Home Buying Process (Contents)
1. Mortgage preapproval
2. Meet with Bill & Elsa
3. View homes - find the home
4. Write an offer
5. Bill & Elsa monitor details
6. Closing
7. Moving day!
8. Explain M.A.P.
9. A.S.S.P.
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MORTGAGE PREAPPROVAL????
What is "Mortgage Preapproval?"
Meeting with a mortgage company, bank, credit union, or other lending institution for the purpose of applying for your mortgage before having selected a home.
This process includes:
1) Helping you choose the type of loan that works best for you
2) Determining the maximum loan amount and/or payment you can qualify for, and, from that, the price range of homes you can purchase
3) Finding our how much cash you will need for down payment, closing costs, etc.
4) Completing a loan application and ordering a credit report (costs $45-$50) and verifications of your employment, deposits, etc. This process usually takes from 10 days to three weeks.
Why not wait until we find the home we want to buy?
Actually, there are several very good reasons:
1) Many Sellers will not accept an offer from a Buyer who has not been preapproved.
2) When you make an offer on a home, the fact that you are preapproved puts you in a much stronger position to negotiate the best price & terms for yourself.
3) Prevents the possibility of finding the "perfect" home, having an offer accepted, and then having your loan rejected by a lending institution - a very unhappy occurrence, for you and everyone involved.
4) Saves time by allowing you to limit your home search to those that are in a price range which is within your budget.
What information do we need to take to the mortgage company?
It is a good idea to ask the mortgage officer for this information when you set your appointment, but, generally:
1) Be prepared to account for the source of funds for your down payment and closing costs.
2) If a relocation firm has purchased your home, bring a copy of the contract & equity statement.
3) If rental property is owned, furnish a copy of the lease.
4) If self-employed, payed by commission, bring federal tax return, profit & loss statements & balance sheet for the last two years.
5) Alimony & child support information & divorce decree may be required.
What lending institution should we use?
After visiting with you for a few minutes Bill & Elsa can recommend a professional loan officer who they believe will be able to make you feel comfortable and meet your needs.
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Ten Commandments
According to the Lender
(These are all in fun; but, if followed will keep you from doing something that might keep you from qualifying for
your mortgage.)
After signing your purchase agreement:
First : Thou shall not use you credit cards, until you are safely in your new home.
Second: Thou shall not make any major new purchases, like a new car.
Third : Thou shall not change jobs, quit your job nor tell your boss what you really think of them.
Fourth : Thou shall make all payments required in the purchase agreement on time and in full as agreed.
Fifth : Thou will work diligently to pay off any judgments, collections and other clouds on your credit report in order to place yourself in a position to be approved.
Sixth : During this critical time, thou shall return all phone calls and be available to jump through any hoop requested by the loan officer.
Seventh : Thou shall respond quickly to any request for paperwork completion by the builder or mortgage company no matter how many times you have already signed the same papers.
Eighth : Thou will be patient with the mortgage company understanding the amount of paperwork and regulation involved in attaining approvals. Thou shall allow benefit of doubt regarding education levels of loan officers.
Ninth : Thou shall understand that being self employed is a natural part of the American dream. However, that dream is not recognized by anyone associated with the banking or mortgage industry.
Tenth : Thou shall understand that the lender is working for you and not against you. No matter how hard this is to believe.
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WHETHER YOU FIND A HOME BY...
SEEING AN AD
or
DRIVING BY ANY "FOR SALE" SIGN
(including "for sale by owner")
or
VISITING AN OPEN HOUSE
or
VISITING A NEW MODEL HOME
or
HEARING ABOUT A HOME FOR SALE
WE CAN HELP YOU PURCHASE ANY OF THEM
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HOW WE WILL SHOW HOMES TO YOU
Step 1: Tour On Paper
After selecting possible compatible properties, based on your criteria, we will look through the listings with you. In most cases, we can view the listing data, as well as one or more photos of the properties.
Step 2: Preview On Your Own
You drive by selected homes and view the area, as well as the exterior of the specific homes, using the print-outs that we provide, which provide directions to each property. Please do not disturb the occupants at this point.
OR
We Preview Homes For You
And eliminate homes not meeting your criteria.
Step 3
Show You The Homes You Like
Use time wisely by showing you only those homes you have expressed an interest in.
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WE'VE FOUND THE HOME - NOW WHAT?
1. We will assist you in writing an offer to buy the house. We will provide a "net out" for you, showing the approximate funds required for down payment and closing costs. This is the point at which you may see the real value of having your agent under contract to represent your best interests. (See "Consumer Choices') You can do this and still have the seller pay the commission.
