CharlotteHomeZone.com

Transcription

1 CharlotteHomeZoe.com Stephe Scott Broker/Realtor cell fax

2 Alle Tate Compay Alle Tate, Jr. started a small real estate ad isurace compay i Charlotte, N.C. more tha 50 years ago. He had a visio ad goal of exceedig customers every expectatio. Sice the, the compay has expaded with locatios from Raleigh, N.C. to the Upstate S.C. regio. This legedary customer service cotiues ad thrives today. We offer customers a array of real estate services with the Alle Tate Family of Compaies; the area s leadig real estate website, alletate.com; ad of course, my persoal commitmet to helpig you fid the home of your dreams.

3 Talk to Tate Sice 1957, people have bee talkig to Tate. For more tha 55 years, Alle Tate Compay has bee providig people across the Carolias the persoal real estate couselig they eed to make smart homeowership decisios. Alle Tate Compay offers a full service approach to real estate that exteds beyod the day of closig, icludig isurace, mortgage, relocatio ad home services. It s this service ad market kowledge that has grow the compay ito oe of the atio s Top 10 idepedet real estate firms. It all started i 1957 whe Alle Tate, Jr. took the advice of his father ad started a small busiess i the growig city of Charlotte. Tate s visio lead him to helpig develop the surroudig Charlotte area ito the flourishig regio it is today. The Alle Tate Compay grew from a office with eight sales agets i 1975 to more tha 35 eighborhood offices throughout the Carolias. There are may reasos why buyers ad sellers throughout the Carolias talk to Tate whe it comes to their real estate eeds. Let s talk about just a few: We re i your eighborhood. We re i more offices i more eighborhoods across the Carolias to better serve our customers. Whe you talk to Tate, you re talkig with a expert i your local market. We offer choices. May Realtors say they are full service, but they do t always offer the rage of choices we do. Whe you talk to Tate, you re talkig with a expert i mortgage, isurace ad home services who will seek competitive solutios to your real estate eeds. We re idepedet ad locally owed. We pride ourselves o beig idepedet. Whe you talk to Tate, you ll experiece a whole ew level of service. Our associates are more empowered because they are backed by leadership that is local ad ca respod with resources that matter most to homebuyers ad sellers. Whe you talk to Tate, you are talkig to a team committed to exceedig your expectatios. We re committed to commuity. The commuities we serve are more tha just places of busiess; they re eighborhoods we call home. Alle Tate Compay is committed to givig back to our local commuities through the Tate Cares program, which beefits public educatio, arts ad cultural orgaizatios ad Uited Way agecies ad make a sigificat impact o our quality of life. We kow luxury homes. We market more exceptioal properties tha ay other firm i the Carolias. Whe you talk to Tate, you ll discover our luxury marketig program icludes local, regioal, atioal ad iteratioal exposure. We kow the busiess. I a ever-chagig market, it is essetial that you are represeted by the most kowledgeable aget possible. Alle Tate Realtors have the market data ad tools to esure that your real estate trasactio is as successful as possible. We kow exposure. No other real estate compay offers your home the exposure we do. Whe you talk to Tate, you are positioig your home to buyers 24/7 o alletate. com ad hudreds of other broker sites. We ca help you reach customers locally, regioally, atioally ad iteratioally by the millios. We re global. Listig your home with Alle Tate Realtors is listig your home to buyers from aroud the world. As a foudig member of Leadig Real Estate Compaies of the World, we re proud of the global coectio we ca offer. Our etwork outsells ay other real estate frachise. Whe you talk to Tate, you are talkig to the world.

4 Locatios With more locatios throughout the Carolias, Alle Tate has a vast etwork of qualified, highly professioal Realtors, all workig to help you fid your perfect home. Offices coveietly located throughout North ad South Carolia All Alle Tate Realtors share resources ad iformatio about listigs o the market. More tha 22 percet of properties listed by a Alle Tate aget are also sold by a Alle Tate aget! 08/16/13 Buyers Kit

5 Family of Compaies Alle Tate Compay offers you the coveiece of Oe-Stop-Shoppig for all of your real estate eeds. Here are just a few of the services you ca take advatage of through the Alle Tate Family of Compaies: Complimetary, o-obligatio pre-qualificatio for mortgages I-house mortgage ad isurace cosultats Isurace coverage for homes, cars, persoal property, life ad busiess Free, competitive isurace quotes from a choice of top isurace carriers Hadyma services for movig ito or out of a home Ad much more Our service to you cotiues log after you move i. Cout o our family to be at your side to: Refiace your mortgage Remodel your home Reew your homeower s Isurace Repair if thigs break Alle Tate Mortgage NMLS# Loas available i NC/SC 05/20/14 Buyers Kit

6 Buyer s Represetatio Eve though buyer s represetatio is ow largely available to home buyers across the coutry, it was t always so. Real estate agets oce were required to get the highest price ad best terms possible for the seller. Now, that has chaged, ad as your represetative, I promise to protect your iterests, from the iitial selectio of properties, to the cotract egotiatios, to the closig table. I have access to the same facts as a listig aget, icludig: Marketig history of property i MLS Comparable properties Actual sellig prices As your buyer s represetative, I will help you access the iformatio you eed to make a iformed decisio durig the buyig process.

