THE PREMIER REAL ESTATE TEAM IN NORTH CENTRAL MA
Buyer’s Guide: What to expect when buying a home
HJFYTeam.com RE/MAX Liberty 23 Village Inn Road, Unit A Westminster, MA 01473
Ready to buy a house?
Whether it’s your first home or fifth home, buying a house is an adventure. It’s an exciting time! But even the most exciting adventures leave you feeling just a little nervous about the journey, as you may not know what to expect. Fear not! Whether you’re planning to buy a house, condo, land or other property, we’re here to help and guide you through the whole home buying process. Think of us as your travel guide. We’re able to help you navigate the trip and prepare for smooth seas, but you’re the driver and the route you take depends on you! Before we set out on our way, let’s take a look at the map of what the process looks like overall. And then we’ll talk a little more about each step and what to expect along the way...follow me!
Your Path To Owning a Home
START
Buyer Needs Assessment Meeting : Online or In-Person
Offer Accepted!
Call lender. Provide copy of offer and first deposit by check or DepositLink
Sign Purchase & Sale (after attorney review if desired). Submit second deposit by check or DepositLink
Call home inspector ASAP to book inspection (usually done within 10 days)
Mortgage commitment letter from lender. Usually 1 week before closing and after appraisal
Buyer Education Meeting: Sign Buyer Paperwork
Choose your Lender: Get Loan pre-approval ASAP
Once you find the home you want, work w/ buyer agent to make an offer!
Your Home Search Begins! Online, Drive-by, In-person:
Congrats!
1 week before closing: - Insurance Binder - Call to transfer: Electric Water/Sewer Cable/Internet Gas/Oil Delivery Mail forwarding
3 days prior to closing: Review and sign Closing Disclosure provided by lender
FINISH! CLOSING DAY!! Bring bank check for amount given to you by closing attorney, a personal check just in case, and driver's license or other ID.
Day before or morning of Closing: Final Walk-Thru of Property with Buyer Agent
First Things First… Choosing a Real Estate Agent or Team isn’t always the first step in the process, but often it is. You may have reached out to us because you are a past client, been referred our Team, met us at an open house, or you may have just been browsing a property we have listed and decided to contact us. Whatever the reason you contacted us, THANK YOU! Our clients are the backbone of our business and we pride ourselves on the exceptional relationships we’re able to build with our clients. Choosing an Agent to work with can be a tough decision. Here are some important questions to ask any REALTOR® you are considering working with: What does a Buyer Agent do? Why do I need a Buyer Agent? Can’t I just contact the agent who lists the home? Are you a licensed REALTOR® or an Agent? There’s a difference! Are you a solo Agent or Team? How long have you been a Realtor? Do you work in Real Estate full-time or part-time? What’s your schedule availability to be able to show me houses I’m interested in? What’s your opinion of the current housing market and what trends do you see? Do you require a buyer contract and for how long? Who can I reach out to if I can’t contact of you? How do you get paid? How many homes did you sell last year?
You may have more questions than just the ones above and that’s great. You should feel comfortable working with the Buyer Agent that represents you, knowing that they have your best interests at heart. We’re more than happy to answer these questions (and any additional ones you may have) before or at our Buyer Education Meeting.
OUR TEAM’S GOAL: “Help You Find The Right Home For You at Your Pace and Your Way” Completely understand what you need and want in a home. Be knowledgeable about financing options that will give you the best advantage. Target and identify a comfort range of homes that will meet your budget while allowing flexibility for current market conditions. Negotiate on your behalf for the home of Your choice. Provide guidance and transaction follow up through each step of the process, from offer acceptance to the closing. Provide exceptional service after you purchase! Call us for any answers or advice. Our relationship doesn’t end at the closing table! Creating Raving Fans of our Team!
The Buyer Education Meeting Once you make the decision to work with our Team, we’ll set up a time to meet with you to discuss in more detail about your home search, explain to you more about the buying process, and go over the buyer contract and other paperwork (including what we can do and any limitations) We’ll work around your schedule, and what’s convenient for you to be able to meet.
