 Simplify Your Home Buying Experience
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Buying a home can be an enormous undertaking,
retaining the services of The Discovery Team
You can trust we will always keep your interests
first and foremost. As qualified professionals,
we'll guide you through the entire home buying
experience and assist you in being an educated
buyer.
Simplify Your Search
What features would you
require in a home
to satisfy your lifestyle
now and in the
future? Once you know what
you can afford,
we'll help you explore
your possibilities;
from design preferences
to neighborhood choices.
Moving Forward
Once you have found the home that is right
for you, it's time to present an offer. This
will consist of earnest money to be held
in an escrow account, a loan pre-approval
letter if you will be financing the purchase,
and a written purchase agreement. This agreement
will set forth your terms of the purchase
and a schedule of events in order to own
the property. This extremely important document
is a legally binding agreement and will be
carefully prepared for you to cover all of
your interests.
Final Steps
Upon your complete satisfaction,
arrangements
will be made to attend
a closing. The closing
is usually facilitated
by a title or escrow
company that holds your
earnest money in
escrow. After furnishing
the down payment
and other applicable fees
have been agreed
upon prior to closing,
final papers will
be signed. The deed and
mortgage will need
to be recorded in the state
Registry of Deeds,
and you will be a homeowner.
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Resources |
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Money Matters - the most
important part of
financing is your knowledge
of the options
available. Consider the
following questions
as a basis for determining
your financing
needs.
How much mortgage can I
afford?
What down payment is needed?
What is the difference
between pre-qualification,
pre-approval and approval?
What interest rates are
available?
What is mortgage insurance
and is it required?
What type of documentation
will I need?
How do 15- vs. 30-year
terms compare?
What are points and do
I pay them?
What is difference between
a fixed rate mortgage
and adjustable rate mortgage?
What closing costs will
I incur?
What is being "locked-in"?
How long will the mortgage
process take?
What is included in a mortgage
payment?
What would the payments
be?
When would the payments
begin?
Make Your Mortgage The
Right Fit!
Mortgages to meet everyone's
needs. These
summaries will help you
narrow your search.
Adjustable Rate Mortgage
A mortgage, which allows
the lender to adjust
the mortgage's interest
rate periodically
on the basis of changes
in a specified index.
Interest rates may move
up or down, as market
conditions change. The
change in interest
rate will result in a change
in the periodic
payments due under the
mortgage. ARMs are
attractive when short-term
interest rates
are trending lower.
Balloon Mortgage
Usually a short-term fixed-rate
loan that
involves small payments
for a certain period
of time with the balance
due in a single,
large payment at a time
specified in the
contract. Whenever the
balloon mortgage becomes
due, the entire unpaid
balance is due. Generally,
the homeowner must either
refinance or sell
the property.
Buy-Down
The payment of extra money
on a loan now
so as to provide a lower
interest rate over
either a given period or
over the life of
the loan. To buy-down a
mortgage, the buyer
pays additional points
to the lender, which
will decrease the interest
rate for a specific
period.
Conforming Loan
Conventional home mortgages,
first mortgages
up to loan amounts mandated
by Congressional
directive, which meet the
qualifications
for sale or delivery to
either the Federal
National Mortgage Association
(FNMA) or the
Federal Home Loan Mortgage
Corporation (FHLMC).
Construction Loan
A structured, short-term
loan to provide
funds necessary to begin
construction on
buildings or homes.
Conventional Mortgage
A mortgage loan made by
an institutional
lender without the inclusion
of government
guarantees such as VA or
FHA loans.
Convertible ARM
The convertible ARM is
a combination of both
fixed-rate and adjustable
rate mortgages,
allowing the best of both
options in one
package.
Deferred Interest Mortgage
A mortgage in which the
payment is not sufficient
to cover the principal
and the interest and
the payment portion of
the interest is postponed
until a certain date at
which time the interest
postponed is added to the
principle owing.
Federal Home Loan Mortgage
Corporation (FHLMC)
The Federal National Mortgage
Association
is a congressionally chartered,
shareholder-owned
company and is the largest
national supplier
of home mortgage funds.
It is commonly known
as Freddie Mac. The company
buys mortgages
from lending institutions,
pools them with
other loans, and sells
shares to investors.
Detailed information may
be found at http://www.freddiemac.com.
Federal Housing Administration
(FHA)
An agency of the federal
government, the
Division of the Department
of Housing and
Urban Development, that
sets standards for
the underwriting of private
mortgages and
insures residential mortgages
made by private
lenders.
Federal Housing Administration
(FHA) Loans
Federal Housing Administration
(FHA) low-rate
loans are available to
Americans with smaller
incomes who are interested
in modestly priced
homes. Down payment requirements
are usually
lower than the prevailing
ones.
Federal National Mortgage
Association (FNMA)
The U.S.'s largest supplier
of mortgages
to home buyers and owners,
a corporation
established by Congress
and owned by stockholders.
It is commonly referred
to as 'Fannie Mae,'
this government-sponsored
enterprise is chartered
by Congress. This federally
chartered agency
buys mortgages from lending
institutions,
pools them with other loans,
and sells shares
to investors. Detailed
information may be
found at http://www.fanniemae.com.
Fixed-Rate Mortgage
The interest rate you pay
and the monthly
principal and interest
payments are agreed
upon from the outset and
will not change
throughout the entire term
of the mortgage.
Government National Mortgage
Association
(GNMA)
A government-owned corporation
within the
U.S. Department of Housing
and Urban Development,
it is also referred to
as 'Ginnie Mae,'.