7 Why Buy Now 3 The top reasos to buy a home ow 1. Iterest rates are historically low. 2. Sellers are motivated. 3. Fiacig is available.

8 Buyig Your First Home Let me assist you i determiig what you wat ad what you eed i your first home. Get pre-qualified/pre-approved so you will kow the rage of homes you qualify for ahead of time ad avoid uecessary frustratio. Start the home-buyig process early ad uderstad the parameters of your curret lease (the amout of otice you must give) ad back out lead times to esure you allow eough time for the process. Challege yourself to keep a ope mid about the type of home you may purchase. Codo vs. sigle family home look at the differet optios available ad do t discout oe over the other (e.g. I would t live i a attached home. ). The reality is the appreciatio of the attached home may be greater ad may help you reach your goal of a log term dream home faster. Make sure the home has a warraty. A first-time homebuyer does t eed surprises. If a warraty is ot provided, buy oe. Our 2-10 Home Buyers Warraty is available to give you peace of mid. Kow the history of the area you are cosiderig. I will do a aalysis of the eighborhood ad the appreciatio of homes there. 05/30/13 Buyers Kit

9 Step by Step Guide to Buyig a Home How I will help you through the home-search ad buyig process: Help you uderstad terms used i buyig a home. Get pre-approved for a loa, ad arrage for fiacig. I ca make suggestios ad refer you to a Alle Tate Mortgage Cosultat. Help you to determie what you wat ad what you ca afford. Search extesive Realtor databases for properties to preview ad provide expert iformatio o commuities, eighborhoods ad beefits of each previewed home. Cout o my expertise to help complete a offer i writig. Preset the offer ad egotiate o your behalf. Help you through the process of the home ispectio, termite ispectio ad survey Make sure the leder orders the appraisal ad will cofirm the property value with the appraiser oce the appraisal is completed. Offer you suggestios or refer you to Alle Tate Isurace to review homeower s isurace optios. Assist you i choosig a real estate attorey to hadle the closig. The attorey will complete a title search ad provide title isurace. Schedule your closig at a coveiet time for all parties. Review your closig statemet with you. Istruct/advise you o the fuds eeded for closig. Together, we will go to the closig ad sig all required documets.

10 Your Property Wish List While your opiios may chage durig the home-buyig process, this easy checklist will help you prioritize ad make the selectio process easier. How close do you eed to be to the followig: Work Schools Neighborhood shoppig Public trasportatio Family Other What school systems do you wat? Do you wat a oe-story or two-story house? What age of home would you cosider? What eighborhoods would you prefer? What ameities should the eighborhood offer? Do you require a feced yard or other ameities for your pets? Do you have special facilities or eeds that your home must meet? How much repair or reovatio would you be willig to do?

11 Your Property Wish List Prioritize each of these optios Must Have Would Prefer Lot size (at least ) Garage (size ) Number of Bedrooms Number of Bathrooms Family room/de Formal livig room Formal diig room Eat-i kitche Hardwood floors Tile/ceramic/graite Fireplace Basemet Patio/deck Pool View Light (widows) Shade

12 alletate.com Alletate.com provides: Search tools that fit your eeds. Alletate.com is kow for its easy-to-use search fuctios that allows you to search by address, MLS umber, price, eighborhood, map, my persoal web page, First to Kow otificatios ad TateMap. Up-to-date iformatio from across the Carolias. More iformatio. Resources. Alletate.com is home to every listig i our footprit (ot just Alle Tate listigs), with iformatio that is updated hourly. With alletate.com you ca be sure that you ve see all of your optios. You ca access property listig details, photos, descriptios, commuity profiles, school iformatio ad locator maps o alletate.com. Whether you re lookig to get a mortgage, researchig isurace optios, buyig your first home or relocatig, alletate.com is your source for homeowership iformatio. alletate.com All listigs with accurate hourly updates. 5/9/14 Buyers Kit