Before the Buyer Meeting, we’ll be sending you out our Buyer Survey (you can scan the QR code to fill it out on your phone!). This will allow us to better prepare for our meeting and maximize the benefit of the time we spend together. It should only take 10-15 minutes to complete, but is invaluable to us! Also in the same email, we’ll give you more info on our Team and send you our 200+ page Consumer Guides with topics such as lead paint, radon, Title 5 and more! Please bring any and all questions you have to the meeting, as well as your pre-approval letter from your lender. This is the true start to our journey and we can’t wait to take the trip with you!
Choosing your lender (and getting pre-approved) Buyers will often ask us “Do I need to be pre-approved before I can start looking at houses?” Although technically the answer is no, you will want to get pre-approved because you will need to have that pre-approval to submit an offer. Some sellers also request that their properties only be shown to pre-approved buyers. You shouldn’t wait until you find the home that you are interested in first, and here's why: ’ Imagine you go out looking at homes, and see 4 or 5 or even 10 homes before you finally find “THE ONE”. You need to get your pre-approval for your offer. You call the lender and it takes 24-48 hours for them to check what you’ve provided and generate the letter! Or worse, it’s a weekend and you can’t even start the process until Monday. You will likely lose out on being able to compete for the house you love simply because other buyers had a pre-approval letter ready to go and you didn’t. Going back to our analogy of going on a long trip but starting out with the gas tank on Empty - you’re not going to get far and will have to stop for gas soon! Meet with a mortgage lender you trust, someone you know who has an excellent reputation for completing loans quickly and competently. With this person you’ll determine the best loan program for your current situation, how much of a mortgage you can qualify for and what the estimated monthly payment will be (principal, interest, taxes and insurance). This is the maximum you could afford at this time. They will also help to determine if you will need to request any closing cost be paid by the seller, and if so, what that amount should be. Now determine a monthly payment you are COMFORTABLE with, one that may be lower than what you may qualify for. This gives you the price range of homes you should be looking for. Your preapproval should be updated at least every 30 days.
As you are going through the pre-approval and financing process, be aware (and prepared) for the upfront costs of buying a home:
Deposit money: Typically $1000-2000 when making an offer + between 1-5% of the purchase price at Purchase & Sale Down Payment: The amount required by your mortgage lender for the particular mortgage program you will be using (typically 3%, 3.5%, 5%, 10% or 20% down) unless you are using a 100% financing program such as VA or USDA Will the lender be requiring you to keep a certain amount of money in reserves for your purchase? Home Inspection: Typically $450-700 for the base inspection. Some additional tests that are available at an added cost include Radon, Pest (insects, etc.), Well/water test (if applicable), and Lead Paint. In NH you may need to schedule your own septic system test. Up-front appraisal: $500-700 Closing costs and pre-paids: Varies by property and loan type Typically $6000 - 12,000 including: Mortgage acquisition cost Required Escrows (monies held in advance from you) for taxes & ins. Title insurance Owners Title insurance PMI (Private Mortgage Insurance) Massachusetts Homestead Real Estate taxes escrows Home Owners insurance (Typically $800-1200) Your lender can help you get a fairly accurate estimate of what your particular closing costs will be. Moving costs - cost of boxes, to rent a truck or hire a moving company
Even with 100% financing you will need money up front to purchase your new home.
Other Costs to Consider Closing costs are the first step to consider when you are purchasing your home. Make sure to factor in your ongoing living expenses when preparing your budget, and trying to figure out how much of a mortgage payment you can afford...
Known Home Repairs and Maintenance Water, Heat, Electricity (you can get a good sense for this by having your agent request current seller’s costs) Food Car – (payment, gas, maintenance, insurance) Clothing Entertainment Phone, Internet, Cable or Dish TV Health Insurance or a health savings account Loan payments - school, personal
Consider a contingency fund for unplanned repairs (money in the bank that you replace if used)
Let’s Go See Some Homes!!
