THE HOME BUYER’S GUIDE Everything You Need To Know About Purchasing A Home!
MAC HOME TEAM
Congratulations! The decision to purchase a home is an exciting one. The experience should also be enjoyable. Thank you for the opportunity to assist you with this decision. Purchasing a home is a very important decision. We would like to help you with honest and accurate information so that you can make a well-informed decision. This booklet will give you an idea of what to expect during each phase of the process. It also contains reference pages, note pages, deadline information, etc. It will be a useful reference guide even after the transaction is closed. We will use all of our knowledge and experience to inform you about our market area and assure that you receive the best value for your dollar committed. We will provide you with continuous guidance and support until closing has occurred and the moving van has been unloaded. Thereafter, we will always be available for your real estate needs. Before, during and after the sale! Providing service that “exceeds your expectations� is truly our mission as your REALTOR.
Your Realtors, The MAC Home Team
The MAC Home Team
Mary Anne Collins Team Leader 17 years of Real Estate Experience Listing Manager & Lead Buyers Agent
Mary Anne Collins Direct # 972.618-7355 MACHomeTeam@gmail.com
Kristen Z. Wood
Rachel Savant
Buyer Specialist 469.766.7602 kzwood@kw.com
Buyer Specialist 972-333-0284 Rachel@RachelSavant.com
Listed in D Magazine Best Realtors in Dallas 2004 -2012
Keller Williams Realty
.
972.618.7355
.
MaryAnneCollins@KW.com
Why Do You Need a Realtor? A Realtor brings a wealth of knowledge and experience to the business of buying a home. In fact, a licensed real estate professional provides much more than the service of helping you find the home of your dreams. Realtors are not just sales agents; they are expert negotiators, seasoned financial advisors, and superb navigators around the local neighborhood. They are members of the National Association of Realtors and must abide by a Code of Ethics and Standards of Practice enforced by the National Association of Realtors. A professional Realtor is your best resource when buying a home.
Let Us Be Your Guide
Working with us can save you endless amounts of time, money and frustration;
We know the housing market inside and out and can help you avoid many common mistakes;
We can help you with any house even if it is listed elsewhere, or is being sold by the owner directly;
We know the best lenders in the area; We can help you get pre–approved for a mortgage and discuss down payments, closing costs, and monthly payment options;
We are an excellent source for general information about the community, specific information about schools, churches, shopping, transportation, plus tips on house inspections and pricing;
We are experienced at presenting your offer to the homeowner and can help you through the process of negotiating the best deal. We bring objectivity to the buying transaction and can point out advantages and disadvantages of a particular property;
And the best thing of all, is that all this help won’t cost you a cent! Generally, the seller pays the commission to Realtors, however, that does not affect my dedication or the spirit of teamwork that I will put into helping you find and buy the home of your dreams.
Keller Williams is the 2nd largest Real Estate Company in North America. Mary Anne was the 45th agent in North Texas to join Keller Williams. 2007, 2008, 2009 , 2010 & 2011 Ranked #1 in Individual Production in Sales Volume at the Keller Williams Preston Rd. Market Center with over 400 agents. 2012—Ranked #1 TEAM at Keller Williams Dallas Preston Rd. Market Center 2008—2009 - Ranked # 4 in Individual Production in Sales Volume in the North Texas / New Mexico Region with 32 Market Centers. 2004-2012 D Magazine Best of the Best Realtors in Dallas 1995 - First Year in Real Estate - Rookie of the year 1995 - Current - Consistently Ranked as one of the top 4 Producers at Dallas Preston Rd. Member of the Collin County Association of Realtors ABR - Accredited Buyers Rep GRI - Graduate of the Real Estate Institute E-Pro - Designation for Technology Savvy Realtors eAgentc Designation - for the Tech Savvy KW Agent Member of the Agent Leadership Council Instructor for Keller Williams Preston Rd and Keller Williams Urban Dallas Co-Owner of Keller Williams Urban Dallas Market Center Advocate for my clients Wife to Jim for 30 years Mother of 2 wonderful children, Jimmy & Kathryn Hard Working Real Estate Agent & Your Realtor for Life
Listed in D Magazine Best Realtors in Dallas 2004 –2012
Founded in Austin, Texas in 1983 by Gary Keller and Joe Williams, the company laid the foundation for agents to become independent real estate business people. The Keller Williams philosophy is “to build careers worth having, businesses worth owning, and lives worth living.” Your Realtor, Mary Anne Collins, was the 45th Agent to join KW in the North Texas Region. She is the # ONE Individual Producer in the Preston Rd. Market Center of over 400 Agents. These goals were achieved by always putting our clients needs first and always doing right by others. Our motto:
Win / Win – or no deal Integrity – do the right thing Commitment – in all things Communication – seek first to understand Creativity – ideas before results Clients – always come first Teamwork – together everyone achieves more Trust – starts with honesty Success – results through people
What our Clients say about our Service …..
