A GUIDE TO FINDING & PURCHASING YOUR NEW
HOME
INSIDE THIS BOOKLET
CONTACT ME
5
WHO WE ARE
7
FOUNDATION OF TRUST
9
GLOBALLY KNOWN, LOCALLY OWNED
10-11
WHY US, HOW WE RANK
12-13
IMPROVING LIVES, BETTER TOGETHER
14-15
PENFED REALTY CONCIERGE
17
READY TO START?
19
STEP 1 - WHY CHOOSE A BUYER’S REPRESENTATIVE
21
STEP 2 - FINANCING
23
STEP 3 - YOUR IDEAL HOME
27
STEP 4 - THE OFFER
29
STEP 5 - YOUR OFFER
31
STEP 6 - SETTLEMENT DAY
33
YOUR PERSONALIZED BUYER TOUR
35
A home is one of the most important assets that most people will ever buy. Homes are also where memories are made and you want to work with someone you can trust. Warren Buffet Chairman and CEO Berkshire Hathaway Inc.
WHO WE ARE Trust is more than just a catchword at Berkshire Hathaway HomeServices PenFed Realty. It’s at the very core of the relationships we build with buyers and sellers every day. And it’s why thousands of clients have found their perfect home by placing their trust in us.
50+
offices serving 51 cities
A company built on a
FOUNDATION OF TRUST Berkshire Hathaway HomeServices PenFed Realty is built on a foundation of trust that translates into a passion for delivering the best service for our clients. OUR VISION Integrity. Innovation. Improvement. OUR MISSION To provide a gateway to an enhanced quality of life and better financial opportunities for our real estate clients, sales professionals and employees. OUR VALUES To be the premier provider of real estate services in the markets we serve.
GLOBALLY known
Berkshire Hathaway HomeServices PenFed Realty utilizes an elite network of powerful relationships, along with modern, effective tools to bring together buyers and sellers of distinctive properties from all over the world. Our experienced, serviceoriented professionals combine local expertise with vast global connections, the most advanced technology available and unparalleled marketing resources to deliver best-in-class results to our clients. Our global syndication strategy capitalizes on consumer preferences and search patterns to keep our listings in front of the world’s serious and qualified home buyers.
WE REACH 6 MILLION UNIQUE VISITORS every month 37 COUNTRIES in 12 languages 2 MILLION CONSUMERS IN CHINA every month 70 PROPERTY WEBSITES around the world
LOCALLY owned PENFED CREDIT UNION Berkshire Hathaway HomeServices PenFed Realty is a wholly-owned subsidiary of PenFed Credit Union. Established in 1935, PenFed Credit Union: • • • • •
Is one of the country’s strongest and most stable financial institutions Has 1.6 million+ members Has $24 billion+ in assets Has members in all 50 states and the District of Columbia, plus military bases in U.S. territories Is federally insured by the National Credit Union Association (NCUA) and is an Equal Housing Lender PENFED REALTY
PenFed Realty was established in 2006 and has since steadily increased its presence and expanded its market share across multiple states. We have: • 50+ offices • 1,800+ sales professionals in Maryland, Virginia, Washington, D.C., West Virginia, Delaware, Pennsylvania, Florida, Kansas, Tennessee and Texas • Services for residential and commercial properties This remarkable achievement earned Berkshire Hathaway HomeServices PenFed Realty the Berkshire Elite designation, reserved only for the top companies nationwide.
Why
CHOOSE US REPUTATION
SERVICE
EXPERTISE
REACH
EXCELLENCE
When our name goes on a real estate sign, it means something. It’s a promise of integrity, professionalism, innovation and the highest standard of work.
Your needs come first, and we don’t just say that. Year after year, surveys by Harris Poll* and RISMedia recognize our dedication to clients and our commitment to customer service. We are proud of our expertise in process, places and people—guiding you through your home selling journey, in the locations right for you and with the right people who can help. We combine local expertise with vast global connections. Our network, with over 60,000 sales professionals in over 1,500 offices in North America, reaches 37 countries in 12 languages.