13 alletate.com Tools Alletate.com features tools to help you locate, view ad get to kow more tha 100,000 properties updated hourly. Market Report Mothly customized report icludig complete details ad color photos of active ad sold properties o alletate.com, market treds ad map search. Carolias Market Update Short, iformative video every other moth from Alle Tate Presidet Pat Riley o real estate activity ad treds i the Carolias. Market Treds Mothly video sapshot of real estate activity for a specific area; features market data ad statistics from local MLS. 1st to Kow Exclusive program otifies you whe homes meetig your criteria come o the market. TateMap Exclusive olie iteractive map lets you avigate to ay property o alletate.com. Recet sales (where available) to help you uderstad market activity ad pricig. Commuity Profile tatemobile Commuity Profile Provides Zip Code area iformatio icludig cost of livig, populatio, housig ivetory ad educatioal iformatio icludig test scores. TateMobile Dowload free apps for iphoe, ipad ad Adroid from Apple App Store ad Google Play Store. Search for Alle Tate. TateMap for ipad available at alletate.com/ipad. 3 07/17/13 Buyers Kit

14 TateMobile TateMobile is Alle Tate Compay s mobile website ad mobile applicatios to help you locate ad view more tha 100,000 property listigs o alletate.com. Access properties throughout the Carolias aywhere from your mobile device ot just Alle Tate listigs. Updated daily, directly from the local MLS. Search for properties by street ame, subdivisio, MLS umber, property type, price rage, bedrooms, baths ad ope houses. Use Keyword Search to search for multiple features such as laudry room, garage or corer lot or exclude certai features. Use Map Search Optio to search geographically. Get drivig directios. Save searches ad favorites ad share your favorite properties. Claim me as your Alle Tate aget for easy cotact. Visit the mobile website at m.alletate.com or sca the QR codes below to dowload mobile apps. iphoe/ipad Adroid 07/17/13 Buyers Kit

15 What Makes a Good Offer to Purchase? A good offer : Is based o a realistic offerig price Cotais a earest moey deposit Has realistic fiacig terms Icludes a copy of your pre-approval letter from a leder

16 NC Offer to Purchase ad Cotract What Buyers Need to Kow (NCAR Stadard Form 2-T) The offer to purchase ad cotract is the rule book. Whe sellers ad buyers sig, they are agreeig to follow the rules. The goal of the cotract is to share measured risk betwee the buyer ad seller. Durig differet periods of the cotract the risk will shift from oe party to the other. The due diligece period is a opportuity for the buyer to ivestigate the property ad the trasactio cotemplated by the cotract ad to determie, i buyer s sole discretio, whether or ot to termiate or proceed with the trasactio. A due diligece fee may be paid to the seller by the buyer as compesatio for the buyer s right to coduct due diligece durig the due diligece period. The fee is paid directly to the seller. The amout of the fee ad the legth of the period are egotiable. Before Cotract: Buyer Obligatios: 1. Meet with mortgage cosultat to get pre-approved 2. Carefully cotemplate the amout of time ecessary to complete all aticipated due diligece After Cotract: Durig due diligece period Buyer Resposibilities: 1. Coduct due diligece (refer to the ATC Property Due Diligece Process documet) 2. Hire closig attorey ad prepare for settlemet 3. Make arragemets for home ower s isurace 4. Appraisal of property 5. Fialize loa approval 6. Timely otify seller i writig by 5 pm o due diligece date (time is of the essece) if buyer wishes to uilaterally termiate the cotract Betwee due diligece date ad settlemet date Buyer Resposibilities: 1. Make arragemets for trasfer of utilities 2. Make arragemets for fuds eeded for closig 3. Walk through of property prior to closig Remedies durig Due Diligece Period: Buyer termiatio Buyer ca uilaterally termiate for ay reaso or o reaso prior to 5pm o due diligece date. If buyer termiates, due diligece fee remais with seller ad earest moey deposit (EMD) is retured to buyer Seller breach If the seller materially breaches & buyer termiates, buyer is etitled to a refud of the EMD, due diligece fee, ad reimbursemet of reasoable costs icurred by buyer s due diligece Reasos: Buyers icur costs i aticipatio of purchasig the property ad should be etitled to recover sums expeded i good faith. Sellers are ot likely to icur such prelimiary expeses. Remedies after Due Diligece Period: Buyer breach Seller receives earest moey deposit (EMD) ad due diligece fee as the oly compesatio Seller breach If the seller materially breaches & buyer termiates, buyer is etitled to a refud of the EMD, due diligece fee, ad reimbursemet of reasoable costs icurred by buyer s due diligece Reasos: The courts rarely grat specific performace agaist buyers because there are too may variables that ifluece a buyer s ability to close that may ot be withi the buyer s cotrol (loa, appraisal, etc). The seller oly has to sig a geeral warraty deed i order to close, ad the property is uique ad may ot be readily replaceable for the buyer.

