The Estridge Group www .T he E stridge G roup . com
HOMEBUYER GUIDE
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/// MISSION STATEMENT
“To Consistently and Passionately Provide Business Excellence and Five Star Service with a Smile, in a Unique Environment, Resulting in Raving fans who Expect the Extraordinary.” ~ Melinda Estridge
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Welcome to
The Estridge Group
Buyer’s Guide
Congratulations! You are about to embark on the exciting journey of finding your dream home. Whether it’s your first home, a retirement dream or an investment property, The Estridge Group will make the experience of finding the perfect home fun, exciting, and successful. As the real estate market becomes more advanced and increasingly more complex, we are constantly striving to improve our services and sharpen our marketing insight. Keeping up with what is going on in the marketplace allows us to design services and marketing plans to custom fit your needs. Most people will only decide on a few homes in their lifetime—this is one of the biggest undertakings in your life. I believe that for you to feel comfortable during this process, you will need to be well equipped and armed with up-to-date information. This guide contains information about me, my team, and the home-buying process, as well as other information you will find helpful. You will know what to expect every step of the way. Please keep this booklet with you during your home-buying process. There are areas to jot down notes when touring homes and pages containing important phone numbers and dates. We look forward to guiding you on this exciting journey. It is very rewarding to help people find the home of their dreams. You’ll be at home with Melinda Estridge and The Estridge Group!
/// BEST WISHES FOR YOUR EXCITING JOURNEY! Melinda Estridge /// 3
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Follow the Road Map! /// 4
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“If you don’t know where you’re going…you’ll probably end up somewhere else!” TAKEN FROM A BOOK TITLE, that expression carries a simple message:
“TO ACHIEVE AN OBJECTIVE – CREATE A PLAN!” If you plan to buy a home soon, you’ll also need to know “where you’re going.” For the most enjoyable home buying experience, first build a road map to your new home, a list of priorities which will lead to your objective – “A New Home.” The first priority is establishing a time frame. Let’s discuss the dates by which you would like to move into your home, secure financing, and complete the purchase. The next priority is a detailed description of the home you hope to find: your “must have’s” or your “wish list“. Write down every feature and amenity you would like to find in a home. The “must haves“, the “wish list”! Include a detailed description: architectural style, number of bedrooms & baths, location, lot size, and other special requirements. Be specific, if you need extra privacy or a fenced yard, put them on the list. Once you have a lengthy list of preferences, number them in the order of their greatest importance to you. This step is important because some items may have to be compromised in favor of those at the top of your list. There is no home which will meet all your objectives. Finally, if you prefer to finance your purchase, gather information about your personal finances. Mortgage lenders will need names and account numbers of all creditors, employment contacts, and banking details. Sit down with your Estridge Group counselor, and see what your objectives are and how we can get you there.
Melinda
/// BY CREATING YOUR ROAD MAP IN ADVANCE, YOU WILL ARRIVE QUICKLY AT YOUR NEW HOME… /// 5
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What YouCan Expect from The Estridge Group PRIOR TO FINDING YOU A HOME… 1. 2. 3. 4. 5.
Provide information packet Explain Agency relationship Initial comprehensive meeting to best serve you Assist in finding the right mortgage lender to get your pre-approval Determine funds needed to close, to help you prepare to make an offer.
DURING THE SEARCH FOR THE RIGHT HOME…
1. Implementation of The Estridge Group’s detailed “Buyer Plan” 2. Daily emailed updates on newly listed properties 3. Office and cell phone access to your buyer agent for the agent to be available for offers, questions, problems and details. 4. Leave no stone unturned in finding the perfect property for you. 5. Instantly notify you of new listings as they come on the market.
AT THE TIME OF OFFER…
1. We’ll help you structure your best offer 2. Conduct negotiations
PRIOR TO CLOSING AND AT SETTLEMENT… 1. 2. 3. 4. 5. 6.
Recommend Inspectors and attend inspection Our closing manager will handle every detail of the closing process on your behalf. Monitor that contingencies are completed in timely manner (i.e., inspections, loan approvals, etc.) Set up final walk-through Accompany you to final walk-through Personally accompany you to closing to allow for a smooth transaction
POST CLOSING…
1. Keep in touch and maintain communication 2. Available for future real estate needs and questions 3. Become part of our “CLIENT FOR LIFE” follow up program. /// 6
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Main Reasons
People Buy Homes /// TAX GAINS
TO IMPROVE YOUR STYLE OF LIVING
Life is constantly changing and so do our residential needs.
