SMART BUYER GUIDE “...A resource to help guide you through the home home--buying experience, from start to finish.”
Weitzel & Associates
RE/MAX Whatcom County | Each Office Independently Owned & Operated Outstanding Agents. Outstanding Results.
www.WeitzelAndAssociates.com
Letter from Chris Weitzel Managing Broker and Team Leader of Weitzel & Associates You’ve heard it before… Buying a house may be the biggest purchase you will ever make. Does that make you nervous? Consider this: it can also be one of the best investments you will ever make. From the pride you feel by being a homeowner to the tax deductions associated with homeownership, the benefits are plenty. If you’re ready to travel the road towards homeownership, take the first step with our “Smart Buyer Guide.” This resource will lead you through the home-buying process, from start to finish, and presents you with relevant information, including which steps to take and in which order, terms to keep you in the know, and facts to help make the right decisions for you. Through it all you’ll find helpful tips and resources to keep you on the road to homeownership. My team and I are excited to work with you and hope that together, we will find you the best property available that meets your needs and desires. We look forward to exceeding your expectations of service!
Chris Weitzel
Guide Contents:
Home buying flow chart (Page 2) Finding a Realtor (Page 2) Getting pre-approved for a home loan (Page 3) The benefits of being pre-approved (Page 4) Common credit mistakes (Page 4) Narrowing down your home search (Page 5) Listing alerts and notifications (Page 5) Timely real estate terms (Page 5) Working with your buyer’s agent (Page 6) FSBO tips (Page 6) Getting prepared (Page 7) 10-Step home buyer checklist (Page 8) Testimonials (Back Cover)
Chris Weitzel & Associates Real Estate Team (360) 312-5151
The Road Home Interview a Realtor Get Pre-Approved for a Home Loan Look at Property Make an Offer
Negotiate Offer
Contract Accepted Deposit Earnest Money
Inspection & Finance Inspection Negotiate Work Orders Work Completed Re-Inspect Financial Preparation
Mortgage Company Credit Report Verification Appraisal Under Writing & Loan Approval Title Company—Title Search Assemble Papers & Closing
Finding a Home Finding a home is so much more than house hunting. If you’re serious about being a homeowner, there are a few key things you will need to do:
Find an Agent The real estate market is a big place and an experienced sales agent can help you navigate it. Licensed agents know the current market conditions and can negotiate the best contract terms for you; they can walk you through confusing paperwork and, of course, assist you in house hunting. To find the right agent for you, ask your top candidates these questions: • How much experience do you have and can you provide references? • What services and resources do you offer?
Move In!
• How will the home buying process work and what’s expected of me? • How much time can you devote to my needs and how often will you communicate with me? • Who will you represent, me or the seller? • What types of homes are your specialty and are you familiar with the neighborhoods that interest me? • How many homes have you helped customers buy in the last year? • What happens if I’m not happy with your services?
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The Road Home Get Pre-Approved for a Home Loan A buyer who has made an application with a lender and whose income and credit report have been verified can become a pre-approved buyer. Sellers will negotiate with and compromise more for a pre-approved buyer. Because you are pre-approved, you become a “cash” buyer in the eyes of the seller. Getting pre-approved for a home loan can be a daunting experience. You’ll want to find a mortgage lender that you’re especially comfortable with as they will sift through your financial history to determine how much you can borrow, how much you can afford, and which loans might be right for you. Applying for a home loan requires a written application and supporting documentation; it can be a slightly intimidating process and there are a few things you should be ready for when meeting with your mortgage lender:
1. They will check your FICO score. Knowing your credit score will give lenders an inside look at your credit habits and history which will help them decide if you’re a good candidate for a loan. Credit scores are ranked on a scale of 300-850. The higher the better. 2. They will check your employment history. Lenders ask for a list of your past employers, how long you’ve been with your current employer, and what your annual salary or take-home pay is. They want to make sure you consistently earn money, with no major gaps in income, and can make consecutive mortgage payments. 3. They will check your assets and debts. Be prepared to show your past tax records, recent bank statements, and current debt amounts, including credit card debt, car loan, or student loan. Lenders want to know your debt-to-income ratio to know if you can make each loan payment with the income you earn.
