home buyers guide

everythingrealestateny.com / Top Producer Step-by-Step Series

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Home

BuyersGuide

Home Buyers GuideHow to Secure the Home of your Dreams


MASTER BEDROOM14-0 X 16-6

BEDROOM13-10 X 12-5

LIVING ROOM12-0 X 22-0

DINING ROOM16-1 X 12-9

CL

CL

CL

DW

WC

MASTER BATH11-0 X 12-2

P.R5-6 X 5-2

W/D

KITCHEN11-6 X 9-8

FOYER

BATH9-7 X 5-6

WIC5-8

X 5-3

WIC3-11

X 4-11

Home

BuyersGuide

Introduction ... 3

Guidelines for buying a new home ... 4

Expect great service from your real estate broker .. 7

Getting Pre-approved ... 9

Your home buying team ...... 12

Searching for your new home ... 15

Make an offer . 22

Negotiating the deal . 23

Signed, sealed and delivered: Closing the deal .. 27

A home buyers glossary .. 31

CONTENTS


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Introduction

Whether this is your +irst or third experience, buying a new home is a serious undertaking. It requires dedication, planning, and research to +ind the perfect place for you. Is the path to home ownership stressing you out? Relax owning a home comes with many perks, which makes the whole process worthwhile, and Jermel Singleton of Douglas Elliman Real Estate wants to be your partner through it all. Hes here to help make your house hunting experience as enjoyable and stress-free as possible. There are so many factors that go into buying a new home, which is why many +ind the task daunting. You most likely will need to secure a mortgage and will need to pre-qualify to learn what price range you can afford and +igure out other +inances such as down-payments and closing costs.


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You will need to +ind a real estate agent to help you with the hunt and secure the best offer, and, of course, +ind that perfect home for you and your family. And thats just the tip of the iceberg! Jermels goal with this guide is to provide you with insight during this stressful, yet very exciting time. Youre on your way to achieving the American Dream, and Jermel is with you every step of the way. Guidelines For Buying A New Home As you embark on this journey to homeownership, there are a few items to be aware of prior to purchasing a home. These tips will help prepare you to avoid the bumps in the road on the way to locating your new place. Identify your must-have list. Unless you are building a new construction home, most homes will require you to compromise, whether on its location, square footage, price, or that mudroom for the kids. As you begin your search, identify your must-have items. Remind yourself of these items and why they are important for your life in your new home when you begin visiting


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potential homes. Avoid major purchases before buying a new home. This includes a new car, vacations, electronic equipment, etc. You dont want to allocate all your funds on something and leave little money for one of the largest purchases youll make in your lifetime! Remember you may need to buy window treatments, yard equipment and a ladder when your new home becomes a reality. And besides, maybe youll want a new state-of-the-art refrigerator for your new home versus that trip to the Bahamas. Think of time frames. Do you need to be out of your current place by a certain time? Are you looking to move because your family is expanding in nine months? In addition to your decision to buy a new home, think about the time frame you are allotting for you and your family to locate a new place and set expectations for meeting that time frame. Come up with a backup plan if you arent able to +ind your new home within a certain period of time. Dont move money around.


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When you go through the approval process for a loan itll be easier for the bank to check your credit history and banking statements if youve had a consistent bank for the last few months and steady funds within those accounts. Dont change jobs. This might seem basic but its certainly something to think about. Buying a home can take months. If youre looking to switch jobs, think about whether you want to also buy a home at the same time. Lenders want to see stability when considering a mortgage approval and job changes can decrease your credibility with the lender. Anticipate surprises. There is always a potential for hiccups to happen when buying a home. There are many factors that go into securing a mortgage lender, a trustworthy real estate professional, +inding that perfect home and of course making an offer to purchase the dream home. There are a lot of steps and room for error. As such, prepare yourself for this journey that will have a couple missteps; but know that its completely normal, and that ultimately you will be able to +ind the home of your dreams!


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Expect great service from your real estate broker In becoming a real estate broker an individual must complete a variety of courses and regularly update their professional education. They also have access to a wide array of optional courses, seminars and certi+ications. They must adhere to a strict and rigorously enforced Code of Ethics. On top of all that, through experience, they truly become local real estate market and community experts, as well as masters of property marketing, networking and negotiation. In working for you, a real estate broker will: Outline their professional responsibilities to you, including complete Disclosure, Loyalty, Con+identiality, Obedience and Accountability.