We’ve got the gas in the car (pre-approval) and the map of where we’re going (the overview of the process), it’s time to take a look at some properties that meet your criteria. Please ask us to make sure we have you set up on an MLS search to send you homes that meet your criteria daily. Although external websites can be helpful, we have often found that they are not updated as frequently, so you may be looking at homes that are not really available. Once you see one (or more) that you want to see, let us know and we’ll set up the showing. As you go through each home, start to think about what’s most important to you in terms of features and amenities. Do you need a home with 2 full baths, or would 1.5 work if it met all the other criteria? Is having a garage a must-have? Are you willing to take on some updates yourself, such as paint and removing wallpaper, if it was otherwise a good fit? We’ll ask you for some feedback for the list agent after the showings, as sellers want to know what potential buyers think of their property. We try not to talk about the home while we are inside (even if you love it and want to make an offer!), just in case the sellers have re- cording equipment like a nanny cam or Alexa that could risk giving away information you wouldn’t want the sellers to know. Once we see a home that you think may be “The One”, and you’d like to make an offer, we’ll be on to the next step!
Making the Offer to Purchase You love the home, you think it’s a good fit, and are ready to make an offer. So what information do we need to know when writing the offer? As we write the offer, we’ll discuss specific details and how they affect the ability to have the offer accepted. These include: • What do you want to offer for the home? We will discuss asking price and our opinion of value based on condition when we toured it and comps. • What amounts do you want to offer for deposits? (We will take into account your financing, how much you want at risk, and how strong you want your offer to be.) • Will you be having a home inspection (strongly recommended) and additional testing such as Radon and water testing? How many days should we allow for inspections to be completed and get results in? • What date should Purchase and Sale be signed by after home inspection? • What amount will you be financing (unless cash), and when will you submit the application to the lender? By what date will we have mortgage commitment from the lender before closing? • What items are you requesting be included with the property such as appliances, fixtures, etc? • Do you need to request any closing costs to be covered by the seller? • Is a home sale contingency or appraisal contingency clause needed? • What date would you like to close (depending on lender’s timeline if applicable)? Where will the closing take place? • How long do you want to give the seller to respond to the offer (offer deadline)? • Any other conditions and terms as discussed or recommended, including using an escalation clause.
Next, we will write the draft offer with you. Once you provide your approval and sign, we will submit your offer to the listing agent. Your offer will include: Contract to Purchase and TRID (Truth in Lending Disclosure) Addendum A copy of your preapproval for the offer amount or higher (less than 30 days old) Copy of your first deposit check A copy of our Buyer Agency Disclosure Signed Lead Disclosure form if applicable Signed Seller's Disclosure if available Other Documents requested by the seller or list agent
What Happens Next? The Waiting Game… Your offer is in! And you’re waiting for a response from the seller. As soon as we hear anything, we will reach out to you. But we also understand that it can be a stressful wait so you can always ask us for an update!
There are a few things that can happen in the course of an offer: 1. Seller can accept your offer 2. Seller can decline your offer 3. Seller can counter offer your offer on one or more points such as • Price • Deposit amounts • Dates for mortgage commitment, closing, etc. • Any additional terms or inclusions they disagree with 4. Seller can ask for your highest and best offer (often due to multiple offers being received) As your Buyer’s Agent, we will advocate and negotiate with the Listing Agent on your behalf. We’ll give you our advice and recommendations, but the decision on what to do is always in your hands! You are always in control. If all goes well and our offer is accepted, we’ll reach out to you right away about the next destination on the trip! You’ll also want to let your lender know your offer was accepted and get them a copy of your accepted offer and 1st deposit. Congratulations!! If our offer is not accepted, we’ll provide you with any feedback we can get from the list agent on why our offer wasn't accepted, and discuss how we could position our offer differently for the next property. Then we get back out there looking!
Home Inspection Time! One of the first things you’ll want to do after having your offer accepted is to contact a licensed home inspector to perform a home inspection within the timeframe we listed on the accepted offer (usually 10-12 days). The sooner the appointment is booked, the better. Go ahead and book the appointment date and time that works best for you, and we’ll notify the list agent and add to our calendar as well. Plan on being at the property for a few hours for the full home inspection. When you book the home inspection, the inspector may ask if you want to add additional services on top of the full inspection which could include: Radon Testing Water testing—quantity and quality Pest Inspection Lead Inspection You’ll also want to let your home inspector know what type of mortgage you’re using because the inspector will know what to point out at the inspection conditions that may affect your financing. As your Buyer Agent, we’re able to make specific recommendations for Home Inspectors that we know and trust will be a good fit for your specific situation.