INVESTMENT POTENTIAL
The largest investment for most people is their home. In the long run, investments in homes far outpace inflations. Homeowners build equity and, in most states, can borrow against it.
TAX ADVANTAGES
Property taxes and qualified home interest are deductible on Schedule A, for itemized deductions.
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Taxpayers who sell their principal residence can pocket tax-free as much as $500,000 in profit if they file federal taxes jointly, or $250,000 if they file independently. The property must have been used as their principal residence for two of the prior five years. Homeowners can shelter the profits on the sale of a home as often as once every two years. Gains above $500,000 or $250,000 are taxed according to current IRS regulations. Regulations are subject to change and you should contact a tax professional for current tax provisions.
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Understanding
agency...
Who Works for Whom? /// 8
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CONTROL
SELLER AGENCY (SUB-AGENCY) • • • •
BUYER
Agent will represent the best interests of the seller. Agent will owe seller fiduciary duties. Agent owes buyer honesty. Must give buyer all material facts to make an educated decision.
SELLER
BUYER AGENCY • • • •
CONTROL
Agent will represent the best interests of the buyer. Agent will owe buyer fiduciary duties. Agent owes seller honesty. Must give seller all material facts to make an educated decision.
SELLER
BUYER
FACILITATOR • • • •
Agent does not represent either party. Assists buyer & seller in reading an agreement. Must be honest & accurately disclose known material defects about property. Has NO duty to keep information confidential.
NO CONTROL
BUYER
SELLER
DUAL AGENCY
When a buyer or tenant client of a real estate company becomes interested in property listed by that company, the real estate company, or broker, becomes a dual agent. Because the company has a legal obligation to represent both parties, and may know confidential information about one party that would be helpful to the other party in negotiation, this is a limited agency representation.
CONTROL
BUYER
INTRA-COMPANY AGENCY
When both seller and buyer agree to dual agency by signing a Consent for Dual Agency form, the real estate company (dual agent) will assign one agent to represent the seller or landlord (buyer’s intra-company agent) and another agent to represent the buyer. /// 9
SELLER
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Why You Should Have a
Buyer’sAgent /// “IT MAY BE THE BIGGEST SINGLE EXPENSE OF YOUR LIFE, WHY NOT HAVE PROFESSIONAL REPRESENTATION?” 1. A Buyer’s Agent works for you, while a Seller’s Agent works for the seller (which means they may work against you)! 2. A Buyer’s Agent promises to represent you and take good care of you. A Seller’s Agent promises “not to mislead you”. 3. A Buyer’s Agent negotiates the best price and the best terms for you. A Seller’s Agent negotiates the best price and terms for the seller. 4. A Buyer’s Agent owes you the fiduciary duties of Obedience, Loyalty, Disclosure, Confidentiality, Accounting and Reasonable Care. 5. A Buyer’s Agent will protect your confidentiality on all matters including but not limited to finances, motivation, personal circumstances and feedback. A Seller’s Agent must not disclose to you any information that is not in the best interest of the seller, other than honest,
factual disclosures about the property and must disclose to the seller any information about you that is known and can work against you. 6. A Buyer’s Agent is more motivated to spot problems, to investigate potential issues, to counsel you on the market and the community, to preview properties and to advise on future sale-ability and potential problems. 7. A Buyer’s Agent is more motivated to counsel inexperienced buyers and to take a more proactive role in the search and closing process. 8. A Buyer’s Agent will run a market analysis (comps) and advise on market value. A Seller’s Agent must not recommend any price lower than the asking price or suggest any favorable terms without the seller’s permission. 9. Our entire office represents you as a client. 10. Buyer’s Agency representation may cost you little, but may save you thousands!