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Help you determine the best initial offer price. Conduct extensive research of home values in order to make knowledgeable sound offers and negotiate. Schedule appointments with listing agents and offer proven advice on how to select the best home based on your needs. Assist you, if necessary, in +inding any home-related services you need. Regularly communicate with you to keep you fully informed of everything they do to +ind your home. Ask for feedback from all showings and open houses. Update you on both real estate and lending changes that could affect your prospective purchase. Promptly present each offer and discuss counter-offers with you. Negotiate the lowest possible price and best terms for you.


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Manage contractual, title and transaction details and keep you informed. Ensure that important items are signed, sealed and delivered on closing day. Arrange for a moving company and relocation agent, if required. In short, theyll provide you with comprehensive, high-quality service. So when you decide to purchase your home, be sure to take advantage of the knowledge, experience and professionalism of a real estate broker.

Getting Pre-Approved Getting pre-approved is a necessary +irst step as it lets you know how much youll be able to afford as well as the down payment for which to budget. Not only this, it prepares you for the monthly mortgage payment and what type of loan you are going to use to +inance your new property. There are so many different loans to apply for as a homebuyer; it all depends on what youre looking for. There are many types of mortgage loans to suit your needs. Do your research and see which +its best with


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your situation. If you refer to my First Time Home Buying checklist, there are seven (7) items to check for when receiving a pre-approval letter. 1. Loan Amount: Base loan amount and gross loan amount 2. Status and Expiration Date: The majority of Pre-Approval Letters are good 90 days from when credit report is run 3. Mortgage Type: FHA, VA, USDA, Traditional, Jumbo 4. Term: 40-, 30-, 20- or 15-Year Fixed 5. Occupancy: Owner Occupied, Secondary Residence, and Investment 6. Contact Info: Lenders Name and Address 7. Conditions: Document and Funding Requirements Prior to AcceptanceAlways use mortgage calculator so you can estimate what youll be able to afford, but I always recommend contacting a professional. Sellers take you more seriously when youre pre-approved for a loan because that makes you more quali+ied for buying a home.


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is backed by the Federal Housing Administration. Another common government loan is the VA loan, which is backed by the Department of Veteran Affairs. Mortgage Options 15 or 30-Year Fixed A fully amortizing mortgage loan where the interest rate on the note remains the same throughout the life of the loan. As a result, payment amounts and the duration of the loan are +ixed and the person who is responsible for paying back the loan bene+its from a consistent, single payment and the ability to plan a budget based on this +ixed cost.

Two Kinds of Loans Conventional Loans: Not insured or guaranteed by the federal government. Typically these have higher down payment and credit score requirements than government loans. Government Loans (FHA loans or VA loans: Backed by the federal government. Most popular is FHA, which


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Adjustable-Rate Mortgage A mortgage loan with the interest rate on the note periodically adjusted based on an index which re+lects the cost to the lender of borrowing on the credit markets. There are many types of mortgage loans to suit your needs. Do your research and see which +its best with your situation. Home Buying Team To assist you in +inding your new home, having a team is extremely bene+icial. I advise that you learn enough so that you can evaluate these people and make a good hiring decision. It is never a bad idea to do your own research +irst. There are many tasks, important deadlines, documents, and responsibilities that need attention while buying a home. Your agent, loan of+icer, and home inspector should all effectively communicate with one another to make this process easier for you. Trust is key, so +ind a team in which you can put your trust in one hundred percent. Their goal should be to help you by making this process easier.


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I believe the three most important people to have as part of the team would be your real estate agent, loan of+icer and home inspector. It doesnt matter if your real estate agent works for a big company or a small company. What matters is that he or she is knowledgeable, motivated, and a good communicator. The loan of+icer that you choose needs to have the same qualities as your real estate agent, (knowledgeable, motivated and a good communicator) but the company that they work for is important as well. Pick a mortgage company that is either locally-owned or national. Either way, make sure that you have heard of them before, as a no-name mortgage company or an internet only lender might not know the market well enough. Use a home inspector that has a reputation for being thorough. Do your research and read the online reviews about them. This is not the time to use a friend; it is too important.


