A Handbook on Purchasing a New Home

Buyer’s Handbook
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Tom Payne, Broker, Realtor®, ABR,
(Accredited Buyers Representative),
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Linda Payne, Broker, Realtor®, ABR
(Accredited Buyers Representative)
CALL LINDA OR TOM PAYNE
919-227-7351 or 919-612-7399
Website: www.payneteam.com
email:[email protected]
[email protected]
About Us!
Tom and Linda have 25 Years experience in small business as the owners of Raleigh’s well known Rathskeller Restaurant on Hillsborough Street. This history in the service industries plus their individual strengths and backgrounds and
their experience of working together as a team uniquely qualify them to assist buyers and sellers in achieving their desired goals.
Linda graduated from NCSU with a degree in Communications, has passed the CPA exam and worked for a major accounting firm. Tom also has a degree from NCSU in Business
Management with postgraduate studies in Computer Science,
has worked in software support and has experience in general construction and remodeling.
These experiences and strengths coupled with a desire
to help and please clients learned over the years plus their
ability to bring different perspectives and insights to the
process of buying or selling a home provide for clients the
dual advantage of a true ‘two for one’ team experience.
919-612-7399 or 919-227-7352
[email protected]
www.payneteam.com
Buyer’s Agency
WHAT IS IT? WHY DO I NEED IT?
WHAT DOES A BUYER’S AGENT DO FOR YOU?
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Promotes your best interests— advocates on YOUR behalf exclusively.
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Is loyal to you— represents you, not the Sellers.
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Follows your lawful instructions.
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Provides you with material facts about the property.
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Uses their skill and training to help you obtain the best deal possible.
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Your Buyer’s Agent cannot give out confidential information about
you— a Seller’s Subagent is obligated to tell the Seller anything about
you they learn!
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A Buyer’s Agent works for you— not for the Seller!
A Written Buyer’s Agency is your best protection when buying a
home!
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HOME HUNTING TIPS
Drive around the neighborhood at different times of the day and during
the week and on weekends to see the traffic patterns and get a feel for
the neighborhood.
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Call Utility Companies and find out cost of previous monthly bills
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Talk to neighbors— find out how they like living in the area
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Before making an offer have your Buyers Agent prepare a Comparative
Market Analysis of the home to see what a fair market price would be.
The Basics of Buying a Home
If you know what to expect, and you have a trusted team of real
estate and mortgage lending professionals to guide you, finding
and financing a new home can be an exciting and rewarding
experience. Let YSU walk you through… ..
Obtaining Mortgage Pre-qualification.
Before you begin house hunting, learn how much home you can
afford and strengthen your bargaining position with Sellers. Prequalification affirms you are a serious bidder who means business.
Choosing a Real Estate Agent.
Select a reputable professional, who is willing to listen to your
needs and with whom you feel comfortable.
Before you begin working with any real estate agent, you should
know who the agent represents in the transaction. Be sure you have
discussed the “Working with Real Estate Agents Brochure”. You may
also enter into a Buyer’s Agency Agreement with the agent you choose
at this time.
Finding the Right Home.
Determine your family’s needs and create a list of the features
you must have and features you desire. Take notes as you tour homes
with your agent– this avoids confusion later!
919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com
Making an Offer.
The Offer is a very specific legal document. In North Carolina, it
takes the form of the “Offer to Purchase and Contract,” which was
created by the N.C. Association of REALTORS® and approved by the
N.C. Bar Association. Together with your YSU agent, you determine what
considerations will best serve your needs. When signed, the offer becomes
a binding contract between you and the Seller.
The North Carolina Residential Property Disclosure Statement
should reveal any limitations on the use, transfer or modification of the
property, including liens and easements.
Your YSU agent will help you choose the appropriate deposit or
“earnest money” to be placed in a Trust Account within 72 hours of
acceptance of your Offer. The full amount of this is credited to you at
closing.