Whether you’re relocating, scaling up to a larger home or downsizing into a cozier space, we are deeply committed to a successful outcome for you.
Berkshire Hathaway HomeServices received the highest numerical Equity Score and the highest numerical score relating to Trust and Love among Real Estate Agency brands included in the 2020 Harris Poll EquiTrend® Study, which is based on opinions of 39,100 U.S. consumers ages 15 and over surveyed online between January 1 and January 30, 2020. Your opinion may differ. “Highest Ranked” was determined by a pure ranking of a sample of Real Estate Agency brands.
How
WE RANK BERKSHIRE HATHAWAY HOMESERVICES
REALTRENDS 500 2020
REPRESENTING LESS THAN ONE-HALF OF 1% OF ALL BROKERAGE FIRMS IN THE COUNTRY
HARRIS POLL 2020
REAL ESTATE AGENCY BRAND OF THE YEAR AND MOST TRUSTED REAL ESTATE BRAND *
RISMEDIA 2020 POWER BROKER
RANKED IN THE TOP 500, #24 IN SALES VOLUME
Berkshire Hathaway HomeServices received the highest numerical Equity Score and the highest numerical score relating to Trust and Love among Real Estate Agency brands included in the 2020 Harris Poll EquiTrend® Study, which is based on opinions of 39,100 U.S. consumers ages 15 and over surveyed online between January 1 and January 30, 2020. Your opinion may differ. “Highest Ranked” was determined by a pure ranking of a sample of Real Estate Agency brands.
Touching hearts
IMPROVING LIVES We proudly support two non-profit organizations that serve people in the military, children with cancer, and their families. PenFed Foundation works to meet the unmet needs of veterans, active duty personnel and their families. Sunshine Kids is dedicated to enriching the lives of children with cancer.
Better
TOGETHER Our partners create a streamlined escrow, disclosure reporting, title, mortgage, and insurance experience for you. Together we have a vested interest in expediting your home buying and selling process. Our unified efforts assure a positive closing.
Moving made easy
PENFED REALTY CONCIERGE
When you’re considering buying or selling a home, the prospect of dealing with a MOVE can be daunting—and even a deterrent to taking the first step. Fortunately, at PenFed Realty we offer our clients a lifetime account with PenFed Realty Concierge! This FREE service provides both an online platform and live, dedicated specialist to help make your move EASY: •
Customizable week-by-week moving checklist
•
Personalized reminder emails to help you stay on track
•
Set up or transfer: utilities, internet, cable, home security, insurance
•
File your change of address and mail forwarding with USPS
•
Research and hire top-rated moving companies and storage providers
•
Request quotes for car shipping
•
Update your driver’s license and vehicle registration with the DMV
•
Connect with preferred vendors for all of your home needs
•
Project planning for your new home
•
And so much more!
Plus, after your move, PenFed Realty Concierge is your one stop for managing all of your needs as a homeowner. With PenFed Realty Concierge, your Berkshire Hathaway HomeServices PenFed Realty agent is your trusted real estate professional for life.
READY TO START? The process of buying a home can be daunting, even if it’s not your first time. We’ve outlined the process below to help you visualize your journey.
HIRE A BUYER’S REPRESENTATIVE
SEARCH FOR YOUR IDEAL HOME
YOUR OFFER HAS BEEN ACCEPTED
1
3
5
2
4
6
FINANCING
THE OFFER
SETTLEMENT DAY!
The best decision you can make when buying a new home is to solicit the services of a TRUSTED ADVISOR to act as your representative and champion.
Seller’s Agent
Buyer’s Agent (Me)
Arrange property showings
Yes
Yes
Provide accurate information
Yes
Yes
Explain forms and agreements
Yes
Yes
Monitor escrow and closings
Yes
Yes
Give you advice and counsel
No
Yes
Keep your bargaining and financial position confidential
No
Yes
Promote and protect your best interests
No
Yes
Identify the best price and terms with you
No
Yes
Point out problems with the property
No
Yes
Pass information to the seller that may enhance your bargaining position
No
Yes
Help write the offer with your best interests in mind
No
Yes
REAL ESTATE SERVICES AND DUTIES
01 WHY CHOOSE A STEP
buyer’s representative The best decision you can make when buying a new home is to choose an expert, trustworthy professional committed to representing YOU throughout the process. As your representative: •
I work for you. You will have the advantage of my service, counsel, expertise and total commitment to achieving your home buying goal.