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Keep in mind, that in some markets the listing agent will try to prevent or block buyers from having your own real estate agent because they prefer to keep 100% of the sellers commission. If this is the case, its an immediate red +lag and I would be very cautious because they are putting their +inancial interests ahead of their sellers. If you are unsure, you might consider hiring your own agent who knows the market well. After all, this might save you in the long run considering it likely will be the largest purchase of your lifetime. Another red +lag to be cautious of are referrals from the listing agent. Again, the listing agent represents his or her seller and not you. Whenever, I provide referrals I usually give three (3) names, so the client actually makes the best decision. You should also consider bringing a close friend or family member when shopping for a home as he/she can help you look at things you may overlook. Once you have your team assembled, youre ready for the next step in the home-buying process.


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Searching For Your New Home More and more home buyers are shifting the way they search for new homes. While some prefer to look at the homes for sale in publications on newsstands, other are searching online and or browsing apps and websites on their mobile phones while theyre on the-go. As you start searching for your new home, here are some tips to help you get started: Online, Mobile Apps, and Social Media: Searching for a home online has many advantages. It allows you to quickly see a vast number of properties on the market and crucial details about each of those properties, such as photos, asking price, square footage, etc. To make the process easier, there are a couple options that you can use for searching for a new home online. One in particular, www.elliman.com, makes searching for a new home effortless. You can search based on city or neighborhood and browse thousands of homes for sale. You can also save your searches or share them via email with family and friends to get their input. As an added bonus, you can also set up alerts to be noti+ied when a homes price changes.


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Additionally, streeteasy.com, real estate broker websites, social media, blogs, etc., and direct contact with listing agents are far and away the main sources of home information for buyers (at 89% and 88%, respectively) Other sources are yard signs, open houses, newspaper, postcards, banners and real estate magazine ads, home builders and television.The latest phenomenon is the mobile application. Mobile applications, such as Elli helps buyers who are already convinced on a speci+ic town, neighborhood, or street to search within the vicinity. Some key features of Elli include: interactive maps to instantly +ind nearby homes or rentals with a GPS driven location +inder; full-screen photos that allow you to scroll through vivid, photos of the homes youre interested in; and turn-by-turn driving directions from your current location to the property of interest so you can go see that home as soon as possible! Check this must have app out at www.meetelli.com.Find The Right Home Finding that perfect home can be a lengthy and dif+icult process. There are many factors that go into the decision, such as family needs, pets, the locations proximity to work sites, as well as nearby schools and shopping centers. Here are four factors that will lead the way in +inding the perfect home.


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Safety/Condition of Home When shopping with infants or toddlers, make sure all dangerous areas (kitchen, stairs, pool, etc.) can be out+itted with safety gates. Check that the windows locks are in working order as well. See that all safety mechanisms are in place, the pool is in working order, and that the stairs are sturdy and secure. Find out the age of the homes water heater, air conditioning unit, and roof, as these are costly replacements.School and Education Opportunities Finding the right school system for your children is important, and choosing a home that is close to your childs school (as well as your work) will save you time during the commute process. Check to see if the area has a local YMCA or any other facility that offers after school programs, tutoring, and enrichment activities, such as youth athletics leagues.


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Functionality When buying a home, think about how long youll be living there. Will you be starting a family in the next couple of years in this home? Make sure the home has the amount of rooms and square footage that you desire. Also be sure to check the storage capacity the home offers. Clutter is never fun. Is there enough room for your tools? Kids toys? Shoes and clothes? Make sure the home has plenty of storage solutions or offers places for improvement when needed. A special place is also an important factor to consider. A special place could range from a den, garage, a craft room, a nursery, basement, or maybe even a tree house. Find something within the home that makes your heart happy. Ensure that there is enough room to create those unforgettable family memories as well as showcase them. No one likes feeling claustrophobic.


