BUYER SERVICES
THE HOME BUYING GUIDE Congratulations! The decision to buy a home is an exciting one! The experience of finding the home you’ve always dreamed about should be enjoyable, with the least amount of hassle. I work hard to not only find you the perfect home, but also to handle every last detail of the purchasing process, from negotiating the terms of the sale to recommending moving companies. I will help you with procuring honest, accurate information so you can make well-informed decisions regarding the purchase of your home. This guide will give you an idea of what to expect during each phase of your real estate transaction. It also contains information on time lines, what to expect during each phase of the process, and checklists to help you along the way. I’m here to help ensure that buying your home is as seamless as possible. If you don’t understand something or need more information at any time, just let me know and I’ll make sure you have all of the information you need to feel comfortable and confident before, during, and after your real estate purchase.
THE HOME BUYING PROCESS step by step There are a lot of details to be handled when you purchase a home. STEP 1 • Is now the right time How long are you planning on living in your next home? Consider the benefits/drawbacks to owning a home. STEP 2 • Getting pre-approved for a mortgage How much can you afford? What are the different loan programs available? (FHA, VA, Conventional) Make sure your credit is in good shape. STEP 3 • Find your Dream Home What kind of home do you want? (Single Family, Multi Family) How many bedrooms and bathrooms? Are school districts important? STEP 4 • The Escrow Process The home inspection Reviewing disclosures Ordering the appraisal Securing financing
WE WORK THROUGH THESE TOGETHER!
That is my commitment to you!
STEP 5 • Closing The final walk through Schedule the move Changing over the utilities This overview is designed to summarize the various steps along the path to qualifying for, finding and buying a home. It is my job to streamline the steps for you, ensuring everything is completed according to plan.
WHY DO YOU NEED A REALTOR®? A Realtor® brings a wealth of knowledge and experience during a home purchase. A licensed full-time real estate professional provides much more than the service of helping you locate the home of your dreams. Realtors® are also highly skilled negotiators, adept listeners, and superb at understanding what your long and short term goals are where real estate is concerned. Realtors® are members of The National Association of Realtors® (NAR) and must abide by the Code of Ethics and adhere to the Standards of Practice that are enforced by NAR. A Realtor® is truly your best resource and advocate when beginning to buy a home.
ALLOW ME TO BE YOUR TRUSTED GUIDE: Working with me can save you from wasting time, money, and will prevent frustration. I have in-depth knowledge of the market and will help you find and purchase your ideal home. I can help you with any house, even if it’s listed out-of-area, or if it’s being sold by the owner directly. I can direct you to the best lenders in the area to help you get pre-qualified for a mortgage.
I am an excellent resource for general information about the community, specific information about schools, churches, shopping, transportation, and entertainment. I can also provide tips on home inspections, contractors to help you if needed, and relocation guides. I am experienced at presenting your offer to the seller and can help you through the process of negotiating the absolute best deal. I bring resolve and objectivity to the buying process, and can point out advantages and disadvantages of a particular property.
THE ADVANTAGES of
BUYER’S REPRESENTATION Purchasing your home doesn’t have to be a trying time. One mistake could cost you thousands, or cause you to lose your dream home. By utilizing a buyer’s representation agreement, you’re allowing a buyer’s agent to assist you to ensure you are fully represented throughout the entire real estate transaction. When you understand all of the advantages of a buyer’s representation agreement, it’s easy to see why having one benefits you. When you enlist the services of a buyer’s agent, you are getting your own personal specialist who understands all of your personalized needs and will know what action steps need to be taken on your behalf. Real estate is constantly changing, and it’s impossible to keep abreast of all the guidelines, procedures and protocol unless immersed in the business every day. In real estate, there are usually no second chances. By using a seasoned Realtor®, you’ll have access to their resources and knowledge and you’ll have someone diligently working behind the scenes on your behalf. Since buyer’s agents are usually paid by the seller, you essentially are getting a highly skilled professional at no cost to you. Ultimately, you will have peace of mind knowing that every detail in your real estate transaction is being handled with precise care. You simply have to concentrate on your new home and all of the wonderful memories you’ll be creating there.