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Advantages of a Buyer Agency Agreement 1. YOUR INTERESTS ARE PROFESSIONALLY REPRESENTED. ENLISTING THE SERVICES of a Professional Buyer’s Agent is similar to using an accountant to help you with your taxes, a doctor to help you with your health care, or an attorney to help you with any legal issues. So the first advantage is pretty obvious. If you had the time to devote to learning all you need to know about accounting, medicine and law, you could do these services yourself ! But who has the time? You probably already have a full-time career to which you are committed. This is why you allow other professionals to help you in specific areas of expertise. Melinda Estridge has devoted over 30 years to perfecting real estate service. Continuous education, market expertise and vast experience are combined with an excel-
lent team of talented professionals who find you the perfect home. Melinda and her team will guide you through the home buying process and exclusively represent your interests as we help you find a home, present your contract offer, negotiate and close. It is always better to make an informed decision to buy something, than it is to be sold something. When you have a Buyer’s Agent, your interests are professionally represented and you have more control and peace of mind than if you are simply sold a home you find. Buying a home is a big decision. Let The Estridge Group act as your specialist, even if you happen to find the perfect home yourself. “Finding the home is only one step of the home buying process.”
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2. YOU WILL GET A GREAT HOME QUICKLY AND CONVENIENTLY. ANOTHER ADVANTAGE to signing a Buyer Agency Agreement with the Estridge Group is that you will have an entire team of real estate professionals working to find and secure the perfect home for you exactly when you need it. It is nearly impossible to find a home that meets your needs, get a contract negotiated, and close the transaction without an experienced agent. Melinda has computer networks to make sure you only tour homes that meet your specific needs. You won’t need to spend endless evenings and weekends driving around looking for homes for sale. When you tour your homes with your personal Buyer’s Agent, you will already know that the homes meet your criteria for bedrooms, bathrooms, garage space, basement, square footage, neighborhood, etc. Also, your Agent will ensure you are looking at homes that are within your price range.
3. YOU GET A PERSONAL SPECIALIST THAT KNOWS YOUR NEEDS! JUST AS YOUR ACCOUNTANT, doctor and attorney get to know your needs through a steady relationship, your Buyer’s Agent also gets to know your real estate needs and concerns. This type of relationship is built by open communication at all times and by touring homes with your Agent so they get a good idea of your feedback and concerns about each. If you jump from Agent to Agent, you will not receive the best real estate service possible and you will be violating your agreement to your Agent.
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What is the
Buyer Agency
Agreement? ENTERING INTO A BUYER AGENCY AGREEMENT has countless advantages and no disadvantages. When you sign a Buyer Agency Agreement, you are simply agreeing to “hire” a personal representative who, by law, must represent your best interests to the best of his/her ability. All of this personal service is available at absolutely NO RISK TO YOU! With Melinda and the Estridge Group you get an entire team of real estate professionals devoted to protecting your needs to help you make one of the most important investment decisions of your life! About this time you are probably saying to yourself, “this sounds too good to be true! What’s the catch?” The “catch” is that you are signing a legal document between you and the Buyer’s Agent that will establish a legal relationship with duties and obligations on the parts of both parties. Your Agent’s obligations are set forth by law, as is your obligation.
Your obligation is merely this. You agree to let your agent represent your home buying needs exclusively throughout the duration of the agreement until you find a home and take title. The duration is a variable you decide. This is to guarantee that the Buyer’s Agent receives compensation from the Seller’s Agent for the work she/he has been doing for you. Signing the Buyer Agency Agreement merely means that you agree that your Agent should be compensated for the services in professionally guiding you through the home buying process. (Of course, the Buyer’s Agent must receive commission compensation.) This is established by law to prevent unscrupulous people from taking advantage of the compensation structure of the real estate industry. And, because you are not paying your Agent’s commission, there is no advantage to trying to save money by circumventing the Agent’s services near the transaction closing.
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Viewing Homes AFTER YOUR INITIAL COUNSELING APPOINTMENT, Melinda (or her Buyer Agent ) will have a good idea of your wants, needs, price range, and location and will enter your requirements into the Multiple Listing Service (MLS) computer. From the many listings in its inventory, the computer will print a list of homes tailored just for you. Melinda or the Buyer’s Agent you are working with will make arrangements to show you those that seem to meet your desires. As you walk through the homes, feel free to open the cabinets and closets. Most often sellers will be absent, but should they be present, they will understand your need to
examine the home carefully. When a home appeals to you, make notes. It is easy to forget details. Often there will be a brochure available for you to take along to help you recall the home as you review your tour. Whenever possible, your Buyer’s Agent will give you a copy of the MLS information on homes you are viewing. Don’t be surprised if the first home you see is the perfect one for you, and don’t be discouraged if none of those you visit the first day is what you want. The Estridge Group is committed to finding the one that you will want to call “Home” and will work diligently until you find it.
