Buyer’s Guide To Home Ownership

7239 Pineville Matthews Road, Suite 400Charlotte, North Carolina 28226

www.Highgarden-Charlotte.com

About EasyStreet Realty

When making a purchase as large as a home, it’s smart to have an unbiased, third-party looking out for your interests. We have done the research for you - what builders and mortgage companies offer the best value, giveaways, mortgage programs, and interest rates. Unlike other realty companies, our agents know financing. We can easily determine how much home you can afford and run payments to assure homes you are considering fit your budget. We are professional, honest, and hard working people. Allow us to help you with your home purchase and you’ll see just how easy we make the home buying experience.

Established in 2000 in Indianapolis, Indiana, originally under the brand name “EasyStreet Realty”, we have been a proven leader in buyer and seller representation with a niche focus in real estate. As we have grown over time, and across the country, our business has evolved. In 2012 we opened our first office under a new brand, Highgarden Real Estate, a brand better representing the evolution of our company and of our clientele. New operations since have all been under the Highgarden brand, and we are converting all remaining EasyStreet operations to the Highgarden brand this year.

In addition to our Indianapolis headquarters, we have operations in Atlanta, Charlotte, Charleston, Denver, Las Vegas, Minneapolis, Myrtle Beach, Orlando, Phoenix, San Diego, and Tampa; with plans for continued growth and expansion.

With over 90 full time agents in our Indianapolis office, and our use of technology, a broad marketing reach, understanding of mortgage financing, and a unique Client Care program, we easily separate ourselves from the competition.

The experience and expertise throughout our organization ensures that you will have a top-notch real estate professional representing you when buying or selling a home, as well as a company that will be there for you well after you close on a home.

Professional Associations

National Association of Realtors ®

North Carolina Association of Realtors ®

Charlotte Regional Realtor Association ®

BBB Accredited Business

Equal Opportunity Housing Brokerage

South Carolina Association of Realtors ®

Raving Fan Testimonials

Our Mission:

To create an atmosphere and experience which turns our team, clients and associates into “Raving Fans”.

Our Fans' Ravings:

"The Highgarden team is outstanding. They are the hardest working Realtors I have ever dealt with." -F. Jacobi

"I am so impressed with Highgarden’s knowledge of the industry, and the effort they put forth to ensure that my transaction happened. And let's not forget my agent's kind offer (which I accepted!) to unload storage boxes at my new home. In closing, it is so rare nowadays to find a group who is so customer service oriented, and am blessed to have the opportunity to work with my Highgarden professional. You are the best...nobody comes close! -R. Ortega

"Our Highgarden agent has been very, very responsive to all of our requests! She was very thorough each time we went over an offer. The service and quality of service have been above our expectations. I would rate her service a 100 on a scale of 1 to 10!" -R. Hostetler

"Everyone at Highgarden was very friendly and helpful throughout the entire home buying process. We cannot say enough nice things about our Highgarden Realtor; he was just great with us. He helped us with everything and was very patient. We want to thank everyone at Highgarden who made this stressful process a very enjoyable and smooth experience." -B. Kavanaugh

"I just have to tell you what a wonderful experience it has been working with my agent at Highgarden Real Estate. He was very knowledgeable in the entire home purchasing process. I have felt very secure in trusting his advice and expertise. During my lifetime I have purchased and sold numerous homes. With this in mind, I can, without reservation, state that he is by far the BEST real estate representative I have had the good fortune to interact with.” -B. Sands

"Our Realtor was excellent; we felt we could trust him and that he really worked in our best interest. My husband always gives his business to whomever responds to him quickly, and our Highgarden agent always responded to our needs immediately. I have already referred him, and I will use your company again." -M. Fagan

"My agent genuinely cared about me as a person throughout this whole process. She was responsive, explained things so I would understand and was patient with me every step of the way. Her efforts were priceless! Thanks to all of you at Highgarden - you made my dream come true!" -B. Wadlington

"We want to thank you for the excellent service we have had with Highgarden Real Estate. Our Realtor treated us with the utmost respect and professionalism. She made us feel like we were the company’s most important client and went out of her way to meet our needs. Our expectations were exceeded!" -B. Bojda

"I have already referred my parents to the Realtor I used at Highgarden. He was terrific and a wonderful representative of your company. Your company cares about more than just the sale. Thank you from the bottom of my heart. I LOVE MY NEW HOME and couldn’t have done it without you." -A. Tucker

"Our Highgarden Realtor has been very attentive to our needs and very informative. He met with us one evening for about two hours just to explain the process. Something like this may not seem like much to some, but it was huge to us. He took the time to get to know us, and for that, we would recommend you to anyone." -D. Boyer

Home sales in December dropped by 1% from November, the National Association of Realtors reported on Tuesday, but still stood nearly 13% above the levels of one year ago. That means home sales have risen from the year-ago month for 18 straight months.