17 Fiacig ad Due Diligece What Buyers Need to Kow I usig the NC offer to purchase ad cotract (NCAR Stadard Form 2-T), you will be determiig a due diligece date. The buyer s ability to secure fiacig for the purchase ad the property appraisal are part of the buyer s due diligece ad should be completed prior to the expiratio of the due diligece date whe possible. Buyers ad buyer s agets are ecouraged to meet with their mortgage cosultat prior to makig a offer. Here is a list of some fiacial cosideratios that will affect the amout of time eeded to get loa approval: Fiacig Cosideratios ad Due Diligece 1. Is the appraisal completed ad reviewed by uderwriter? (Note: FHA/VA appraisals are ot tied to the due diligece period. The FHA/VA Fiacig Addedum (NCAR Stadard Form 2A4-T) cotais a federal Amedatory Clause that supersedes the provisios of the NCAR due diligece cotract ad would etitle the buyer to a refud of a earest moey deposit uder certai circumstaces.) 2. Is it goig to be difficult to fid comparable properties for the appraisal? 3. Are you applyig for a USDA, or State Bod Loa program (NC or SC), which require outside fial review by that agecy? 4. Will there be first ad secod mortgage applicatios? 5. Is the property beig cosidered a short sale or foreclosure? 6. Are you self-employed or usig co-sigers which makes for a more complicated fiacial picture? 7. Are the debt-to-icome ratios close to qualificatio levels? 8. Are there ay possible credit issues? Additioally, the followig requiremets for leders could delay the mortgage approval timig: 1. Verificatios of employmet or ret T (Tax trascripts verified by the IRS) 3. Credit pulled agai withi 5 days of closig, if ew debt or deliquecies occur 4. Re-disclosure requiremets which may delay closig by 3 busiess days It takes o average 3-5 days for the mortgage cosultat i today s eviromet to collect the required documetatio to submit a ew loa applicatio. The idustry average time to close a loa is ow at least 30 days. Iformatio provided by Alle Tate Mortgage. Alle Tate Mortgage NMLS# Loas available i NC/SC 05/20/14 Buyers Kit

18 Your Home Mortgage Before you begi lookig for a ew home, there are a few thigs you should kow about mortgage loas ad leder requiremets. Follow these easy steps ad whe you fid the right home, Alle Tate Mortgage will have the right mortgage for you. Check your credit Uderstadig your credit history ad score is the most importat first step i the home buyig process. A short telephoe call to oe of our trusted mortgage advisors to review your credit will save you valuable time ad moey. You will eed to kow how credit scores affect your ability to borrow moey ad what rates ad terms are available to you. Kow the differeces betwee Pre-Qualificatio ad Pre-Approval The terms soud like they mea the same thig but they do ot. A pre-qualificatio ivolves sharig iformatio with your leder regardig your employmet, icome, assets ad credit. Typically a credit report is pulled as oted i step oe. Documetatio to support what has bee verbally discussed is ot provided. This will give you a geeral idea of your price rage ad fiacig terms. A pre-approval ivolves makig a full loa applicatio with out a cotract o a property. This icludes providig full documetatio of icome ad assets ad havig it reviewed by a uderwriter. Meet with your Trusted Mortgage Advisor Prepare ahead for your mortgage appoitmet ad cosider your lifestyle ad mothly expeses so you ca budget accordigly. Gather the followig iformatio ad documets together: Complete residecy history to cover the most recet two years (icludig ladlord cotact iformatio). Names/addresses/phoe umbers for all employers for the most recet two years. Copies of your siged federal tax returs for the most recet two years alog with W2 s ad most recet YTD pay stub. Most recet two cosecutive moth s of bak statemets (all pages) for all bak accouts icludig IRA, 401-K retiremet accouts Your Alle Tate Mortgage cosultat will review everythig ad discuss all possible rate ad loa term optios available to meet your specific eeds. For more iformatio about Alle Tate Mortgage visit mortgage.alletate.com Alle Tate Mortgage NMLS# Loas available i NC/SC 05/20/14 Buyers Kit

19 Mortgage Services Alle Tate Mortgage Services is desiged to make your home fiacig process as simple as possible. Professioal mortgage cosultats have extesive kowledge of mortgage ledig ad wat to make the process of buyig a ew home stress free. We work with you to idetify your eeds, recogize the actios eeded for the process ad take resposibility for solvig ay problems alog the way. We offer: Complimetary, o obligatio pre-qualificatio ad pre-approval. I-house processig, uderwritig ad closig Covetioal ad govermet fiacig icludig FHA & VA Variety of mortgage products icludig 15 ad 30 year fixed-rate ad adjustable-rate alteratives For more iformatio about Alle Tate Mortgage visit mortgage.alletate.com Alle Tate Mortgage NMLS# Loas available i NC/SC 05/20/14 Buyers Kit