Offer To Purchase Contract IN NEGOTIATING THE PURCHASE OF YOUR HOME, the initial step will be to instruct your Buyer’s Agent to make an Offer to Purchase. (See Sample). This offer should be in writing and accompanied by an earnest money check to show good faith. 1. The earnest money deposit 2. The amount you are offering to pay 3. Financing terms 4. Any personal property specifically included or excluded 5. Loan commitment date
6. Closing and occupancy date 7. Other contingencies, including building inspections The offer will be written on a standard contract form. If the initial offer is not accepted by the Seller, further negotiations generally reach terms agreeable to both Buyer and Seller. When Buyer and Seller agree on terms, the Buyer immediately applies for financing and arranges for a home inspection.
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Things to Know BeforeYou Buy a
Foreclosure
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In order to make an offer on a Bank Owned Property, you must have the following ready: • Pre-approved letter stating that the income, assets, and employment have been verified. • Proof of Funds (statements showing account balance) • Cleared Deposit check of $5000 (fully refundable prior to end of review period) • Fully signed and completed Contract for Purchase and Sale with no financing contingency
rienced in working with banks and will represent your best interests.
CAN I USE MY OWN TITLE COMPANY?
Typically the bank looks for a price that is within 5% of the asking price. If they do not get their price they will lower it every few weeks until they get close to the list price.
Typically, the bank will require you to use their title company to do the closing. They have already researched the chain of title, and are familiar with the bank regulations; however, they will pay for the title insurance which save you approx. 5% of the purchase price.
WHAT IF THE PROPERTY NEEDS WORK? The bank WILL NOT make any repairs. They sell the property AS-IS. For this reason you have a review period to make sure the property is suitable. Either way you should do a home inspection after your offer is accepted.
HOW MUCH WILL THE BANK TAKE?
WHAT IF MY LENDER CANNOT CLOSE ON TIME? You may be charged late fees for any extensions. This is why it is imperative that you are preapproved.
HOW DID THE BANK ARRIVE AT THE ASKING PRICE AND IS IT A GOOD DEAL? The Bank will consult with their real estate agent and set the price at full market value. The list price has nothing to do with the price the bank will accept. We will research prior mortgages on the property so that you can estimate the minimum the bank might be willing to accept.
IF THERE ARE MULTIPLE OFFERS, HOW CAN OUR OFFERS STAND OUT? Having a large deposit, waiving the financing contingency and showing proof of funds will get the Bank to want to work with you, even if your offer is less.
CHOOSE THE RIGHT AGENT: The Estridge Group is expe-
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/// THE BANK WILL NOT MAKE ANY REPAIRS. THEY SELL THE PROPERTY AS IS.
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SEARCHING FOR HOMES With our state of the art technology, we will automatically send you a list of properties matching your criteria within 24 hours of listing. This will allow you to beat out other buyers to hot new listings. In our area we have a special system called the MLS (multiple listing service). This may not be available in all States or Countries. All agents from the companies put their properties listed in this system and offer compensation to all agents to bring a buyer. This allows you
to choose one agent to work with all real estate companies, and you don’t have to call multiple agents. If you would like more information about a property you like on the internet, or newspaper, feel free to call for information but always tell the agent that you’re working with us (this will prevent you from being hounded by other agents). Get the price and (if available) MLS Number, and we’ll send you complete information. If you see a property you want to look at, always call us for an appointment, never call the seller directly. If visiting a Sales Center or New Development, it is critical that you present our card prior to registering and information the sales person that you are working with us. If the sales person pressures you, do not sign the registration. If you do, you will not be able to receive our representation and may pay a higher price for the property. After your initial counseling appointment, we will have a good idea of your wants, needs, price range, and location and will enter your requirement into the Multiple Listing (MLS) computer. From the many listings in its inventory, we will print a list of homes tailored just for you. Melinda or the Buyer’s Agent you are working with will make arrangements to show you only the properties that meet your desires. As you walk through the homes, feel free to open the cabinets and closets. Most often sellers will be absent, but should they be present, they will understand your need to examine the home carefully. When a home appeals to you, make notes. It is easy to forget details. Often there will be a brochure available for you to take along to help you recall the home. Whenever possible, your Buyer’s Agent will give you a copy of the MLS information on homes you are viewing. Don’t be surprised if the first home you see is the perfect one for you, and don’t be discouraged of none of those you visit the first day is what you want: The Estridge Group is committed to finding the one that you will want to call “Home” and will work diligently until you find it.