When you are preparing your Offer, you may include a request to the
Seller to provide you with a one-year “Home Protection Plan”. Such plans
can provide you with peace of mind knowing that covered systems or
appliances are warranted. Ask your YSU Agent about the benefits of a
home warranty.
Your real estate agent presents your Offer to the listing agent. It may
be accepted, countered, or rejected. When the terms are settled, you and
the Seller sign the Offer and it becomes a “Contract”, defining the terms
of the sale.
919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com
Obtaining A Loan.
Choosing a reputable lender is vital to a smooth home-buying
process. Your YSU Agent and Ysu Lending are prepared to suggest the
best loan programs for you. The Offer to Purchase and Contract will
specify the loan amount, terms, interest rate, type of loan, discount
points and closing costs. This financing contingency provides that if
you are not able to obtain a loan under the specified terms, you may be
released from the contract. It is critical that you make your loan application immediately. It generally takes four to six weeks to obtain firm
loan commitment.
It is also to your advantage to be as prepared as possible when
you meet with your loan officer.
What You Should Bring to Loan Application?
1) Credit Card Numbers
2) Bank Accounts
3) Assets and Liabilities
4) Verification of Employment
5) Employment History, including addresses
6) Previous tax returns
Having these at hand when you meet with your loan officer saves
time and trouble not to mention additional visits to your lender.
919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com
Whether you apply to a bank, savings and loan, credit union, mortgage
company, or other source, certain requirements will be the same.
What Does My Lender need?
1) Appraisal
(Prepaid at application)
2) Credit Report
(Prepaid at application)
3) New Survey
(Included in closing costs)
4) Title Insurance
(Included in closing costs)
5) Fees and Discount points (Included in closing costs)
Most lenders will stipulate that you escrow money each month for
future payment of taxes and prepayment of insurance.
Having the Home Inspected.
Your offer may also be contingent upon a variety of inspections,
including electrical, plumbing, heating, and cooling systems, as well as
built-in appliances, roof, gutters, structural components, foundation,
fireplaces and chimney. These are conducted at the buyer’s expense
by a licensed inspector. Other miscellaneous inspections such as well
and Septic Systems inspection and Radon inspections may also be
conducted at the buyer’s expense.
919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com
After your Offer has been accepted, hire a professional home
inspector. A good home inspection provides an in-depth look at the
basic systems of the house to reveal any safety hazards and give you a
chance to negotiate repairs to be made to the house by the Seller prior to
closing.
You may also need to arrange for a termite inspection to ensure
that there is no visible evidence of wood-destroying insects. This
inspection must be performed by a licensed pest-control operator. Your
lender will probably require that you provide such a report prior to final
loan approval.
Any costs that accompany ownership, such as street paving or
water and sewer assessments, should be discussed in the contract.
You and the Seller may agree upon other personal property items
to be included, such as appliances or window treatments. YSU Agents
emphasize that you must list these specifically in your contract.
Having the Home Appraised.
An appraisal, usually required by your mortgage lender, is a firm,
written estimate of the home’s current market value. Typically, the appraisal costs several hundred dollars. Your lender will order the
appraisal and you will receive a copy at closing.
919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com
Hiring An Attorney.
While not required by law, you will be required by your lender to
retain an attorney to handle closing. The fact is, an attorney
experienced in closings protects you from confusion, oversight,
unexpected expenses and unnecessary loss of time.
For a prearranged fee, your attorney handles the title search and
obtains title insurance. Title insurance guarantees that the property you
are purchasing is free of liens and of confusion in rights of ownership.
The policy insures against any losses to the property that result from
defects in the title or deed. He or she will also order the survey, prepare
all the paperwork for the bank, and provide you with a detailed list of
closing costs. During the closing, your attorney carefully goes through
the documents with you, answering any questions and explaining how
funds are disbursed.
Transferring Utilities.
You and the seller should notify all utilities (gas, electric, water,
and phone) of the change in billing and effective date well in advance of
closing. Your YSU Agent will be glad to handle this for you if the
companies involved permit this.
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919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com
Your Final Walk-Through.