Attorney Information and Lender Tasks As we are going though the home inspection process, the listing agent or seller’s attorney will be generating the Draft Purchase and Sale (P&S). This document may be changed, or a repair addendum added, depending on negotiations made between you and the seller after home inspection. Also by this time, you should have submitted your formal application for financing to your lender so they can be working on their part of the process. The lender will assign a closing attorney for your purchase to work on the bank’s behalf. The closing attorney may agree to review the Purchase and Sale on your behalf for a fee. Once the Purchase and Sale has been agreed upon by both sides, it will be time for both you and sellers to sign the Purchase and Sale, and you will submit your second deposit, which may be either a bank check or DepositLink. Your lender will also order the appraisal for the property, and advise what other documents they need from you and steps you’ll need to take to secure your financing. Make sure to follow up with any lender requests quickly! We will work closely with your lender during this time, and keep track of important dates along the way.
Keep in mind this “Don’t Do” List during the home buying process. Any of these could impact your ability to be approved for the mortgage.
• No new inquiries on your credit report. Don’t apply for new credit cards, car loans, etc. • Do not incur more debt. • Don’t finance anything such as a new car or new furniture. • No late payments on any accounts. • Do not pay off collections or charge off accounts. • Do not consolidate your debt into one or two credit cards or close credit cards. • Do not dispute any item on your credit report. • No large deposits other than payroll. • All deposits other than payroll must be documented and accounted for. • Do not make any large cash purchases which result in lowering verified bank balances. • No increases in balances on credit cards or lines of credit which would increase your minimum monthly payment. • Do not change jobs without notifying your loan officer. • If commission, bonus or overtime income decreases notify your lender.
A NEW CREDIT REPORT WILL BE ORDERED PRIOR TO CLOSING! Should the second credit report reveal a decrease in your credit scores, the rate and/or costs involved may change or could result in your loan being declined.
Countdown to Closing As you’re working with your lender and getting all your documents into them, they are working on getting the approval for your mortgage. The last couple of weeks preceding your closing date will be important to check off some of the last targets and tasks we need to accomplish to get you into your new home:
1-2 weeks before closing: • Lender issues Mortgage Commitment letter that confirms you will be able to finance the property, and also may include the final steps they need you to take to get final approval. • You will want to obtain homeowners insurance, if the lender has not had you do so already. About a week before closing: • Lender issues final approval and “clear to close” to the closing attorney who will reach out to us to schedule the closing time and location. • You’ll want to call to transfer utilities and services in your name at your new home such as Electric, Water/Sewer, Cable/Internet, Gas/Oil Delivery, Mail Forwarding, etc. • We’ll check with listing agent to make sure all agreed upon repairs are completed and receipts provided as requested. 3 days before closing: • Sign and return the Closing Disclosure from the lender/closing attorney that shows all the figures and costs associated with the financing, as well as how much you’ll need to bring for closing costs to the closing. • Remember to get a bank or cashiers check for the amount of final closing costs from your financial institution. Day before or morning of closing: • We’ll do the final walk though at the property to make sure everything is left in the condition we expected them to be in, and that agreed upon items to be left are there (such as appliances).
Almost at the finish line!!
It’s here, it’s here! It’s CLOSING DAY! Congratulations! It’s the big day! Plan to arrive at the scheduled closing about 15 minutes early and remember to bring the following: • Drivers license for anyone signing paperwork • Bank or cashiers check for amount provided to you by lender/closing attorney • Personal checkbook just in case The signing process can take an hour or more, so please plan accordingly. As you are signing, ask the closing attorney any questions or concerns you may have about the documents or process. Feel free to speak up the attorneys tend to be quick because they do this all of the time, but you need to feel free to ask for explanations for what you are signing. Once you and the sellers are finished signing all the necessary documents, the closing attorney will send them to the appropriate registry of deeds to be recorded, either electronically or in person. Our team watches for it to be recorded and once it’s on record, we will call to let you know that you can officially start moving into your new home!
CONGRATULATIONS HOMEOWNER!!