•
You gain access to every home listed in the multiple listing service, which unrepresented home buyers lack.
•
I will provide you with specifics about each home’s location, property values, offering price, negotiations, counter-offers, contingencies and financing.
•
I will prepare you for the process, which could become complex and arduous. My job is to make that as stress-free as possible.
•
I will protect your interests.
•
I will maintain absolute privacy on your financial and personal information.
How much home can you afford? To get an idea of how much house you may be able to afford, or what mortgage products are available, we recommend the following websites:
HOW MUCH CAN I AFFORD?
GO TO: calculators. penfedrealty. com
WHAT MORTGAGE PRODUCTS ARE OUT THERE?
GO TO: www.penfed. org/mortgagecenter
02 FINANCING STEP
Finding and buying the right home begins with determining how much you can afford. Realistically assessing your finances upfront will streamline the home finding process. Use the websites on the left to get an idea on how much house you can afford. For a majority of Americans today, purchasing a home means obtaining a home loan or mortgage, which means selecting a lender and getting pre-approved for a loan. Your mortgage loan officer will guide you on the ins-and-outs of financing your home purchase.
COMMON FINANCING TERMS* APPRAISAL
PROPERTY TAXES
PRIVATE MORTGAGE INSURANCE
An analysis performed by a qualified individual to determine the estimated value of a home.
Taxes based on the assessed value of the home, paid by the homeowner for community services such as schools, public works, and other costs of local government. Sometimes paid as a part of the monthly mortgage payment.
Insurance provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. The cost of the insurance is usually paid by the borrower and is most often required if the loan amount is more than 80% of the home’s value. Sometimes referred to as mortgage insurance.
PRINCIPAL The actual balance, excluding interest, of a mortgage loan. Also refers to the amount of the monthly mortgage payment that will be applied to the actual balance. LOAN ORIGINATION The process by which a mortgage lender creates a mortgage secured by real property.
INTEREST RATE The cost of borrowing a lender’s money. Interest takes into account the risk and cost to the lender for a loan. The interest rate on a fixed rate mortgage depends on the going market rate and how many discount points you pay up-front. An adjustable rate mortgage’s interest is a variable rate made up of the index and the lender’s margin.
LOCK Written agreement in which a lender guarantees a specific interest rate if a loan closes within a set period of time. The lock-in may also specify the number of discount points to be paid at closing. * Courtesy of PenFed Credit Union
Your credit score* Your credit score is a number that summarizes your credit risk and helps lenders evaluate your creditworthiness. It is based on a snapshot of your credit file at one of the three major consumer reporting agencies (CRAs)—Equifax, Experian and TransUnion. It influences the credit that’s available to you and the terms, e.g., interest rate, that lenders offer you. The credit scores most widely used in lending decisions is the FICO® score, created by Fair Isaac Corporation (FICO). Lenders can request your FICO score from the three major CRAs to help them make decisions on your loan application.
TO DO TODAY *Courtesy of PenFed Credit Union
Request your credit report from a consumer reporting agency (CRA)
FICO RANGE 800 or higher
RATING Excellent
740 to 799
Very good
700 to 739
Good
580 to 699
Lower than 580
Fair
Poor
WHAT THIS SCORE MEANS* •
In the top 20% of U.S. consumers
•
Demonstrates to lenders that the consumer is an exceptional borrower
•
In the top 40% of U.S. consumers
•
Demonstrates to lenders that the consumer is a very dependable borrower
•
Near average for U.S. consumers
•
Considered by lenders to be good scores
•
In the lowest 40% of U.S. consumers
•
Some lenders will approve credit applications within this score range
•
In the lowest 20% of U.S. consumers
•
Demonstates to lenders that the consumer is a very risky borrower
03 YOUR IDEAL STEP
HOME
Identify what you like in your current community to get a better idea of what you’re looking for in your new home. I will help you in selecting homes to view based on the needs we discussed, such as: •
How do you commute to work?
