Overview...How to buy a home
It may matter more through whom you buy your home than the home you finally select. We will guide you through the home-buying process and help you find the right home — and help you reach a satisfactory agreement. In addition to our personalized assistance, we recommend you doing your on research as well. Take a look at these real estate resources. They will help you become an informed educated consumer. We feel Knowledge is power. Spend time reviewing online information and articles. They will be invaluable to you as you continue through the real estate journey.
We take your needs seriously and will follow effective systems to help you find your new home. We will follow the Home Buying System™, a well-organized, time-saving approach to the home-buying process. With our Home Buying System, we’ll help you:
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Determine how much you want to spend.
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Establish a criteria for selecting homes.
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Obtain information about houses and neighborhoods to help you make decisions.
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Prepare for mortgage qualification.
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Close on the house of your dreams.
Overview of the Buying & Selling Process
Buyer
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1 Considers purchasing a home
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2 Selects a real estate agent
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3 Determines needs and wants
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4 Discusses financial issues
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5 Views & researches target homes
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6 Makes an offer to buy
Seller
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1 Decides to sell property
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2 Selects a real estate agent
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3 Determines needs
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4 Prepares home for marketing
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5 Agent markets the home
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6 Accepts, rejects or counters offer
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7 Offer Accepted
Buyer
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8 Loan Application
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9 Inspections
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10 Title Search
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11 Appraisal
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12 Loan Approval
Buyer and Seller
How much house can you afford?
Most people have a general idea of how much they feel comfortable spending. It’s equally important how much the lender calculates you can afford. By using the Lender Information Worksheet provided by us, you’ll be able to organize the many details required during the financing application process.
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Evaluate your financial and credit situation as the lenders do. Typically, your total monthly housing costs (PITI) should not exceed 28 percent of your gross monthly income. Or, housing costs plus any outstanding monthly long-term debt should not exceed 36 percent of gross monthly income.
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Ask how your lender determines the total monthly housing cost figure .It usually includes your mortgage principal and interest payments, property taxes and hazard insurance (PITI).
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Determine how much your financial institution is willing to lend you. Call on us for help during the prequalification process.
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Know how much you can afford in monthly payments. Lenders factor in sales price and down payment, but place more importance on how much you can handle monthly.
What type of house do you want?
Next you’ll want to define your needs, tastes and preferences for your new home. This is easier than it sounds when you use the Home Buyer’s Analysis from GMAC Real Estate, an integral part of the Home Buying System. It helps you quickly determine your requirements. By discussing this now, you’ll save plenty of time in the house-hunting process. We will show you only the houses that fit these requirements.
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Describe the style of house you like, whether it be two-story, contemporary, ranch or something else.
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List your prioritiesin home features, such as a two- or three-car garage;gourmet kitchen; a family room or a formal dining room
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Think about your lifestyle. If you don’t like yard work, we will show you condominiums, townhouses or garden homes with smaller yards.
Choosing a neighborhood
Bricks and boards may determine the cost of a home, but a neighbor hood determines value.
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Consider the identity of the neighborhood. The overall impression given by an area is key to its value.
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Drive through and around then neighborhood. Value is enhanced by other well-maintained properties. Conversely, be cautious of areas with unkempt yards and homes, and businesses mixed in with residences.
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Ask your sales professional about the propertytax assessment in the area, including any special assessments or pending bond issues.
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Pay attention to neighborhood zoning. Good residential communities are zoned to keep out commercial and industrial users. Ask about other regulations in the neighborhood, such on-street parking. Find out if this area is governed by any covenants.
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List which community services are important to you. Do you need to be close to shopping or a mass transit stop?
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Get an idea of who lives in the neighborhood by talking with people who live there.
Picking the right home
Your new house has to feel right — but emotions aside, it has to work right, too.
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Bring in a professional building inspector or appraiser to make sure the house is in sound condition. Use his or her report to make informed decisions.
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Ask us if the AC Real Estate Home ProtectionPlan is available in your area. This warranty protects you in case of major mechanical system and problems with some appliances
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Decide which flaws you can live with and which you’d prefer to repair. You may also be able to refinance some repairs in your mortgage.
Outside the home
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Do trees and shrubs appear healthy? Are large trees at least 30 feet from the house?