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Let Us Help You! IF YOU SEE A SIGN…
HEAR ABOUT A PROPERTY FOR SALE… READ AN AD… SEE A NEW HOME PROJECT... No matter where you find a home you may be interested in seeing, you need only call the Estridge group for help. We have access to a central MLS system, this allows us a cooperating relationship with all real estate offices within our community. We can show you properties that are listed with us and all member brokers in our area. As your Buyer’s Agent, we represent you. We also represent you in “For Sale By Owner” and New Home transactions, giving you the leverage in any negotiation.
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Pre-Approval Program /// MANY BUYERS APPLY FOR A LOAN AND OBTAIN APPROVAL BEFORE THEY FIND THE HOME THEY WANT TO BUY. WHY? HERE ARE THE BENEFITS: • You look at the “right” homes (in a price range you’re comfortable with). • You save money dealing with a seller who is comfortable knowing your financial qualifications. • You close more quickly. • You minimize the trauma of not knowing whether or not you qualify.
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Items Needed for a Loan Application EMPLOYMENT • • • • • • • • •
Current employment of 2 years minimum Addresses for two full years Gross monthly income pay stubs W2’s, if available Proof of pensions, retirement, disability or Social Security Year to date earning statement If self-employed: Two years 1040 tax returns Current year to date profit and loss statement
CREDITORS • • • •
Each creditor’s name, address and type of account Account numbers Monthly payments and approximate balances Amount of child care expense
BANKING • • •
Names and addresses of savings institution Account numbers of all accounts Type of accounts and present balances
MISCELLANEOUS • • • • •
List of assets in stocks, bonds, land Life insurance cash value (documented if used as cash down payment) If applicant is selling a home, copy of sales contract Social Security numbers of all parties Veterans—Certificate of Eligibility and DD-214
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Home Inspections ...why you should obtain one
AS A PROSPECTIVE HOME BUYER, are you sophisticated in identifying problem areas in your potential new home? Most of us are not knowledgeable in identifying potential problem areas. You are in the process of making a very large investment, maybe the largest investment you’ll ever make. For just a small investment now you may save substantial money in the future. Can you afford to not have a professional home inspector survey the premises for the integrity of the internal and external components of the dwelling?
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Here are a few areas that home inspectors look at:
RADON
STRUCTURAL: Many home inspection organizations have set standards on certain areas of the home that the home inspector looks at to determine the integrity of the essential internal and external structural components.
ELECTRICAL: Do the outlets all work? Does the house use fuses or is there a breaker box? Are there any visible signs of fraying on the wiring?
PLUMBING: Are there any leaks or annoying drips? Are all the mechanical systems and fixtures working properly?
BUILT-IN APPLIANCES: Are they functioning properly?
SAFETY HAZARDS: Home Inspectors are not environmental specialists, but they can identify many safety hazards or dangerous conditions.
MISCELLANEOUS: Other items may or may not be included in a standard home inspection. Some of these may be: septic systems, roofs, drainage problems, wood decks, patios or other exterior structures. Be sure and verify which, if any, of these items are included in your home inspection.
NORMALLY NOT INCLUDED: Termite, geological or land subsidence surveys and environmental or pollution inspections which should be completed separately for your own protection. Home Inspectors provide a unique customer service in identifying existing problems, should there be any, and assisting in promoting and facilitating communication with the home seller. There are many home inspection companies to chose from.