For 2012 as a whole, sales were up 9% to 4.65 million units, the highest annual total since 2007.

Prices, meanwhile, are picking up because the number of homes for sale continues to drop despite the sales volume gains. The number of homes for sale fell to 1.82 million at the end of 2012, an 8.5% drop from November and a 21.6% decline from one year earlier, the Realtors’ group said on Tuesday.

Here’s a breakdown of why inventory has continued to drop this year:

Many homeowners are underwater: More than 10 million homeowners owe more on their mortgage than their homes are worth, according to CoreLogic Inc. That pencils out to around 22% of homeowners with a mortgage, or 15% of all homeowners (since not every homeowner has a mortgage). Underwater owners aren’t likely to sell unless they need to move due to changing life (marriage, divorce) or financial circumstances, and they’ll take a hit on their credit for pursuing a short sale, where the bank allows the home to sell for less than the amount owed. Data from CoreLogic show that inventory has been the most constrained in housing markets where there’s the largest concentration of underwater borrowers.

Others don’t have enough equity to “trade up”: Another 10 million homeowners have less than 20% equity in their current residence, meaning they can’t easily “trade up” to their next house. Traditionally, homeowners have relied on home equity to make the down payment on their next home, and to pay their real-estate agent to sell their current home and buy their next one. These “under-equitied” homeowners—meaning they don’t have enough equity to make a move to a more expensive home—have added to the drag on inventory.

Everyone wants to buy at the bottom, but few want to sell: Even those people who do have plenty of home equity are likely reluctant to sell if they think prices will be higher tomorrow. Would you sell your largest asset today if you thought it might be worth 5% more next year? This helps explain why markets such as Denver and Dallas, which didn’t have huge housing bubbles and thus had smaller shares of underwater borrowers, have also seen double-digit inventory declines.

More purchases from investors of all stripes: From the big institutional investors that have been grabbing all the headlines, to the mom-and-pop landlords that have traditionally played a much larger role renting out homes, investors have increasingly bought homes that can be rented out rather than flipped and resold for quick profits. This is further keeping inventory off the market in two ways: homes that are bought at courthouse foreclosure auctions never show up on multiple-listing services when they’re initially sold. They’re also held out of the for-sale pool because they’re being rented out.

Banks have been slower at foreclosing: Banks and other companies that process delinquent mortgages have had trouble proving that they’ve followed state law in taking title to homes ever since the “robo-signing” scandal surfaced in late 2010, and they’ve also had to meet a host of new state and federal rules governing loan modifications and foreclosures from settlements spawned by the robo-scandal. Banks have also become better about approving short sales and loan modifications, which has curbed the flow of foreclosed properties onto the market.

Builders have been putting up fewer homes: Housing starts were severely depressed from 2009 through 2011 and have only recently rebounded off of those low levels. Consequently, there’s been much less new home inventory being added to the market at a time when demand (boosted by increases in household formation) is picking up. If more homes are held off the market—for any of the five reasons above—you can bet that builders will move in to fill the void.

Many of these factors that have been dragging down inventory aren’t signs of “normal” or “healthy” housing markets—but then, we probably haven’t had a normal market for around a decade now. If anything, declining inventory shows that normal supply-and-demand dynamics are returning, which is an important step towards putting a floor under home prices and giving markets time to get back to health.

Six Reasons Housing Inventory Keeps DecliningBy Nick Timiraos, Wall Street Journal Blogs. Copyrighted Blogs.WSJ.com. All Rights Reserved

Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market. With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable -- but it won’t stay this way for much longer. Stuart Hoffman, chief economist for PNC Financial Services (PNC, Fortune 500), said he expects home prices to flatten out by the third quarter and start climbing by next year. A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores. Some economists, like Trulia’s Jed Kolko, expect home prices to pick up even more quickly. Trulia’s data shows that the national average for asking prices already increased 1.4% in the first quarter of 2012, compared with the last three months of 2011.

“This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer,” he said. Prospective homebuyers who’ve been sitting on the fence shouldn’t worry if they aren’t quite ready to make the leap. Analysts are predicting that the initial price gains will be modest, at least, in most markets. Hoffman, for example, is forecasting a 2% increase in 2013 compared with 2012. Meanwhile David Stiff, chief economist for Fiserv, predicts that prices will turn in the last quarter of 2012 and will rise 4.2% for the 12 months through September 2013.