Chris Weitzel & Associates Real Estate Team (360) 312-5151
The Road Home Common Credit Mistakes Many borrowers make credit mistakes during the loan process. Below are some quick tips to help avoid this: DON’T apply for a new credit of any kind. DON’T pay off collections or charge offs during the loan process. DON’T close credit card accounts. DON’T over charge on your credit card accounts. DON’T consolidate your debt onto credit cards. DON’T do anything that will cause a red flag to be raised by the scoring system including adding new accounts, co-signing a loan, changing your name or address with the bureaus.
The Benefits of being Pre-Approved 1. Save time by looking at the right homes. Once you have an approved price from your lender, we will be able to send you a selection of homes more specific to your personal criteria. This will save you time by looking at homes you can actually afford instead of falling in love with one you can’t. By decreasing the inventory you can also allot more time to thinking about the property features you desire. 2. Gain confidence & avoid disillusionment. Now when you find that perfect home, nobody can tell you that you do not qualify to buy it. You can minimize anxiety and remove last-minute loan surprises that could disqualify you. 3. Increase bargaining & negotiating power. Sellers will be more likely to accept your offer because you are giving the seller peace of mind that their home is sold. They can take their home off the market and place it into pending status with confidence that you have the means to close. 4. Enjoy a faster closing period. Because there is less of a waiting period while your loan application is processed, the lender can speed up the entire processing procedure. Appraisals can be ordered immediately. You’re offer will also look better compared to a non-approved buyer if a seller is looking to sell quickly.
Lenders we Recommend Marie Bjornson
Dustin Brumley
Tracy Peterson-Foy
Claudia Abbot
Charlotte Pros
Envoy Mortgage (360) 676-9600
Neighborhood Mortgage (360) 389-6605
Bank of the Pacific (360) 588-9383
Bank of the Pacific (360) 201-9268
Wells Fargo (360) 223-4663
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The Road Home
Listing Alerts and Notifications
Starting Your Home Search Once you have a good idea of how much you can afford and would like to spend on a new home, your search can begin. But where to start? There are a lot of homes on the market and they come in all different styles and designs. You’ve got the choice of single family, condo, townhome, lakefront, acreage, luxury; you can also choose rambler, multiple-story, or split-level. In addition, you can choose a traditional, new construction, foreclosed, or short sale. In other words – you’ve got options. But what’s most important is that you choose a home that compliments your lifestyle and your income.
To narrow down your home search: Set a price limit. Determine a desired location. Consider how many bedrooms, bathrooms & sq. ft. you need. Decide which amenities (hardwood floors, fireplace, deck, updated kitchen, walk-in closet, etc.) are must-haves versus like-to-haves. Think about yard size and landscaping (mature yard vs. young yard). Once your list is made, contact us so that we can give you additional advice, details, and start to setting up showings.
Using your narrowed down search criteria and his/her access the Multiple Listing Service, your agent will set you up with a listing alert customized to your needs. The listing alert will notify you via email of all new properties for sale and price reductions matching your search parameters and can be set up to email you with daily or weekly updates. These notifications save you time searching online and ensure that you don't miss out on the best properties before you reconnect with your agent. (Yes, even today the best priced properties sell fast.)
Timely Real Estate Terms The real estate market has always been full of industry-specific words, terms, and acronyms, but with the condition of the current housing market some terms are being used a lot more. Here are a few you should become familiar with:
Distressed Property Property that is in poor physical or financial condition. Could denote a property that is in excellent condition but whose owners fell into default on their home mortgage. Foreclosure and REO (Real Estate Owned) When a homeowner defaults on his/her home mortgage, gives up his/ her rights to the property, & the lending institution takes legal possession. Short Sale When a financial lender approves a sale of a property that is less than what is owed on it.