20 Be a Prepared Buyer Fiacig your home i a Seller s Market Whe the ivetory of available homes is less tha 4 moths, as it is today, the real estate market is defied as a Seller s Market. This dyamic, where the seller is i a more favorable positio, may impact buyers who pla to fiace their home purchase. The most importat thig buyers eed to kow is to be prepared ahead of time. Here s how: Get your paperwork together Leders today have strict guidelies for fiacial documetatio. At a miimum, you will eed proof of icome (see below); last 2 years of Form W-2; last 2 years of Federal tax returs; last 2 moths of bak statemets for all asset accouts; employmet history ad residecy history. I additio, you should be prepared with explaatios of ay ew credit iquiries ad ay derogatory credit activity, o matter how log ago it occurred. Proof of icome varies by how you ear your moey: Salaried employee: Last 30 days of your pay stub ad the last 2 years of Form W-2. Hourly employee: Documetatio of hourly work history ad/or writte verificatio of your guarateed work hours from your employer. Self-employed: Must be self-employed for at least 2 years ad provide last 2 years of Federal tax returs (both persoal ad busiess) Cotract employee: If you receive Form 1099 istead of Form W-2, you will eed documetatio of two years of history workig i the cotract positio. Commissio/Bous: Must documet icome received durig the past 2 years by providig Federal tax returs. Note that your icome for this period will be averaged ad ay busiess expeses will be deducted. Review your credit report Your leder will obtai your credit score from three reportig bureaus (Equifax, Experia ad TrasUio). The middle score will be used to determie your eligibility for loa programs ad the iterest rate you will qualify for. It is a good practice to check your credit report for errors by requestig a copy oce a year for o charge from Uderstad your bak statemets Be prepared to discuss ay o-payroll deposits ad provide documetatio of where these fuds came from. If you have received ay o-sufficiet fuds (NSF) otices, these could egative impact your loa applicatio whe the uderwriter reviews it. Get pre-approved A loa pre-approval will provide you with fiacial peace of mid prior to searchig for your home ad will allow you to look more favorable i the eyes of a seller. Ulike a prequalificatio, a pre-approval requires a full loa applicatio ad documetatio, but is reviewed ad approved by a uderwriter, ot just a loa officer. It may also reduce the time it takes from cotract to closig your loa. Your Alle Tate Mortgage Cosultat ca aswer your questios ad help you get started. If you have a uique situatio that affects your fiaces, such as a divorce or relocatio, write a letter explaiig your situatio before you sit dow with your leder. Alle Tate Mortgage NMLS# Loas available i NC/SC 05/20/14 Buyers Kit

21 Isurace Services Oce you ve foud the right home, Alle Tate Isurace offers comprehesive ad affordable isurace services for your home, your car ad your life. We parter with top atioal ad local isurace providers to offer competitive rates ad outstadig service. Our elite group of carriers icludes: We re experieced i hadlig real estate closigs ad will coordiate your isurace package to esure a smooth closig for your ew home. Package discouts for home ad auto policies ca lower your rates up to 15 percet.

22 homeservices.alletate.com After your home search is over ad the boxes are upacked, we re at your side to help you keep your home i top coditio. Alle Tate Home Services is a oe-stop shop for all of your home maiteace ad repair eeds. Our goal is to take the hassle out of homeowership. Visit our website to be coected to professioals you ca cout o. Our service providers are fully isured, licesed ad boded. Sample of Services We Provide: Ispectio Repairs Movig & Storage Heatig & Coolig Locksmith Services Crawl Space & Moisture Issues Hadyma Services Blids & Shutters Kitche & Bath Updates Roof Repair & Replacemet Plumbig Pest Cotrol Electrical All Floorig Sales/Istallatio Law Care Geeral Cotractig Power Washig Gutter Cleaig Duct Cleaig Pool Maiteace Security System Istallatio Restoratio Services

23 Why purchase a home warraty? A home warraty ca provide you with peace of mid whe you fid a home ad are ready to make a offer. A home warraty: Protects you from ay uexpected repairs or replacemet expeses Ca elimiate ay post-sale issues betwee a buyer ad seller Ca be egotiated for by the purchaser or offered by the seller Ca be purchased by the buyer up to 30 days after the home closes Alle Tate Compay proudly parters with 2-10 Home Buyers Warraty, which offers the most comprehesive coverage ad value available ad outstadig customer service. If you d like to cosider purchasig a home warraty or egotiatig for coverage i a offer to purchase, we ca evaluate the appropriate pla together. 05/30/13 Buyers Kit

