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Simplify Your Home Buying Experience
Buying a home can be an enormous undertaking, so
be sure to retain the services of a qualified REALTOR®.
You can trust our REALTORS® to 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
should be carefully prepared by knowledgeable REALTORS®
who are qualified 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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It is highly rewarding to buy, own and maintain your
own home. Whether this is your first home or you have
experience with the home buying process, we can help.
When you have the tools at your fingertips, you can
be confident in your ability to search, finance your
home, negotiate terms and be prepared at closing.
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Purchasing a new home can be overwhelming. Without
the right resources and information, the buy process
can be stressful and frustrating. With our services,
you can avoid the pitfalls. We'll be there to help every
step of the way.
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Adjustable Rate Mortgage (ARM)
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.
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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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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. Your REALTOR® 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.
You and your REALTOR® 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 contract.
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