PREPARING FOR THE LENDER PERSONAL INFORMATION • Full names of all purchasers as they are to appear on title • Social Security numbers for all purchasers • Present residence address for all purchasers • Previous address for all purchasers going back two years if they have not resided in the present home for two years • Home, office, cell phone numbers, email address
EMPLOYMENT INFORMATION • Present employers: Name, address and contact person to send employment verification form • Explanation for any gap during two year history • Relocation letter for any transfers - giving date, salary, new location and any relocation benefits • Previous employer: Name, address and contact person, going back two years; if not in present job two full years • If any variable income, commission, part-time income, bonus, overtime, interest income, etc is being used to qualify: two years’ signed federal tax returns and W-2s and / or 1099s • If self employed: two years’ signed federal individual and corporate returns (if applicable). Also a profit and loss statement and balance sheet. • Diploma or transcript if student during two year period
OTHER INCOME • Rental Income: Copy of lease which is current and at least one year in length. • Alimony and child support (only if used for qualification): Copy of divorce decree and property settlement setting out terms. Proof of payment will also be requested at application. • Income from notes held: A copy of the ratified note. • Retirement, Social Security and disability income: Copy of award letter and latest check showing amount of present payment. Copy of end of year statement if applicable.
ASSETS • Bank accounts: Name of bank, address, account numbers, types of accounts and present balances. With checking, use average balances. • Copy of two most recent bank statements of all accounts. • Stocks & Bonds: Copy of certificates or copy of recent (within 30 days) broker statement listing the holdings. • Life insurance: Cash value only if being used for down payment. • Vehicles: Year, make and value. Copy of title if under four years old with no outstanding lien. • Present home: Copy of sales contract, settlement sheet and/or lease. • Gift letter: Form will be provided by financial representative. Donor capacity must be verified. Receipt of funds must be shown in account.
LIABILITIES • Credit cards: Account numbers and outstanding balances. • Loans (Auto, mortgage, personal, student loans, etc): Name of institution, address, account numbers, outstanding balances, monthly payments, months left on loan. Copy of next payment coupon. 12 months of statements or canceled checks for present mortgage. • Alimony and child support: Copy of ratified decree and property settlement setting out terms.
VA LOANS • Certificate of Eligibility: To obtain certificate, you will need a DD-214 (Separation of Service) or if in the service, you will need a Statement of Service signed by Commanding Officer or Personnel Officer (Certificate must be updated prior to application). • If in service, you will need Authorization to Live Off Base (DD-1717 from Housing Office) and Transfer Orders (if applicable).
THE DO’S & DON’TS DURING THE LOAN PROCESS There are certain “Do’s & Don’ts” which may affect the outcome of your loan processing. These remain in effect before, during and after the loan approval up until the time of settlement when your loan is funded and recorded. Many times credit, income and assets are verified the hour before you have signed your final loan documents. Here is a list that you should comply with:
MAKE SURE YOU DO NOT: Do anything that may alter your credit and may risk you obtaining your loan. DO NOT quit your job or change jobs. If this is likely, consult with your lender. DO NOT allow anyone to make an inquiry on your credit report except your lender. DO NOT apply for credit anywhere else except with your lender. This can cause more “hits” on your credit rating which can reduce your credit score. DO NOT change bank accounts or transfer money within your existing accounts. DO NOT co-sign for anyone, for any reason, for anything. DO NOT purchase or attempt to purchase anything else on credit such as another car, truck, boat, furniture or other real estate. DO NOT charge any abnormal amounts on your current credit cards or credit lines. DO NOT send in late payments, or incur late fees for anything. DO NOT wait to provide necessary paperwork and information to your lender when requested.
MAKE SURE YOU DO: DO keep all accounts current, including mortgages, car loans, credit cards, etc. DO contact both your lender and your Realtor ÂŽ anytime a question may arise.