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Location Check out the local area to see what it has to offer. Is there a playground nearby? Can you walk to it? Maybe even consider how many children live in the area so that your children will be able to easily make friends. What other attractions are available? Find out where the nearest grocery store and dry cleaners are located. How long is your commute? 75 percent of home buyers said that travel time inNluences their home buying decisions, pushing them to choose homes that are closer to their work. Proximity to other family members for any emergency. Make sure that you love the things that you cant change about your home. Location and +loorplan are critical. You can change the +inishes of your home at anytime, but you cant change the street that you live on, how close the neighbors are located or the +loorplan,


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In trying to determine where you want to buy, start by setting your expectations for what you can actually afford, you should: 1. Try to be impartial. Unfortunately, the market is not interested in what you want to pay for your home as the market will determine the price. In addition, your dream home may have features that you highly value, but which might actually increase the price leaving it outside your budget or limiting the number of potential homes. 2. Remember you might have to sacriNice. When you shell out a lot of money you will want to get everything you want in return. Unfortunately, your dream home might not be on the market or might fall outside your budget. Buyers are left either sacri+icing one or two things in order to achieve the dream of homeownership. Again, if you are going to make a major sacri+ice, make sure its on things that you can change. Location and school district are things you might not want to sacri+ice on if they are important to your situation.


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3. Research online and in person. You can +ind out a lot about your local market through research at websites like www.streeteasy.com, www.elliman.com, as well as by going to open houses in your area and making comparisons with your home in terms of location, size, features and condition.Important: Stay Prepared and Available For Showings Particularly during the spring and summer months, there are a lot of buyers in the market and they are all looking for the most spacious and desired homes. It is especially important during this window of opportunity, when interest will be at its highest, that you make yourself available for showings, preferably at open houses. Occasionally, this may pose an inconvenience for you, but youll certainly want to maximize the number of homes you see. Indeed, doing so just might make a big difference in when you're ready to make an offer. Along these lines, you should do your best to ensure that you are ALWAYS ready to see new properties. You never know when the right property will come to the market! Try to come up with a predictable schedule with your real estate agent.


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Make An Offer At this point you have probably toured countless homes and have +inally found the perfect home that meets all of your needs! What do you do now? Make an offer! Not entirely sure how to do that? Dont worry your agent is there to make the purchase process run smoothly, including making the initial offer. Your agent will be your partner in this process; he/she will consult with you on where to start with an offer and what items should be included in order to help you negotiate the best deal. The real estate professional is a valuable part of this process because he/she brings years of knowledge to the bargaining table from their brokerage. Most sellers will price their homes a little high, knowing there will be some bargaining involved. Your agent will assist you in looking at a variety of factors in a comparable market analysis (CMA) for properties nearby to help you determine what price point is fair. That said, the decision is ultimately left up to you to offer what you are comfortable with. If there is an opportunity for negotiation, there are ways to get the seller to care about you as opposed to the number youre offering. For example, putting a human face to the offer can also assist in getting your offer accepted. Sellers have an unexplained desire to know that the house they are selling will


fall into the hands of a worthy buyer. With that sentiment in mind, sending a photo or a short story about your family and your life in that home might help the sellers to form a connection with you. Additionally, writing a clean and positive offer with your agents credentials will be appealing to the selling agent. Itll be easier to process the offer and make working with your agent desirable if they know your agent has a strong, credible background and history of willingness to cooperate. What happens if there are multiple offers? This may bring you into a bidding war. You can increase your bid, make your offer +irm, or sadly, let the home go. If you choose to increase your bid make sure that you dont let your emotions get the best of you, causing you to offer a higher bid than you can reasonably afford. Also, be sure to set an expiration date for your offer so you dont fall into the waiting game. Typically offers stand for 48 hours but, depending on the situation, they could stand longer. Negotiating the deal With rare exception, negotiating the transaction is the most complex part of buying a home. At the same time, its the one that can involve the most creativity. Thats why its important to have an experienced and savvy real estate agent, who has successfully worked through many different transaction scenarios.


What follows is a brief description of the negotiation process and a few strategies for negotiating the best possible deal you can. This includes: keeping in mind your situation, priorities and needs, not giving your situation away to the seller and listing agent, trying to understand and respect the priorities of the seller, being creative and, where necessary, willing to compromise to get the deal done. The Basic Process Your real estate broker will deliver the offer to the listing broker, wholl present it to his or her seller. They can then accept the offer, reject it, or counter it to initiate the negotiation process. Successive counter-offers, with deadlines for responding and meeting various contingencies and special conditions (e.g. a home inspection, the buyer securing +inancing), will be exchanged between you and the buyer until a mutually satisfactory pending agreement is reached or the negotiations collapse. Dont Show Your Hand Even in a buyers market, its crucial to keep certain aspects of your buying situation (e.g. your +inances, why youre buying, how many properties youve seen, etc.) as concealed as possible from the seller and listing agent. Remember, its the job of the listing agent to get the best deal they can for the seller, so any vulnerability you show could end up compromising your position and costing you thousands of dollars.


