Buyers' Toolkit

INSIDER’S GUIDE
BUYING A HOME

This section is an outline that I use for discussion at my first meeting with a buyer. Walking through the buying process before beginning is sometimes overwhelming, especially for first-time buyers. But it becomes comforting to have thought through the process at the onset rather than being confused as you go! This outline is also a helpful reminder to ME; it helps me to be sure I'm not forgetting any details.

This section is just an outline, so parts of it may appear incomplete. Please call me anytime at 719/550-8484 to set up an appointment and I would be happy to fill in the blanks!

WHAT NOT TO DO
DISCUSSION WITH AGENT -- WANTS AND NEEDS
DECIDE ON AGENCY RELATIONSHIP
LENDER PRE-QUALIFICATION
LIST PRESENT HOME IF PURCHASE WOULD BE CONTINGENT ON SALE
LOAN APPLICATION
SELECT HOME
INSPECTION
FOLLOW-UP (WAIT)
PREPARATION FOR MOVING
CLOSING
ADDRESS CHANGES

What Not To Do

Don’t change jobs or quit.

Don’t make any major purchases before closing.

Don’t deposit any large un-explained funds.

Don’t order any improvements to the property before closing.

Don’t tell any secrets to Seller or Seller’s agent.

Don’t do anything that might jeopardize your credit.

Don’t wonder ... Ask!

neighborhoods

house requirements

dates for moving

monthly payments

down payment available

Finding the right house is a process. As you discover what is available in the market, your criteria will likely change. Please let me know anytime you would like to explore something different.

If you think you may be interested in a home built before 1978, we should talk about Lead Based Paint now.

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Decide On Agency Relationship

complete disclosure

exclusivity, loyalty

vicarious liability

for sale by owner

treating all parties honestly & fairly

required disclosures

what a buyer’s agent can reveal

agent’s credentials & references

trial period

mutual trust

agency agreement in writing

who should answer all of your questions

who should show properties

Lender Pre-Qualification

interviews (go to "My Team" - see Kathleen Wetherbee)

loan lock options

rates, programs

in-file credit report

pre-qualification letter (A.K.A. the "pre-qual")

Ask your loan officer about:

30-yr vs. 15-yr payments

interest rates

estimate of closing costs (get a Good Faith Estimate)

origination fee

loan lock policy

what type of loan

maximum purchase price

creative financing needed

List Present Home If Purchase Would Be Contingent On Sale

Preferable to get present home under contract before proceeding. For
more information concerning sale of your present home, go to
Sellers' Toolkit 1 & Sellers' Toolkit 2.

Documents needed -- income

W-2 forms for previous 2 years

most recent paycheck stubs (2 if paid bi-weekly) or LES if active duty military

complete tax returns for past 2 years if commissioned employee

current profit & loss statement if self-employed

explanations for frequent job changes and/or gaps in employment

certificate of eligibility, DD214 & statement of service if military

Documents needed -- assets/liabilities

most recent 3 months’ bank statements for all accounts

name, address, account number, monthly payments & balance for all credit cards and other loans

child support/alimony if divorced -- 12 months’ canceled checks

explanations for credit problems not your fault

explanations for large deposits other than paychecks

information on any other debts for which you are a co-signer

legal documents regarding bankruptcy or judgments

Documents needed -- miscellaneous

residence addresses for past 2 years

complete mailing address for mortgage holder and/or landlord for past 2 years

copy of purchase contract

copy of earnest money check

MLS printout

divorce decree/separation agreement, etc. if divorce

check for credit report ($65)

check for appraisal ($350)

ID

social security numbers

phone numbers

Get a Good Faith Estimate from your loan officer. Keep it.

computer search of MLS

new homes, ads, signs

go over purchase contract

earnest money ready

discuss best times to view houses, how to set appointments

view houses (6-8 per day)

CMA if necessary

tax &/or legal advice

offer & acceptance (equitable title)

list of deadlines

indicate most convenient closing time

interview inspectors - www.scc-ashi.org/directory.htm

set appointment

inspect (2-3 hours)

write objections/requirements

inspection resolution

check for special assessments with county treasurer (520-6666)

check for special taxing districts with county assessor (520-6600)

call for utilities average (448-4800)

Ask inspector about:

how much it costs

how long it will take

what is included

radon

lead-based paint

well/septic tests

loan documents, approval

title commitment review -- be sure to thoroughly check covenants & restrictions

inspection requirements met

appraisal done -- renegotiate if necessary

order homeowner’s insurance (Go to "My Team" - Mike Everson)

stay in touch with your Realtor!

During this time, work will be done by the title examiners, escrow agents, loan officer, loan processors, loan underwriters, mortgage insurance company, homeowner’s insurance company, existing lender’s payoff department, home repair people, moving companies, cleaning services, listing agent’s company and selling agent’s company. A lot needs to be coordinated. We will all try to make it go as smoothly as possible.

pack

reserve truck or moving company

utilities -- water, sewer, gas, electric (well in advance in case a deposit is required)

trash removal

address changes

newspaper

cable TV

telephone

driver license

motor vehicle registration

school registration

pet licensing

voter registration

walkthrough -- 1 to 3 days in advance

go over settlement statement -- 1 day in advance

get "good funds" -- cashier’s check payable to the title company

bring ID to closing

close at time and place specified by listing agent -- 1 to 2 hours

possession -- as per contract

accountant

alumni association/ job placement service

banks

cable TV

child care centers

credit cards

doctors/ dentists

employers

friends

insurance agents

IRS

magazines

newspaper

places of worship

post office

professional memberships

relatives

schools/ tutors

social security/ retirement fund

telephone

trash removal service

utilities department

other:

other:

other:

(and tell the people who move in to your past residence what your forwarding address will be)

My job is to coordinate this process and make it go as smoothly as possible. My goal is to do just that.

Anytime you have questions of any kind, please do not hesitate to ask.

Linda@LindaSilloway.com