One major factor that will drive the trend is the cooling of the foreclosure crisis. Stan Humphries, chief economist for Zillow, said that the percentage of mortgage loans 90 days or more late, a good predictor of future foreclosures, is “falling fast.” That percentage dropped 15% year-over-year to 3.1% through the end of 2011, according to the Mortgage Bankers Association. And the decline is accelerating: More than 70% of the decline came in the last three months of the year.

Before things slow down, however, buyers should brace themselves for a temporary spike in the number of foreclosures as banks start expediting the processing of hundreds of thousands foreclosures that were stuck in the system following the robo-signing scandal. That backlog should move more quickly now that new guidelines for processing foreclosures have been outlined in the $26 billion foreclosure settlement. Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations.

“That could have a significant impact on the market overall in terms of providing a rising floor to home values,” he said. In some markets hit hard by foreclosures, the turnaround in prices is already underway. Phoenix recorded an 8.4% jump in home prices during the three months ended April 30, compared with the three months ended January 31, according to Clear Capital. “It’s crazy,” said Tanya Marchiol, founder of Team Investments, a Phoenix real estate investing firm. “Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000.” Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.

In addition to home prices, mortgages could also move higher. Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low. But rates aren’t expected to remain at these record-low levels much longer. As the economy continues to recover, rates will move higher, said Doug Lebda, CEO of LendingTree, the online lending site. Although, he said, they will “stay very reasonable.” The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year. Greater demand for loans will help fuel the increase, according to Lebda.

Mortgage payments at lowest level in decades.

Foreclosures start to fade.

Should you buy a home in 2012?

Home buying much cheaper than renting.

Goodbye 3.8% mortgage.

Buying a home won’t get much cheaperBy Les Christie. Copyrighted, CNNMoney.com. All Rights Reserved

Finding Your Home

DISCUSS YOUR NEEDS

GET YOUR PRE-APPROVAL

WE DO THE RESEARCH

SCHEDULE AN APPOINTMENT

MAKE AN OFFER

WHAT’S THE COST?

The first step in the home buying process is to discuss your wants and needs regarding a

new home with your EasyStreet Realtor. During this step, you will discuss things like your budget, area, type of home, and desired closing or move-in date. Ask your Realtor for a copy of the Homebuyer’s Worksheet if you would like a list of these topics to consider.

The second step is to talk to a mortgage company about getting a pre-approval. A pre-

approval letter is key for negotiating with home sellers. Your EasyStreet Realtor can help prepare you for this step by getting a copy of your credit report and helping you identify any areas for improvement. They can also get you in contact with the most trusted mortgage companies if you are not already working with one. Regardless of who you choose to facilitate your new home loan, it is important to get a copy of your pre-approval letter to EasyStreet as soon as it is generated.

The third step is handled by your trusted EasyStreet Realtor. By now your Realtor has talked to

you about your wants and needs regarding a new home, and the mortgage company has determined your maximum loan amount. With this information, your agents will do a custom home search of the homes for sale in your desired area. Prior to scheduling an appointment to view the homes, you will receive a list of homes that match your criteria (generally via email unless otherwise requested). You will be asked to select homes from that list that you would like to view on your initial viewing appointment with your EasyStreet Realtor.

The third step is to schedule an appointment with your Realtor to look at homes!

Appointments are generally scheduled a minimum of 24 hrs. in advance to allow enough time for your agent to schedule the showings with the current homeowner. Appointments are usually scheduled for a 1-2 hour window so you don’t feel rushed through the homes you selected previously. When the showings are confirmed the day of your appointment, you will be contacted by the your Realtor to determine your meeting place.

Finally, when you have selected a home that you would like to purchase, your EasyStreet Realtor will

help you make an offer on the property. EasyStreet Realtors are experts in structuring offers to purchase in a way that meets your financial needs and gets you the most for your money. When it is time to make an offer, your Realtor will discuss the options with you, explain the meaning of the purchase agreement, and explain the next steps of the process. Your Realtor will submit a copy of your pre-approval letter and earnest money funds to the seller for review and update you immediately on any counter offers or acceptances.

In most situations, you will need a small amount of money to secure the purchase agreement on a

home. Your agent can help you structure an offer so that you receive the money you paid for pre-paid items back as a credit at your closing. The following is a brief description of each pre-paid item, and an estimate of the cost:

Earnest Money $500: This is personal check, cashiers check, or money order that is submitted with an offer to purchase. The minimum earnest money deposit is $500 for most properties, but can vary by type of home and seller’s requirements.

