1. Our Marketing Plan
For Buyers
2. Home Buying Process
3. Mortgage Calculator
4. FAQs
Our
Marketing Plan For Buyers:
Our marketing plan for buyers
begins with educating you about the home-buying process. We have had success with finding the right homes for
numerous buyers in the past and we have a great system in place to make it easy and fun for you.
After we discuss your financing situation, we will show you how we will represent your best interests in the purchase of your new home. A pre-approval letter from
your mortgage officer or our in-house lender will make you a stronger buyer when
you present an offer to a prospective seller.
We will start communicating daily the new properties on the market so you do not lose a great opportunity to another purchaser. We will then review all of the listed properties in the areas of your choice and discuss important issues such as schools, amenities, location, commute, etc., and then choose which
properties you would like to see. Once we find a home you love, we will do a
market evaluation to make sure it is not overpriced. We will point out pros and cons of each property, assist you during the inspection phase, make sure seller fixes any structural issues before
closing.....and all the way to closing, we make sure it gets handled. We are energetic, competent, and
we get the job done.
Many of our agents specialize in representing buyers which ensures that two most important
steps in your purchase process get done properly: financing and negotiating.
Regarding financing, our in-house lender offers rate and closing cost discounts exclusively to
our clients so you can save $ thousands over the life of your loan. Regarding negotiating, this is where
the passion for our work becomes invaluable in saving you possibly tens of $ thousands right in the beginning of your
purchase process. In several instances
we negotiated $50,000 lower prices for our clients. These clients are available as
references.
If you work with us and close your home,
we will pay for your inspection. This is a $400 value. The home inspection is so important that
we want to make sure our clients have one. Not only will it uncover possible issues, but you will get to know the house
well. So, contact us and we'll get started!
Home
Buying Process
Planning
A key to
making the home buying process easy is
planning. If you plan properly, you will be able to anticipate requests from
lenders, lawyers and a host of other professionals. Furthermore,
planning will help you discover valuable shortcuts in the home buying
process that result in saving $ hundreds.
Get a Realtor
The National
Association of REALTORS® (NAR) includes 750,000 brokers and
salespeople, individuals bound together with a strong Code of Ethics,
extensive training opportunities and a wealth of community information.
NAR members are routinely active in PTAs, local government committees
and a variety of neighborhood organizations. Being actively involved in
community affairs provides REALTORS® with a better understanding of the
area in which they are selling.
Get Loan
Pre-approved
The real issue with real estate financing is not getting a
loan (virtually anyone willing to pay lofty interest rates can find a mortgage).
Instead, the idea is to get the loan that's right for you -- the mortgage with
the lowest cost and best terms. Allied
American Real Estate LLC's in-house lender offers rate and closing cost discounts exclusively to
our clients so you can save $ thousands over the life of your loan. We routinely
suggest that consumers start the mortgage process well before bidding on a
home. By meeting with your mortgage officer or our in-house lender and
looking at loan options, you will find which programs best meet your needs and
how much you can afford. We
also recommend pre-approvals for another reason: purchase forms often require
buyers to apply for financing within a given time period, in many cases, seven
to 10 days. By meeting with loan officers in advance and identifying mortgage
programs, it won't be necessary to quickly find a lender, check credit, and rush
into a financing decision that may not be the best option.
Look at Homes
The housing market is
complicated because the stock of homes for sale is always in flux. The challenge
becomes finding the property which best meets your needs in a changing market.
If it were possible to have a complete list of every home for sale at this very
moment in a given community, such a list would become obsolete within a day as
new homes become available and properties now for sale are put under contract. In effect, buyers are looking
at a moving target in a marketplace that is never static. Because of this, it is
important to know as much as possible about the choices in preferred markets,
and the way to do that is by working closely with a local realtor who has a a
means of informing you daily of the new properties on the market.
Choose a Home
As a buyer, here's what
actually happens. A home has been placed on the market for which the seller has
established an asking price as well as other terms. In effect, this is an offer.
