Before You Sign Your Contract!
Basic steps of Home Buying…
THIS IS NOT LEGAL INFORMATION OR A LEGAL DOCUMENT! I AM A REALTOR…I AM NEITHER A CARPENTER, A BUILDING INSPECTOR, OR A LOAN OFFICER.
1.) Before you go to view property you MUST contact a LOAN OFFICER and obtain the following information:
A. What type of loan do you qualify for?
B. How much money do you qualify for?
C. Request a signed Pre-Approval Letter to be sent to you on the Lender’s Letterhead. Bring me a copy or fax it to me. Fax#:314.677.6489/Alr:677.6001.
(Front-desk) Attn: Pamela Williamson cell: 314.600.2246 pamelaw53@yahoo.com http://stlrealestate.wordpress.com
D. Your Pre-approval Letter is required to present a contract!
E. Request a Good Faith Estimate. One copy for you and send/bring one to me. (From your choice of Lender)…The Truth & Lending Law allows you to shop around and get the best interest rate & type of loan best for you. Only allow one to run a credit report, other two give verbally or photo-copy, you do not want to lower your credit score from this.
F. Ask what your down payment will be? (if applicable; depending on type of loan)
G. Ask what your closing-costs, pre-paids, points, etc. will be? (Any additional fees and what they are for?) These figures should not change if they know their job.
H. What is the lenders interest rate? Terms available? How long is loan 10-15-20-30-40 year loan? Make sure there is no pre-payment penalty. (Make two payments a year and pay off your loan early (10 yrs.).
I. What type of loan do you have and explain it to you thoroughly so you understand the legal document you are agreeing to before you sign.
J. What are your monthly payments going to be? (Do they include taxes and insurance?) Your taxes and insurance amounts will go up; your house payment should not unless you have a different type of loan…
2.) You need to sign & date a Buyer’s Agency with me before you look at property.
Your Buyer’s Agency is required to present a contract. This document gives me the legal right to represent you and to write legal documents in your behalf. This is agreement of loyalty to one another. I give you 100%, honest and upfront with you and I expect the same in return. I am here to protect you. I have a “fiduciary” responsibility to you as your real estate consultant/agent and I represent you only and put you before myself and anything else!
3.) Upon selecting your HOME:
A. A Contract is written and is given as an offer to buy/purchase a home from the seller.
B. Buyer provides EARNEST MONEY in the form of a check. (It will not be deposited until you have an ACCEPTED Contract.)
C. Supply Buyer’s Agency and Pre-Approval with Contract!
4.) Once you have an ACCEPTED OFFER:
A. Apply for a loan with your Lender as soon as possible according to the TIME FRAME on your Contract, you will probably have to give the loan officer a check for the appraisal (or ask them if included in your loan) at the time. (Approximate cost: $325.00 and up). Ask…
B. Choose a Title Company! (I/your agent can refer three names if you like). By law you choose!
C. Select an Insurance Agency. You must be certain that you have the ability
To attain Homeowner’s Insurance within a 10 days after an accepted contract! You must have a paid receipt for a Full Year given to your Lender/Loan Officer (1) one week prior to Closing!
D. THE PRICE DOES NOT CHANGE ONCE YOU HAVE AN OFFER!!!
(Unless you ask the seller to pay closing-cost, pre-paids, etc.) You can do
This in the contract offer ahead of time.
E. Arrange for a BUILDING and Termite-Inspection…(Most Lender/Banks
DO NOT require a Building-Inspection (this is for your protection; not mandatory but; highly recommended!), BUT most DO require a Termite-
Inspection). The Building-Inspection must be performed and results turned into the Listing Realtor within 10 days (unless stated in contract otherwise a different #) of acceptance of contract!!!… (The Building-Inspection is for you and your protection so you know what defects or flaws the house has. No perfect home, not even a new home. Manufactures defects, etc..
F. BUYER is required to pay for INSPECTIONS when they are performed!
Inspections are the benefit of the buyer and buyer should be present when performed!
G. Inspections DO NOT affect the price agreed upon on the contract!
Neither party is required to fix &/or repair anything unless agreed upon by both parties the seller(s) and the buyer(s).