Home Inspection $350: This fee is paid by you to the Independent Home Inspector of your choice. $350 is the average fee for a standard home inspection, but will vary from company to company. We urge you to call multiple companies to get quotes.

Property Appraisal $350: Some mortgage companies may ask that you pay the appraisal fee up front. These are usually $350.

Homeowner’s Insurance $400-700: You are required by the lender to obtain a one year policy of Homeowner’s Insurance prior to closing. You will be asked to provide a copy of the proof of payment and coverage. The cost will vary depending on the coverage, discounts, and insurance provider.

Which Best Fits Your Priorities?

A B

C D

E F

1. PAYMENT

2. STYLE

3. LOCATION

1. LOCATION

2. PAYMENT

3. STYLE

1. LOCATION

2. STYLE

3. PAYMENT

1. STYLE

2. LOCATION

3. PAYMENT

1. PAYMENT

2. LOCATION

3. STYLE

1. STYLE

2. PAYMENT

3. LOCATION

Your Financing Options

FHA LoanStandard 3.5% Down Payment

Example: $150,000 home = $5,250

Pros:Flexible qualifying criteria

Low down paymentEverybody receives the same interest rates

VA LoanStandard $0 Down Payment

Pros:Flexible qualifying criteria

$0 Down PaymentLow interest rates

Conventional LoanStandard 5-20% Down Payment

Example: $150,000 home = $7,500 - $30,000

Pros:Low interest rates

Lower or No Private Mortgage Interest

USDA LoanStandard $0 Down Payment

Pros:$0 Down Payment

Flexible qualifying criteriaHome must be in registered in USDA location

Specialty First Time Buyer ProgramMortgage Credit Certificate (MCC)

Allows qualified first time buyer to receive up to $2,000 federal tax credit

Your Mortgage Approval

Now that you have received your mortgage pre-approval, there are some things you will want to do to insure your final approval. You will want to be sure to keep your mortgage loan officer up to date on any “life events” that change your personal situation. You will also want to take some important steps to maintain your credit rating and avoid any new negative records on your credit report.

We advise that you contact your mortgage loan officer with questions regarding your financing, as EasyStreet Realtors are only trained in financing basics and are generally not mortgage professionals. If you need assistance contacting your mortgage loan officer, please call or email your EasyStreet agent.

Get an Insurance QuoteYour purchase agreement also specifies the number of days you have to obtain a quote for a 1 year policy of Homeowner’s Insurance. You do not have to pay the premium at this time, you simply need to supply your agent with a written quote. You must pay the 1 year premium prior to closing and will need proof of payment and coverage at the time of closing.According to the purchase agreement, the deadline for getting an HOI quote is ______ days after acceptance, or ________________.

Schedule a Home Inspection Once your offer has been accepted you have a pre-determined number of days in which you must schedule a home inspection, review the report, and request the repair of major defects noted by the licensed inspector. It is your responsibility to schedule the inspection, and you can refer to your Homebuyer Handbook for a list of local inspection companies and a detailed description of this process.According to the purchase agreement, the deadline for submitting repair requests to the seller is ______ days after acceptance, or on ________________.

Completing Your Purchase

Make Loan ApplicationThe purchase agreement you structured with your EasyStreet Realtor also specifies the number of days you have to make formal loan application with the mortgage company. You will need to contact the mortgage company to schedule an appointment to complete your loan application and submit the necessary documents.According to the purchase agreement, the deadline for making loan application is ______ days after acceptance, or ________________.

Transfer UtilitiesA week or two before closing, you will need to contact the local utility companies to schedule the transfer of all utilities from the sellers’ names into yours. It is recommended that you have the transfer effective the day of closing, unless you have agreed to delayed occupancy. Please refer to your Homebuyer Handbook or contact EASYstreet’s Client Care Department for a list of local utility companies.

Attend the ClosingWhen the title company has generated a final settlement statement, the mortgage company will contact you to inform you of any funds required to close on the home. You will need to obtain certified funds in the form of a cashiers check or money order. We recommend you make the funds payable to yourself, and then sign them over to the title company at closing. This will help you avoid any hassle if there are any last minute changes. Please remember to be on time and bring all necessary documentation to your closing.

Appraisal is OrderedOnce your home inspection is complete, the mortgage company will order an appraisal of the property. Depending on the requirements or arrangements, the mortgage company may contact you at this point to request payment for the appraisal.

Homeowner’s Insurance