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Is the lot sloped for proper drainage? Are there low spots near the house?
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Do outdoor electrical outlets have ground fault current interrupters to prevent shock?
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Is the outdoor lighting adequate?
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Are there outdoor faucets or a sprinkler system
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Are sidewalks and driveways in good condition? Will water drain off them?
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Is the house’s surface in good repair? Are there cracks where materials meet at two walls or at windows and walls?
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Do windows, doors and chimney sit plumb and square?
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Is the roof free from sags and dips? Are shingles in good condition?
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Are gutters in good shape, with tight seams and do downspouts point away from the house?
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Do foundation walls have cracks larger than 1/4-inch wide?
The floor plan
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Is the home divided into three distinct zones for working, living and sleeping
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Are eating areas (including those outdoors) easily accessible from the kitchen?
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Does traffic through the kitchen flowoutside the work area?
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Are the stove, sink and refrigerator just steps apart in an efficient triangular configuration?
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Do open appliance doors block doorways, cabinets or each other
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Do bedrooms have two uninterrupted wall surfaces for easy furniture arrangement?
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Are baths accessible without havingto cross a bedroom or other living space?
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Does the main entry lead guests directly to the living room or make them figure out which way to go?
Basement to attic
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Do basement walls have large cracks that indicate a shifting foundation? Mildew stains that indicate dampness/flooding? Is an unheated basement’s ceiling insulated?
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Are exposed beams and joists in good condition?
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Is the attic well-insulated? Is there any evidence of water damage from a leaky roof?
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Are floors springy or are they even and sturdy?
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Are walls (particularly at door frames and windows) free from large cracks?
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Do all doors and windows work smoothly?
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Are bathroom fixtures in good condition? Does the faucet’s water flow remain steady when toilets are flushed? Does water drain well?
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Are there enough well-placed electrical outlets in the rooms? Does the service to the house match its current electrical needs
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Is the capacity and recovery time of the water heater adequate for your family? Does the water heater show signs of rust?
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Do kitchen appliances seem to be in good condition? Do any come with the sale? Will your appliances fit in the present spaces if need be?
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Do furnace and/or air conditioning unit(s) appear well-serviced? Is the blower quiet?
Available financing
Making your purchase
When you find the perfect house, we will take you through a step-by-step process to make the purchase. You know the seller’s asking price, now it’s your turn to make some important decisions.
Decide how much you should offer.
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Consider factors such as the home’s length of time on the market, reasonableness of price, availability of financing and other costs
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Know what happens to your earnestmoney. This deposit is held by a third party such as your sales professional, title company or escrow agent until the sale is closed or contract is broken. If
you buy the house, it is applied to the down payment or closing costs. If you fail to buy the house after the seller has accepted your offer, he or she has the right to keep this deposit
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Require the seller to do a title search to prove the title is clear. The title should show no substantial claims or liens against the property. The type of proof varies by area, and your sales professional can tell you which kind isused where you live
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Decide what type of deed you want. You’ll most likely specify that the seller convey the property to you with a general warranty deed that transfers ownership rights (or title) to you
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Decide what conditions you want to place on buying the house. Your purchase may be made contingent on obtaining financing, a building inspector’s satisfactory report or selling your present home
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Spell out what you’re buying in the on tract. Common items to be specified include appliances, light fixtures, des and drapes, storm windows, and flowers, shrubs and trees
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Determine what special provisions should be included, such as for property taxes, insurance costs and utility bills. Read all the small print carefully
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Decide who is your settlement agent, the closing date and the possession date. We will tell you who typically acts as a settlement agent in your area. Allow yourself plenty of time for financing and all the paperwork in the transaction.
Extending an offer
At the end of this stage, you’ll have a contract of sale that spells out the details of the transaction.
Pay special attention to details at this stage; resist the temptation to hurry.
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Decide what you’re willing to give the seller and what you want in return. This information forms a document called a contract of purchase, earnest money agreement, contract of sale or other variations
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Make an earnest money deposit to show you’re serious about buying the home
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Your sales professional will take the offer to the seller or seller’s agent. The seller will either accept, reject or counter your offer with changes in some of the terms. You may either sign or counteroffer at this point
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Sign the document when you both agree to the terms; it becomes a valid contract. (In some states, a binder agreement is required before the final contract is drafted.