You will want to take a last walk through the house just prior to
closing. Remember that when you close, you are accepting the property
in “as-is” condition unless otherwise agreed upon in your contract.
Closing on your new home.
Once you have signed all papers and the Seller has provided a deed
and lien waiver, your attorney records the documents at the courthouse.
This action and your subsequent receipt of a General Warranty Deed
makes the title transfer official.
Ownership of the property is transferred. A closing agent
coordinates and distributes all the paperwork and funds according to the
agreed terms. You are now the proud owner of your new home!
Finally, you can expect to take possession of your new home as
soon as closing is complete. Any other arrangement must be put in
writing.
The entire process, from offer to closing, typically takes 30-60 days.
Familiarizing yourself with procedures and working closely with your
YSU agent helps keep things on track.
919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com
We are Triangle–Wide
Ancillary Services For Your Convenience
YSUHomes.com
Buyers and sellers can visit our award-winning website 24 hours a day, 7 days a week to get all
the real estate information they need. Mortgage rates, an Open House Schedule, over 12,000
property listings, information on all our offices, agents, and services are just a mouse click
away.
YSU LENDING
Once you find a home you love, you need to find a mortgage
that makes sense for your purchase. In conjunction with
YSU Lending, we can make sure that you get competitive
rates, a closing that fits your schedule and an approval process
that’s fast and painless. In fact, we can pre-qualify you for a loan over the phone, and
give you approval notification within 24 hours.
We’re here to answer any questions that come up, and we’re ready to handle all kinds
of circumstances, including first-time home buyers, self-employed buyers, bridge loans,
constructions loans - just tell us what you need, and we’ll tell you how we can help.
AFFILIATED TITLE
When you’re buying or selling a house, every detail is
important - especially the ones you might never
consider. That’s why we’ve developed a joint venture
with a local title insurance agency. The experienced
real estate attorneys we work with make sure that issues involving title transfer don’t
interfere with your sale or purchase of a home. Simply put, it gives you one less thing
to worry about.
THE YORK FAMILY OF COMPANIES
As part of the only full service family of companies that handle all aspects of real estate
in the Triangle, we can help you with your business and residential real estate needs.
The YSU Difference
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We are part of the only full service family of companies that
handle all aspects of Real Estate in the Triangle
York Simpson Underwood, York Properties, McDonald-York,
YSU Lending, Affiliated Title, and YSU Neighborhood
Marketing Services
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We are large enough to be powerful, yet small enough to be
personal
We can offer our clients all aspects of one-stop shopping while
providing the highest level of customer service in the industry. We
offer an array of other services for our clients: YSU Lending, Affili
ated Title, RELO, Sotheby’s International Realty Exclusive
Affiliate, MY Home Improvements, and Timely Solutions
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We care more about how our agents do business than how much
business they do
Our agents are selectively hired, thoroughly trained, and all work
full-time; over 60% of YSU agents have earned professional
designations so the learning never stops; our tradition of
teamwork and innovation is due in part to a strong commitment to
education and the quality of our agents
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We are a family company who is involved in the community where
we live
We have a history of civic responsibility and service; our roots date
to 1910
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We are Triangle-Wide
We have 6 offices located in Cameron Village, North Hills, Cary,
North Raleigh, Chapel Hill/Durham and Pinehurst/Southern Pines
with over 250 full time agents
Moving Advice!
Change of Address Forms:File at Post Office— Two
Weeks Before Moving.
Electric: Call Progress Energy at 800-452-2777 - 24
Hours in Advance
Gas: Public Service at 1-877-776-2477 One to Five
Business Days in Advance
Cable: Time Warner at 832-2225 Seven to Ten Days in
Advance
Water and Sewer:City of Raleigh at 890-3245 One to
Two Days in Advance
Schools: Call Wake County Public Schools at 8501921 or go on-line at http://www.wcpss.net
Telephone:There are many competing service providers in the area— one to three weeks in advance— our
Payneteam.com website lists them!
919-612-7399 or 919-227-7351
[email protected]
www.payneteam.com