Buying A New Home with

Transcription

1 Buying A New Home with

2 Our Mission Statement It is our mission to help you achieve your goals and exceed your expectations so you will never hesitate to refer us to your family, friends, and co-workers.

3 Our B elief System Our Belief System - Our beliefs are an essential part of who we are and how we conduct business. The Keller Williams Belief System is the foundation for providing the ultimate in service for our clients. Win-Win: or no deal Integrity: do the right thing Customers: always come first Commitment: in all things Communication: seek first to understand Creativity: ideas before results Teamwork: together everyone achieves more Trust: starts with honesty Success: results through people

4 Meet The T eam Will and Jade have been together for 15 years and combined have lived all over NH and in almost every town on the Seacoast. They have two amazing children and love working in Real Estate. After graduating from UNH, Jade pursued a career working in academia, and enjoyed positions at Dartmouth College followed by UNH in IT, helping staff and students resolve computer issues. She realized she loved the helping people aspect, but not working in a cubicle all day! Now she is working all around the Seacoast helping buyers like you find their perfect Seacoast home. Will has always loved working with computers and taught himself how to write computer code and to design for print and the web. He spent several years working in printing and developing ecommerce sites for musicians, comedians, broadway acts and more. Now he builds our websites, creates our marketing materials and maintains our databases! After purchasing an owner occupied investment home, we realized that to continue our goal of real estate investing it would be best to get our real estate licenses.who knew we d actually fall in love with being Realtors! We decided that our complementary skills of customer service and web design/marketing combined with our love of technology would make us a great real estate team... and the rest is history!

5 Steps to Home Ownership Decide to buy. Hire your agent. Secure Financing. Find your home. Make an offer. Perform due diligence. Close. Protect your investment.

6 Step 1: Decide to buy There s a reason that most of the successful people in the world purchase Real Estate, it s a solid investment. We are in the real estate business, not the hamburger business. - Ray Kroc, Founder of McDonald s Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world. - Franklin D. Roosevelt Financial net worth comparison, according to the U.S. Federal Reserve Board of Consumer Finance: A homeowner s net worth is over 36 times greater than that of a renter Average net worth of renters = $5,400 Average net worth of home owners = $194,500 A home is the largest financial asset most people have due to equity and appreciation over time. Average annual appreciation rate nationally is 5 to 6 percent since (Note: Local appreciation rates vary greatly.) At 3% annual appreciation, a home purchased for $150,000 would grow to $364,000 in 30 years. Even at 1.5% annual appreciation, this same home would still grow to $234,462 in 30 years. Buying a home is an emotional decision Home is where the heart is. A home represents your personal tastes and provides a haven of stability and security for both you and your loved ones. It provides a pride of homeownership, because it s yours. It s also a rational decision Home is where your wealth is. Grow wealth via equity buildup, debt pay down, and value appreciation. In the United States, you can take advantage Put that equity to use! In a few years, you can use your equity to trade up to a better home. of tax-deductible benefits such as property and mortgage interest write-offs. Or, you might consider using some of your home equity to invest in a rental property or a second home.

7 Step 1: Decide to buy Buy now or wait? That is the question. A brief look at what rising interest rates mean for you:

8 Step 2: Hire Your Agent Real estate agents perform 7 main roles: Educate you about the market Analyze your wants and needs Help you to focus on homes that fit your criteria Coordinate the work of other needed professionals Negotiate on your behalf Review paperwork and deadlines Solve any problems that may arise Advantages of a loyalty agreement: Sets mutual expectations in writing between you and your agent. Commits your agent to getting you into the home you want, while you commit to working exclusively with your agent.