At this point, you have three choices: accept the seller's offer and create a
contract; reject it and not make an offer; or suggest different terms and make a
counter-offer. If you choose this last option, the seller may accept, reject or
make a counter-offer. No
aspect of the homebuying process is more complex, personal or variable than
bargaining between buyers and sellers. This is the point where the value of an
experienced realtor is clearly evident because he or she knows the community,
has seen numerous homes for sale, knows local values and has spent years
negotiating realty transactions.
Make an Offer
Realtor groups, working
with legal counsel, have developed forms that are appropriate for realty
transactions in specific communities. Such documents include numerous sale
conditions and their wording should be carefully reviewed to assure that they
reflect the terms you want to offer. Realtors can explain the general
contracting process in your community as well as his or her role. While much
attention is spent on offering prices, a proposal to buy includes both the price
and terms. In some cases, terms can represent thousands of dollars in additional
value for buyers -- or additional costs. Terms are extremely important and
should be carefully reviewed.
Conduct an Inspection
A number of inspections
are common in residential realty transactions. They include checks for termites,
surveys to determine boundaries, appraisals to determine value for lenders,
title reviews and structural inspections. Structural
inspections are particularly important. During these examinations, an inspector
comes to the property to determine if there are material physical defects and
whether expensive repairs and replacements are likely to be required in the next
few years. Such inspections for a single-family home often require two or three
hours, and buyers should attend. This is an opportunity to examine the
property's mechanics and structure, ask questions and learn far more about the
property than is possible with an informal walk-through.
Get Insurance
No one would drive a car
without insurance, so it figures that no homeowner should be without insurance. The essential idea behind
various forms of real estate insurance is to protect owners in the event of
catastrophe. If something goes wrong, insurance can be the bargain of a
lifetime.
Title insurance:
Purchased with a one-time fee at closing, title insurance protects owners in the
event that title to the property is found to be invalid. Coverage includes
"lenders" policies, which protect buyers up to the mortgage value of
the property, and "owners" coverage, which protects owners up to the
purchase price. In other words, "owners" coverage protects both the
mortgage amount and the value of the down payment.
Homeowners' insurance
provides fire, theft and liability coverage. Homeowners' policies are required
by lenders and often cover a surprising number of items, including in some cases
such property as wedding rings, furniture and home office equipment.
Flood insurance: Generally required in high-risk flood-prone areas, this
insurance is issued by the federal government and provides as much as $250,000
in coverage for a single-family home plus $100,000 for contents. Local realtor
can explain which locations require such coverage.
Home warranties:
With new homes, buyers want assurance that if something goes wrong after
completion the builder will be there to make repairs. But what if the builder
refuses to do the work or goes out of business? Home
warranties bought from third parties by home builders are generally designed to
provide several forms of protection: workmanship for the first year, mechanical
problems such as plumbing and wiring for the first two years, and structural
defects for up to 10 years. Home
warranties for existing homes are typically one-year service agreements
purchased by sellers. In the event of a covered defect or breakdown, the
warranty firm will step in and make the repair or cover its cost.
Closing
Settlement is a brief
process where all of the necessary paperwork needed to complete the transaction
is signed. Closing is typically held in an office setting, sometimes with both
buyer and seller at the same table, sometimes with each party completing their
papers separately.
Whatever the case, the
result is that title to the property is transferred from seller to buyer. The
buyer receives the keys and the seller receives payment for the home. From the
amount credited to the seller, the closing agent subtracts money to pay off the
existing mortgage and other transaction costs. Deeds, loan papers, and other
documents are prepared, signed and filed with local property record offices.
What's Next
You've done it. You've
looked at properties, made an offer, obtained financing and gone to closing. The
home is yours. Is there any more to the homebuying process? Whether
you're a first-time buyer or a repeat buyer, there are several more steps you'll
want to take.
