Home Buyers Guide

1. The Prequalification Process
2. The Interviewing Process
3. The Hunting Process
4. The Negotiating Process
5. The Management Process
6. The Closing Process

Step 1. The Prequalification Process

• You Fill out the Application
  • Verifies Employment
  • Verifies Source of Funds to Close
  • Verifies Credit
• The Benefits of the Pre-Approval Program Are:
  • Buyers will save time and money by looking only at homes they can afford.
  • Sellers are more likely to accept offers from Buyers that are Qualified/Approved.
  • Escrows can close within YOUR desired time frame.
  • Helps your agent to negotiate a better transaction.
• Same Buyer, Same Debt, Same Income:
  How can a person buy a $182,000 home or a $222,000 home with only 10% down and still have the Same Payments?

  Loan Type	Rate %	Sales Price	Loan Amount	Payments
  30 Year Fixed	8.00	$181,711	$163,540	$1,200.00
  30 Year Fixed 2 - 1 Buydown	6.75	$205,572	$185,014	$1,200.00
  30 Yr. Fixed with MCC program (a)	6.00	$222,389	$200,150	$1,200.00
  40 Year Adjustable	6.25	$208,440	$187,596	$1,200.00

  (a) restrictions apply to both income and home price, restrictions vary by county.

• How large a mortgage do you qualify for?

Step 2. Interviewing Process

• Find the Right Home
• At An Affordable Price
• In the Most Suitable Location
• With the Least amount of time spent

Step 3. The House Hunting Process

• Target in on Primary Markets:
  • Any Listed Property
    Look especially for:
    • Transfers/Relocation Sellers
    • Probate
    • Contingent Seller
    • REO’s/Lender Foreclosures, Pre-Foreclosure
    • Contractors/Developers
  • Why Buyers need to be represented:
    • The listing agent’s job is to negotiate for the highest price
    • The buyers agent’s job is to negotiate the lowest price possible with the best terms
    • Encourages complete disclosure of pertinent facts regarding the property
    • Avoids potential conflict of interest
• At An Affordable Price
• In the Most Suitable Location
• With the Least amount of time spent

Step 4. The Negotiating Process

• Perform A Market Analysis
• Complete a Purchase Analysis
• Analyze why the Seller is Selling
• Determine the Seller’s Urgency or Purpose of Sale
• Determine Square Footage, Lot Size, history of property, Add-Ons, etc.
• Your Agent will research via Property Profile all open deeds and liens
  
  New Home Gambits - Use these to your advantage when negotiating with Developers and Builders!
  Developers and builders are usually reluctant to lower their prices (in order to maintain appraisal value) but they are flexible with:
  • Points
  • Landscaping
  • Closing Costs
  • Upgrades

Step 5. The Transaction Management Process

• Home Inspection Report
• Title Policy Purchased
• Structural Pest Report
• Transfer Disclosure Statement
• Loan Commitment
• Other Professional Support

Step 6. The Closing Process

• Lender - Rate and Program
• Title - clear and marketable title
• Appraisal - supports transaction price
• Inspections - building is structurally sound, free of infestations
• Home Warranties - takes care of future breakdowns
• Insurance Policies - protects your investment
  The Proper management of each will go a long way in Litigation Prevention.