H. When we receive the Inspection results, I will schedule a meeting with
You. We’ll go over the results. You will decide what, if anything, that needs to be resolved. (Things you can live with or/& things you want to request to have repaired or corrected.). A request form will be filled out and sent to the Listing Agent. This negotiating process for BOTH parties to resolve. (Time frames are 10 days and 10 days).
I. If you are dissatisfied with the Building-Inspection, you may retrieve
You’re EARNEST MONEY, as long as you have done everything the contract requires. (I am unable to guarantee the return of the earnest money).
5.) Once you have resolved the Building-Inspection, you will be waiting for
The Loan-Commitment from your Lender. Whatever your Lender ask from you, Please reply/respond as quickly as possible!!! *Most Important to adhere to…Thanks.
6. NEXT, I’ll need to schedule a Closing Time with the Title Company of your
Choice. It needs to be no later than before 2:30 p.m. so funds can exchange.
7. You will need to arrange to turn all utilities on in your name for the day of
Closing! (If selling turn off old residence)
8. You are allowed a Final-Walk-Through 2-3 days prior to Closing…!
I generally receive a final HUD statement from the Title Company and go
Over it prior to closing, to check make sure no hidden fees or new feeds not aware of, we will all go over the day of Closing! Ask questions…A final Credit-
Check is run just before Closing. Do Not buy anything till Lender says as you will change your debt ratio, and could keep you from getting your home!
9. “THEREFORE”, DO NOT BUY ANYTHING ON CREDIT during the home-
Buying process before or after until you check with your Lender! It could change your debt ratio figures and it is very important you do not!!! Therefore, I will schedule your Closing after 9:00a.m. – And before 2:30 p.m., if possible. (DO NOT buy anything on credit!)
10. You will be CREDITED back you’re EARNEST MONEY at Closing…
11. Bring the following to Closing:
A. Cashier’s Check made out to the Title Company in the amount on the HUD – statement. (Call the Title Company the day before to verify).
B. Checkbook in case of error.
C. Driver’s License for EACH party on the deed!
D. You’re original PAID Insurance Receipt!!!!!!(For full year).
E. Closing generally takes about 1-2 hours. (Unless end of month)?
12. UPFRONT (Pre-paid) cost may include:
A. Earnest Money
B. Building-Inspection
C. Termite-Inspection (ask lender if included in loan since required)
D. Appraisal Fee
E. One full-year paid Home Owner’s Insurance receipt one week prior to Closing!
F. Survey Fee… (Check with lender sees if included in loan)?
NOTE: B, C, D, and F are NON-REFUNDABLE, should the contract for
Whatever, reason NOT close?
13. Generally your down payment and closing costs are paid at Closing!
FINAL NOTE: There is NO 72 hour Kick-Out! “Change Your Mind” clause! In
Real Estate… Once you have signed you are committed to this contract.
OUR GUARANTEES!:
1. There is No perfect home!
2. The Building-Inspector may miss something in the Building-Inspection.
3. You will probably have to repair something on your HOME from the day you move in to the day you move out! (Honey-dos!)
4. DO NOT INCUR ANY ADDITIONAL “DEBT” AND PAY
ALL BILLS PROMPTLY THROUGH CLOSING!!! IMPERATIVE…THANKS… I LOOK FORWARD TO US BUILDING a RELATIONSHIP BETWEEN a HOME-OWNER AND a PROFESSIONAL REALTOR…Here we go. I
Want you to be so pleased with the process of buying your home that you will not hesitate to refer me to your family, friends, and co-workers. I work by Referral, Oh; by the way I’m never too busy for your Referrals! Thank you and enjoy your new home!!! J Where clients come first…It’s all about the client…Filling your wants and needs. Thank You. Happy Selling and Buying!
Pamela Williamson/Pamela Williamson Team
Keller Williams Realty St Louis/Kirkwood
314-600-2246 Fax#:314.677.6489/677.6001(alt)
Pamelaw53@yahoo.com
http://stlrealestate.wordpress.com
“Real Estate Expertise!!!……It’s not Expensive!…
It’s Priceless!!!”
There’s no place like home, there’s no place like home.
By
Pamela Williamson