Steve & Jane Raish
“I have worked with a number of agents, and Mary Anne is by far the best one I’ve done business with! She is exactly the type of professional you want working for you. Her experience is invaluable – from her detailed knowledge of the market, to her expert advice on multiple topics, to her skillful negotiating of multiple offers. Mary Anne has outstanding communication skills and did an excellent job at keeping everyone informed throughout the sales process. She was extremely professional in dealing with other agents, and she always knew exactly what to say and what not to say in order to keep negotiations moving forward, to work through the issues that arose, to maximize bargaining position, and to move everyone quickly and easily to a smooth close.” I purchased my first townhome from Mary Anne and after Duke and I married she helped us with our first Home and with the purchase of an investment property. She is awesome. I
Duke & Erin Strain
totally trust her and she saved me a lot of headache by insisting that I not by the house I originally wanted due to the poor location. You can count on Mary Anne to keep you grounded during the buying process so that you not only end up with a home you love, but one she can resale as your family grows. You Rock!
Having been in the real estate appraisal field for many years, we knew that when it was time to sell our home and buy another we wanted a realtor that was especially knowledgeable of Bob and Marlene Ungarean
our neighborhood. Mary Anne was the only person we would consider. She knows Whiffletree and the Estates of Forest Creek inside and out. We received a contract in 8 and she then went to Cedar Creek Lake with us to lock down our dream lot to build on. She is a true professional and a great Realtor to have on your side.
Mary Anne was so patient during our home buying experience. We were looking for just the right home and when we found it, she quickly found us a buyer for our home before Larry and Christine Novak
she even had it listed in MLS. Her contacts and connections allowed us to juggle a very quick close time and everything went according to plan. She never misses a detail and is always available and makes you feel that you are her only client. We have referred her to many of our friends and business associates and trust her completely.
90% of Our Business are Referrals from our Past Clients! We love this!
The Buying Process Step by Step The First Step …. In the home buying process is to find an experienced REALTOR that you can trust and sign a Buyer’s Representation Agreement. This guarantees, by the laws of the state, that your needs are met professionally and represented throughout the entire process of buying your home.
FIND A REALTOR YOU CAN TRUST START LOOKING FOR YOUR HOME
MAKE AN OFFER TO BUY
THE CONTRACT
INSPECTIONS
The Next Step …. Is to start looking at homes. Once we determine your criteria “needs and wants”, we will set up an automated search in our Multiple Listing Service. As new homes hit the market that meet your criteria you will be notified. Count on us to let you know which homes are in the right location and condition for you. We see a lot of homes and will save you many hours by screening these properties. This is a BIG Step …. When you find your home, we will research the area and comparable properties that have sold and determine what to “offer” We have extensive experience in contract negotiations. We will ensure that you make a good business decision. We’re Starting to Jog now …. When the seller accepts your offer, you “go under contract.” You will want to ensure that every detail is handled accurately and in a timely fashion. We will ensure you adhere to these details and stay on track. You are on the “Home” Stretch! Final details are handled and inspections are performed to ensure the property meets your expectations. Contract details are further negotiated and we then head to closing!
NOW THE HOME After this, you are Moving in to your New Home … We meet at the Title Company to Close your Sale. This is a Good Day! IS YOURS!
Keller Williams Realty
.
972.618.7355
.