•
Where do you shop?
•
Do you have special educational needs?
•
What recreational needs to you have?
•
What type of community appeals to you?
•
What style of home are you looking for?
•
How many bedrooms and bathrooms do you need?
•
What features do you value in your current home?
•
What do you dislike about your current home?
•
What are your “must have” features?
•
What is your time frame?
Your home search According to the National Association of REALTORS®, 90 percent of potential home buyers searched online during their home buying process. To maximize your search results, I recommend leveraging the following tools:
MY WEBSITE Chock-ful of information, tips, calculators and other tools for home buyers and sellers alike, my website should be your first stop in your home search process.
“MY 24/7 HOMEWATCH” We work round-the-clock to help you buy your new home, sell your existing one, or simply monitor the real estate conditions in your neighborhood. My 24/7 HomeWatch is an automated tool you can use to monitor real estate activity on the market, such as new listings, price reductions, and homes that just sold.
04 THE OFFER STEP
Congratulations! You found the perfect home. Time to submit an offer. Here is a high-level view of what to expect.
FINANCING
Your loan officer will review and explain the application and guide you through the approval process.
OTHER ISSUES
We’ll review any outstanding issues, e.g., earnest money deposit, inspections and repairs, items that convey with the property, closing and possession dates, etc.
THE PRICE
I will present you with a comparative market analysis (CMA) that shows similar properties that recently sold and those still on the market.
PRESENT THE OFFER
When we present the offer, the seller will accept it, reject it, or propose adjustments (i.e., a counteroffer). You may also choose to accept, reject or counter the offer.
FAQs on offers Q: WHAT CAN I DO TO MAKE MY OFFER LOOK BETTER THAN ANOTHER BUYER’S OFFER? A: One advantage you can have on your side is a loan pre-approval. When you are pre-approved, your offer is more attractive because the seller doesn’t have to wonder if you can afford to buy. Q:
WHAT IS EARNEST MONEY?
A: Earnest money is a deposit buyers make when they sign a contract to buy a house. At closing, the earnest money becomes part of the down payment. Q:
WHAT IS A CONTINGENCY?
A: It’s a condition on the sale put into the contract by either the buyer or seller to protect against specific eventualities, e.g., that a buyer’s offer will be dependent upon the sale of their curent home.
05 YOUR OFFER STEP
has been accepted Your loan has been pre-approved and your offer has been accepted. It’s now time to plan for settlement. There’s a lot of work to be done! WHAT IS SETTLEMENT? It’s the process of transferring ownership of the home from the seller to you. This process includes making sure that certain protections for the home are in place before you move in. This includes: HOME INSPECTIONS A home inspector can spot both obvious and hidden problem areas and ensure that the home is a sound investment.
FIRE AND HAZARD INSURANCE You will need to present proof (usually a receipt) for a one-year fire and hazard insurance policy during settlement.
HOME WARRANTIES This is your best defense against expensive repairs or complete replacement of major items in the home, e.g., furnace, appliances. This is not required but is higly recommended.
MOVING MADE EASY WITH PENFED REALTY CONCIERGE When you’re considering buying or selling a home, the prospect of dealing with a MOVE can be daunting—and even a deterrent to taking the first step. Fortunately, at PenFed Realty we offer our clients a lifetime account with PenFed Realty Concierge! This FREE service provides both an online platform and live, dedicated specialist to help make your move EASY:
YOUR PRE-SETTLEMENT CHECKLIST Confirm the date, time and place. Ask for a checklist of things to bring. Make sure all necessary inspections are complete. Make sure all required repairs are complete. Perform your final walk-through. Pay for your insurance policy and make sure it’s in effect on closing day (and bring your receipt). Has your closing sales professional told you the closing amount? Do you know what type of certified funds you should use (and who is the payee) for the closing costs? Do you have receipts for all items you have paid for? Bring your checkbook to cover any last minute extras! Bring a valid photo I.D.