DO make all payments on or before due dates on all accounts, even if the account is being paid off with your new loan. DO return phone calls from your RealtorÂŽ, loan officer, settlement company or anyone else involved in your transaction within two hours of receiving the message.
IMPORTANT QUESTIONS to ask
YOUR REALTOR®
Will I receive daily updates on real estate activity in my area, including price changes, new listings on the market, and houses that have come back on the market? Will I be able to adjust my search criteria on my own through your website? Are you a full-time Realtor ®? Are you a single agent or do you work with a team? Do you specialize in working with buyer or sellers? Besides the MLS what other sources do you use to find homes for sale? How many homes have you sold this year? How many homes have you sold over the last 5/10/15 years? Do you have a dedicated Transaction Coordinator watching over my file during escrow? What is your availability to show me homes? Do you have experience working with short sales and foreclosures? Do you have a list of vendors that can help me with repairs? Will you keep in touch with me after the sale or will I have to search for another Realtor ®
when it comes time to sell my home?
DIFFERENT TYPES OF SALES AND EXPECTED TIME LINES Navigating this market can be very complex at times. In your search for a home you mostly come across three different types of sellers. Each one will have different escrow time frames, negotiation styles, pricing strategies and time frames for accepting your offer. Without knowing the different characteristics of the different types of sellers it can be very frustrating out there as a buyer.
TRADITIONAL SALE These are sellers who have equity in their homes and are usually looking to close escrow in 30-45 days. When writing an offer on a traditional sale, you will usually negotiate directly with the seller through their Realtor®.
SHORT SALE These are sellers who owe more than what they can sell their home for and therefore have to negotiate with their bank to receive less than what is owed. Typically the negotiation process with the bank can take four to six months to get an offer approved and the price is subject to change during this time. There is also a chance that the bank will reject the seller’s request for a short sale and instead foreclose on the property.
FORECLOSURE ( REO) These are the homes which have been foreclosed on and taken back by the bank, also known as REO’s (Real Estate Owned) or “bank owned”. Like the traditional sales, the bank will want to close escrow within 30 days upon accepting your offer. The banks are motivated to sell these homes quickly and will typically price them slightly below market value to get multiple offers and create a bidding war to drive the price up. Even though you may pay over the asking price these can still be great values.
TIPS FOR MAKING AN OFFER Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate.
THE PRICE What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a very low offer, just to see if the seller will accept it, often is not a smart choice. The seller may be insulted and decide not to negotiate at all.
THE MOVE-IN DATE If you can be flexible on the possession date, the seller will be more apt to choose your offer over others.
PRESENTING THE OFFER Typically you will not be present at the offer presentation. The offer will be presented to the listing agent and/or seller. The seller will then do one of the following: Accept the offer Reject the offer Counter the offer with changes By far, the most common response is the counter offer. In these cases, my experience and negotiating skills become powerful in representing your best interests. When a counter offer is presented, you and I will work together to review each specific area of the counter offer, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf.
WHAT TO EXPECT WHEN WRITING AN OFFER Here are some things to consider to ensure your offer gets accepted:
WHAT TYPE OF SALE IS IT? Foreclosure, Short Sale, Traditional Sale
IS IT PRICED RIGHT FOR THE MARKET? What is the buyer activity? Are there offers on the home? What other homes are for sale in the neighborhood? How long has it been on the market?
WHAT IS THE SELLER’S MOTIVATION? Are they price driven or are there other terms that are important to them? How long of an escrow period are they looking for?
DO YOU NEED CONCESSIONS FOR CLOSING COSTS? Closing costs such as title, escrow and lender fees usually cost between 1-3% of the sales price.
ARE THERE MULTIPLE OFFERS ON THE PROPERTY? This is not uncommon for homes priced right for the market (and in great condition). Often times the seller will ask for your “highest and best” offer. In other words, what is the highest price you will offer so that if another buyer offered more you would not have any regrets because you have given it your best shot?
