Working With Your Realtor®

Team Effort With Your Realtor® Will Make Your Home Purchase Easier And More Pleasant. The Following Are A Few Helpful Suggestions:

1. Pick ONE Real Estate Agent and stay with him/her. Nothing inspires a professional to seek and find the home of YOUR choice more than knowing you are relying on him/her completely. Choose an agent carefully.
2. Make sure he/she is a Realtor®, a full-time associate, professionally trained to service your needs.
3. Be sure the Realtor’s® firm belongs to the Multiple Listing Service (MLS). This way he/she can show you any home listed in the area, including those exclusively listed by another agency. You do not have to contact each office to see different listings. If you see a house advertised that is listed with another firm, ask your sales agent to arrange a showing.

Once You Have Committed Your Loyalty To Your Realtor®, There Are Ways You Can Help.

1. A frank approach to your needs and price range is crucial. Over-estimating your ability to pay can leave you unqualified for mortgage monies. Underestimating your price range can eliminate the "perfect home" from the portfolio of houses the agent selects to show you, based on information you supplied. Answer personal financial and credit questions that he or she asks honestly – remembering that all such information is kept confidential.
2. If you wish to attend an Open House and your agent can not attend, be sure to have him/her contact the salesperson holding the Open House to let them know you are attending as his/her customer. Otherwise, if you decide to buy it, you may find you’re obligated to work with the Open House host salesperson.
3. If you see an ad in the paper or home guide which piques your curiosity, do call your agent and ask about it. Let your agent make the inquiry; a lot more information can be obtained from a fellow Realtor® which will be helpful to you.
4. While a Realtor® is well-versed in the local real estate market, he/she should also be knowledgeable on such matters as financing, taxes, schools, community activities and the like. However, a Realtor® is not an accountant, a lawyer, a mortgage officer or engineer – be sure to consult with a professional on such matters.
   REALTOR®—A professional in Real Estate who subscribes to a strict Code of Ethics as a member of the local and state boards and of the National Association of Realtors.

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Advantages Of Home Ownership

The primary advantage of becoming a homeowner is the opportunity to build equity. You can expect the value of your home to appreciate steadily during the time in which you live in it. Home ownership is also the best hedge against inflation. Your "guarantee" of increased value of property is that it is the only commodity in the world which is absolutely limited in supply, and growth in population increases its demand.

Tax Advantages:

Taxes And Interest: Homeowners can deduct property taxes and interest paid on the mortgage. You may also deduct interest paid on your second mortgage if the total of your first and second mortgages is not greater than one million dollars.

Equity: The equity built up in your home is not taxable until the sale of your property, similar to a tax-deferred savings plan. You may also borrow money against the equity in your property to upgrade your property, purchase a car, pay for education, and have the ability to deduct the interest from your federal taxes.

Deferred Capital Gains: When you sell your home, capital gains can be deferred if you buy, build or improve another home of similar value within a certain time frame.

Closing Costs: Points actually paid and some other fees incurred in the cost of obtaining a mortgage are tax-deductible.

Elderly Exclusion: A once-in-a-lifetime exclusion is available if you are 55 years or older. You can be exempt for up to 125,000 in capital gains on the sale of your primary residence.

Personal Benefits:

Freedom: You choose the style of the structure, landscaping, colors, furniture and décor. Since you are the "Landlord," the freedom to arrange or rearrange things to suit your needs is limited only by your creativity and imagination.

Privacy: Your home is the place where you can enjoy the many facets of your lifestyle. It can be a center of activity or a quiet refuge. It’s much more than a place to eat and sleep; your home is an integral part of your lifestyle.

Security: Security and knowledge go hand in hand with home ownership. Your feeling of security will be enhanced by the knowledge that your home, a major investment of a lifetime, is a safeguard against inflation. As time passes, a smaller share of your earnings will go toward this housing expense. Owning a home is the beginning of financial independence.

Community: You establish roots because your home makes you a part of the community. Your neighbors are homeowners, too, often with backgrounds much like your own.

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Frequently Asked Financing Questions

Q. How long does it take to process a mortgage application?

A. Usually about 45 to 60 days, although it can take as few as 30 days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report and verification of employment and bank accounts.

Q. What documents will I have to provide?

A. Be prepared to provide verification of income (including a pay stub and recent tax returns), bank account numbers and details on your long-term debt (credit cards, auto loans, child support, etc.). If you’re self-employed, you may also be required to provide financial statements for your business.

In recent years, lenders have been required to obtain more specific information from borrowers in order to package and sell loans to investors. If you were lending someone such a large amount of money, you’d want detailed financial information.

Q. Could anything delay approval of my loan?

A. If you provide the lender with complete, accurate information, everything should go smoothly. You may face a delay if the lender discovers credit problems – a history of late payments or nonpayment of debts, or tax lien. You may then be required to submit additional written explanations or clarifications. You should also be sure to notify your lender if your personal or financial status changes between the time you submit an application and the time it’s funded. If you change jobs, get an increase (or decrease) in salary, incur additional debt or change your marital status, let the lender know promptly.

Q. What do the closing costs include?

A. Closing costs cover processing and administration of your loan. In addition to a loan fee, you’ll usually be asked to prepay interest charges, to cover the partial month in which you close, and impounds for property taxes, hazard insurance an mortgage insurance.

Q. When do my mortgage payments start?

A. Usually about 30 days after closing. The actual date of your first payment will be included in your closing documents.

Q. What’s included in my house payment?

A. Principal and interest on your loan. Depending on the terms of your loan, the payment also may include hazard insurance, mortgage insurance and property taxes.

Q. Can I pay those other things separately?

A. Not if it’s an FHA-insured or VA loan. With most other loans, you can pay your own taxes and insurance if you borrowed no more than 80 percent of the purchase price or appraised value of your home. Check with your lender to be sure.

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