2. When writing an offer, you will generally need to include an "earnest deposit," a personal check, cashier's check or cash, to show the seller that you are sincere in your attempt to purchase. A deposit of approximately 1% of the sale price is usually acceptable, is generally kept in the trust fund account of the real estate company (not turned over to the seller), and is refundable if your offer is not accepted. Generally, the only time the deposit would not be refunded is if the offer is accepted, your loan is approved, and you simply change your mind about buying.
3. Once the offer has been accepted by the seller, a copy of the purchase agreement will be given to the mortgage company you have chosen, and the appraisal and any required inspections ordered.
4. Escrow will be opened at a title company, a disinterested third party, who holds legal documents and funds on behalf of buyer and seller, searches the records to determine that the title is clear and marketable, coordinates payoff and funding of the mortgage companies, computes prorations to date of closing, orders the survey, prepares the settlement statement, and conducts the closing.
5. You will be asked to name an insurance agent to provide policy information to the title company before closing.
6. We will provide a list of the phone and utility companies, as you will need to have service transferred as of the date of occupancy.
7. We will notify you when inspections are scheduled so that you may be present if you wish. One of us will be glad to attend the inspection with you.
8. Closing day! Have your writing hand limbered up for "hundreds" of signatures. You will have been notified as to how much money to bring with you, which should be in the form of a cashier's check, if possible. One of us will be there
with you.
9. Moving day! Usually day of closing. Sometimes it is 24 to 48 hours after closing. Sometimes, the seller stays in the house and pays rent to you for a period of time. Of course, this is all spelled out in the contract.
NOTE: We take care of all the details required to get your transaction from writing the offer to moving day. We will keep you informed every step of the way.
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RECENT BUYER REFERRALS
Sue Blount
892-9687
Mark & Sandy Olona
821-8260
Dennie York & Rich Shumard
867-1291
Mitzi Dawalt
899-2902
Earl LeBlanc
255-3856-
Sean & Elda Carey
892-8510
Glenn & Miriam Copeland
897-6371
Valerie & Gilbert Campos
453-8939
Thomas & Melanie Lewis
768-0836
E. R. & Brenda Enriquez
(505) 885-0670
Manuel Padilla
831-0938
Marvin & Darie Estill II
828-2400
Sandra Garcia
836-1344
You are welcome to call any of these people to get their opinion about how we work with Buyers.
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MORTGAGE ACCELERATION PROGRAM (M.A.P.)
As soon as you are somewhat settled in your new home we will plan a visit with you to share the Mortgage Acceleration Program that we have invested in for all of our new homeowners, which will give you a system for pre-paying your mortgage. There are many ways that you can pre-pay your mortgage, and we will give you information on some of them, but this program provides a system that is easy to implement and maintain.
We figure that, since we were partly responsible for helping you to make the largest purchase you may have made to date, and obtaining the largest debt, we have some responsibility to show you how to get out of debt faster!
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AFTER SALES SERVICE PROGRAM (A.S.S.P.)
Working with you to find your new home is really enjoyable for us, and we are glad we can serve you during this exciting, and sometimes stressful, time in your lives.
We have made a commitment to run our business exclusively by referrals from people we have served. The opportunities we have had to work with referred clients have provided our most enjoyable and rewarding transactions.
What does all this have to do with you? Well, in order to run our business by referral, we intend to take even better care of you, and all of our clients. We want to introduce to you a complimentary, very special service we will be providing to you....our After Sales Service Program.
It features a whole range of informational booklets and brochures, a referral directory of professional trades and services, an annual analysis of the market value of your home, along with information on prepaying your mortgage, and a whole host of other helpful information you'll receive throughout the year.
We look forward to offering you these complimentary Special Services after we have successfully, together, completed the process of getting you into your new home. Thank you for the opportunity to serve you as your RealtorŪ.
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Oh, by the way -- If you know of someone thinking of buying or selling a home, who would appreciate the kind of service we offer, we'd love to help them. Just give us a call with their name and number. We'll be happy to follow up and tend to their Real Estate needs.
Bill & Elsa d'Ellis
D'ELLIS HOME TEAM
Certified Residential Specialist
e-PRO 500 Certified
Broker/Owner
Office: (505) 899-1598
Toll Free: (888) 464-7896
Fax: (505) 792-0366
Email: homes@dellishometeam.com
Internet: www.dellishometeam.com