9 Step 2: Why Hire An Agent? YOUR INTERESTS ARE PROFESSIONALLY REPRESENTED Enlisting the services of a professional Buyer s Agent is similar to using an accountant to help you with your taxes, a doctor to help you with your health care, or a mechanic to help you with your car. If you had the time to devote to learning everything about accounting, medicine, and automotive mechanics, you could perform these services yourself. But seriously, who has time for such endeavors? This is why you enlist the help of proven professionals. Your real estate agent will take care of the hassles of everyday real estate transactions for you, allowing you to concentrate on your full-time job, while guiding you through the home-buying process. Agents exclusively represent your interests as they help you find a home, present your contract offer, negotiate, and close on your home. YOU GET A PERSONAL SPECIALIST WHO UNDERSTANDS YOUR HOME OWNERSHIP NEEDS Just as your accountant, doctor, and mechanic understand your specific needs, your Buyer s Agent understands your real estate needs and concerns. And they achieve this type of understanding through open communication at all times. Your Buyer s Agent will save you a lot of time by providing you the needed details about a potentially interesting home before you see it. In addition, your Buyer s Agent will listen to your feedback and concerns about each home. YOU WILL GET THE HOME YOU WANT WITH AS LITTLE HASSLE AS POSSIBLE The advantage of signing a Buyer s Agency Agreement is that you will have a professional agent working to find and secure the ideal home for you. It is nearly impossible to find a home that meets your exact needs, get a contract negotiated, and close the transaction without an experienced agent. You won t need to spend endless evenings and weekends driving around looking for homes or trying to search websites by yourself. When you tour homes with your professional Buyer s Agent, you will already know that the homes meet your criteria and are within your price range. BEST OF ALL, THE BUYER S AGENCY AGREEMENT IS USUALLY FREE OF CHARGE Entering into a Buyer s Agency Agreement has countless advantages. When you sign the agreement, you are simply agreeing to hire a personal representative who, by law, must represent your best interests to the best of his or her ability. All of this personal service is generally available at absolutely NO COST TO YOU! In many states and provinces, the Seller s Agent is responsible for paying your Buyer s Agent fee. So, you get a professional agent devoted to protecting your needs and to helping you make one of the most important investment decisions of your life, and usually for free.

10 Step 3: S ecure Financing 6 Steps to financing a home Choose a loan officer (or mortgage specialist). Make a loan application and get preapproved. Determine what you want to pay and select a loan option. Submit to the lender an accepted purchase offer contract. Get an appraisal and title commitment. Obtain funding at closing. Prequalification vs. Preapproval Prequalification is simply a rough estimate of how much you can borrow. Preapproval involves a formal application process and provides you with a formal commitment from a lender stating how much you can borrow and at what rate.

11 How much home can you afford? Use the chart below to determine your monthly principal and interest payments at various interest rates for either a 15- or 30-year term. Interest Rates INTEREST RATE FACTORS PER $1,000 Term 15 Years Term 30 Years Interest Rate Term 15 Years Term 30 Years Find the appropriate interest rate from the chart above. 2. Look across the column to the appropriate term to determine your interest rate factor. 3. Multiply the interest rate factor by your loan amount in $1,000s. Interest Rate = 6.25 AN EXAMPLE Desired term = 15 years Interest rate factor per $1,000 = 8.57 Mortgage = $200,000 Monthly Principal & Interest = $1,714 (8.57 x 200) REMEMBER: Be sure to add your monthly insurance premium and your property tax to your principal and interest to determine your total monthly payment. NOTE: These figures represent mere estimates. We strongly recommend that you talk with a reputable mortgage specialist to determine the actual amount you will pay each month in principal, interest, taxes and insurance (PITI).

12 Step 3: S ecure Financing LOAN APPLICATION CHECKLIST General: Picture ID with Social Security Number Payment to cover application fee. Name and complete address of all landlords (past 2 years). Income: Employment history, including names, addresses, phone numbers, and length of time with that company (past 2 years). Copies of your most recent pay stubs and W-2 form (past 2 years). Verification of other income (social security, child support, retirement). If you are self-employed: Copies of signed tax returns including all schedules (past 2 years), and a signed profit and loss statement for the current year. If you are retired: tax returns (past 2 years). If you have rental property income: Copies of all lease agreements. Assets: Copies of all bank statements from checking/savings accounts (past three months). Copies of all stock/bond certificates and/or past statements/retirement accounts. Prepare a list of major household items and their values. Copies of title documents for all automobiles, boats, or motorcycles. Face amount, monthly premiums, and cash values of all life insurance policies (Cash value may be used for closing costs or down payments. You need documentation from the carrier indicating cash value). Creditors: Credit cards (account numbers, current balances, and monthly payments). Installment loans (car, student, etc.) Same details as for credit cards. Mortgage loans (property address, lender with address, account numbers monthly payment and balance owed on all properties presently owned or sold within the last 2 years). Bring proof of sale for properties sold. Childcare expense/support (name, address, phone number). Other: Bankruptcy bring discharge and schedule of creditors. Adverse credit bring letters of explanation. Divorce bring your Divorce Decrees, property settlements, quitclaim deeds, modifications, etc. VA only bring Form DD214 and Certificate of Eligibility. Retirees bring retirement and/or Social Security Award Letter.