This government agency
guarantees the payment
of principal and interest
on all of its pass-through
securities, and its guarantee
is backed in
turn by the full faith
and credit of the
U.S. Government.
Graduated Payment Mortgage
(GPM)
A mortgage that usually
starts the borrower
with low payments that
are gradually increased
over five to ten years,
before leveling off
for the remainder of the
term of the loan
until the loan is fully
amortized. Negative
amortization usually occurs
until the payment
reaches the level payment
stage. Usually
government insured loans
(VA or FHA).
Growing Equity Mortgage
(GEM)
This is a long-term mortgage
whereby the
borrower agrees to increase
his payment each
year by an agreed amount.
The added money
per payment is applied
directly to the outstanding
principal on the mortgage.
The mortgage thereby
is paid off in a shorter
number of years.
Renegotiable Rate Mortgage
(RRM)
Similar to an Adjustable
Rate Mortgage, this
type of mortgage allows
the interest rates
and payments to be adjusted
periodically
according to an index.
Reverse Annuity Mortgage
(RAM)
A type of mortgage where
the property's equity
serves as security for
periodic payments
made by the lender to the
borrower. Mortgage
is generally paid out upon
the sale of the
property.
Rollover Mortgage (ROM)
A mortgage where the payments
are only guaranteed
for three, four, or five
years. The borrower
is allowed to refinance
at the end of the
term at the interest rate
then applicable.
Shared Appreciation Mortgage
(SAM)
It is a loan arrangement
where two or more
parties participate in
the purchase of real
estate and share the appreciation
and tax
deduction. Similar to shared
equity mortgages.
Veterans' Administration
Loans
Mortgage loans to veterans
by banks, savings
and loans, or other lenders
that are guaranteed
by the Veterans' Administration,
enabling
veterans to buy a residence
with little or
no money down.
Wraparound Mortgage
A secondary financing option
in which a new
larger mortgage is created
to encompass the
first mortgage. This large
second mortgage
is used to preserve the
low interest rate
on the first mortgage for
a potential buyer.
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Know Your Needs |
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Drive To Learn
Evaluate as you drive though
a community.
Consider the following
questions as a basis
for determining your location
needs:
Where is the nearest shopping
center, bus
line, police station and
library?
What schools are available
and school district
are you in?
What types of homes (single
family, apartments,
condominiums) are in the
neighborhood?
How far apart are the homes?
How far is it to your work?
What community resources
are available?
Generally, where are the
cars parked (driveways,
garages, street)?
Do you notice a lot of
noise, traffic or
pollution?
Are the homes in good repair
and the landscaping
well kept?
Finding the Right Home
Keep your eyes open and
your notebook in
hand as you walk through
a potential home.
Consider the following
questions as a basis
for determining your needs
as a homeowner:
How long has the home been
on the market?
Why is the home being sold?
What is the asking price
of the home?
Has the price been lowered?
Is the price comparable
to other homes in
the neighborhood?
What is the down payment
required?
Is the house structurally
sound?
Is there room enough for
the present and
the future?
Do you like the floor plan
of the home?
What condition is the yard
in?
What improvements must
be made?
Will the seller repair
or replace any items
that need repair or replacement?
Think carefully about each house you see
and don't be in a hurry. We can point out
the pros and cons of each home from a professional
standpoint.
The Offer
Making an offer to buy a home entails many
factors.We will discuss the following factors
prior to putting the offer on the table:
Amount of earnest money
Down payment
Price you are offering
Details of financing
Proposed move in date
Proposed closing date
Details of the sale
How long the offer is valid
The seller will either
accept the offer as
presented, or make a counter
offer and either
you will agree to the terms
in counter offer
or you will submit another
proposal. When
all the parties involved
have agreed upon
the details, initialed
any revisions, and
signed the final agreement,
then an offer
becomes a contrac
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Contract Review |
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Sales contracts may differ
significantly
yet all should clearly
set forth the responsibilities
and privileges of all the
parties involved.
It is a legally binding
document that protects
each party. Carefully review
the terms of
the contract. The sales
contract should include
the following:
Legal description of the
property and the
exact street address
Selling price of the property
Amount of earnest money
and who is holding
it - Often it is held in
an escrow account
by a third neutral party.
Amount due at settlement
Specifics of the mortgage
(amount, rate and
terms)
Title or Escrow company
- Either a title
company, escrow company,
or attorney must
be areed upon by buyer
and seller
Details of the closing
- when and where
Home inspection - Recommended
to ensure against
structural and unknown
defects, and must
be completed by a specific
date set forth
in the contract and completed
by a cerified
home inspector
Inclusions and exclusions
- Examples would
include washers, dryers,
drapes, etc.
Pest Inspection - Who is
responsible if there
is damage or an infestation
Warranties - Get the description
of any that
are included with the house
Repairs - Unless you are
accepting as-is,
state who is responsible
for repairs, with
a date for a walk-through
inspection
Well and septic - They
must past a test,
if applicable
Date of possession - When
you take possession
of the property
Acceptance date - Either
an acceptance or
counter offer must occur
by a specified date
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Processing the Sale |
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Once the contract is signed, We will continue
to be your advocate and ensure that your
best interests are served. Some of the details
they will be available to handle are:
Assist with scheduling
all necessary pre-closing
inspections
Check finances are deposited
according the
contract specifications
Keep you informed of any
unseen problems
that may arise and offer
solutions
Present a list of utility
companies available
for service
Schedule and attend the
pre-closing walk
through
Prepare for and attend
the closing
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