Finding financing
Once you learn the seller has accepted your offer, you have one key job: Lineup financing.
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Ask Us to help you prepare. We will be happy to attend the meeting with you.
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Ask for a copy of the GMAC RealEstate booklet “Ways to Finance Your Next Home.”
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Shop around for the most competitive financing package.
Questions to ask the lender
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Does the financial institution offerifferent types of mortgages, such as adjustable-rate loans and fixed-rate loans?
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Is the mortgage open-ended? Can you borrow up to the amount of principal you’ve paid to make home improvements?
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Will mortgage insurance be required for loans other than FHA-insured or VA guaranteed mortgages? How much principal must be paid before the insurance requirement is dropped? What are the premiums and are the premiums refundable if you prepay the mortgage?
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What reserves, such as those for property taxes or hazard insurance, are required? How long must you pay into these reserves? At some point, will you pay these costs directly
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What fees will be charged at closing, including such things as points, loan origination, abstracts, attorney’s fees, appraisals, termite inspection reports or credit reports?
What the lender will ask
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What is your total monthly income(including alimony, child support, savings interest and dividends)?
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What are your assets? These include bank accounts, stocks and bonds, realestate, retirement funds and so forth.
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What are your liabilities? These include installment loans, charge cards,auto or real estate loans and other debt.
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What are your anticipated housing costs?
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Do you have a copy of the contract of sale?
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Can you provide credit references, including account numbers and balances on loans?
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What is your job history?
Settling up with the lender
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Within three days of applying for the loan, your lender should issue you agood faithestimate of the fees charged for closing. This estimate may not include deposits for hazard insurance or property taxes.
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Loan origination fees are a percentage of the loan that cover the lender’s administrative costs. The loan discount, called points (with each point being 1 percent of the loan), is extra interest paid to the lender to make up the difference between market interest and the interest of the loan.
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Other charges at closing may include the costs of a survey, appraisal or inspection, aswell as the lender’s services in obtaining mortgagee insurance for you. If you assume a mortgage, you’ll pay an assumption or transfer fee.
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Charges for fees include title/abstract searchesand recording and transfer charges.
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Mortgage interest, the first year’s hazard insurance, and first year’s mortgage insurance(if required) are paid to the lender in advance.
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Reserved deposits used by the lender to pay for hazard insurance, property taxes and possibly mortgageinsurance are paid at this time.
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Commissions and other fees include a variety of services, such as document preparation, notary services, handling the schedule, warranties and others.
What happens at closing
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Discuss and resolve any issues or problems before closing.
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Sign the note promising to repay the mortgage, with the house as security.
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Sign the other papers fulfilling governmental regulations and transaction information.
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Look carefully over the numbers in the closing or settlement statement —the last document to appear —before signing.
Here’s the day you’ve been waiting for. The papers are in order and money has been exchanged. You’re handed the keys — the home is now yours!
A Word About Agency
Whether you are a seller or a buyer, your agent is required to deal ethically and fairly with you and the other party in your transaction. If you are a buyer, in most instances the agent with whom you have worked — the agent who has shown you homes and assisted you in the home-buying process — is technically a “seller’s agent” because the seller is paying the agent’s commission. If you are working with a seller’ sagent, you must decide for yourself what
offers to make or accept .In some areas, a buyer can work with a “buyer’s agent” who is legally obligated to represent the buyer. The manner in which buyer’s agents are compensated varies, but buyer’s agents are able to represent the buyer and negotiate on the buyer’s behalf. If you have any questions regarding agency practice in your area, ask MountainHomeQuest.
The Smart Move to Make™. GMAC Real Estate.
Our approach is to simplify the process of homeownership and provide you with all theservices needed to do it.
• Exclusive real estate services bring you more value and expertise.
• Global relocation services move you to any destination.
• Trusted financial services add one-stopconvenience.
For more information check out the Real Estate Market Place
Your source for North Georgia Real Estate...Laronda McCurley
This information may contain errors and is not guaranteed. Information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The above information is believed to be accurate but is not warranted. Information presented is subject to errors, changes, omissions, prior sales and withdrawals without notice. |