buyingguide2
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Personally Prepared for You By Jordyn Lally JordynLallyRealty.com [email protected] 919-628-6581
Home Buying Guide
The Home Buying Process ¨ Agency Agreement ¨ Obtain Financing ¨ Home Search ¨ Present Offer ¨ Due Diligence ¨ Closing!
“Every 30 seconds, a RE/MAX agent helps someone find their perfect place.”
Agency Agreement
*Communication is the key to a great relationship. Save my contact information and reach out to me with every question or concern. I am here to help every step of the way!*
¤ Initial Consultation with Agent; discuss home buying needs, time frame, ensure good working relationship.
¤ Sign Working With Real Estate Agents
¤ Sign Buyers Agency Agreement
The best part of having a Real Estate agent represent you for the purchase of your home is that the seller pays me! My loyalty is to you. I will guide you through the entire home buying process to ensure you are making the best financial and personal choice.
Financing
In today’s fast paced market it is best to have a pre-qualification letter ready to be provided with any offer. This will set your offer apart if there is a multiple offer situation.
Della McDowell
OnQFinancial
919-414-3912
Tom Deadmore
Movement Mortgage
919-625-1935
Elliot Weil
DNJ Mortgage
919-616-6598
Pre-Qualified vs. Pre-Approved
Getting pre-qualified is the initial step in the mortgage process, and it's generally fairly simple. You supply a bank or lender with your overall financial picture, including your debt, income and assets. After evaluating this information, a lender can give you an idea of the mortgage amount for which you qualify. Pre-qualification can be done over the phone or on the internet, and there is usually no cost involved. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home.
Getting pre-approved is the next step, and it tends to be much more involved. You'll complete an official mortgage application (and usually pay an application fee), and then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating. From this, the lender can tell you the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate.
Home Search
What are your top 5 Non-Negotiables?
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Once we have discussed the features you need in a home we will begin the search together.
A search on the Triangle Multiple Listing Service will be set up for you. You and I will receive notifications of new homes that have hit the market.
Please feel free to continue to search on your favorite Real Estate websites. Do keep in mind they are not updated as frequently as the MLS. If you find something you like give me a call/text/email!
If you come across a For Sale by Owner let me know. We can take a look at the property together and make sure the transaction goes smoothly.
Considering New Construction? Great! You are welcome to go by the model home and provide them with my card. I will continue to work along side you to make sure you have someone looking out for your best interests. The on-site agents will always have the builders bests interests in mind!
*Did I mention my guidance for you in the Real Estate process is paid for by the Seller!*
Offer to Purchase
We found your dream home! Lets make an offer!
¨ Decide on sales price. Provide Pre-Qualification letter.
¨ Due Diligence and Initial Earnest Money “usually” equals 1% of offer price.
¨ Due Diligence provides the buyer with a time frame (usually 1-2 weeks) to perform inspections. If the buyer decides to terminate the contract during the due diligence period, funds will be returned. Once the due diligence period is over the funds will go towards the amount due at closing.
¨ Initial earnest money is compensation given to the seller to take the home off of the market. If the contract is terminated at any point in time before closing the funds will be given to the seller.
¨ Consider what items if any, you would like left in the home. Examples are refrigerator, washer dryer, play set etc…
¨ Decide on length of time before closing.
¨ Sign Residential Property Disclosure and Mineral Rights Disclosure.
¨ Sign offer and send back to me for review and submission.
Due Diligence
We work with only the most trusted licensed professionals. They provide outstanding detailed inspection reports to ensure your home is in the best care.
¨ During the due diligence process we will discuss what inspections need to take place and I will schedule them for you. ¤ Following the completion of a home inspection we will discuss the findings. A list will be compiled and sent to the listing
agent requesting the items to be acknowledged by the seller. The seller will then decide which items to fix or provide compensation.
¤ A pest inspection will be completed to ensure there are no pests or termite damage. Depending on the findings requests will be submitted to seller.
¤ If needed, a septic, well, radon, lead based paint and structural inspection can be ordered.
Closing
“Stay focused, go after your dreams and keep moving toward your goals.”
¨ Before closing we will do a final walk through. During this walk through we will make sure all items agreed to be taken care of by seller have been addressed.
¨ As soon as the HUD statement is made available from the attorney’s office I will look over it to make sure every financial aspect of your Real Estate transaction is accurate.
¨ With the HUD statement you will be made aware of the amount due at closing.
¨ On the day of closing, please bring balance due along with your driver’s license to the attorney’s office.
¨ Once the Deed has officially recorded you will be given the keys to your new home!!
Closing Costs Closing costs can be roughly estimated to 3% of sales price.
¨ Loan Origination Fee: Covers the lender’s administrative cost. 1% of Loan
¨ Interest: One time payment used to adjust the yield on the loan to market conditions. 1% of loan amount per point
¨ Credit Report: Credit history report obtained by lender. $50-$75
¨ Mortgage Insurance (PM): Is required on mortgages with a loan-to-value ratio of 80% and up. Cost will vary based on coverage.
¨ Inspection: Performed during due diligence to discover any issues with home. $325-450
¨ Pest Inspection: Performed during due diligence to note any termite damage and presence of pests in home. $75-$150
¨ Hazard Insurance: Required by lender. Policy must cover amount of mortgage. Flood insurance may be needed as well if in a flood zone. First year premium is paid at closing.