13 Step 4: Find your home First, define your home criteria analyze your values, needs, and wants. SPG will help you to understand the rules of your market. When viewing a home, what you consider and what your agent considers are different. You ll want to look for Layout, space, a sense of value, convenience of location to work and schools, and features and amenities. Your agent will look for How the home compares in terms of size, layout, and value to other homes in the area, as well as maintenance and structural concerns.

14 The Road MapTo Your Home Narrowing the search If you don t know where you re going you ll probably end up somewhere else. Taken from a book title, this quote conveys a very simple message: To achieve an objective, create a plan! If you plan to buy a home soon, you will need to know where you are going. For a most enjoyable home-buying experience, first build a road map to your new home, a list of priorities that will lead you to your objective a new home! The first priority is time frame. Write down the date by which you would like to move in to your new home: Keep in mind that it may take days (or more) to locate the right home, secure financing, and complete the home-buying process. The next priority is to develop a detailed description of the home you hope to find. The following page contains a Home Search Criteria form to help you distinguish between Need to Have features and Want to Have features. Be specific. Include architectural style, number of bedrooms and baths, location, lot size, and other special requirements. Number your preferences in order of greatest importance to you. This form, along with the information you share during your initial consultation, will enable your real estate agent to narrow your home search. He or she will take this information and enter your requirements into the Multiple Listing Service (MLS) system, and then use personal market knowledge to come up with a list of homes that best meet your needs and wants. During the home search, your real estate agent will: Discuss the benefits and drawbacks of each home in relation to your specific needs. Keep you informed on a regular basis. Check the MLS database and talk with other brokers regularly for new listings. Prepare a list of all homes that best meet your needs and wants. Keep you up to date on changing financial conditions that may affect the housing marketing. Be available to answer your questions or offer assistance regarding your home purchase. Discuss market trends and values relative to properties that interest you.

15

16 HOME TOUR Property Address: PROPERTY COMMENTS EXTERIOR COMMENTS View Foundation Lot Size Roof Landscaping Architectural Style Square Footage Deck/Patio INTERIOR Number of Bedrooms COMMENTS Swimming Pool Garage Number of Bathrooms General Exterior Condition Living Room Kitchen LOCATION Convenience to Work COMMENTS Dining Room Convenience to Shopping Family Room Convenience to Schools Study Convenience to Day Care Fireplace(s) Openness of Home General Interior Condition Basement Nearby Recreational Facilities General Appearance of Houses in the Area House Value Relative to the Area Other ADDITIONAL NOTES:

22 Step 5: Make an Offer What s a fair price? Three components of an offer: Price offer must reflect true market value of the home. Terms six basic categories address timing and financial considerations. Contingencies often referred to as conditions that allow you to opt out of a deal if the home has a problem (financing, insurance and inspections)

23 Step 6: P erform Due Diligence Property inspection exposes any structural or hidden issues. Home owner s insurance policy protects against loss or damage. The Big Stuff In your inspection, it s the BIG stuff that really matters. Warranted Systems Unwarranted Systems As Is WDO

24 Step 7: C lose Pre-closing responsibilities include: Appraisal, survey, title search, and title insurance. Keeping yourself mortgage worthy!!!! Doing a final walk-through of home and re-inspect. Countdown to closing includes: Getting your settlement statement, certified funds, evidence of insurance, and transfer of clear title.

25 Call Jaden today to see how she can help get you into a new home! or visit SeacoastPropertyGroup.com

26 Step 8: Protect your Investment Two keys to good home habits: 1. Keep it clean. Perform routine maintenance on your home s systems, depending on their age and style. 2. Keep an eye on it. Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later. Purchase a yearly home warranty Tip: Keep a file of receipts for your repairs.

27 Step 8: Protect your Investment Download the HomeKeepr app and get instant access to a list of Seacoast vendors and services built up from my personal contacts in the Real Estate industry and those of my fellow agents at Keller Williams Coastal Realty. GET STARTED or visit

28 Bonus! Win $10 Gift Cards for being on our mailing list & following on social media! CLICK IF YOU LOVE FREE GIFT CARDS If you know someone who is buying or selling a house, please give me a call. I love referrals!

29 Download the KW App DOWNLOAD THE KW APP AND START YOUR HOUSE HUNTING