This is not the same, however, as expressing your priorities very clearly throughout the negotiations. Properly done, the +irm statement of your priorities will strengthen your position. It is the responsibility of your real estate broker to make sure the seller and listing agent only know what theyre legally entitled to know and, beyond that, what you want them to know. Understand And Respect The Sellers Priorities If, during the negotiations, you can +ind out more about the sellers priorities youll not only improve your position, but youll also be able to resolve any obstacles more creatively and sensitively. For instance, if a seller is adamant about a higher than normal downpayment or non-contingency bank approval perhaps because they want to assure closing they might be more +lexible about the price or willing to make concessions about some other terms. There are no one size +its all approaches to negotiating, particularly in the current market. In principle, though, the more you know about the sellers priorities, the more youll be able to work with them in order to achieve your own priorities. Have You Really Found The Right Buyer? If So, Make The Deal Happen


Particularly in a market where reasonably priced homes can be hard to come by, once you +ind one you should be willing to make a few compromises to seal the deal. You just never know when the next deal will come along or what it will cost you to wait for it. That said, here are a few basic principles of successful negotiation to consider if youre committed to completing your purchase: Remember your priorities and respect the sellers. Dont let small things get in the way of your better judgment. Ask questions. Offers may contain complicated terminology, sometimes three or more addenda. Your real estate broker can help clarify everything for you. Stay calm and be patient. At all times keep communication civil and agreeable, even if the seller gets tense, or you might loose your purchase. If necessary, defer until later. If small issues get in the way of big ones, focus on and consolidate your agreement on the big issues and come back to the small ones later. Meet halfway. At the end of the day, if there are disagreements about relative small expenses, split the difference and smile.


Take care with contingencies. When youve found the right place, your agent should prepare a written offer including any contingencies, this document is the basis for the contract of sale. Rely on your real estate broker. Its your agents responsibility to represent your best interests every step of the way. Your success is their success. The reality is that most negotiations proceed without much problem. In the event that there are dif+iculties but youre still committed to buying, remember: where theres a will theres a way. Signed, sealed and delivered: Closing the deal If you and the seller have both ef+iciently taken care of your respective contractual obligations associated with +inalizing the sale, the process of completing the transaction known variously as the closing, escrow or settlement will go smoothly with no surprises. FulNilling Contingencies And Special Conditions A pending sales agreement nearly always includes contingencies and special conditions that have to be ful+illed by the buyer and seller by the closing date, which usually falls 30 to 60 days after both parties signed the agreement.


Typical contingencies and conditions may include: You securing +inancing. A Title Search an historical review of all legal documents relating to ownership of the property to ensure that there are no claims against the title of the property. The purchasing of Title Insurance in case the records contains errors or there are mistakes in the review process. A professional appraisal of the home, requested by the lender to ensure that the homes actual value justi+ies the loan amount. Any additional contractual promises made in connection with sale, buyer incentives, home improvements, etc. An independent inspection of the homes structural and functional condition (foundation, roof, electrical, heating, plumbing, etc.). A +inal walk-through You are given the chance to look at the home to make sure that its in the same condition as when the sale agreement was signed.


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Its important to review the sales agreement with your real estate broker, so you understand your obligations. Any shortfalls or mistakes at this point can be very costly. Your real estate broker can discuss and remind you of these obligations, as well as help arrange for their ful+illment and prepare you for the closing.Completing The Transaction While different areas handle the +inal settlement in slightly different ways, generally the closing agent a third-party professional, often a lawyer, who conducts the proceedings reviews the sales agreement and does the following: Determines the total amount due from the buyer and collects the check. Determines all the adjustments (e.g. seller prepayment of taxes, utilities, etc.) and ensures that theyre factored into transaction. Assures that the transaction costs (closing, legal fees, etc.) are paid. Determines the sellers and buyers payments, credits and adjusted net proceeds.


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Witnesses the buyer signing of the property title and all other documentation associated with the transaction. Collects the keys and any other necessary items from the seller. Provides the seller with the net proceeds as well as copies of the documentation pertaining to the sale. Ensures that the your title is properly recorded in the local records of+ice along with any mortgage liens.The closing happens when the homes ownership is transferred from the seller to the buyer. A successful closing requires that all of the key players come together with numbers and +igures that match. The closing signi+ies the highly-anticipated time in which you +inally get the home you want. Get your pens ready and crack your knuckles because, as the buyer, you will have a lot of paperwork to sign. (There is a reason why you hear closing a home feels like signing your life away!) In most cases, you will be able to take possession within a couple days of the Closing Date.