MaryAnneCollins@KW.com
Glossary of Real Estate Brokerage Relationships In Texas Real Estate Brokers and their Agents are required to disclose the type of working relationship they have with their buyers in a real estate transaction. There are three basic types of relationships that are available to you. You should understand these at the time a broker provides specific assistance to you in buying a home or property. Buyer's Agent, Seller's Agent, and Intermediary are commonly referred to as "agency" relationships. All agency relationships carry with them legal duties and responsibilities for the broker as well as the buyer and seller. Buyer's Agent A Buyer's Agent acts solely on behalf of the buyer and owes duties to the buyer, which includes the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of and act as an advocate for the buyer. The agent must disclosure to sellers all adverse material facts concerning the buyer's financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property. A separate written buyer's agreement is required which sets forth the duties and obligations of all parties. Seller's Agent A Seller's Agent acts solely on behalf of the seller and owes duties to the seller, which includes the utmost good faith, loyalty and fidelity. The agent will negotiate on behalf of and act as an advocate for the sellers. The agent must disclose to buyers or tenants all adverse material facts about the property known by the broker. A separate written agreement is required which sets forth the duties and obligations of all parties. Intermediary A broker is permitted by law to act as an agent for more than one party to a transaction. The broker's duties are limited if he or she represents both parties. The broker is required by law to inform each party of all facts known to the broker, which would affect the party's decision to permit the broker to represent both the Owner and the Buyer. The broker is required to treat both parties honestly and impartially so as not to favor one party or work to the advantage of any party.
The Advantages of a Buyer’s Representation Agreement YOUR INTERESTS ARE PROFESSIONALLY REQUESTED Enlisting the services to 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 a mechanic to help you with your car. 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 automotive mechanics, 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 their specific areas of expertise. Mary Anne has devoted her career to perfecting real estate service. Continuous education, market research, and experience are combined with her ability to find you the perfect home quickly. Mary Anne and her team of professionals will take care of all the hassles of everyday real estate transactions for you. She will guide you through the home buying process and exclusively represent your interests as she helps you find a home, present your contract offer, negotiate, and close! YOU WILL GET A GREAT HOME QUICKLY AND CONVENIENTLYThe advantage to signing a Buyer's Agency Agreement with Mary Anne is that you have an experienced real estate professional 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. Mary Anne has extensive computer networks to make sure you only tour homes that meet your specific needs. You won't spend endless evenings and weekends driving around looking for homes for sale or trying to search computer networks on your own. When you tour homes with Mary Anne, you know that the homes will meet your specified criteria of bedrooms, bathrooms, garage space, square footage, location, etc. Also, she will ensure that you are only looking at homes that are in your price range. YOU GET A PERSONAL SPECIALIST WHO KNOWS YOUR NEEDSJust as your accountant, doctor, and mechanic get to know your needs through a steady relationship, Mary Anne will get 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 she gets a good idea of your feedback and concerns about each home. If you try to jump from agent to agent, you will not receive the best available service and you will be violating your agreement to your agent. There is
Choosing the Right Neighborhood is as Important as Choosing the Right House! There are many factors to consider when selecting a neighborhood that is right for you. Below are just a few of the many factors, you may think of others that are important to you. Please write them on your requirement's list so they are not forgotten. Neighborhoods have characteristics & personalities designed to best suit single people, growing families, two-career couples, or retirees. Investigate to determine that the neighborhood in which you choose to look for a home matches your lifestyle and personality. SCOUT OUT THE NEIGHBORHOOD! It is important that you scout the neighborhood in person. You live in more than your house. Talk to people who live there. Drive through the entire area at different times of the day, morning, afternoon, evening, and late at night as well as going during the week and on weekends. Look carefully at how well other homes in the area are being maintained. Are they painted, are the yards well manicured, are parked cars in good condition, etc.? NEIGHBORHOOD FACTORS TO CONSIDER! Look for things like access to major thoroughfares, highways, and shopping. Listen for noise created by commerce, roads, railways, public areas, schools, etc. Smell the air for adjacent industry or agriculture. Check with local civic, police, fire, and school officials to find the information about the area. Research things like soil and water. Look at traffic patterns around the area during different times of the day and drive from the area to work. Is the neighborhood near parks, transportation, schools, etc.? Does the neighborhood have a Homeowner's Association? Our team can assist you in finding this information.