Your Goals are Our Goals! After you close on your new home, we want all of our buyers to be able to say: “I bought a home within the budget I was comfortable spending” “I purchased in the time frame I planned on.” “They helped me with anything unexpected” “It was the best decision I ever made!” “I will always tell anyone who even whispers the word “Real Estate”, they need to get in touch with The HomesJustForYou Team!
What HappensAfter The Sale
– Expect Good Things From Us!
We want to hear from our past customers whatever your question is, such as: • What repairs to make. • What improvements make sense for your use and what will add to future home sale's value. • What’s the current value of the home and when is the best time to sell for your specific situation? We’re never too busy for any of your questions and referrals to help your friends and family. Share us with everyone! We love working with people who know you, people you respect and know would benefit from the same commitment we have to you.
Your referrals are always very much appreciated!
What Our Past Clients Have Said About Our Team: "Thanks for all you did to make selling our home a breeze! " Always in Friendship, E.& L.B. “...Kurt was very patient and accommodating in helping my sisters and I sell my parents’ 2 family home in a community that was noted... as a very depressed real estate market.” B, J and S “You made my house buying experience as good as the fairy tale.” L.O. “Thank you for helping us find our first house and for making the experience enjoyable! We appreciated your efficiency and attention to detail.” L & J “We really enjoyed doing business with you, it made the entire experience very pleasant and worry free.” P & C. P. & R & J "The best of what an agent should be. There for us at every step and at any hour. Smart, professional and knowledgeable. Top of the line." A.&A.K. "Exceptional and helpful in every aspect. I was extremely satisfied and I am very grateful for all that was done. - Thank you!" R.L. "Recommended to us by a colleague - very helpful to us, always available. We would definitely recommend to others." E.&J.B. "One of the greatest people we ever met as a person and a Realtor. Made my husband and myself feel ex- tremely comfortable. Thank you for the great work." C.&M.M. "Was a tremendous help in all aspects of selling and buying a home. We enjoyed working with and would rec- ommend to anyone interested in high quality, high integrity help!" T.S. "We really enjoyed working with you, we felt it was very important to have someone helping us who under- stood our needs, what we were trying to accomplish and kept us involved and active in the decision making. You demonstrated all of that with us. It was great having someone who listened. I would highly recommend your services to anyone we know." W.&S.P. "You were very helpful through the selling process! I have recommended you to my fatherinlaw and I am happy you will be the listing agent... " P.&C.F. "Integrity" = says it all! G.C. "Your Service was exceptional! My banker commented on your "Good follow-ups" during the whole process. Your web site and on-line access to current MLS Listings was an enormous help ...” P.G.
“They listened, understood our needs and gave exceptional service.”
About Our Founders:
Anne and David La Liberty Team Founders and Inspiration for RE/MAX Liberty Anne and David La Liberty The Team founders, Anne and David La Liberty sold homes for over 28 years, and were committed to continuously improving the way the HomesJustForYou Team helps people with their real estate needs. Ultimately all they did in real estate was focused on helping their past clients as they transitioned back into the market as current and future customers of the Team. They always searched for better ways to help get the results their clients wanted and developed a marketing plan that will help you to purchase the home of your dreams. In addition to their other advanced training, Anne and Dave held the titles of Certified Residential Specialists and earned their GRI, SRES and ABR designations. Anne sold real estate for 28 years and was involved in more than 1000 transaction sides. She entered the profession after having taught school and raised her own children. Anne was the “ultimate matchmaker” and always took great pride in finding people the homes of their dreams. Dave also sold real estate for 28 years and devoted a large amount of research and time to developing the marketing systems for the team. He entered the field from the computer industry, and brought that knowledge with him. He has been involved in more than 300 real estate transaction sides in his career. Anne and David continued to be involved with the HomesJustForYou Team as Affiliates after retirement, and regularly consulted with the Team on business, customer service, and client relationship management. Still devoted to spending quality time enriching the lives of others through his work with the church, and time spent with family and friends, David is never too busy for a call, and loves hearing from their past clients!
23 Village Inn Road, Unit A-1, Westminster MA 01473 Phone: (978) 786-5160
E-Mail: Info@HomesJustForYou.com
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