time period in question,
all insurance coverage the lender is charging for will be waived and no harm
done.
MEETING YOUR NEW FINANCIAL OBLIGATIONS
If you have an accurate budget you should have
no trouble meeting your new monthly obligations. Resist the temptation to run
out and buy all the nice things you'd like for your house right away. Going
into more debt right after taking on more expenses may cause you a fair amount
of trouble. It's much better to build your savings back up before buying new
furniture etc. You'll be a homeowner for many years to come; 6 months of
patience may save you from lots of frustration and stress down the road.
There are several things to keep track of now.
Most important is getting the house payment in on time. Late fees are expensive
usually 5% of the payment, and a big waste of money. Getting your payments in
late is probably the most detrimental to your credit. If you have the
opportunity to refinance in the future or want to buy another home you will
have trouble getting another conforming mortgage. You will probably have
trouble obtaining any type of credit. There are always mortgages available for
almost every situation, but if a lender is taking on more risk from a bad
mortgage history, they want to be compensated in the form of a high rate or
higher costs in many other forms.
WHAT WILL HAPPEN AFTER WE OWN THE HOME?
You will have some additional expenses with a
house such as maintenance; if you have a habit of saving, any additional little
things that come up won't be near as daunting as they would be if you spend
every nickel. Go over your spending for 3 months to get an idea of where it all
goes and what can be cut that you wouldn't miss that could go towards the costs
of homeownership. That way you'll get a good solid average of a typical month.
Keep in mind that by making a move, you may be commuting further or getting
closer to work, which will also affect your monthly
budget.
OFFERS THAT COME IN THE MAIL OR BY
TELEMARKETERS
You will probably get many offers in the mail or
on the phone to sell you insurance, life insurance, disability insurance,
mortgage payment insurance, etc. It's usually too expensive, and there are
other options that will accomplish many of the same things more economically.
If you are young, term life insurance is a much better bet for paying off the
house in case of a death. Disability insurance can often be obtained elsewhere
for a much more reasonable premium. We will be happy to recommend trusted
financial advisors we have sought out as honest and trustworthy to explain
everything involved so you can make a good decision. When it's time to
refinance or purchase another home, come to us.
YOUR PROPERTY TAXES
Keep an eye on property values and what you are
being assessed for in the future. When you get your property tax statement,
there will be a section that shows what your assessed value is as determined
by the county. This is the figure your property taxes are calculated on. You
sure don't want to pay any more in taxes than you have to. Sometimes, the value
the county places on your property may be higher than the market dictates. You
may be able to appeal that valuation and get your taxes lowered. It's unusual
but it can happen.
MANAGING YOUR MORTGAGE
Keep track of interest rates as well. Take
advantage of our Annual Mortgage Review that you will be receiving each year.
You certainly can call anytime you have questions about anything financial.
This is simply a reminder to take a quick analysis of your overall financial
picture and see if there is anything that may be more beneficial to your long-term
plan. Use your mortgage as a financial planning tool, not just another big
payment to make. Building wealth over time takes effort and education. We are
here to help and can point you in the right direction if you need assistance
with anything financial that isn't necessarily mortgage related. We have
aligned ourselves with other professionals in various financial fields to make
sure you have reputable and honest resources to choose from. In all businesses,
there are good and not-so-good providers. Personal recommendation is always the
best bet, not the yellow pages.
INSURANCE COVERAGE
Homeowners insurance is required and necessary.
Your coverage will change as you progress in your plans and accumulate more
items. Having an agent that pays attention to your ongoing needs by doing
regular reviews of your coverage is just plain good service. Don't deal with an
agent who just sits back and collects premiums year after year and provides no
service. You need your coverage reviewed on an ongoing basis. Talk to your
agent about an umbrella policy, this is an inexpensive highest deductible you
feel comfortable with can also reduce premiums substantially. Most employers
provide some sort of disability insurance; one of your most important assets is
your ability to earn future income. Check on your employer's coverage and then
go over it with your Financial Planner to be sure you have enough coverage, you
risk everything should your ability to earn money be interfered with for any
length of time.
There are good and bad insurance policies of
every type. Read the fine print when you hear "whole life", as this
is a very expensive way to get insured. There is usually a cash value at the
end of the road but the costs to administer this type of program in most cases
are exorbitant. The better plan may be investing in mutual funds and buying a
cheap term life insurance policy.
Now that you are a happy homeowner, when things
break, you have to fix them. Maintenance and unpredictable repairs are hard to
budget for. Things will come up from time to time and having your savings built
back up will make the difference between a very stressful and worrisome
situation to a slight irritation. The big difference is having the money put
aside to deal with it when things come up.
HELPFUL HINTS
- Call Us For Anything Financial We have interviewed and selected a few trustworthy professionals in other areas such as financial planning, estate planning, tax strategies and insurance if you find yourself needing a referral for other financial professionals.
