YOUR SMART HOME BUYING STRATEGY

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1 YOUR SMART HOME BUYING STRATEGY Move Confidently With RXU Real Estate Experts Prepared for: sdsd ViewJaxHomes.com 4 6RXWKVLGH %OYG 6XLWH Jacksonville, FL Independently Owned and Operated. Steven Croy Broker 2ZQHU 5($/725 6WHYHQ#5HHO.HHSHU FRP Nancy Kuhn 2IILFH $GPLQ &ORVLQJ 1DQF\#5HHO.HHSHU FRP Nury Cunha 5($/725 Hablo Español XU\#5HHO.HHSHU FRP Leslie Montour Showing Agent Leslie@KerbyandCristina.com Mark Beamenderfer 5($/ Mark#5HHO.HHSHU FRP Krista Holen Showing Agent Krista@KerbyandCristina.com Julie Neeld 5($/ Julie#5HHO.HHSHU FRP Kimberly Streich Showing Agent Kimberly@KerbyandCristina.com Justin Croy 5($/725 -XVWLQ#5HHO.HHSHU FRP Kyla Ammon Showing Agent Kyla@KerbyandCristina.com Jessica Wilson 5($/725 -HVVLFD#5HHO.HHSHU FRP Christine Westlund Showing Agent (RSS) Christine@KerbyandCristina.com

2 Your Home Buying Road Map Find One Realtor You Can Trust Strategic Home Buyer Consultation Set Up Your Search View Your Favorites Find Your Home! Mortgage Application Obtain Your Pre-Approval Letter Market Analysis Write Your Offer Negotiations & Counter Offers Offer Accepted Earnest Money Inspections Appraisal Utilities in Your Name Final Underwriting Final Walk Through Title Work Close on Your Home Insurance Get Your Keys This is a road map of what the typical home buying process looks like. Our home buyer guide includes more detailed information about each step. 5HHO.HHSHU 5HDOW\ Home Buyer Guide

3 Your Starts Here Every decision in a real estate transaction could save or cost home buyers $10s of $1,000s of dollars in unnecessary expenses. Steps in Your Home Buying Process: 1. Expert Advice to Setting Your 2. Funding Your Dream 3. Selecting Your Home 4. Negotiating Your Terms 5. Protecting Your Home 6. on Your Home 7. & Lifetime Resource

4 1. Expert Advice to Setting Your Smart Home Buying Determine timing & motivation Evaluate needs & wants Out-of-pocket expenses needs & pre-approval Neighborhood & lifestyle Quality of life Set expectations according to market Customized plan Market Intelligence Economic indicators Trends analysis Interest rates Loan programs and qualifications Real estate cycles Seasonal advantages Local market conditions Micro markets National market conditions Absorption analysis Inventory of corporate owned homes Inventory of short sales Inventory of foreclosures Inventory of vacant homes Rental housing vacancy rates Builder confidence Shadow inventory Inventory fluctuation Rent vs buy trends Market stability Knowledge of co-op agents negotiation strategy Knowledge of mortgage options Knowledge of insider deals Knowledge of appreciation rates Knowledge of inventory Number of Homes Sold Per Year Goal Kerby & Cristina Real Estate Experts Over900 HOMES 10 a year Avg. Agent

5 2. Funding Your Dream Trusted Lenders Best rate & terms Close on time No surprises Over deliver vs. Over promise Gets documents on time to the title company Decisions on Cost 15 year vs 30 year mortgage Long term hold Short term hold Buy first or sell first Rental property 13th payment How much can you afford? Key factors to consider: The down payment The interest rate Down payment requirements Your debt-to-income ratio The closing costs associated with the transaction LOAN TYPE DOWN PAYMENT CONVENTIONAL 5%+ FHA 3.5% DOWN PAYMENT ASSISTANCE* $1,000+ VA 0% FHA 203k 3.5% DETAILS You can put as little as 5% down and as much as you want. Generally, you put less than 20% down, you may have to pay some mortgage insurance. The lowest traditional down payment program; there is additional mortgage insurance for the life of the loan. A program for people who qualify with credit and income but do not have enough savings for a down payment. A special program for military buyers that allows them to put almost nothing down toward the purchase. A special product that allows you to wrap into your mortgage the costs of repairs or improvements to the home you buy. *There are many down payment assistance programs available through our trusted vendors, just ask us for more information to find out if you qualify. Note: More financial information in Packet 2: A Deeper Dive.

6 3. Selecting Your Home Traditional Sale Most common Best condition Reflect market value for the neighborhood Seller is not upside down on their mortgage Response to an offer is generally within 24 hours Transaction process completed within days New Construction Sale Brand new homes, built to your tastes Warrantied Less expensive to maintain Great for buyers who know exactly what they want Already built, in the process, or from scratch Think about location for cost per sq. ft (some school districts demand a premium) Transaction process varies, typically 4-6 months unless already built Bank Owned Sale Bank owns the home 2 party transaction, 1. Buyer 2. Bank Priced below a comparably sized traditional sale Home almost always sold As Is Best financing: cash, conventional or FHA 203k Response to an offer within 24 hours to 5 days Transaction process completed within days Bank will require a closing within 45 days Short Sale Selling for less than what is owed to the bank 3 party transaction, 1. Seller, 2. Buyer 3. Bank Bank has to agree to the accepted offer Bank sends out a 3rd party to value the property Bank will accept, counter, or reject an offer Response to an offer can be up to days Can be great deals, but wait time involved for all parties can be extreme and very hard on a buyer wanting to purchase quickly Transaction process varies, typically 4+ months Note: More information on types of home sales in Packet 2: A Deeper Dive.