Chris Weitzel & Associates Real Estate Team (360) 312-5151
The Road Home Advantages of Working with Your Buyer’s Agent Buying a home is no small matter. Besides being the largest financial transaction you may ever undertake, it’s probably also the most complex. Therefore, it’s imperative to work with qualified real estate professional who is representing your best interests. Here are a few things your agent will provide throughout your home buying process. 1. Full Access to the MLS :The Multiple Listing Service (MLS) is a powerful database of all homes listed for sale by a real estate agent and only Realtors have access to it. Buyers can find some information online but it is a “watered down” version and doesn’t return as detailed profiles as the MLS. 2. Maximize Your Time: While driving neighborhoods is an excellent idea to help you decide which locations you prefer, it’s not a very efficient way to find your new home. Gas is expensive, and your time is valuable. Your Buyer’s Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes that ALL match your wants & needs. Your Buyer’s Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process . 3. Representation: Listing Agents enter into legally binding agreements that require them to ALWAYS act in the best interest of the seller. They are the seller’s “coach” and will make sure that their client (the seller’s) best interests are looked after. Luckily, your Buyer’s Agent is there to make sure YOUR best interests are accounted for. With your expert Buyer’s Agent in your corner, you can rest assured that you’re on even ground with the home seller. 4. Negotiating Power: The MLS maintains a record of, not only all homes listed by Realtors, but also the sales price of those homes. Your Buyer’s Agent will run a Comparative Market Analysis (CMA) to determine a prospective home’s fair market value. If the home is priced over fair market value, your Buyer’s Agent can present your “under asking price” offer with plenty of firepower – and a greater chance that the offer will be accepted. 5. Experience: The average person buys 3-5 homes in their lifetime. A good Buyer’s Agent will assist in 3-5 home purchases every month. What might seem complicated and intimidating to you is fairly common and familiar to your Realtor. Your Buyer’s Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs. 6. Industry Contacts: It takes a lot of people to close a real estate transaction – Buyer’s Agent, Listing Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, and sometimes more! A good agent will come with a strong closing team. A transaction is only as strong as its weakest link – with your strong Buyer’s Agent & their closing team, you can rest assured that you will have plenty of support. 7. Piece of Mind: If you are like most people, your home is the largest purchase you will ever make. The average person spends around 1/3 of their total monthly income on their home. This is a big decision and you don’t want to go at it alone. When you use a trusted Buyer’s Agent, you know that your best interests are accounted for, and that you can feel confident in your purchase.
FSBO Tips There are significant services provided by real estate agents that a buyer will miss out on if not professionally represented by a real estate agent when buying a home that is listed “for sale by owner” (FSBO). From researching the fair market value of the home, presenting facts and recent sales data to the seller to support a below asking price offer, securing an escrow provider to ensure that disclosures are properly and thoroughly completed, to ensuring that you obtain clear title. Many FSBO sellers cooperate with Buyer’s Agents and your agent will make sure that your best interested are looked out for. If you see a FSBO sign or ad, call your agent who will make the first contact with the seller and set the appointment for you to view the home.
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The Road Home Be Prepared Even though there are other homes on the market, good homes go fast so you’ll need to be ready to make an offer when you find the house you want. Your agent will draw up the Purchase Agreement and negotiate the best price and terms for you; but there are a few things you’ll need to do as well:
1. Have an inspection done. This is optional in most cases, but we highly recommend it! Inspections generally cost several hundred dollars but will bring to light any major issues or concerns with the home. The Purchase Agreement can be contingent on the outcome of the inspection, so if you don’t like what you find, you can withdraw the agreement and keep looking. Here are some local inspectors: Jefferson Livingston Rodger Althage Bruce Kale Pillar to Post Inspections RCA Home Inspections Wright Inspection Services 360-392-8731 360-303-2030 360-305-1163 2. Purchase insurance. You are required to purchase homeowners insurance if you have a mortgage. Make sure you purchase enough to fully cover your home and your belongings, in case of a total loss. 3. Determine the status of utilities. In a traditional home sale, with sellers as occupants, you’ll want to check on the status of the utilities required by the home. Outstanding invoices for items such as water, gas, and electric should be paid in full by the owners at closing. You will also want to have the services transferred to your name for billing. In a foreclosure, or vacant home sale, in which the water has been turned off, contact the city to turn the water back on and check for broken or damaged pipes.
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The Road Home 10-Step Home Buyer Checklist ❶ Get pre-approved and figure out how much you can afford. Meet with multiple lenders and mortgage brokers. Calculate your monthly income vs. debt: $_____ - $_____ = $_____ Check your credit report and FICO score: _______ Figure out your down payment: $_____ Choose a type of mortgage: Fixed Adjustable Conventional FHA USDA Other: _____________ Shop for the best interest rates and programs: Interest rate: ____% Loan term: _____years
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❷ Work with a buyer’s agent who knows your area. Get referrals and consider working with an exclusive buyer’s agent. Meet with your agent to discuss your home search.
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❸ Determine what you want and need in a home. Choose a location (downtown, urban, suburban, rural). Choose a type (single family, townhouse, condo, loft). Choose a price range: $_____ to $_____ Choose a size: Bedrooms:_____ Baths:_____ Sq. Ft.:_____ Choose property features and amenities (garage, yard, etc.)
