SO….YOU WANT TO BUY A HOUSE??

Tips on How to Prepare

Congratulations, you are now contemplating your first major purchase. If you are currently in a lease and your contract ends in six (6) to twelve (12) months, here are some things that you can do to prepare yourself for the home buying process:

1. First and foremost, obtain your credit report from all three bureaus. You can obtain a free copy of your credit report, once a year, from each credit bureau. The three bureaus are as follows:

Equifax: 770-740-6148 or 770-612-2784
Transunion: 800-916-8800
Experian: 888-397-3742

Obtain these reports and check for any errors or collections on your credit. If you are certain that these errors or collections should not be on your credit, there is a dispute form attached to all reports. Fill out the form, listing each item that you are disputing and an investigation on the item will be done by the credit agency. If it was indeed an error, the item will be removed. If the item is correct, contact the company that has it listed and work out a payment plan or clear up the problem and have them fax you a letter stating it was an error and it will be removed. Keep this letter for future reference, because your loan officer will eventually need it. The following are some quick tips to enhance your credit score:

1. Make payments on time
2. Bring delinquent accounts current
3. Do not max out credit card limits
4. Close out unused accounts with zero balances
5. Limit inquiries on your credit
6. Satisfy collections, i.e. charge offs, liens, judgments 

2. Work on paying down your debts. If you have credit cards or collections, work on getting them paid off before it is time to purchase your home. Start with the bills with the smaller amounts to be paid (i.e. $500 on credit card v. $1000 on another credit card), and get the accounts paid off and closed. If you have any collections on your credit, these are first priority to remove. Again, work out a payment plan or negotiate a lower amount with the creditor and/or plan to pay these off immediately.

3. Begin gathering your wc-2s for the past two years, your bank statements for the past six months, two months of paycheck stubs, and asset statements. If these are items that you do not keep normally, begin doing so now. GATHER THESE MATERIALS NOW, so you will not spend a lot of time searching for them when it is time to do your loan application with the lender.

4. Begin saving your earnest money. Once you have found your home to purchase, the seller will request what is called “earnest money”. This is “good faith money” showing you are seriously planning to purchase this home. The earnest money is usually between $500-$1000, depending upon the seller and the price of the home. The earnest money is usually required upon writing the contract. SAVE THIS MONEY NOW! That way, when it is time to do your contract, you will not be looking for somewhere and someone at the last minute to obtain the money from. 

5. Begin saving your credit report & appraisal fee. The buyer will also pay the fee for the credit report and appraisal. The credit report fee is usually $50 or less and the appraisal fee is between $300-$450. The amount depends on the lender and the appraiser the lender uses. Again, put the money for these fees aside now.

6. Get pre-approved for a loan. This is a very important part of the home buying process. This step helps you, the buyer, know exactly how much you are qualified for so that you can shop for a home, not only in your price range, but also for the monthly mortgage amount you are comfortable with paying. For your pre-approval needs, please contact one of our preferred lenders below:

David Colgan
GMAC Mortgage (North Carolina and Virginia)
919-790-0112, ext. 20 (office)
919-302-4311 (cell)
David.Colgan@GMACM.com
www.gmacm.net

Averlyn Pritchett
Unity Mortgage (Georgia)
770-350-1212

7. Choose a Real Estate Professional. As a buyer, having a professional to assist you with locating a home to your specifications and assisting with negotiations & contracts is an advantage to you. Let one of our qualified sales associates assist you with your home buying needs.

We hope that everything I have listed is of help to you in preparing for the home buying process. It can be a terrifying process when unprepared, but once you know what to expect and plan accordingly, it can be an easy process. Please contact Exquisite Dwellings with any questions and again, thank you for letting our firm assist you in the home buying process.

Things to Know for Your Closing

Here are some things you will need to know to make your upcoming closing a successful one:

1. After putting down a contract on your future home, you will need to do your loan application within five days after the contract is written. Please contact the loan officer (lender) who you received your pre-approval with and begin application.