24 Short Sale The Log ad Short of a Short Sale Whe a homeower owes a leder more moey tha the curret market value of their home ad lacks other liquid assets to satisfy lies, it is ofte referred to as beig upside dow i a mortgage. This meas the home will ot sell for eough moey to pay off their mortgage ad other property-related debt i full. I such cases, a short sale may be egotiated with the leder to bridge the gap betwee the balace due o the mortgage ad a offer for the sale of the home. A short sale is a effort to save the bak the time ad costly process of foreclosure. A short sale may be a excellet opportuity for a buyer who is willig to be patiet; has their fiacig i order; ad has o cotigecies, i.e. they eed to sell a home first or move i by a certai date. Before you begi pursuig a Short Sale, here are some thigs you should kow: Short Sale is a misomer. Short sales ca take a log time ofte moths or loger. Keep your optios ope ad cotiue to look at other properties while you wait. Price is set by the seller ad the buyer, ot the bak. But the bak has the fial say i approvig the cotract. Multiple lies recorded ca be challegig. It is much easier to avigate a short sale whe the seller is obligated to just oe leder. Your offer should be realistic. Lowball offers are geerally rejected quickly by the bak, but eve reasoable offers are ot guarateed to receive timely feedback. Comps o similar properties are required. As your Realtor, I will preset you with comps o recet home sales i the area so you will be better educated to make a appropriate offer. Look for approved short sale properties. These properties have already had a offer approved by the bak, but the iterested buyer did ot purchase. These are the most desirable, as the approval process is usually shorter. Baks set the rules. Some are lookig for the highest offer; others are lookig for the largest dow paymet or lea toward a buyer payig cash. Properties are geerally sold as is. Repairs are seldom completed o a short sale, but a buyer may be issued a credit to have some ecessary work doe. If you decide a short sale may be right for you, I ca provide kowledge, expertise ad resources ad help you avigate the process.

25 Stay iformed with Market Report Prices chage, homes sell ad ew listigs come to market every day. Ad if you re i the market to buy a ew home, it s eve more importat to stay iformed about real estate happeigs. Market Report is a desiged to deliver iformatio directly to your ibox, tailored to your home search. Allow me to set-up this customized for your area or eighborhood of iterest ad you will receive s cotaiig: Homes that just hit the market Data o recetly sold properties (where available) Average days o market Property details for homes that meet your search criteria Listigs ad sales by Zip Code

