20 Questions You Need 20 Questions You Need Answers to Before Buying Answers to Before Buying

Your First HomeYour First Home

68.1% Home Ownership68.1% Home Ownership Home is a Financial AssetHome is a Financial Asset Knowledge Opens DoorsKnowledge Opens Doors First Time Home Buyers ProgramFirst Time Home Buyers Program

#1 HOW DO I BEGIN THE #1 HOW DO I BEGIN THE

PROCESS OF BUYING A HOME?PROCESS OF BUYING A HOME? Should I rent or should I own?Should I rent or should I own?Am I ready to buy a home?Am I ready to buy a home?How much can I afford in a monthly mortgage payment ?How much can I afford in a monthly mortgage payment ?How much space do I need? How much space do I need? What areas of town do I like? What areas of town do I like? Talk to friends and familyTalk to friends and familyDrive through neighborhoodsDrive through neighborhoodsLook in the "Homes" section of the newspaper.Look in the "Homes" section of the newspaper.

#2 HOW DOES PURCHASING A #2 HOW DOES PURCHASING A HOME COMPARE WITH HOME COMPARE WITH

RENTING?RENTING?

The one advantage of renting is being generally The one advantage of renting is being generally free of most maintenance responsibilities. free of most maintenance responsibilities.

Many advantages to home ownershipMany advantages to home ownership Chance to build equityChance to build equity Tax benefitsTax benefits Protection against rent increasesProtection against rent increases Freedom to decorate your home the way you wantFreedom to decorate your home the way you want

#3 - HOW DO I KNOW IF I'M READY #3 - HOW DO I KNOW IF I'M READY TO BUY A HOME?TO BUY A HOME?

Do you have a steady job (or source of income)? Do you have a steady job (or source of income)? Have you been employed on a regular basis for the last 2-3 years, or Have you been employed on a regular basis for the last 2-3 years, or

do you have a good reason that you weren’t? do you have a good reason that you weren’t? Is your current income reliable?  Is your current income reliable?   Do you have a good record of paying your bills? (if not, we can also Do you have a good record of paying your bills? (if not, we can also

help you repair your credit) help you repair your credit)  Do you have some credit history? Do you have some credit history? Do you have money saved for a down payment, or gift funds Do you have money saved for a down payment, or gift funds

available to you? available to you? Do you have the ability to pay a mortgage every month, plus Do you have the ability to pay a mortgage every month, plus

additional costs? (taxes, insurance, etc.) additional costs? (taxes, insurance, etc.)

#4 HOW DO I KNOW WHAT I #4 HOW DO I KNOW WHAT I

NEED?NEED?

Make a list of your priorities- Establish a Make a list of your priorities- Establish a Must HaveMust Have list and list and WishWish list. list.

Location Location (Near job, schools, public transportation…)(Near job, schools, public transportation…)

Size Size (how many bedrooms, bathrooms…)(how many bedrooms, bathrooms…)

AmenitiesAmenities (pool, lot size, fireplace rooms…) (pool, lot size, fireplace rooms…)

#5 WHAT SHOULD I LOOK FOR #5 WHAT SHOULD I LOOK FOR WHEN DECIDING ON A WHEN DECIDING ON A

COMMUNITY?COMMUNITY?

What community will fit into my daily lifestyle?What community will fit into my daily lifestyle? What are the schools like?What are the schools like? Do I want access to shopping ? public Do I want access to shopping ? public

transportation? Libraries? Museums? transportation? Libraries? Museums? Do I want peace and quiet of a rural Do I want peace and quiet of a rural

community? community? Should I drive around the community? Talk to Should I drive around the community? Talk to

neighbors?neighbors? How Can I find out about Community How Can I find out about Community

Resources?Resources?

#6 HOW DO I SELECT THE RIGHT #6 HOW DO I SELECT THE RIGHT

REAL ESTATE AGENT?REAL ESTATE AGENT?

Ask Mortgage Expert for Ask Mortgage Expert for recommendation.recommendation.

Ask Family and Friends for Ask Family and Friends for RecommendationRecommendation

Compile a list of agentsCompile a list of agents Meet with several agents until you Meet with several agents until you

find one that meets your needsfind one that meets your needs

#7 HOW CAN I FIND OUT HOW #7 HOW CAN I FIND OUT HOW MUCH HOMES ARE SELLING FOR MUCH HOMES ARE SELLING FOR IN CERTAIN COMMUNITIES AND IN CERTAIN COMMUNITIES AND

NEIGHBORHOODS?NEIGHBORHOODS?

Check with your real-estate Check with your real-estate agentagent

#8 IS AN OLDER HOME A #8 IS AN OLDER HOME A BETTER VALUE THAN A NEW BETTER VALUE THAN A NEW

ONE?ONE?

Many ConsiderationsMany Considerations Individual CharacteristicsIndividual Characteristics MaintenanceMaintenance Architecture and StructureArchitecture and Structure Energy EfficiencyEnergy Efficiency

#9 WHAT SHOULD I LOOK FOR #9 WHAT SHOULD I LOOK FOR WHEN WALKING THROUGH A WHEN WALKING THROUGH A

HOME?HOME?