What Are Your “Wants & Needs”
Before you start looking, sit down and make a list of your “wants and needs.” This will be a good time to tell you that there is not a perfect house, so you have to be willing to compromise. So as you are making your list, pick just 2 items that are a “Must Have” to make the move. All the others are your wish list.
Buyer Criteria Some things to think about …..
Geographic Boundaries / Areas / School Zones Price Range (even though you may be qualified for more …. what is your comfort zone) Size of Home / Square Feet ( minimum / maximum) # of Bedrooms # of Baths # of Living Areas (formals / study / game room up for kids?) Garage Spaces Age of Home Condition ….. Are you willing to update a home for the right floorplan and location. Distance from office Style …. Traditional / contemporary / townhome /single family home Do you want a Pool
Using a Realtor to Purchase a NEW Home Some Buyers prefer a new home. There are two ways to buy a new home. The first is to purchase a “spec” home that a builder has already built or is currently constructing. Depending on the stage of construction, builders will often let the Buyers make minor changes to the property to suit their needs. The second way to purchase a new home is to contract with a builder to build your home either from a set of “plans” that they have available or by using your plans. The location desired and the price range often dictates which builders we have to choose from. Realtors sell over 98% of the new home construction in the Dallas Metroplex. Builders work very closely with Realtors in this market. On a weekly basis, builders update our database on the “specs” they have available and on any “special pricing.” More often than not, their “special pricing’ is published to us before it is to the general public. Buyers often feel that they can receive better pricing from the Builder if they visit new home construction without their Realtor. This is not true. Builders offer incentives to Realtors to show and sell their properties. They pay the Realtors commission out of their ‘marketing budget.’ There is no financial advantage for you to buy directly from the builder without our assistance. Builders have a ‘single price” policy, meaning they will negotiate with you the same whether you have a Realtor or not. They want you to have representation. If a Realtor is not involved, the only one who benefits is the builder by increasing their profit. The good news is ….. We have great relationships with our Builders, so they call us when they have a “special deal” or a spec home that needs to be sold for a great price. These will not be the prices you see printed on the sheets in the model home. We also know the best ways to negotiate with the various builder. I encourage you to visit model homes. Please be sure to let the Sales Person on site know that Mary Anne Collins is your Realtor. We will assist you in selecting a reputable builder and a suitable location. Should you use a REALTOR when Buying a New Home from a Builder ….. YES! Should you use Mary Anne and our expertise ….. Most Definitely!
How Much Home Can Your Afford When you are ready to begin looking at various houses to find your new home, you need to prepare all of the necessary materials to present to the lender. Your lender will tell you exactly what you can afford so that you do not spend time looking at "too much" home. There are three key factors that you will need to consider when determining how much home you can afford. These are 1) the down payment, 2) your ability to qualify for a mortgage, and 3) the closing costs associated with your transaction. Down Payment Requirements: Most loans today require a down payment of between 3.5% and 5.0% depending on the type and terms of the loan. If you are able to come up 20 - 25% down payment, you may be eligible to take advantage of special fast-track programs and possibly eliminate mortgage insurance. It is often thought that bigger is better when it comes to down payments. In many cases, this may be true. However, the arithmetic will differ from case to case. A bigger down payment means smaller monthly payments and lower interest expense for as long as you remain with a mortgage. This can be an important factor for many people. But if you can put your available funds to work for you so that they can earn more than the interest rate on your loan, you could be dollars ahead with a smaller down payment. Also, a smaller down payment may allow you to keep your extra cash liquid and available for an emergency. Closing Costs: Don't forget to think ahead carefully. In addition to the down payment on your home, you will be required to pay fees for loan processing and other closing costs. These fees must be paid in full, in cash, at the time of the final settlement unless you are able to include these fees in your financing. Typically, total-closing costs will range between 2-5% of your mortgage loan. A more detailed schedule is included in the section detailing your closing. Qualifying for the Mortgage: Most lenders require that your monthly payments range between 25-28% of your gross monthly income. Your mortgage payment to the lender includes four items‌the PITI. These items are discussed in detail on the page entitled "Predicting Your Monthly Payment (The PITI)." Remember, when you buy a home all interest is tax deductible, so you will qualify for a major tax advantage that will effectively increase your take-home pay. Your total monthly PITI and all debts (from installments to revolving charge accounts) should range between 33-38% of your gross monthly income. This is a general rule of thumb, but other key factors specifically determine your ability for a home loan. These factors are as follows: INCOME: History of employment, stability of income, potential for future earnings, education, vocational training and background, and any secondary income such as bonuses, commissions, child support, etc. CREDIT REPORT: History of debt repayment, total outstanding debt and total available credit. If you have concerns about your credit record, consider contacting one of the major credit bureaus for a copy of your file: TRW (800-422-4878), Trans Union (800-933-1200), and CSS Credit (800-759-5979). ASSETS: Cash on hand, other liquid assets such as savings, checking, CDs, Stocks, etc. PROPERTY: The home you are buying must be appraised to determine that it has adequate value and is marketable to ensure it will secure the loan.