- Don't Attempt To Time The Market Odds of hitting the bottom of the market before locking in on an interest rate are about as likely as the odds of you winning a lottery! You will almost never hit the bottom of a market. Trying to time it exactly right is often costly. It can cause a person to miss out on the opportunity to purchase their dream home. An interest rate can be locked once there is a purchase agreement. You can choose to float your rate; however, it is imperative you call and check rates daily since they can change without notice. If the rates do go down after you have purchased your home, you always have the option to refinance at a lower rate later on.
- View The Mortgage As An Investment Tool Buying a home is the biggest investment most people make. Long-term strategy is critical when choosing the appropriate loan. Ask yourself the following important questions when deciding which loan program may be best for you: how long will you be in the property, how much do you want to put down, what other debt is outstanding, and what other financial investing has been started? A lifetime of financial success starts with a solid plan followed over the long-term. For many of us, choosing a mortgage is the most important financial decision we'll ever make. Doesn't it make sense to know as much as possible about the financing of your home?
- The Paperwork Is Confusing All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a homebuyer. We are here to assist you with all of the paperwork involved in your transaction. Our knowledge will help alleviate your stress and help you feel more comfortable when signing your mortgage. Look at All Your Options Make sure you consider all the various loan programs for your mortgage. Evaluate all of your options. For example, don˜t rule out an adjustable rate mortgage just because someone you know had bad luck with an ARM in the past. Loan programs have changed and have become more flexible over the last 10–15 years. Make sure you have all of the current, up-to-date information before you make any major decisions regarding your personal financing.
- Tell Us Everything Even the bad stuff. We want to help you with your loan. The more information (good or bad) you provide, the easier it will be to get an approval. The more information we have up front will help us to avoid any unforeseen hurdles down the road and we will be able to present your loan to an underwriter in the best light possible. This in turn helps the loan get the highest approval rating.
- Let Us Educate You We are happy to teach you all about the various loan options, even if you haven't found a property yet. We will be very patient with you and guide you every step of the way through the loan and home purchase process. Our goal is to educate our customers and make them happy so they will come back to us for their future financing needs.
- You May Become Emotional Buying a home can be a stressful experience. You will experience a roller coaster of emotions while you are looking for your perfect home, securing the loan to purchase it, and moving in. For most of us, the home purchase is the largest investment we've ever considered. The emotions of purchasing something so expensive and personal can often cloud your business sense.
- Get Pre-Approved By getting pre-approved you will know exactly what financial parameters to stay within. We will be happy to consult with you and help you get approved for the loan that best suits your needs. Often times, we are able to get our borrowers pre-approved for more of a loan than they thought possible but keep in mind your personal lifestyle at all times.
- Get A Home Inspection Make sure the inspection report is done by an experienced professional. Your Realtor can probably recommend someone they work with on a regular basis and trust. For condo purchases go over the rules and regulations, by-laws, and association fees. Don't take anything for granted... inspect everything!
- Imagine The Property Vacant Whether the seller has a messy cluttered atmosphere or custom decorating and beautiful furniture, try to envision your new home with your own possessions and decorating taste. Don't rule out a messy home or decorating from the 70's, sometimes they are a very good opportunity.
- Consider Your Current & Future Lifestyle With Your House Payment Sit down and seriously think about and discuss your income level and living expenses. Take into account future considerations: children, add-ons, amenities, and fix-ups. Your dream home is certainly worth a sacrifice, but don't mortgage your entire future.
- Let Your Team Help You By aligning yourself with the right mortgage professional you will have an entire team at your disposal, we work hand in hand with the realtor and the title company.
- Be Sure You Understand ALL Expenses Check out all costs and expenses before you sign anything. Be sure you know the estimated amount of the utilities, taxes, insurance, and maintenance and association dues, if applicable. Check to see that all utilities (gas, electricity, and water) are on during your walk-through so that you can inspect everything in working order. Ask lots of questions and be conscious of little details.
- Do a Final Walk-Through Visit the property after the sellers have moved everything out if at all possible. Be absolutely positive the property was left exactly as you had agreed on in the contract. Check to be sure all appliances are in working order. A final walk-through, however, is not an opportunity to alter the original purchase agreement by asking for additional concessions that were not previously part of the deal.
- Plan For Flexibility Closing dates are not written in stone. Allow for contingencies and have a back up plan. If you or the sellers need a little more time to make final arrangements, be prepared. Try not to let delays upset or frustrate you. These types of circumstances are unusual, but can happen in a real estate transaction.
-
Get It In Writing Even the smallest details need to be in writing and signed off on by everyone. Don't assumer everyone agrees on a particular issue or count on verbal assurances. In this complicated business things can be easily misinterpreted despite good intentions
It makes sense to become as completely informed
as possible before buying your first home. Tom Ledbetter has been in business since 1991. He will use his experience to make the
transaction smooth and pleasant for you.
