THe ABeCEDArY Of BUYInG YOUr FIrSt HOmE

THe ABeCEDArY Of BUYInG A HOmE

BeWARe

CLoSInG COsTs

DOWnPAYmEnT

Lenders need to see a 2 year job history in the

same line of work. Gaps in employment over the past 24 months will need to be

explained, and second jobs are often not factored if they have not been held

for 24 months or more.

You should have 5-20% of the sale price of your home in cash in order to

qualify for a conventional loan. Expect

to secure mortgage

insurance for any down

payment less than 20%.Getting a mortgage

requires paying closing costs or fees charged by lenders and third parties. Typically, home buyers will pay between about 2-5% of the purchase price of their home in

closing costs

Buying or selling a home is a major

financial (and emotion-al) undertaking. You

need an expert at your side helping to

negotiate a complex deal and lending knowledge and

expertise throughout the process.

EmPlOYmEnT HIStOrY

Some agents will offer to list your

home well above the selling price of comprables in the

neighborhood. BEWARE! False hope won’t get your home sold

faster. It may even drag out the

process months longer than necessary.

C

GeT YOUr HOmE ReADY

HOmE APpRAIsAL

INsPeCTIoNRealize that

you probably won’t get

everything you want when purchasing a

home. If a house meets most of your needs, look beyond cosmetic flaws. They can be remedied.

A home inspection is an objective visual

examination of the physical structure and

systems of a house, from the roof to the founda-tion, insuring the home meets safety and city

codes.

ome appraisals provide an estimate of how much your home is worth on the current market. State licensed experts evaluate the home’s size, type,

condition and the overall real estate market in the

area.

Clean it up! A house that

"sparkles" on the surface

will sell faster than its shabby

neighbor, even though

both are structurally well-main-

tained. h

i

LoCATIoN

Option Period is the time during which the buyer can cancel the

contract for any reason, without penalty. Use

this time wisely!

Different neighborhoods will have different

characteristics. You'll want to pick the one that is the closest fit to your

lifestyle and personality - a place where you'll feel

comfortable. Kid friendly? Lots of green

spaces?

Worried about purchasing your dream home before you’ve sold your current home? Opt for a Kickout

Option, which adds a stipulation to the sales

contract stating that the seller can continue to

market the house while still under a contingent contract

based on the prospec-tive buyers selling their

current house.

Find a home close to the places you visit frequently,

like your job, shops, grocery stores and

preferred schools. When considering resale value,

ask yourself—is this a place where a wide

variety of people want to live? As the saying

goes, “Location! Location!

Location!”

MoRtGAgE

A mortgage is a loan that a bank or lender gives you to help finance the

purchase of a house. To get the best rates, aim to borrow 80% or less of the

value of the house.

MK

oL

G

KICKOUt nNeIGHbOrHoOD

JJUGgLIng EXpeCTAtIOnS

OpTIoN PeRIoD

FInD THe FACtS

Don’t buy a home blindly; have your real estate agent provide

market research so you can have all the facts before purchasing a

home. Sellers’ market? Go in STRONG on your offer, or you might lose

the home..

AAGeNt

!

F

PAInT

QUALIfY FoRA LoAN

RePAIrS

SCHoOl DIStRICts

Even if you don’t have kids at home, a great

school district has huge benefits to home buyers.

Not only does a great school district boost your home’s resale

value, it also provides some protection against price fluctuations in the

market.

Making minor repairs before listing your home

for sale can make a major impact! Replace cracked

floor or counter tiles; patch holes in walls; and fix leaky faucets so that

your home is fit and ready for move-in day!

When trying to sell your home, remember that

color is very taste specific. Neutral hues

such as off-white, beige, or light earth tones won’t

alienate potential buyers.

qTypically lenders

approve home loans that are between 28% to 44%

of the borrower’s monthly income. Your

credit score also plays a role in determining the amount loaned and its corresponding interest

rate.

VISIoN

WALK-THrOUgH INsPeCTIoN

ZoNInG

There are A LOT of documents required in buying a home. Get all

of your documents organized in a folder

before meeting with your real estate agent or

lender. For instance, on closing day you’ll need:

- Proof of home insurance

- Your driver’s license or photo ID

- A certified or cashier’s check

Zoning can be an unexpected headache when neighbors run a

disruptive home business or block your lake view with a second story addition. Find out

about zoning laws before you close and avoid nasty zoning

surprises.

Before closing, you’ll want to take one last

walk-through of the home and make certain that it’s

in the condition you agreed to buy -- that

agreed-upon repairs, if any, were made and

nothing has gone wrong with the home since you

last saw it.

Don’t let horrible paint and bad art distract you from seeing a house with good

bones. Instead, use future vision--seeing the home for what it

could be when you’ve made all of those

cosmetic changes.

Don’t wait to find out if your home is subject to

multiple property tax authorities. Not only

states, but also counties, cities and special

districts--such as local water--sewer or school authorities, may wield

annual taxation powers.

YEArLY TAX RAtEs

X ALl THe BoXEs

UPDAtEs

Y

TArGet

Emotions can easily cloud the home-buying

equation, so it’s important to stay on target through-out your search. Make a 2 to 3 item list of must-haves

and use this list as a measuring stick with which to sort the good fits from the

bad.

A few updates can go a long way when selling

your home. Investing in a few updates--such as new countertops in the

kitchen--may make all of the difference in winning

over hesitant buyers.

S

X

P

Visit briggsfreeman.com and �nd your luxury dream home.