Calculating Your Monthly Payment (The PITI)
Your monthly payment (PITI) is the sum of four items: the principal on the loan (P), the interest on the loan (I), property taxes (T), homeowner's insurance (I) To predict your monthly payment for a 30-year fixed rate loan, there are many calculators on line and one on our website. Once you have your monthly principal and interest, then you will add your monthly insurance premium and your property tax to your principal and interest and this is your monthly payment. Hazard Insurance covering your home for its contract value is required by your mortgage lender. You are at liberty to choose any insurance company and agent you wish. Ask your agent to quote you a policy for insurance coverage. Our preferred loan officers can assist you with determining the best loan for YOU. If you want to run some examples, below are some sites with great calculators.
YourHomeSearch.com MACHomeTeam.com Bankrate.com
Loan Application Checklist This is what your lender may need …. Be Prepared General: Picture ID with social security number of all borrowers Payment to cover the application fee Name and complete address of all landlords for the past two years Income: Employment history for the past two years including names, addresses, phone numbers, and length of time with employer Copies of your most recent pay stubs and W-2 forms (past two years) If self-employed, you need copies of the past two years signed tax returns including all schedules, and a signed profit and loss statement of the current year. Retirees need tax returns for the past two years. IF you have rental property income, bring a copy of all lease agreements. Assets: Copies of all bank and credit union statements for the past three months Copies of all stock/ bond certificates and /or the past three statements from all investment and retirement accounts. Prepare a list of household items and their values Copies of title documents for all automobiles, boats, motorcycles, etc. Face amount, monthly premiums, cash values of all life insurance policies. Creditors: Credit cards (accounts numbers, current balances, and monthly payments) Installment loans (car, student, etc. Mortgage loans (property address, lender with address, account number, monthly payments and balance owed on all properties presently owned or sold within the last two years.) Bring proof of sale of properties sold. Child care expense / support (name, address & phone numbers) Other: Bankruptcy - bring discharge and schedule of creditors Adverse credit - bring letters of explanation Divorce - bring Divorce Decrees, property settlements, quit claim deeds, modifications, etc. for all divorces by yourself and your spouse. VA only - bring Form DD214 and Certificate of Eligibility Retirees - bring retirement and / or Social Security Award Letter
Lender Approval Letter Get Pre-Qualified with a Reputable Lender Before you start looking for a Home, you must get pre-qualified with your lender. The lender will meet with you either over the phone or in person. They will get permission to review your credit report and ask you questions to let you know what sales price you will be qualified to purchase. You must be extremely Honest with your lender. If you have an issue with your credit, they will be able to advise you on how to correct this. We will not show homes without a pre-qualification letter from a reputable lender. When you find the home you wish to purchase, the first thing the seller’s agent is going to ask for is this letter of qualification. If you do not have a relationship with a lender, below are some lenders that we recommend to our clients. Sharon McCormick Prime Lending (866) 301-2343 smccormick@primelending.com Wade Betz Guardian Mortgage Company, Inc. Office: (972) 248-4663 www.wadebetz.com
Homeowners Insurance Examples of Insurance Rates: Collin & Denton County
Dallas County
Dwelling
Premium
Escrow
Dwelling
Premium
Escrow
80,000 100,000 125,000 150,000 175,000 200,000
417.00 500.00 601.00 693.00 787.00 875.00
34.75 41.66 50.08 57.75 65.58 72.91
80,000 100,000 125,000 150,000 175,000 200,000
733.00 876.00 1050.00 1212.00 1376.00 1530.00
61.08 73.00 87.50 101.00 114.67 127.50
Based on: Replacement Cost, Brick Veneer, Claim Free, 1% Deductible
Below is a list of Insurance Agents for your convenience. You are required by your Mortgage Company to have Homeowners Insurance on the property you are purchasing. These Insurance Agents have been used satisfactory by some of Keller Williams Clients. Preferred Guardian Insurance (Affiliated with Keller Williams Preston Rd.) 18383 Preston Rd. Dallas, TX 75252 972-331-5100 State Farm Insurance (My Insurance Agent) John Kraft 2070 W. Spring Creek Pkwy. #314 Plano, TX 75023 (972) 517-8859