Radon is a radioactive gas. It comes from the natural decay of uranium that is found in nearly all soils. It typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. Your home traps radon inside, where it can build up. Any home may have a radon problem. This means new homes, well sealed and drafty homes, and homes with or without basements. Radon is estimated to cause thousands of deaths each year. That’s because when you breath air containing radon, you can get lung cancer. In fact, the Surgeon General has warned that radon in the 2nd leading cause of lung cancer deaths. If you smoke and your home has high radon levels, your risk of lung cancer is especially high. Testing is the only way to know if you and your family are at risk from radon. The EPA and the Surgeon General recommend testing all homes below the third level of radon. Testing is inexpensive and easy—it should only take a few minutes of your time. There are also professional inspection companies that can do the testing. If a radon problem does exist, there are simple and inexpensive ways to fix the problem. Even high levels of radon can be reduced to acceptable levels. The average indoor radon level is estimated to be about 1.3 pCi/L, and about 0.4 pCi/L of radon is normally found in the outside air. The U.S. Congress has set a long-term goal that indoor radon levels be no more than outdoor levels. While this goal is not yet technologically achievable in all cases, most homes today can be reduced to 2 pCi/L or below. Acceptable level is 4.0 pCi/c. Like other environmental pollutants, there is some uncertainty about the magnitude of radon health risks. However, there is more known about radon risks than risks from most other cancer-causing substances. This is because estimates of radon risks are based on studies of cancer in humans (underground miners). Additional studies on more typical pollutants are under way.
WE RECOMMEND YOU ALWAYS OBTAIN A GENERAL HOME INSPECTION AS WELL AS SURVEYS AND INSPECTIONS IN SPECIALIZED AREAS BEYOND THE SCOPE OF THE GENERAL HOME INSPECTION.
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/// RADON IS ESTIMATED TO CAUSE THOUSANDS OF DEATHS EACH YEAR.
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/// IF THE HOME YOU INTEND TO PURCHASE WAS BUILT BEFORE 1978, IT MAY CONTAIN LEAD-BASED PAINT. ABOUT 3 OUT OF EVERY 4 PRE-1978 BUILDINGS HAVE LEAD-BASED PAINT. LEAD POISONING MEANS HAVING HIGH CONCENTRATIONS OF LEAD IN THE BODY. LEAD BASED PAINT
/// LEAD CAN… • Cause major health problems, specially for children under 7 years old • Damage a child’s brain, nervous system, kidneys, hearing or coordination • Affect learning • Cause problems in pregnancy and affect baby’s normal development
Anyone can get lead paint poisoning, but children under 7 are at the greatest risk, because their bodies are not fully grown and are easily damaged. Women of childbearing age are also at risk, because lead poisoning can cause miscarriages, premature births and the poison can be passed onto their unborn babies. The lead hazards that children most often touch are lead dust, leaded soil, loose chips and chewable surfaces painted with lead-based paint. A child may be harmed when it puts into its mouth, toys, pacifiers or hands that have leaded soil or lead dust on them. If your home contains lead-based paint, contact a company that specializes in lead-based paint abatement. Have professionals do the job correctly and safely. A Property Transfer Lead Paint Notification form should be presented to you signed by the seller regarding their knowledge, if any of any lead based paint in their home.
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What happens if an offer is accepted and you apply for a mortgage?
The Lending Process FIND A LENDER YOU CAN TRUST—Allow us to assist you in finding an experienced lender. Starting the loan process as you begin looking at homes so you know what you can afford. The Estridge Group can recommend several trusted and qualified lenders. MORTGAGE COMPANY—The lender simultaneously begins processing your loan application, ordering credit reports and appraisals, and performing verifications. Therefore, when you find your dream home, you are in a position to buy it. UNDERWRITING—When your application is completed and verified, the file goes to the Underwriting Department for final approval. LOAN APPROVAL—When you have final lender approval, you can seriously concentrate on finding a home that you know you can qualify to buy immediately. TITLE, ASSEMBLE PAPERS—Now that you have a home under contract, the lender processes the necessary paperwork. Your attorney secures a title search and processing is completed. CLOSING—The Company drafts legal transfer documents for local jurisdiction, now you are ready to go to your closing to secure the keys to your new home.