2. Expect to pay the fee for your credit report. The fee is usually $50 or less, the amount depends on the lender.

3. Please gather your wc-2s for the past two years, your bank statements for the last three months and your paycheck stubs for the last two months. If you do not normally keep these items, please begin to do so. GATHER THESE MATERIALS NOW, so you will not spend a lot of time searching for them later, when it is time for your loan application.

4. Once application is made, make sure that the loan officer (lender) gives you a good faith estimate. This estimate tells you what your closing costs will be, your monthly mortgage payment, and if you will need to bring any additional money to closing or refunds you may receive at closing.

5. Expect to pay your appraisal fee. This is a cost the buyer normally incurs. Appraisals cost between $300-$450. The amount depends on the appraiser the lender uses. Put these monies aside now.

6. The following is a list of things not to do before closing:

• MOST IMPORTANT!! DO NOT CHARGE ANYTHING, GET A NEW LOAN, OR OPEN A NEW ACCOUNT FOR CREDIT!! This will totally kill the loan transaction and ruin your opportunity of purchasing your home! Doing this changes what you qualify for and adds debt to your credit. You want to pay off debt, not add on. Please wait until after closing to create new debt.
• Do not quit or change jobs
• Do not be late on any monthly obligations, especially rent, credit cards and car payments
• Do not withdraw large sums of money from your listed asset sources
• Do not have your credit report pulled until after your loan closes

7. If you choose to use a home inspector, this is a cost the buyer incurs. The cost of getting a home inspector usually depends on the square footage of the home. Whether the home is new construction or a resale, a home inspection is encouraged, but not required.

8. At closing, you will be asked if you would like to purchase title insurance. It is a very good idea to purchase this, as title insurance protects your investment. This type of insurance prevents someone from coming to you after closing, claiming to own the land your property is on. The cost of title insurance is somewhere around $200, but depends on the title company the closing attorney uses. Again, this is encouraged, but not required.

9. Begin searching for your homeowner’s insurance policy. Shop around, get quotes from three to four insurance companies and compare prices. You will need this information for your loan officer and the closing attorney prior to closing.

10. When you come to closing, bring your ID, a certified check for funds made payable to yourself (from your bank) in the amount that you were told to bring by the loan officer. 

PLANNING TO SELL YOUR HOME?

TIPS ON MAKING YOUR HOME AN EXQUISITE FIND TO A BUYER!

1. De-clutter your home. Don’t be a pack rat, dispose of any unneeded items. Repack your things and move out as much material as possible so buyers can see the true size of your home. Move unneeded items in the garage or rent storage space.

2. Touch up your home’s interior. Look at your home through the buyer’s eyes. Come through that front door, have a pen and pad, and write down what would turn you off as a buyer. Get the touch up paint out and touch up the walls. Smudges, scratches and cracked walls are all unattractive. If you can’t tell what color your carpet used to be, consider getting the carpet deep cleaned or if it is over five years old, consider replacing the carpet.

3. Create curb appeal. Keep your lawn cut and hedges trimmed. An unattractive home on the outside will make a buyer keep driving right past your home.

4. Touch up your home’s exterior. If your home’s exterior paint looks weathered or siding/gutters are in need of repair, consider getting these things repaired. Again, entice the buyer to pull into your driveway.

5. Cleanliness is next to godliness. A fresh smelling, clean house will entice your buyer quicker than dirt. Try to keep your home clean at all times when it is on the market. Wash those dishes, take out the trash, and clean those bathrooms. Pick up the kid’s toys as well!

6. Let your pets take a nature walk.  First and foremost, as a pet owner, we are accustomed to our pet’s smell. Buyers walking into your home are not used to the smell. Take the dogs, cats, and their litter pans outside. Also, having pets around during a showing (especially aggressive dogs) can make the buyer uncomfortable. Rather than thinking about buying your home, they are thinking about getting out the front door.

7. Staging the home, create the setting. Turn the television off and turn on some soft music. Open the drapes during the daytime and let the sun shine inside. If it’s hot outside, turn on the air conditioner. If it’s cold outside, turn on the heat or light a fire.

8. Leave the house during showings. Let the buyer’s agent handle the showing and take a walk or a drive. Let the agent do their job without interference. The presence of the seller may unnerve the buyer.