How to Choose A Good Inspection Company IS AN INSPECTION NECESSARY? You have the right to request an inspection of any property, you are considering, by a professional inspector of your choice. In your contract, you will negotiate an "option period" which will allow you time to have the property inspected. 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 such as mechanical, electrical, structural, and plumbing are not noticeable to the untrained eye. A professionally conducted home inspection, followed by a written evaluation, is standard procedure in home buying because of increased buyer awareness. ARE INSPECTORS LICENSED? The number of buyers requesting property inspections has caused a rapid increase in people entering the inspection field, the State of Texas does require testing and licensing of inspectors. 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 with the purchaser present if possible, 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 need repair for the well being of the home and that might require significant expense. In Texas, a special concern is expansive soils. They can be destructive when water causes these high clay content soils to swell and exert upward pressure on foundation and driveway slabs. If improperly constructed, these structures can crown up in the middle.
More Inspection Information BUYER EDUCATION IS NECESSARY The primary purpose of the inspection is to educate the buyer to make an informed decision. The inspector should allow and even encourage the buyer to attend the home inspection. A good inspector knows how the home's many systems and components work together and how to minimize the damaging effects of sun and water. The buyers' presence at the inspection provides them with an estimate of possible future repair costs and routine maintenance. This is valuable information that could increase the life of, and perhaps the futureselling price of, the home. CONTINUING EDUCATION IS IMPORTANT FOR INSPECTORS A competent home inspector is familiar with the latest construction materials, home building techniques, and professional equipment. Consumers should determine whether prospective home inspectors actively monitor the changes in construction and real estate in order to keep their business practices current and professional. Members must meet annual continuing education requirements for this purpose. TIME AND FEE GUIDELINES FOR THE INSPECTION The time necessary to properly inspect a home, as well as the fee changed for an inspection, varies according to market location, the size and age of the home, and the individual Inspection Company. However, you can expect that it will take an average of two to three hours to competently inspect a typical one-family, three-bedroom home, with an average cost of $300 to $400. We may or may not be present at the inspection, so be sure to notify us after the inspection is complete and see that the our office has a copy of the report. BEWARE OF FALSE CLAIMS Consumers must be cautious in evaluating some of the claims made by people hoping to fill the growing demand for home inspection services. Many new companies request only an application fee. Some claim to offer certification but do not require exams or proven credentials. Still others boast engineering licenses as assurance of competence, even though the engineering license has nothing to do with home inspecting. INSPECTIONS EXTRAS Some inspectors may be qualified to provide other types of services with their inspection that go beyond the scope of the American Society of Home Inspectors ("ASHI") standards.
Licensed Home Inspection Companies
Below is a list of Home Inspectors for your convenience. These inspectors have been used satisfactorily by some of Keller Williams past clients. However, if you wish to contact a different Home Inspector through your own resources (referral, yellow pages, etc.) please do so. After deciding on an inspector, please have them contact our office at (972) 618-7355 to make the necessary arrangements.
Isbon Engineering - David Isbon, P.E. (professional inspector and registered engineer) 817-794-0770
Plano Inspections – Steve Wright or Tom Tidwell (972) 985-9999
Cahill Inspection Services – John Cahill (972) 491-9919
Home Report – Jerry Reed (469) 450-8682 / (972) 463-3267
For Additional information on Inspections and a List of Texas Licensed Inspectors, you may visit: http://www.trec.state.tx.us/inspector/
Home Warranty Companies
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, we’ll be sure to ask why! 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 Realtors 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. A home warranty program will give you peace of mind knowing that the major components covered in your home will be repaired if necessary. Ask any one of us for more details about home warranty packages.