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❹ Research your target neighborhoods. Look online and talk to your Realtor about schools, crime rates, etc. Determine your work commute. Scout local amenities, such as parks, shops and restaurants.
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❺ Search for homes. Browse listings online at www.WeitzelandAssociates.com. Save and compare listings. Ask your agent to set up tours of homes that match your criteria.
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❻ Research each home you want to buy. Ask your agent to estimate the property’s fair market value. Review all property disclosures. Find out about liens, easements or other restrictions.
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❼ Make an offer and negotiate. Determine the purchase price: $_____ Include contingencies, such as financial and inspection. Spell out special requests and repairs you want included in the sale. Determine the amount of earnest money: $_____ Decide a move-in date: ___ /___ /___ Sign the Purchase and Sale Agreement.
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❽ Finalize the deal. Get a professional home inspection. Date: ___ /___ /___ Use the inspection reports to re-negotiate if necessary. Complete the loan process with your lender. Your lender will order a house appraisal. Appraised amount: $_____ Choose a home insurance company. Do a final walk-through with your Realtor prior to closing. Set aside cash for the closing costs and down payment.
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❾ Close the purchase. Review the settlement document at least two days prior to closing. Set appointment with escrow to sign documents: ___ /___ /___
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❿ Move In!
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The Road Home Testimonials from our Clients Randy and I would like to thank you for all your help during these past few months. You went out of your way time and time again to help us make our dream come true. Thank you!! — Randy & Corby Throughout the entire process of finding a home in a price range that had a slim to none inventory, negotiating with the seller (a bank mind you at that) while multiple offers were on the table, and closing quickly… all during the holidays, Chris Weitzel had all the skills and experience it took to help me find my first home! Chris was always available when I had questions, and even took phone calls late in the evening on his home phone. My new home far exceeds all expectations that I had for my first home and the price at which I purchased it fell well below its appraised value. Even after the sale, Chris has continued to give me exceptional service; providing me with referrals for contractors. I would and have recommended Chris to all of my friends and family for their real estate needs. — Lindsey French
Without Chris Weitzel we probably would not have completed our short sale purchase. He guided, counseled, and helped us all the way. Thanks for excellent communication throughout the entire process. — Rod & Mimi Mackinnon We have worked with Chris on all of our real estate transaction for the past 8 years. The quality of his work, timeliness, professionalism, and knowledge of the market has always been appreciated. He and his team are pleasant to work with, readily available, and quick to respond to all of our questions. — Curt & Mary Remington Chris, This is a small token of our appreciation for your work - for taking all of our calls, for knowing so much, for taking heroic initiative, and for being a great guy! Enjoy, with our thanks for being one hell of a Realtor, and, with hope, a friend. — Tara & Scott My wife and I always go to Chris for our housing needs. His experience, knowledge, and attention to the client make for the best and most expedited process around. We value any and all advice he recommends. Amazing Realtor. — David & Brianna Kidd
Chris has sold us two homes and has [re-sold] those two homes all within a matter of a few weeks. He has guided us to properties better suited to our end goal. He is very likable and friendly, we will do additional business with Chris in the future. No I'm not related to him. Also ask to see the rare coin he has. — Bill & Penny Zehnder Chris was amazing in helping us buy our first home. We knew very little of real estate and thought we'd have to settle for a 2BR home in the county. But Chris found a great deal for us and dropped everything to rush us out to see it. It was a vacant, gorgeous 4BR home with a lake view! We couldn't have asked for more. There was another offer in an hour or so after ours but with his 30+ years of experience and relationships Chris negotiated us on top. Not only that, he got our closing costs paid for AND a roof allowance after the inspection. To top it off, he took time away from his family and let my husband into our pending vacant house one evening so that he could surprise me and propose before it closed! Chris is beyond our Realtor, he is a trusted friend. — Sonny & Carmen Andrew
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Our website is free and keeps up when you’re on the move. Whether you’re surfing the net at home, outside a house that caught your eye, or just need information instantly, our website delivers. No waiting. It’s got everything you need:
Instant access to all properties available for sale Customizable search options Full listing details with multiple photos and virtual tours Ability to save searches and properties Neighborhood specific market statistics Integrated mortgage calculator for instant number-crunching The ability to email or share properties with your friends and family Customized listing alerts that will notify you when new properties come on the market
Chris Weitzel & Associates Real Estate Team (360) 312-5151