26 Commoly Used Terms Aual Percetage Rate (APR): The total yearly cost of a mortgage as expressed by the actual rate of iterest paid. The APR icludes the base iterest rate, poits, ad ay other add-o loa fees ad costs.the APR is thus ivariably higher tha the rate of iterest that the leder quotes for the mortgage. Appraisal: Mortgage leders require a appraiser to give a opiio of the market value of a house a homeower wats to sell or refiace. This professioal opiio helps to protect the leder from ledig moey o a house that is worth less tha the amout the buyers have agreed to pay for it or that the seller wishes to obtai whe refiacig the existig loa. Assessed value: The value of a property for the purpose of determiig property taxes. This figure depeds o the methodology used by local tax assessor ad may differ from appraised or market value of the property. Buydow: The builder or seller agrees to pay part of the home buyer s mortgage for the first few years. The term also refers to the practice of a seller payig a mortgage leder a predetermied amout of moey to reduce his or her mortgage iterest rate, thereby creatig more attractive fiacig for a potetial buyer. Veteras with low or modest icomes may be able to get buydows through a Veteras Admiistratio loa pla that is available i some ew housig developmets. Cash Reserve: Most mortgage leders require that homebuyers have sufficiet cash left over after closig o their home purchase i order to make the first two mortgage paymets or to cover a fiacial emergecy. Closig Costs: These costs geerally total from 2 to 5 percet of the home s purchase price ad are i additio to the dow paymet. Closig costs iclude such thigs as poits (that is, loa origiatio fee to cover leder s admiistrative costs), a appraisal fee, a credit report fee, mortgage iterest for the period betwee the closig date ad the first mortgage paymet, homeowers isurace premium, title isurace, prorated property taxes, ad recordig ad trasferrig charges. So whe you are fially ready to buy, you eed to have eough cash to pay all these costs i order to buy your dream home. Comparable Market Aalysis (CMA): I order to determie the price you wat to offer, you eed to kow curret sales prices ad recet sold prices of houses like the oe you are cosiderig. Idetify houses comparable to yours that sold withi the last six moths, are i the immediate viciity of your house, ad are as similar as possible to your house i terms of size, age, ad coditio. By aalyzig the sale prices of houses comparable to yours that are curretly o the market, you ca see whether prices are risig, flat, or decliig. A writte aalysis of this iformatio is called a comparable market aalysis (CMA). Cotigecy: Coditios cotaied i almost all home purchase offers. The seller or buyer must meet or waive all cotigecies before the deal ca be closed. These coditios relate to such factors as the buyer s review ad approval of property ispectios or the buyer s ability to get the mortgage fiacig that is specified i the cotract. Sellers may iclude cotigecies as well, such as makig the sale of their house cotiget upo their successful purchase of aother home. If a cotigecy caot be met, the party for whom it was established may legitimately withdraw from a cotract. Corporate Home: A home previously owed by a employee whose corporatio trasferred him. I the process, he was uable to sell his home ad the corporatio purchased the house from him i order to allow him to move to his ew locatio. Co-siger: Past credit issues may require you to have help securig a mortgage, eve though you are fiacially stable. A fried or relative ca come to your rescue by cosigig (which literally meas beig idebted for) a mortgage. A cosiger caot improve your credit report, but ca improve your chaces of gettig a mortgage. Cosigers should be aware, however, that cosigig for your loa will adversely affect their future creditworthiess sice your loa becomes what is kow as a cotiget liability agaist their borrowig power. Credit Report: A report leders use to determie a applicat s credit worthiess. Applicats must pay for a leder to obtai this report, which the leder uses to determie the applicat s ability to hadle all forms of credit ad to pay off loas i a timely fashio. Debt-to-Icome Ratio: Before you begi lookig for a ew home, you should determie what your price rage is. Leders geerally figure that you should t sped more tha about 33 to 45 percet of your mothly icome for your housig costs. The debt-to-icome ratio measures your future mothly housig expeses, which iclude your proposed mortgage paymet (debt), property tax, ad isurace, i relatio to your mothly icome. Deliquecy: Deliquecy occurs whe a mothly mortgage paymet is ot received by the due date. The first time, missed paymet is deliquet, the ext time, missed paymet puts you i default. Dow Paymet: The part of the purchase price that the buyer pays i cash, upfrot, ad does ot fiace with a mortgage. Geerally, the larger the dow paymet, the better terms you ca get o a mortgage. Earest Moey: A home buyer s good faith deposit that accompaies a writte purchase offer. Fixed-Rate Mortgage: Loa terms that iclude a stable, uchagig iterest rate (for example, 8.5 percet) for the life (term) of your 15- or 30-year mortgage. Your mortgage paymet will be the same amout each ad every moth. Compare fixed-rate mortgages with adjustable-rate mortgages. Foreclosure: A legal process whereby property pledged as security for a debt is sold to satisfy a debt i the evet of a default i paymets or terms. FSBO: A property that is For Sale By Ower ad is ot listed through a real estate broker. Home Warraty Pla: A type of isurace that covers repairs to specific parts of the home for a predetermied time period. Homeowers Isurace: This is required ad ecessary. You must have dwellig coverage that ca cover the cost to rebuild your house. The liability isurace portio of this policy protects you agaist accidets that occur o your property. Aother essetial piece is the persoal property coverage that pays to replace your lost worldly possessios ad usually totals 50 to 75 percet of the dwellig coverage. Fially, get flood or earthquake isurace if you re i a area susceptible to these atural disasters. As with other types of isurace, get the highest deductibles with which you are comfortable.