/// “YOUR NEXT STEPS WILL BE OVER THE THRESHOLD OF YOUR NEW HOME!” /// 26
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Why You Need a TitleAttorney / / / AT TORNEY’S GOALS: 1. To explain closing process to clients. 2. To identify issues as to buyer, seller and lender. 3. To negotiate and resolve any and all issues. 4. Represent the jurisdiction for transfer of real property. PRE-CLOSING ISSUES A. Purchase and Sale—Who will review it for the Buyer? 1. What is included and what is not? 2. Contingencies • Finance—how much, how long • Home Inspection • Septic-certifications, new regulations • Radon • UFFI • Underground Oil Tanks 3. Default provisions 4. Buyers Addendum to Purchase and Sale • Seller will sign documents • Title problems • Final inspections 5. New House-building plans, specifications, additional provisions—Get Help! B. Financing Commitment What is it? Conditions: Type and Terms APR Disclosure, Good Faith Estimate of Costs
CLOSING ISSUES A. Buyer/Seller 1. Get deed—lender’s attorney will record it 2. Condition of house—try to resolve any problems prior to closing 3. Special instructions—alarm, rubbish, recycling, heat/ air conditioning, appliances, keys B. Bank 1. Sign 20-30 documents 2. Money 3. Insurance—homeowners—how much, get paid receipt 4. Title insurance—what is it? Do I need owner’s policy? This is for information only and should not be relied upon as legal advice. Please contact your attorney for further information.
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Track Record and Experience Certain types of professionals are required by law to provide new clients with information relevant to their qualifications and track record as an indication of competence in their field. REALTORS are not required to provide this information but… here’s mine anyway. We have helped over 60 families buy homes every year. We have personally SOLD over a Billion dollars of Real Estate. We are in the top 1 percent of all agents in the business. We recognize that past performance is not necessarily a guarantee of future success, but what else can you go by? An agent’s track record is important because: • 85%-90% of agents never make it through their first year. • Your home is probably your single largest asset. In fact, if you are like most Americans your home makes up the lion’s share of your net worth. So presumably, you want the most qualified person you can find to advise you about the market and the sale process.
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Our Sources of
Business
We want to go farther than just looking up properties available to the general public. To get you the best choice, we have additional sources.
PAST CLIENTS
Our past clients consistently call on us when they are ready to sell. You can find out about properties before they are ever listed!
ATTORNEYS
Usually attorneys are one of the first to know about properties before they hit the market and will refer them to us. We receive a large amount from owners going into Bankruptcy, falling behind on their payments.
BANK REO MANAGERS
Throughout the years, we have a network of managers directly from banks which have gotten to know us and sometimes offer their properties to our buyers at a discount prior to listing it with their realtors. We perform Broker Price Opinions directly for Banks and will know about properties ahead of time and can send an offer.
OTHER REALTORS
We have a wonderful relationship with the top realtors in our areas. We personally network with them to know about listings coming on the market ahead of time. Your could be first in the door.
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Glossary of Terms ABSTRACT OF TITLE: A summary or digest of the conveyances, transfers and any other facts relied on as evidence of title, together with any other elements of record which may affect the marketability of the title. AMORTIZED LOAN: A loan that is completely paid off, interest and principal, be a series of regular payments that are equal or nearly equal. Also called a Level Payments Loan. APPRECIATION: An increase in value of real estate ASSUMPTION OF MORTGAGE: The taking of title to property by a grantee, wherein he or she assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property: becoming a co-guarantor for the payment of a mortgage or deed of trust note.
DEED: Written instrument which, when property executed and delivered, conveys title. DISCOUNT POINTS: Additional charges made by a lender at the time a loan is made. Points are measured as a percent. These additional interest charges are paid at the time a loan is closed to increase the rate of return to the lender so as to approximate the market level. EARNEST MONEY DEPOSIT: Down payment made by a purchaser of real estate as evidence of good faith. EASEMENT: Created by grant or agreement for specific purpose, an easement is the right, a privilege or interest which on party has in the land of another. (Example: right or way).
CLOSING: The final settlement of a real estate transaction between buyer and seller.
EQUITY: The interest or value which an owner has in real estate over and above the liens against real property.
CONDOMINIUM: A system of individual fee ownership of units combined with joint owner-ship of common areas of the structure and the land.
ESCROW: The deposit of instruments and funds with instructions to a third neutral party (Escrow Agent) to carry out the provisions of an agreement or contract; when everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow.
