Post on 16-Jul-2015
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Contents
Ledyard Home Buyers Guide 2
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9
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Buyers typically browse properties for
sale online first.
Viewing properties in person
Buyers Agent
Become pre-approved by a lender by
a lender Become pre-approved by a
lender Making an offer
After offer is accepted
The buyer agent will stay in
communication with all parties
Discussions with your attorney
Money at closing
On the day of the closing
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Buyers typically browse
properties for sale online first.
•How accurate or up to date is
this information?
•How accurate are websites
dedicated to determining
property value?
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•Should you contact the listing
agent directly?
No, the listing agent has a fiduciary responsibility to
the buyer. The agent has no responsibility to you but
must inform the seller of anything you tell them.
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•Why should you use a buyer's
agent to schedule showings?
People selling their homes want to deal with one person.
Agents have a system for show requests that is the most
convenient for all of the parties involved. A buyers agent
will have a fiduciary responsibility to represent the buyers
interest and not those of the seller.
Viewing properties in person
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•Can you use more than one
buyer's agent at the same time?
Yes, but you may be responsible for a
commission to the non-selling agent.
•Why should you sign a
contract with a buyer's agent?
•Agent Introduces the buyer to lenders and
helps to obtain loan pre-approval letters
•E-mails listings that fit the buyer's
requirements
•Calls listing agents to determine
availability
•Makes appointments with sellers before
showing homes
Buyer’s Agent
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•Finalize paperwork
• Consult on how the home
buying process works
• Your personal / financial
situation
• Your moving plans and
motivations
• Features and benefits you are
seeking in your new home
Have a
meeting
with
your
agent
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Property searches on-line
• Done by both buyers and their agent
• Communicate about their findings
• Narrow down a list of properties to view
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Become pre-approved by a lender
Why do I need to become pre-approved?
A preapproval is different from a
prequalification. With a prequalification, the
lender relies on information provided by the
buyer to estimate how much the borrower
could qualify for. With a preapproval, the
lender verifies the borrower's information and
documentation to determine exactly how
much it would be willing to lend to that
borrower.
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Making an offer
• Why is it important to have a buyer's
agent negotiate your offer on your behalf?
•The offer includes the address and
sometimes a legal description of the
property
•Sale price
•Amount of earnest money deposit
accompanying the offer—whether it’s a
check, cash or a promissory note—and
how the earnest money will be returned to
you if the offer is rejected (or kept as
damages if you back out of the deal for no
good reason)
•Type of deed that will be granted
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Making an offer
• Why is it important to have a buyer's
agent negotiate your offer on your behalf?
•Terms—for example, this is an all-cash
transaction, or the deal is subject to you
obtaining a mortgage for a given amount.
Seller’s promise to provide clear title
(ownership)
•Target date for closing (the actual sale)
•Method by which real estate taxes, rents,
fuel, water bills and utilities are to be
adjusted (prorated) between buyer and
seller
•Provisions about who will pay for title
insurance, survey, termite inspections and
the like
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Making an offer
• Why is it important to have a buyer's
agent negotiate your offer on your behalf?
•A provision the buyer may make a last-
minute walk-through inspection of the
property just before the closing
•A time limit (preferably short) after which
the offer will expire
•Contingencies:“This offer is contingent
upon (or subject to) a certain event”, such
as a home inspection or approval of
financing.
•Other requirements specific to your state,
which might include a chance for attorney
review of the contract, disclosure of
specific environmental hazards or other
state-specific clauses
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Making an offer
Earnest Money is a deposit you put down
with your offer on a house.
A seller is understandably suspicious of a
written offer not accompanied by a cash
deposit to show good faith.
A REALTOR® or an attorney usually holds
the deposit.
The amount varies from community to
community, and it becomes part of your
down payment.
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After offer is accepted
•Home inspections are scheduled
• Buyer must make application with a
lender right away.
• Upon receiving the inspection report, the
agent will advise the buyer regarding
requesting remedies.
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The buyer agent will stay in
communication with all parties
• Requested remedies are performed
• Appraisal is scheduled and performed
• Lender is moving along on schedule to
meet the commitment and closing dates
set in the contract
• Communicate with the attorney to be
sure that they have what they need
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Discussions with your attorney
•The wording of a mortgage contingency
varies among contracts but generally
includes a time frame, or deadline, by
which the contingency must be met and
thresholds for the mortgage terms.
What is the mortgage contingency?
What does the attorney do?
The attorney will examine legal title
issues, environment issues and reports
and any of the contracts or other
documents involved in the transaction.
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Money at closing
Down payment
Closing costs
Oil adjustments
Closing costs include fees charged by
lenders, as well as third-party fees for
services such as appraisals and credit
reports. title insurance, title search, taxes,
property insurance, association fees, interest
and other prepaid items.
By adding the closing costs to the purchase
price, most of those costs would be a part of
the loan. Instead of getting his closing costs
paid for free, he would be paying them over
the life of the mortgage.
Can I ask the seller to pay my closing costs?
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On the day of the closing
What is a walkthrough?
A final walk-through is an inspection
performed anywhere from a few hours to five
days before closing, and its primary purpose is
to make certain that the property is in the
condition you agreed to buy -- that agreed-
upon repairs, if any, were made and nothing
has gone wrong with the home since you last
looked at it.
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On the day of the closing
What happens at the closing?
•The seller will sign the deed over to the
buyer. This act officially transfers
ownership to the buyer.
•The seller will turn over the keys, as
well.
•The title company (or in some cases a
lawyer or notary) will register the new
deed with the appropriate government
office. This record will show the buyer as
the new homeowner.
•The seller will receive any proceeds
they earned from the sale, once their
mortgage balance and closing costs
have been paid off.
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The Ledyard Home Buyers
Guide is intended to assist
buyers in letting them know how
the procedure works. It is not a
legal document. You should
consult with an attorney and a
licensed mortgage broker for
further information.
If you need more information on
the home buying process please
feel free to contact us .
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Bridget Morrissey, Realtor
RE/MAX Coast and Country
Olde Mistick Village
27 Coogan Boulevard
Mystic CT 06355
Office: (860) 536-7600
Cell/Text: (860) 857-5165 BridgetMorrissey@remax.net
www.BridgetMorrissey.com