A comparison of Home Warranty Companies has been prepared by Hexter Fair Title and will be provided upon request.
Now We CLOSE Your Transaction! WHAT IS A REAL ESTATE "CLOSING"? A closing is the meeting at which the Buyer, Seller, their agents (optional), the loan officer (optional) and the title company meet together to transfer title to the property. It is customary in Texas for the Buyers and the Sellers to close at separate times on the same day. The closing documents 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 and keys will occur. This meeting is also referred to as the settlement statement or HUD-1. A new deed will be prepared by the Title Company transferring ownership of the property to you. Your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying 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? As previously mentioned, you should have already conducted any inspections, etc. you wish to have done on the property. There are two kinds of title insurance. First, a lender's or mortgagee's title insurance policy protects only the lending institution. Lenders require this type of insurance and require the borrower to pay for it. That does not mean that the borrower will receive its protection. Second, an owner's policy is necessary to protect the owner against loss. You will also be required to pay all fees and closing costs in the form of "guaranteed funds" such as a Cashier's Check. You will be notified of the exact amount by your agent or escrow officer prior to closing. Prior to closing, we will request a closing statement, called a HUD-1, and review prior to closing. This way if there are any corrections, we can make them in advance. Closing Day will be a FUN day because you will get the keys to your new home as soon as the funding of your loan has occurred.
Let’s Adhere to “The Plan” So everything moves smoothly! (Or let's stick to this plan to close your home quickly and with a minimum of hassle) 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. TO DO: Loan Application: Option Period: Credit report and appraisal fees: Seller's Disclosure must be signed: Set Inspection date and time: Written Amendment if needed (All items from the inspection that you wish to be fixed: Keep in mind you may or may not be buying a new home.) Negotiation of repairs to be completed: Title Commitment due: Insurance: (You are required to arrange for insurance coverage and to inform your mortgage company of your agent's name and phone number.) Loan Approval: Closing Date:
DATE COMPLETED BY: __________________________ __________________________ __________________________ __________________________ __________________________ __________________________
__________________________ __________________________ __________________________
__________________________ __________________________
Please Note: During the loan and home-buying process, you will be asked to supply documents, respond to phone calls requesting information, schedule dates into your calendar, etc.
Your Real Estate Roster Please keep this book with you throughout the home selling process; it is also very helpful if you keep it for future reference.
Mortgage Lender Loan Officer Phone Address
Insurance Company Loan Officer Phone Address
Title Company Loan Officer Phone Address
Forms, Agreements, Contracts, Etc. The following forms, agreements, contract, addendums and such are integral in establishing expectations and securing your home. * Some of these forms are mandatory and required by the Texas Association of Realtors or by Keller Williams Realty. Information about Brokerage Services: Explains the relationships between Real Estate Brokers and Owners/ Buyers. Sign & date this form.
General Information and Notice to a Buyer: this form is designed for Buyers & Sellers to inform them of general information relating to the purchase of a property.
Inspector Information: For Sellers and Buyers (informing Buyers of the need for an inspection and for Sellers making them aware that their property will be inspected.)
Information About Mineral Clauses in Contract Forms: For Sellers and Buyers
Affiliated Business Arrangement Disclosure Notice: Keller Williams has a business relationship with a Lender and a Title Company. This document is intended to inform you of this relationship. You are not required to use these services in your transaction. Please sign to acknowledge that you have received this document.
Purchase Contracts and Addenda
One to Four Family Residential Contract (Resale): The promulgated form used in Texas for Resale Properties
Third Party Financing Condition Addendum: Addendum if your contract is contingent upon Financing Approval.
Addendum for Seller’s Disclosure of Information on Lead Based Paint and Lead Based Paint Hazards as required by Federal Law - (for Homes built prior to 1978)
Amendment: Used to negotiate Repairs or make changes to the Executed Contract Please note that not all forms, agreements, contracts, etc. are listed as each transaction is unique and may not require each item or may require more items that have been listed. Forms May be Emailed to You in Advance for Review