CONTRACT FOR DEED: A contract ordinarily used in connection with the sale of property in cases where the seller does not wish to convey title until all or a certain part of the purchase price is paid by the buyer. CONVENTIONAL MORTGAGE: A mortgage securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed. COUNTER-OFFER: A rejection of an offer by a seller along with an agreement to sell the property to the potential buyer on terms differing from the original offer.
FHA LOAN: A loan which has been insured by the federal government guaranteeing its pay-ment in case of default to borrower. FNHA LOAN: A loan insured by the federal government similar to the FHA loan usually used for residential properties in rural areas. FEE APPRAISAL: The act or process of estimating values of real estate or any interest therein for a fee.
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BUYING YOUR HOME Looking to buy a home? There’s more to finding it than meets the eye. We will take you through the home-buying process, oversee the details, and guide you to the home of your dreams...every step of the way. DETERMINE PURCHASING POWER
MORTAGE APPROVAL
DISCUSS BUYER AGENCY
DETERMINE NEEDS AND DESIGNS
PREVIEW HOMES
MAKE OFFER TO PURCHASE
CONTINGENCIES: *HOME INSPECTION *FINANCING *OTHER CONTINGENCIES
CONTRACT ACCEPTANCE
HOME INSPECTION
SELECT SETTLEMENT ATTORNEY
ARRANGE TERMITE INSPECTION
OBTAIN HAZARD INSURANCE
PRE-SETTLEMENT INSPECTION
SETTLEMENT
MOVING DAY
CONTACT UTILITY COMPANY
www.longandfoster.com LONG & FOSTER. THE HOME OF HOMEOWNERSHIP.
REAL ESTATE. MORTGAGES. TITLE. INSURANCE
2010 The Long & Foster Corporate Marketing Department All Right Reseved
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Trusted
Vendors LENDERS:
PHONE
CONTACT
WEBSITE/EMAIL
Scott Shaub Gary Schiller
301-257-8157 301-231-5770
Scott Shaub Gary Schiller
scott.shaub@academymortgage.com gary@bmicmortage.com
301-942-4610 202-298-7868
Kevin Richardson Kenneth Cox
kevin@richnspect.com Kencox1@mac.com
301-656-3835 301-448-0280
Devon Miller David Merrick
dmerrick@mabi.us
301-654-2560 301.528.1111 x 103
Bobby Lee Chad Older
HOME INSPECTING COMPANIES: Richardson Inspection Kenneth Cox
CONTRACTORS: Marvel Homes Merrick Home Designs
TITLE COMPANIES: Sage Title Peak Settlements
bobby@sagetitlegroup.com
HOME WARRANTY: Home Trust American Home Shield
1-800-331-2699 1-800-735-4663
MOVING COMPANIES: Beltway Movers Town & Country
301-340-2310 301-670-4600 Eric Aldinger /// 32
www.2-10.com www.ahs.com
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Let’s adhere to this plan to secure your dream home quickly! /// A SUCCESSFUL REAL ESTATE TRANSACTION HINGES ON NUMEROUS DETAILS INVOLVING DEADLINES THAT MUST BE MET SO THAT YOU CAN MOVE INTO YOUR DREAM HOME AS SOON AS POSSIBLE. 1. Meet T.E.G. Counselor
DATES
2. Loan Application: (application fee is due at this time) 3. Singning of Purchase & Sale Agreement: 4. Set Inspection Date & Time: (call office) 5. Satisfactory Completion Date of Inspection: Notification of any major issues. (Keep in mind you may or may not be buying a new home) 6. Negotitiation of Inspection Complete: Closing Date, Time, &Place 7. Loan Commitment Due: From Lander Underwriter 8. Final Walk-Through Inspection: 9. Closing Date, Time, &Place PLEASE NOTE: During the loan and home-buying process you will be asked to supply documentation, respond to phone calls requesting information, schedule dates into your calendar, etc. Please respond quickly to these requests so that your transaction does not encounter any problems.
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Investment Properties When you’re ready to think about investment properties, The Estridge Group can help.
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Long and Foster Real Estate Inc 4650 East West Highway, Bethesda, MD 20814 www.TheEstridgeGroup.com