HOME WARRANTY PROTECTION RESALE HOME WARRANTIES When you purchase a resale home, you can purchase warranties that will protect you against most ordinary flaws and breakdowns for at least the first year of occupancy. The warranty may be offered by the seller as part of his overall package or by some RealtorsÂŽ who have access to programs that will insure the buyer against any defects in the home. Even with a warranty, you should have the home carefully inspected before you purchase it.
NEW HOME WARRANTIES When you purchase a newly built home, the builder usually offers some sort of full or limited warranty on things such as the quality of design, materials and workmanship. These warranties are usually for a period of one year from the purchase of the home. At closing, the builder will assign to you the manufacturer’s warranties that were provided to the builder for materials, appliances, fixtures, etc. For example, if your dishwasher were to become faulty within one year from the purchase of your newly built home, you would call the manufacturer of the dishwasher - not the builder. If the homebuilder does not offer a warranty, be sure to ask why!
A home warranty program will give you peace of mind, knowing that the major covered components in your home will be repaired if necessary. Ask me for more details about home warranty packages.
WARRANTY INFORMATION Company Name:
Contact:
Address:
Phone: Fax:
Phone Number:
Policy Value:
Coverage:
Duration:
HOW TO CHOOSE A HOME INSPECTOR IS AN INSPECTION NECESSARY? You have the right to request an inspection, by the professional inspector of your choice, on any property you are thinking of purchasing. You should always exercise your option to have the physical condition of the property and its inclusions inspected. Many of the more severe and expensive problems with mechanical, electrical, structural and plumbing systems are not noticeable to the untrained eye. If repairs are needed, we will negotiate these in your contract. A professionally conducted home inspection followed by a written evaluation is becoming standard procedure in home buying because of increased buyer awareness.
ARE INSPECTORS LICENSED? Since an increasing number of buyers are requesting property inspections, there has been a rapid increase in the number of people entering the inspection field. Idaho currently does not require home inspectors to be licensed. As your RealtorÂŽ I can recommend qualified home inspectors in your area.
WHAT DOES AN INSPECTION ENTAIL? A qualified inspector will follow Standards of Practice in conducting their inspection. The inspection consists of a physical inspection of the home followed by a written report detailing their findings. They report on the general condition of the home’s electrical, heating and air systems, interior plumbing, roof, visible insulation, walls, ceilings, floors, windows, doors, foundation and visible structure. The inspection is not designed to criticize every minor problem or defect in the home. No home is perfect. It is intended to report on major damage or serious problems that require repair for the well being of the home and that might require significant expense to repair.
THE ESCROW PROCESS and
CLOSING YOUR TRANSACTION WHAT IS A REAL ESTATE “CLOSING?” At closing, the actual process to transfer title of the property begins. On the selling side, the closing appointment is attended by the seller, their Realtor® and the escrow officer. On the buying side, the closing appointment is attended by the buyer, their Realtor®, the escrow officer and usually the lender. The purchase agreement or contract you have signed describes the property, states the purchase price and terms, sets forth the method of payment, and usually names the date and place where the closing or actual transfer of the property title will occur. This meeting is also referred to as the settlement. The title company transferring ownership of the property to you will prepare a new deed. Your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying the loan. You will also sign a mortgage or deed of trust on the property as security to the lender for the loan. The mortgage or deed of trust gives the lender the right to sell the property if you fail to make the payments. Before you exchange these papers, the property may be surveyed, appraised or inspected, and the ownership of title will be checked in county and court records.
WHAT SHOULD I DO TO PREPARE FOR THE CLOSING? Bring a cashier’s check or wire transfer the funds for your down payment and closing costs Bring a current photo ID to your closing Arrange to obtain keys from listing agent/seller Contact utility companies
WHAT IS AN ESCROW ACCOUNT? An escrow account is a neutral depository for funds that will be used to pay expenses incurred by the property, such as taxes, assessments, property insurance or mortgage insurance premiums which fall due in the future. You will pay one-twelfth of the annual amount of these bills each month with your regular mortgage payment. When the bills fall due, they are paid by the lender from this special account. At closing, it may be necessary to pay enough into the account to cover these amounts for several months so that funds will be available to pay the bills as they fall due.