¨ Escrow Deposits: Funds held in escrow account by lender to cover future payments of taxes, insurance, and mortgage insurance. 2 months hazard, 2 months mortgage and 4 months taxes (average)
Appraisal: A statement of property value conducted by licensed appraiser. Approx. $400. Discount Points: A one-time charge used to adjust the yield on the loan to market conditions. Each point equals 1% of the loan amount. Title Insurance: Protects against loss due to defects in the title which cannot be found on public record. This insurance is required by lenders. Fee is paid once at closing. $2 per $1000 of coverage Attorney: Attorney is responsible for obtaining title insurance, mortgage insurance, closing statement and recording pertinent documents. Approx. $450 Survey: Survey documents exact location of the home and the perimeter of property. $200-$400 RE/MAX United: Funds dispersed to closing staff at RE/MAX United. $150
Steps to a Smooth Move One month prior to closing:
Ø Contact moving companies to compare rates.
Ø Transfer records; medical, dental, school, veterinarian.
Ø Prepare to transfer insurance plans.
Three weeks before closing:
Ø Change address with post office.
Ø Change address with banks, subscriptions, friends and family.
Two weeks before closing:
Ø Arrange utilities to be on at new home day of closing.
Ø Arrange to have final utility reading day after move from current home.
Ø Transfer vehicle licenses and driver’s licenses.
Ø We will schedule final walk-thru of property before closing.
Week of closing:
Ø Keep important financial and personal records with you.
Ø Closing day; once home is recorded you will receive the keys!
Ø Move in!
Real Estate/ Financial Terms
q Mortgage Insurance - If your down payment is less than 20% of the appraised value of your home, you will be required to purchase mortgage insurance. Mortgage insurance insures the lender he will be protected from loss should you cease making payments.
q LTV (Loan-to-Value) -This percentage is computed as follows: Loan Amount/Appraised Value of the Home. As an example, a loan of $90,000 on a home valued at $100,000 has an “LTV” ratio of 90%. In the case of a home equity line of credit, the LTV is the total loans, including the line of credit, as a percentage of the value of your home.
q Conventional Loan: - Conventional loans may be a fixed rate/level payment, fixed rate/graduated payment, or adjustable rate. Down payment requirements vary, but most conventional loans made without 20% down payment will require private mortgage insurance (PMI).
q FHA Insured Loan: Any creditworthy applicant is eligible for an FHA loan. FHA loans are often considered attractive because they have slightly lower down payment options.
q Adjustable Rate Mortgage: Interest rate may change (increase or decrease) periodically based on a predetermined financial market index. If the interest rate changes, the monthly payment may change at the same time or at a future date. Usually an adjustable rate loan will have a lower initial interest rate than will a fixed rate loan.
q Interest Rate - The percentage rate that is charged the borrower for the use of the money borrowed. The rate may be fixed for the life of the loan, or it may change periodically.
q PITI Monthly Payment- The letters PITI stand for Principal, Interest, Taxes, and Insurance. Most lenders use an amortized loan repayment, which requires the borrower to make monthly payments on the outstanding principal, interest for the use of the money, and escrow deposits of 1/12th of the annual property tax and homeowner’s insurance premium.
q Mortgage - A conveyance of an interest in property as security for the repayment of money borrowed. In North Carolina we use a form of mortgage instrument called a DEED OF TRUST. The word “mortgage” is often used loosely to imply loan.
q Promissory Note - Promise to repay a loan.
q Appraisal- A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
q Point - A point is one percent of the loan amount. Most new loans have an origination fee of one point, and many loans also require payment of discount points.
q Deed - The legal document conveying title to a property.
Past Client Reviews
"Jordyn was more than a pleasure to work with. She was dedicated and warm hearted to our ever changing needs. Never once did she make us feel pressured to buy anything we weren't comfortable with. Once we found a property to purchase, Jordyn was always available to give us guidance and feedback. We will definitely use Jordyn and her services again in the future." -Biondo
" My husband and I are working with Jordyn as we are beginning the process of buying out first home. The process is new to us and can be overwhelming at times. She has made us feel at ease and has been so patient and responsive with all of our questions and concerns ". -Aikman
" I was looking for a very specific property. Jordyn was very easy to work with, and more importantly she didn't push me to something different, but rather was patient and found exactly what I was looking for. She was easy to work with and overall very helpful." -Harrison
"Jordyn is such a joy. She is very organized and takes the time to ensure her clients are happy. Jordyn is genuinely glad to help and available for questions. We are building a house now and her advice has been extremely helpful. When we are ready to put our current home on the market, Jordyn will be our agent.“ -Dana
My Commitment to You My goal is not just to sell you a house,
my goal is to open the door to your future. A home is a place that evolves into your own, where you can relax and create memories. I will put every effort into finding the house you will love to call a home. Whether it is your first home, your fifth home or even an investment property. The home buying process should be a fun and exciting time! My promise to you is to search every available resource for the home that meets your needs and will excite and motivate you! Once we find that home I will continue to guide you through every step of the home buying process. I give my personal phone number and email to all clients to cultivate a relationship beyond a business transaction. I enjoy sharing my knowledge and passion for this industry and would be honored to help you find what you are envisioning!
Cell Phone: 919-628-6581
Email: [email protected]
Free Moving Truck Every client of The Dukes Team is offered the opportunity to use the moving truck for FREE for life!
Giving Back to Our Community Heroes Home Advantage
Children’s Miracle Network We are proud to support our local heroes! 62 children enter a Children’s Miracle Network
Hospital for treatment every minute — that's one child every second. A percentage of proceeds from every closed sale will be donated to the Duke Children’s Hospital!
HOME BUYING GUIDE Prepared for You Personally By: Jordyn Lally
RE/MAX agents sell more real estate than any other U.S. brand.