06 SETTLEMENT DAY STEP
Congratulations! Today’s the day when you receive the keys to your new home! Don’t know what to expect on that day? Here’s a few things to watch for:
Your settlement officer will ask you for your paid home insurance policy.
There will be closing costs due to the lender, and you should have received the disclosure prior to settlement day.
You will sign the mortgage and promissory note (along with other paperwork).
Your settlement officer will give you a list of adjustments, which include money you owe and what credits you are due.
The deed will be recorded in the time required for your state/ jurisdiction.
YOU WILL RECEIVE THE KEYS TO YOUR NEW HOME!
AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT PENFED REALTY, LLC
This is to give you notice that PenFed Realty, LLC, d/b/a Berkshire Hathaway HomeServices PenFed Realty, d/b/a Berkshire Hathaway HomeServices PenFed Realty Texas (“PenFed Realty”) has business relationships with the Pentagon Federal Credit Union (“PenFed”), which provides mortgage financing, and the following companies, all of which provide title insurance and/or closing/settlement services: PenFed Title, LLC (“PenFed Title”); Prestige Title & Escrow, LLC (“Prestige”); Members Title LLC, a Texas LLC (“MTTX”); Members Title Company of California, Inc. (“MTCA”); Members Title LLC, a Maryland LLC d/b/a Broadview Title (“MTMD”); Priority Holdings, LLC (“Priority”); Capitol Title Group (“CTG”); Closeline Acquisitions, LLC (“Closeline”); Champion Title & Settlements, Inc. (“Champion Title”); and Kase & Associates, P.C. (“Kase”). Specifically: PenFed owns 100% of PenFed Realty and PenFed Title. PenFed Title owns 100% of MTTX. PenFed Title owns 60% of MTCA, and Priority owns the remaining 40% of MTCA. Closeline owns 100% of Affiliated Services, LLC and CTG. PenFed Title and Affiliated Services, LLC each has a 50% ownership interest in MTMD. PenFed Title has a 65% ownership interest in Prestige, and Champion Holdings, LLC (“Champion Holdings”) has a 35% ownership interest in Prestige. Principals of Champion Holdings also have ownership interests in Champion Title, and a principal of Champion Holdings also owns 100% of Kase. None of the PenFed, PenFed Realty, PenFed Title, Prestige, MTTX, MTCA, MTMD, Priority, Affiliated Services, LLC, CTG, or Closeline has any ownership interest in Champion Holdings, Champion Title, or Kase. Because of these relationships, this referral may provide PenFed, PenFed Realty, PenFed Title, Prestige, MTTX, MTCA, MTMD, CTG, Priority, Affiliated Services, LLC, Closeline, Champion Holdings, Champion Title, Kase, or any of their principals and affiliates, a financial or other benefit. Set forth, below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for the purchase or sale of the subject property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES. Provider/Settlement Service PenFed Origination Appraisal Credit Report Tax Service Flood Certification CLO Access PenFed Title/Prestige/MTTX/MTCA/ MTMD/ CTG/Closeline/Champion Title/ Priority Lender’s Coverage Owner’s Coverage Settlement Title Examination Document Preparation Recording Services Photocopies, miscellaneous Kase Deed/Document Preparation Settlement Recording Services
REV 11/21
Charge/Range of Charges 0% - 6% of loan amount $350 - $750 $9.75 - $16.50 $37.50 - $65 $7 $65
$0.32 to $5.70 per thousand of loan amount $2.40 to $6.84 per thousand of sales price $200 - $825 $75 - $550 $100 - $375 $50 - $200 $35 - $200 $100 - $500 $150 - $250 $35 - $75
PenFedRealty.com
©2021 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal Housing Opportunity. We are proud to be an equal employment opportunity employer. REV: January 22, 2021 2:41 PM