7 4. Negotiating Your Terms Once we ve found the home you wish to purchase, you ll need to determine what offer you are willing to make on the home. After all, you are the one making the payments! Making an Offer Pre-approval in hand Type of financing Sales price Comparable market analysis (comps) Earnest money Home warranty Inspection repair costs Seller s purchase price pre-tax records Property tax assessment review Walk away leverage Multiple Offer Dear Seller letter Zero repair allowance Increased earnest money date Costs - these are approximate amounts & some may not apply Prepaid Insurance (~ $600 - $2000) Prepaid Taxes (up to 6 months) Prepaid Home Owners Association Fees (when applicable) Mortgage Origination Fee (< $1000) Appraisal Fee (~ $450) Title Fees (< $1000) Other Fees (< $1000) You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the closing, unless you are able to include them in your financing. Typically, total closing costs will range between 3-5% of your mortgage amount. In today s market, it is common for the seller to pay around 3% of the mortgage amount toward your closing costs; this is called "Seller Concession" or Seller s contribution to your closing costs. (Example below) $200,000 - $6,000 = $194,000 Your Offer (The total amount of your purchase price) Seller s Contributions (The amount of your closing costs you ask the seller to pay for you) Net Offer (The final amount the seller is actually receiving, viewed as your actual offer)

8 5. Protecting Your Home Home Inspection - We have our trusted partners, but you have your choice We highly recommend you have a Certified Home Inspector conduct a thorough inspection. The inspection is to eliminate potential surprises to the buyer. Your home cannot pass or fail an inspection. The inspector s job is to report on major damage or serious problems that require repair and make you aware of repairs that are recommended or necessary. The Inspection will include: Appliances Plumbing Electrical Heating and Air Conditioning Roof and Attic (if accessible) Foundation General Structure WDO Inspections are recommended - There are ONLY 3 types of homes in Florida. WDO = Wood Destroying Organism Thermal imaging can reveal issues unseen in a standard visual home inspection. The seller may be willing to negotiate completion of repairs or a credit for completion of repairs, or you may decide that the home will take too much work and money, and cancel the offer. Your inspection is a contingency to the purchase agreement and is usually a 10 calendar day period. Home Warranty - We usually partner with First American Home Warranty Corp. Previously-Owned Home Warranties When you purchase an existing home, you can purchase warranties that will protect you against most ordinary flaws and breakdowns in major mechanicals and appliances for at least the first year you own the home. The warranty may be offered by or negotiated with the seller, or can be purchased by you, the buyer. New Construction Home Warranties When you purchase a newly-built home in the State of Florida, the builder normally offers a full home warranty on things such as the quality of design, materials, and workmanship. 1 year on defects caused by faulty workmanship and defective materials 2 years on defects caused by faulty installation of plumbing, electrical, heating and cooling systems 10 years free from construction defects due to noncompliance with building standards Note: More information on inspection costs in Packet 2: A Deeper Dive.

9 6. on Your Home Home Owner s Insurance Highly competitive rates Impacts your monthly payment Title Company / Company Quality management of process Manage all parties in transaction Leverage for getting problems resolved on time Protecting your interests Transferring ownership of property to you The Final Details All documents to lender in timely manner Appraisal Lender repairs Transfer of utilities The Who will be there? You, the buyer(s) Seller(s) Buyer s Agent Listing Agent Closer, the party representing the title company Occasionally, your mortgage officer What will you need? Bring valid government-issued photo ID Bring a cashier s check for your cash to close (your mortgage officer will tell you the amount prior to closing) What is expected from you at the closing? If financing the property, your lender will require you to sign a document, called a promissory note, as evidence that you are personally responsible for repaying the loan. An escrow account will be set up for you at this time to pay any expenses incurred on the property (taxes, assessments, insurance, etc.). You will also sign all title and deed documents putting you as the official homeowner! Note: Buyer s agent commission is paid at closing once we find you the right home. Our win is your win! More information on closing details in Packet 2: A Deeper Dive.

10 7. & Lifetime Resource Trusted Contractors Handymen Cleaning companies Carpet cleaning Exterior maintenance Painting & remodeling Siding/Windows/Decks Etc. On-going Real Estate Support Post closing questions Updated market information Helping your friends and family Reel Keeper Perks Club 'Charity of Choice' Donation (at ) Thanksgiving Turkey Drawing (5 WINNERS each year) Notary Public Services Mission To give our clients and team members the freedom to build a big vision and empower them to achieve their goals. Dream To build the most trusted and referable real estate organization in North East Florida, consistently delivering exceptional results with the highest customer experience through our expert team and innovative systems. Core Commitments Go above and beyond Do what you say you will do Deliver prompt communication Build lasting relationships Never problems, only solutions

11 Independently Owned and Operated.