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A home buyers glossary: When buying a home, its important to understand some of the key concepts and terms. Throughout the buying process, your real estate broker will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms youll want to know: Abstract of Title A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the +irst transfer to the present.Adjustable Rate Mortgage (ARM) Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time, relative to an index like the Treasury index. Agreement of Sale Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms spelled out in writing and signed by both parties. Amortization The process of reducing the principal debt through a schedule of +ixed payments at regular intervals of time, with an interest rate speci+ied in a loan document.


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Appraisal A professional appraisers estimate of the market value of a property based on local market data and the recent sale prices of similar properties. Assessed Value The value placed on a home by municipal assessors for the purposes of determining property taxes.Closing The +inal steps in the transfer of property ownership. On the Closing Date, as speci+ied by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the +inal disbursements are paid. Also referred to as the Settlement. Closing Costs The costs to complete a real estate transaction in addition to the price of the home, to include: points, taxes, title insurance, appraisal fees and legal fees. Comparative Market Analysis (CMA) A real estate brokers prepared document, typically included in a listing presentation to a prospective seller, designed to help the seller set a strategic asking price for their home. Drawn from the local Multiple Listing Service (MLS), a CMA presents pricing and property information for homes similar to the sellers that recently sold, failed to sell, or are currently on the market.


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Contingency A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding. Counter-offer An offer, made in response to a previous offer, that rejects all or part of it while enabling negotiations to continue towards a mutually-acceptable sales contract.Conventional Mortgage One that is not insured or guaranteed by the federal government. Debt-to-Income Ratio A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income. Down Payment The money paid by the buyer to the lender at the time of the closing. The amount is the difference between the sales price and the mortgage loan. Requirements vary by loan type. Smaller down payments, less than 20%, usually requires mortgage insurance.


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Earnest Money A deposit given by the buyer to bind a purchase offer which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not ful+ill all contract obligations, the deposit may be forfeited. Equity The value of the property, less the loan balance and any outstanding liens or other debts against the property. Easements Legal right of access to use of a property by individuals or groups for speci+ic purposes. Easements may affect property values and are sometimes part of the deed. Escrow Funds held by a neutral third party (the escrow agent) until certain conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan servicers to pay property taxes and homeowners insurance. Fixed-Rate Mortgage A type of mortgage loan in which the interest rate does not change during the entire term of the loan.


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Free Market Evaluation An offer by a real estate broker, usually presented in marketing materials, to provide a complimentary assessment of your homes current market value. Home Inspection Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc. Homeowners Insurance A policy that protects you and the lender from +ire or +lood, a liability such as visitor injury, or damage to your personal property. Lien A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the title to your property if you dont make the mortgage payments. Listing Presentation A presentation given by a real estate broker to a prospective home seller in hopes that the seller will allow the real estate broker to represent their interests throughout the sales process. Typically delivered in the sellers home, the presentation includes the real estate brokers pricing, marketing and showing strategies, as well as a suggested asking price.


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Market Value The amount a willing buyer would pay a willing seller for a home. An appraised value is an estimate of the current fair market value. Mortgage Insurance Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down. Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).Mortgage Insurance Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down. Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI). Possession Date The date, as speci+ied by the sales agreement, that the buyer can move into the property. Generally, the it occurs within a couple days of the Closing Date. Pre-Approval Letter A letter from a mortgage lender indicating that a buyer quali+ies for a mortgage of a speci+ic amount.


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Principal The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow. Purchase Offer A detailed, written document which makes an offer to purchase a property, and which may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the purchase offer becomes a legally-binding sales agreement.Title The right to, and the ownership of, property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects. Title Insurance Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title. Truth-In-Lending Act (TILA) Federal law that requires disclosure of a truth-in lending statement for consumer loans. The statement includes a summary of the total cost of credit.


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Title Search A historical review of all legal documents relating to ownership of a property to determine if there have been any +laws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.


Jermel Singleton Licensed Real Estate Salespersonc. 917.554.4689e. [email protected]

Thank You!