Those papers you received
at settlement are extremely valuable, so hold on to them! In the short-term they
can help establish tax deductions for the year in which the property was
purchased. In the future, such papers will be important for tax purposes when
the property is sold, and in some cases, for calculating estate taxes.
Also at closing, determine
the status of the utilities required by the home, items such as water, sewage,
gas, electric and oil service. You want utility bills to be paid in full by
owners as of closing and you also want services transferred to your name for
billing. Usually such transfers can be done without turning off utilities.
REALTORS® can provide contact numbers and related information.
About two weeks after
closing, contact your local property records office and confirm that your deed
has been officially recorded. Such records are public notices that show your
interest in the property. (riliving.com)
Mortgage
Calculator
FAQs
Q: Why should I buy, instead of rent?
A: You'll love the feeling of having something that's all yours - a home where your own personal style will tell the world who you are. A thriving vegetable garden in the backyard, a tiled entryway, a yellow kitchen...when you own, you can do it all your way! But there's more to owning a home than personal satisfaction. You can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes, too. And interest will compose nearly all of your monthly payment , for over half the number of years you'll be paying your mortgage. This adds up to hefty savings at the end of each year. And you're also allowed to deduct the property taxes you pay as a homeowner. If you rent, you write your monthly check and it's gone forever. Another financial plus in owning a home is the possibility its value will go up through the years.
Q: I've had bad credit, and I don't have much for a down-payment. Can I become a homebuyer?
A: You may be a good candidate for one of the federal mortgage programs that are available. A good place for you to start is by contacting one of the
HUD approved mortgage lenders such as the in-house Allied American Real
Estate LLC's lender. They can help you sort through your options. In addition, contact your local government to see if there are any local homeownership programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.
Q: I'm a single mother. How would I go about buying a home?
A: Although you won't have the benefit of two incomes on which to qualify for a loan, there's no reason that you can't become a homeowner. Become familiar with the process, pick a good real estate broker, and think about getting pre-qualified for a loan. You might want to contact one of the HUD-funded housing counseling agencies in your area to talk through your options. Also, contact your local government to see if there are any local homebuying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.
Q: Should I use a real estate broker? How do I find one?
A: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted driving-around time. When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don't have to pay the broker anything! The payment comes from the home seller - not from the buyer.
Q: When I find the home I want, how much should I offer?
A: Your real estate broker can help you here. But there are several things you should consider: 1) is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one. 3) How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make. 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.
Q: What if my offer is rejected?
A: They often are! But don't let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in negotiations that you lose sight of what you really want and can afford!
Q: So what will happen at closing?
A: Basically, you'll sit at a table with your broker, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what you're signing. After all, this is a large amount of money you're committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don't hesitate to ask questions.
Q: How much money will I have to come up with to buy a home?
A: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.
Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise.
Q: How do I know if I can get a loan?
A: Use our simple mortgage calculators to see how much mortgage you could pay - that's a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don't you contact a real estate broker or a HUD-funded housing counseling agency? They will help you evaluate your loan potential. A broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.
Q: How do I find a lender?
A: You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will be familiar with lenders in the area and what they're offering. Or you can look in your local newspaper's real estate section - most papers list interest rates being offered by local lenders. You can find FHA-approved lenders in the Yellow Pages of your phone book. HUD does not make loans directly - you must use a HUD-approved lender if you're interested in an FHA loan.
Q: In addition to the mortgage payment, what other costs do I need to consider?
A: Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.
Q: So what will my mortgage cover?
A: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.
Q: What do I need to take with me when I apply for a mortgage?
A: Good question! If you have everything with you when you visit your lender, you'll save a good deal of time. You should have: 1) social security numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on outstanding loans, such as car loans; 7) copies of your last 2 years' income tax statements; and 8) the name and address of someone who can verify your employment. Depending on your lender, you may be asked for other information.
Q: I know there are lots of types of mortgages - how do I know which one is best for me?
A: You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs that might interest you, too. Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
(faqs.org)
