Print out this section and review it at your leisure:

1. Should you buy a home now?
2. What price home can you afford?
3. How do you find the right home?
4. What do you do when you find the house you want?
5. What do you do after your offer is accepted?
6. What will your mortgage lender need to know?
7. What happens at the closing?

 

Should you buy a home now?

One question many people ask is "Should I buy a home?," or more specifically, "Should I buy a home now?" My company has always felt the answer to that question is "YES." The reasons are simple...

• The price of new and resale homes has steadily increased ever since the mid-40s.
  Delaying the purchase simply allows prices to go higher.
• As the price of housing increases, your equity also grows.
  Equity is defined as the amount of cash that you have when you eventually sell your home after all the mortgages and claims against the property are paid off.
  The sooner you purchase a home, the faster your equity will start to accumulate.
  Ultimately, that means you'll have more cash available to put into your next home or other investment.
• Home ownership offers tax benefits not available to renters.
  Special tax deductions for property taxes and interest could mean a decrease in your year-end income tax expense. Ask your tax consultant for specific information on how home ownership can impact your taxes.
• Buying a home makes sense -- even in periods when interest rates are high.
  One question many consumers ask is "Why don't I wait until the interest rates come down and then buy?" The fact is, home buying can be practical and profitable even in periods when interest rates are higher. First of all, many creative financing options are available that help leverage your funds and get the most for your money. Secondly, if interest rates do decrease substantially after purchasing a home, you always have the option of refinancing at the lower rate.

There are many other benefits to buying a home now. Call or e:mail me today and I'll send you specific mathematical examples that demonstrate how buying a home is always a good investment.

Most people use financing of one type or another to buy a house since they do not have the cash available to cover the full purchase price. The price you can afford will depend upon how much cash you have for the initial investment, or down payment, plus the amount of loan you can afford based on your income and debts.

My advice is to let a professional loan officer determine what price works for you before you start looking for a home. After determining the price range you can afford, I can then work with you to clarify your desired home features and show you the homes and neighborhoods that best suit your needs.

Many people think that going through real estate ads is a good way to find a house. More often than not, however, searching the classifieds results in few -- if any -- solid leads. Limited and sometimes misleading ad descriptions can mean hours of time and effort researching homes that simply don't meet your needs.

There is a better way! That way is to work with me, at absolutely no cost or obligation, to find the home that's right for you.

Through an in-depth personal interview, we'll fine-tune your area preferences, desired style, needed amenities, and everything else you really want in your new home. Then, using this criteria, I'll conduct a targeted search through the Multiple Listing System.

The Multiple Listing System is a massive home database used exclusively by real estate agents. It includes detailed information on all Tampa-area properties (including Hillsborough, Pinellas and Pasco counties) currently available for sale through real estate brokers. Using the Multiple Listing System, I can quickly access information on homes that most directly meet your needs.

After a thorough search, I will provide you with detailed information on homes that match your criteria, including photographs, pricing, special features, property tax information and more. With this information in hand, you can choose the specific homes you want to see. I'll then make arrangements for us to tour each of these homes within a short period of time so you can get an even better idea of what you want.

I  suggest you jot down notes and discuss your likes and dislikes with me as you go through each home. Always ask questions and bring up any objections you may have about a particular home. In addition, make sure you ask me any questions you have about community associations, schools and transportation around the area.

Working together, we can quickly narrow your search and find the right home for you without a lot of hassle. No more searching the classifieds. No more unnecessary phone calls. No more wasted effort viewing "too good to be true" homes that simply don't suit your needs.

Once you've found the right home, we will complete a Contract for Sale/Offer to Purchase stating exactly what you're willing to offer with regard to price, down payment, deposit, financing, and all other details. Although the contract may at first appear complicated, it typically encompasses many protective issues and I will review it with you thoroughly.

In addition to the Contract for Sale, I will prepare an Estimated Settlement Expense Sheet so you will know what your expenses will be before you sign the contract. This sheet will include estimated fees for recording, property appraisal, location survey, title search, etc.

After you have signed the contract, I will give it to the listing sales associate to present to the seller. Sometimes there are counter offers by the seller indicating a change from your original offer. The contract goes into effect when there is a clear "meeting of the minds" on every point, and after both you and the seller sign off on the final agreement.

Between the time the contract is signed and the time of the actual settlement, various steps must be taken. Typically, these are as follows:

• The buyer meets with the lender to formally apply for financing.
• The buyer orders a home inspection and a termite inspection with the assisstance of his/her sales associate.
• The seller arranges to have all agreed upon repairs completed.
• The lender orders an appraisal to make sure that the value of the house is in accordance with the amount of the loan.
• The title company orders a property survey.
• The buyer and lender work together to facilitate approval of the buyer's financing.
• The buyer and seller, through their sales associates, establish the date, place and time for settlement.
• Prior to closing, the buyer "walks through" the property to ensure everything is in working order and the condition of the property is acceptable.

After your offer has been accepted, you'll need to officially complete a mortgage application for your mortgage lender. Your lender may ask you to supply the following: 

• A copy of the signed purchase agreement.
• Residence address(es) for the last two years (including landlord mailing address(es), if you rented and the mortage lender's name, mailing address and account number if you owned a home).
• Name, address, and phone number for each employer for the past two years.
• Documentation of income from all sources, including pay stubs for the past month, W-2 forms for the past two years, plus an itemization of income from social security, pensions, stocks, bonds, alimony and child support if your loan amount is dependent on these items. If self employed, copies of the last two years' federal tax returns (personal and corporate) plus a current financial statement through the last business quarter.
• Names, addresses, account numbers, and balances for all checking and savings accounts plus copies of the past three months of statements.
• Names, addresses, account numbers, balances, and monthly payments for loans and credit cards.
• Information about other real estate you own, including lender, loan amount, balance due, account number, and market value.
• Information on all other assets and their market value.
• Information about previous bankruptcy (if applicable), including discharge, a schedule of debts, letter of explanation, and list of accounts that were reaffirmed.
• VA Customers: Certificate of Eligibility and a copy of your DD-214 (Discharge).
• FHA Customers: Copies of Driver's License (or picture ID) and Social Security card.
• Construction: Varies with lender

The settlement, or closing, is a time when buyers, sellers, real estate agents and the bank's representative sign all of the final paperwork to transfer a title from one owner to the next. The actual closing is usually performed either at the title company, bank, attorney's office or real estate office.

At this time the buyer brings the check for the cash down payment, the bank brings the check for the amount of the mortgage, and the seller brings the keys to the house. The seller signs the deed over to the buyer. In addition, various documents relative to federal law are signed and a settlement sheet outlining all financial transactions is drawn up and reviewed so each party understands its costs.

It's always good to talk to me before the settlement to get a clear understanding of exactly what will happen. Typically, when you leave the settlement table, you'll have the keys to the house and you can take possession of your new home!