27 Commoly Used Terms House Ispectio: Like homeowers isurace, we thik that a house ispectio is a ecessity. The followig should be ispected: overall coditio of the property, iside ad out; electrical, heatig, ad plumbig systems; foudatio; roof; pest cotrol ad dry rot. A good house ispectio ca save you moey by locatig problems. With the ispectio report i had, your Realtor ca ask the seller to either do repairs or reduce the purchase price. Iterest: Leders usually require borrowers to pay the iterest that accrues from the date of settlemet to the first mothly paymet. Iterest Rate: Iterest is what leders charge you to use their moey. Leders geerally charge higher rates of iterest o higher-risk loas. For fixed-rate mortgages, remember that the iterest rate has a seesaw relatioship with the poits. A high umber of poits is usually associated with a lower iterest rate, ad vice versa. For a adjustable-rate mortgage, make sure that you uderstad the formula (the idex plus the margi) that determies how the iterest rate is calculated after the teaser rate expires. Legal Fees/Attorey Fees: Costs relatig to havig a attorey or law firm review ad prepare the eeded documets for your closig. These costs may iclude, deed preparatio (this cost is paid for by the seller), title search, ad closig packet preparatio. Lock-I: A lock-i is a mortgage leder s commitmet ad writte agreemet to guaratee a specified iterest rate to the homebuyer, provided that the loa is closed withi a set period of time. Loa Origiatio: This fee is sometimes called a poit or poits. It covers the leder s admiistrative costs i processig the loa. Ofte expressed as a percetage of the loa, the fee will vary amog leders. Geerally, the buyer pays the fee, uless otherwise egotiated. Multiple Listig Service: (MLS) is a real estate agets cooperative service that cotais descriptios of most of the houses that are for sale. Real estate agets use this computerbased service to keep up with properties listed for sale by members of the Multiple Listig Service i their area. Notary Fee: This fee is charged for the cost of havig a perso who is licesed as a otary public swear to the fact that the persos amed i the documets did, i fact, sig them. Poits: Also kow as a loa s origiatio fee, poits are iterest charges paid up-frot whe you close o your loa. Poits are actually a percetage of your total loa amout (oe poit is equal to 1 percet of the loa amout). For a $100,000 loa, oe poit costs you $1,000. Pre-paids/Escrow Accout Deposits: These cost are for the paymet of taxes ad/or isurace ad other items that must be made at settlemet to set up a escrow accout. The leder is ot allowed to collect more that a certai amout. Pricipal: The pricipal is the amout that you borrow for a loa. If you borrow $100,000, your pricipal is $100,000. Each mothly mortgage paymet cosists of a portio of pricipal that must be repaid plus the iterest that the leder is chargig you for the use of the moey. Durig the early years of your mortgage, your loa paymet is primarily iterest. Private Mortgage Isurace (PMI:) If the dow paymet is less tha 20 percet of a home s purchase price, the borrower will probably eed to purchase private mortgage isurace (also kow as mortgage default isurace ). Leders feel that homeowers who ca oly come up with small dow paymets are more likely to default o their loas. Therefore, leders make these homeowers buy PMI, which reimburses them the loa amout i case the borrower does default. Private mortgage isurace ca add hudreds of dollars per year to loa costs. After the equity i the property icreases to 20 percet, borrowers o loger eed the isurace. Do ot cofuse this isurace with mortgage life isurace. Property Disclosure Statemet: Some states require that sellers give prospective buyers a writte disclosure regardig all kow property defects ad all kow material facts that may affect the property s value or desirability. Proratios: Certai items such as property taxes ad homeowers associatio dues are cotiuig expeses that must be prorated (distributed) betwee the buyers ad sellers at closig. If the buyers, for example, owe the sellers moey for property taxes that the sellers paid i advace, the prorated amout of moey due the sellers at closig is show as a debit (charge) to the buyers ad a credit to the sellers. Recordig Fee: The cost for havig the ew deed recorded. This will put your ame i the public records as the ower of the home. Usually aroud $35. REO: A REO (Real Estate Owed) is a property that goes back to the mortgage compay after a usuccessful foreclosure auctio. I.e. property owed by a bak, such as foreclosures, deed i lieu, etc Settlemet or Closig Fee: This fee is paid to the settlemet aget or escrow holder. The cost of the fee eeds to be egotiated betwee the buyer ad the seller. Short Sale: This occurs whe the proceeds of a real estate sale fall short of the balace owed o the property. The bak forgives the short fall. Survey: The leder may require that a surveyor coduct a property survey. This is a protectio to the buyer as well. Usually the buyer pays for the surveyor s fee, but sometimes this may be paid by the seller. Tax Deductible: Refers to paymets that you may deduct agaist your federal ad state taxable icome. The iterest portio of your mortgage paymets, loa poits, ad property taxes are tax deductible. Title Isurace: Covers the legal fees ad expeses ecessary to defed your title agaist claims that may be made agaist your owership of the property. The extet of your coverage depeds upo whether you have a ower s stadard coverage or exteded coverage title isurace policy. To get a mortgage, you also have to buy a leder s title isurace policy to protect your leder agaist title risks. Zoig: Certai city ad couty govermet bodies have the power to regulate the use of lad ad buildigs. For example, the eighborhood where your house is located is probably zoed for residetial use. It most likely also has zoig codes or ordiaces to regulate buildig heights, yard sizes, ad the percetage of lot coverage by buildigs.

28 Notes

29 Why hire a award-wiig Alle Tate Realtor? Each year, Alle Tate recogizes its top performig agets based o closed sales volume. For 2013, I m proud to have eared the Wiers Circle desigatio. This is oe of the highest awards give to Alle Tate agets. Alle Tate Compay is extremely proud of its top performig agets ad teams. But what makes us most proud is this; the talet ad dedicatio of our Alle Tate Realtors helped more tha 20,000 buyers ad sellers achieve their goal of homeowership. The quality reputatio of the Alle Tate brad ad strog marketig ad techology helped our cliets achieve their real estate goals. Awards do t make great Realtors. They simply provide us with a way to recogize the outstadig work of exceptioal Realtors who do their very best job possible for our cliets. My real reward is your busiess ad your referrals. 02/07/14 Buyers Kit

30