ADA COUNTY UTILITIES Assessor’s Office................................................287-7200 Automobile License.............................................577-3131 Central District Health......................................... 375-5211 Child Support...................................................... 334-2479 Treasurer............................................................287-6800 Recorder.............................................................287-6840
CITY Boise..................................................................384-3710 Eagle .................................................................939-6813 Garden City.........................................................472-2900 Kuna ..................................................................922-5546 Melba ................................................................495-2722 Meridian.............................................................888-4433 Development Services (Ada)................................287-7900 Building Permits..................................................287-7900 Plat Review.........................................................287-7900 Planning & Zoning.................................................287-7900
LOCAL IMPROVEMENT DISTRICTS Ada County Highway District................................387-6100 Boise City (Accounting & Financing)......................384-3719 Treasurer’s Office...............................................384-3780 Parks & Recreation..............................................384-4240
PROPERTY TAX RELIEF Circuit Breaker....................................................287-7200 Hardship Exemptions...........................................287-7200 Homeowner’s Exemptions...................................287-7200
SEWER & WATER DISTRICT Bench Sewer.......................................................345-5363 Boise City Sewer.................................................384-3900 Boise City Water.................................................362-7304 Desert View........................................................362-4395 Eagle Water Co...................................................939-0242 Eagle Sewer........................................................939-0132 Garden City Water, Sewer & Trash........................472-2930 Meridian Sewer & Water......................................888-4439 Northwest Sewer................................................344-5991 Star Sewer..........................................................286-7388 West Boise Sewer...............................................375-8521
MISCELLANEOUS Ada County Highway District................................387-6100 Boise City Housing Authority................................345-4907 Idaho Housing Agency.........................................331-4882 Idaho Real Estate Commission.............................334-3285 Flood Plain Information........................................384-3925
NEWSPAPERS Idaho Statesman.................................................377-6200 Boise Weekly......................................................344-2055 Idaho Business Review........................................336-3768
GARBAGE COLLECTION Boise City...........................................................345-1265 Ada County.........................................................345-1265 Star/Eagle...........................................................345-1265 Garden City.........................................................472-2930 Kuna (J&M Sanitation).........................................922-3313 Meridian (Sanitary Service)...................................888-3999
UTILITIES Idaho Power Billing Department...........................388-2323 Idaho Power New Service....................................388-2323 Intermountain Gas Service...................................377-6840 Intermountain Gas Billing Inquiries.......................377-6840
WATER COMPANIES United Water of Idaho (SUEZ)...............................362-7304 Capital Water Corp..............................................375-0931 Eagle Water Co...................................................939-0242 Garden City Water...............................................375-3194 City of Meridian...................................................888-4439 City of Kuna.........................................................922-5546 Boise Warm Springs Water..................................342-3162 Barber Water Corp...............................................345-9384
IRRIGATION DISTRICTS Boise - Kuna.........................................................922-5608 Nampa - Meridian.................................................466 -7681 New York............................................................378-1023 Settler’s..............................................................344-2471
SEPTIC TANK & WELL INSPECTION Central District Health Department.......................375-5211 (Environmental Division)
FIRE DEPARTMENTS (Non-Emergency) Boise..................................................................377-7351 Eagle..................................................................939-6463 Kuna...................................................................922-1144 Meridian.............................................................888-1234
POLICE DEPARTMENTS (Non-Emergency) Boise (Dispatch)..................................................377-6790 Meridian.............................................................888-6678
HOSPITALS St. Alphonsus......................................................367-2121 St. Luke’s - Boise..................................................381-2222 St. Luke’s - Meridian.............................................706-5000