Is there enough room for both the present and the future? Is there enough room for both the present and the future? Are there enough bedrooms and bathrooms? Are there enough bedrooms and bathrooms? Is the house structurally sound? Is the house structurally sound? Do the mechanical systems and appliances work? Do the mechanical systems and appliances work? Is the yard big enough?  Is the yard big enough?   Do you like the floor plan? Do you like the floor plan? Will your furniture fit in the space? Will your furniture fit in the space? Is there enough storage space?Is there enough storage space? Does anything need to repaired or replaced? Does anything need to repaired or replaced? Will the seller repair or replace the items? Will the seller repair or replace the items? Imagine the house in good weather and bad, and in each season. Imagine the house in good weather and bad, and in each season. Will you be happy with it year-round?Will you be happy with it year-round?

#10 WHAT QUESTIONS SHOULD #10 WHAT QUESTIONS SHOULD I ASK WHEN LOOKING AT I ASK WHEN LOOKING AT

HOMES?HOMES? MaintenanceMaintenance NeighborhoodNeighborhood Use ChecklistUse Checklist

#11 HOW CAN I KEEP TRACK OF #11 HOW CAN I KEEP TRACK OF

ALL THE HOMES I SEE?ALL THE HOMES I SEE?

Take Picture of each Take Picture of each home you likehome you like

Put in Binder with Put in Binder with your checklistyour checklist

#12 HOW MANY HOMES #12 HOW MANY HOMES SHOULD I CONSIDER BEFORE SHOULD I CONSIDER BEFORE

CHOOSING ONE?CHOOSING ONE?

Visit as many as you wantVisit as many as you want Communication Communication OrganizationOrganization

#13 I FOUND A HOME, WHAT #13 I FOUND A HOME, WHAT TYPES OF INSPECTIONS ARE TYPES OF INSPECTIONS ARE

REQUIRED?REQUIRED?

Get a Home Inspection First and then assess Get a Home Inspection First and then assess the inspection before you incur any other the inspection before you incur any other expenses.expenses.

#14 WHAT DOES A HOME #14 WHAT DOES A HOME INSPECTOR DO, AND HOW DOES INSPECTOR DO, AND HOW DOES AN INSPECTION FIGURE IN THE AN INSPECTION FIGURE IN THE

PURCHASE OF A HOME?PURCHASE OF A HOME?

Checks for safety of homeChecks for safety of home Focus on Structure, Construction & MechanicalFocus on Structure, Construction & Mechanical Makes you aware on repairs neededMakes you aware on repairs needed Qualified and Experienced InspectorQualified and Experienced Inspector Before you sign the final offer, make sure to have an Before you sign the final offer, make sure to have an

inspection clauseinspection clause

#15 DO I NEED TO BE THERE #15 DO I NEED TO BE THERE

FOR THE INSPECTION?FOR THE INSPECTION?

Not Required but a good Idea!Not Required but a good Idea!

#16 WHAT ARE "HOME #16 WHAT ARE "HOME WARRANTIES", AND SHOULD I WARRANTIES", AND SHOULD I

CONSIDER THEM?CONSIDER THEM?

Offer Protection for Possible Costly Offer Protection for Possible Costly ProblemsProblems

Great ProgramsGreat Programs Consider having seller or realtor pay forConsider having seller or realtor pay for

#17 HOW CAN I FIND #17 HOW CAN I FIND INFORMATION ON THE INFORMATION ON THE

PROPERTY TAX LIABILITY?PROPERTY TAX LIABILITY?

Should be included in the listingShould be included in the listing Ask the sellerAsk the seller Check with the local tax assessor’s officeCheck with the local tax assessor’s office

#18 DO I REALLY NEED #18 DO I REALLY NEED HOMEOWNER'S INSURANCE AND HOMEOWNER'S INSURANCE AND IF SO HOW DO I GET THE LOWEST IF SO HOW DO I GET THE LOWEST

RATE?RATE? Yes, home owners insurance is a Yes, home owners insurance is a

requirementrequirement Shop around for comparable rates Shop around for comparable rates Ask for referrals from Realtor and Ask for referrals from Realtor and

friendsfriends Flood insurance may be require, check Flood insurance may be require, check

with real-estate or insurance agent for with real-estate or insurance agent for flood plain information flood plain information

Use same insurance company as Car Use same insurance company as Car and Life Insurance for a discount.and Life Insurance for a discount.

#19 I AM READY TO MAKE AN #19 I AM READY TO MAKE AN OFFER~ HOW DO I DETERMINE OFFER~ HOW DO I DETERMINE

THE INITIAL OFFERTHE INITIAL OFFER Your Offer Should include:Your Offer Should include: Complete legal description of the property  Complete legal description of the property   Amount of earnest money  Amount of earnest money   Down payment and financing details  Down payment and financing details   Proposed move-in date Proposed move-in date   Price you are offering  Price you are offering   Proposed closing date  Proposed closing date   Length of time the offer is valid  Length of time the offer is valid   Details of the deal Details of the deal

Be Prepared for give and take negotiationBe Prepared for give and take negotiation

#20 DO I NEED A LAWYER TO #20 DO I NEED A LAWYER TO BUY A HOME?BUY A HOME?

Laws Vary by StateLaws Vary by State Check with your real estate agent Check with your real estate agent

for requirements and referralsfor requirements and referrals

You are now ready to apply for You are now ready to apply for your Mortgage.your Mortgage.

Call me now and let’s get Call me now and let’s get started.started.

Then Go To Part 2Then Go To Part 2