TELEVISION & INTERNET CableOne............................................................375-8288 Century Link........................................................378-1809 DirectTV..............................................................969-9241
CANYON COUNTY UTILITIES CANYON COUNTY COURTHOUSE Assessor............................................................454-7431 Treasurer............................................................454-7354 Recorder............................................................454-7555 County Planning & Zoning....................................454-7458 Caldwell Planning & Zoning..................................455-3021 Nampa Planning & Zoning....................................468-5405
CHAMBER OF COMMERCE Nampa................................................................466-4641 Caldwell.............................................................459-7493
POST OFFICES Nampa......................................................1-800-275-8777 Caldwell....................................................1-800-275-8777 Greenleaf...........................................................459-8691 Kuna.........................................................1-800-275-8777 Melba.................................................................495-2847 Middleton...........................................................585-2219 Murphy...............................................................495-2535 Notus.................................................................495-2817
PUBLIC LIBRARIES Nampa Public Library...........................................465-2263 Caldwell Public Library........................................459-3242
WATER / SEWER / TRASH Nampa................................................................468-5711 Caldwell.............................................................466-3302 Melba.................................................................495-2722 Middleton...........................................................585-6611 Notus.................................................................459-6212 Parma.................................................................722-5138
IDAHO POWER CO. Caldwell, Nampa, Melba, Middleton, Notus..........465-8600
NEWSPAPERS Idaho Press Tribune.............................................467-9251 Idaho Statesman.................................................377-6200
SEPTIC TANK AND WELL INSPECTION Caldwell.............................................................455-5400
SOUTHWEST DISTRICT HEALTH DEPT. Nampa................................................................465-8400 Caldwell.............................................................455-5300
FIRE DEPARTMENTS, NON-EMERGENCY Nampa................................................................465-2257 Caldwell.............................................................455-3032
POLICE DEPARTMENTS, NON-EMERGENCY Nampa................................................................465-2257 Caldwell.............................................................454-7531 Caldwell After 5pm..............................................455-4721
SHERIFF, NON-EMERGENCY Canyon County Sheriff.........................................454-7531 Owyhee County Sheriff.......................................495-1154 Gem County Sheriff.............................................365-3521
AMBULANCE SERVICES, NON-EMERGENCY Nampa................................................................454-7531 Caldwell.............................................................454-7531
HOSPITALS Nampa - St. Alphonsus Medical Center.................467-1171 Nampa - St. Alphonsus - Nampa Health Plaza........288-4600 Nampa - St. Luke’s Nampa...................................505-2000 Caldwell - West Valley Medical Center..................459-4641
DRIVERS LICENSE Nampa & Caldwell...............................................454-7487
INTERMOUNTAIN GAS CO. Caldwell, Nampa, Middleton, Greenleaf, Parma.................. .................................................................1-800-548-3679 After Hours Emergency.......................................468-6700
TELEVISION / PHONE / CABLE Cable One...........................................................375-8288 CenturyLink........................................................378-1809 DirectTV.............................................................969-9241
The Mike Brown Group offers a qualified team of Realtors®, combining years of real estate knowledge and experience, to help you find your dream home. We will provide you with professional and outstanding customer service and will be there every step of the way. We are truly a one-of-a-kind real estate team whose focus is to provide exceptional service that sets us apart from all others. We know with the level of service we provide, the next time you need a Realtor® , we’ll be the first call. We take a relationship approach where we actively listen to your wants and needs. We try to understand your goals and what you hope to achieve with your real estate purchase. You can rely on your savvy Mike Brown Group Realtor® whom you trust and know will ensure a smooth transaction and alleviate the stress out of the home-buying process. It is our sincere desire that we’re fostering clients for life.
We’re proud TO BE
THE #2 TEAM IN THE STATE OF IDAHO and in the top 100 in the NATION!
as ranked by RealTrends.com
2 0 8 .2 7 8 .4 3 0 0 | 1 0 4 7 S o u t h We lls Street | Meri di an, ID | 83642