1 buyer binder 2010

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817-980-9420

[email protected]

www.melissarfincher.remax-texas.com

RE/MAX Associates of Arlington

4105 South Bowen Road

Arlington, Texas 76016

My Mission Statement:

To make a positive & meaningful impression in

the lives of my clients, fr iends & family; to help

guide them through difficult situations by giving

them my knowledge, compassion, and integrity.

Each Office Independently Owned and Operated

www.melissarfincher.remax-texas.com

Melissa R. Fincher
http://www.melissarfincher.remax-texas.com/http://www.melissarfincher.remax-texas.com/

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After you have decided to look for a home, contact a Real Estate Agent (MELISSA).

Then get pre-approved with a reputablelender (referrals available).

Search, and then choose a home that fits your criteria.

Make a fair offer after you have found the right home and researched comparablessold in the area.

A counter-offer may then happen and negotiating has begun!

Once both parties accept (in writing) an offer, you now have a contract.

Finalizing contract includes, initials and/or signatures on any changes duringnegotiation, checks for earnest money and possibly option fee made out to seller and date

contract was finalized.

Call your lender immediately; they will need a copy of the contract and updatedinformation from you. This is when you may want to lock your interest rate. They mayalso need appraisal check from you if you agreed to pay for it.

Choose an inspector and make appointment to inspect home as soon as possible andwithin the option period.

An inspection is designed to find out what is wrong, not what is right. Do not panic if

minor repairs need to bo done by you or the seller. Your agent will work with you on this.

Contact an Insurance agent for hazard insurance and contents coverage on your home.When a suitable agent and a quote is accepted (get in writing), give that information toyour lender. It would also bo a good idea to let your real estate agent have all theinformation also. Do not forget to mention the amount of the premium promised by yourinsurance co. The amount of the premium is often different at closing time.

Your Home Buyer Checklist

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Prepare for your move, transfer utilities and make preparations for children if inschool, etc.

Set up a final walk through and acceptance of your home with your real estateagent (a few days prior to closing).

Closing dates and times sometimes change due to lender requirements, try to stayflexible during this time; your real estate agent will assist you.

About a day before closing, your real estate agent will call the Title Company todetermine the exact amount of funds needed to close. You will need a cashiers checkfrom your bank made out to the Title Company.

Arrive at the Title Company to sign documents. Allow at least one hour to signyour papers, sometimes longer. Do not forget to bring your drivers license or militaryID.

Expect keys and access to the property several hours after closing (depending onthe terms of your contract) ; both parties must close and the lender must verifydocuments signed correctly and wire money to the Title Company. (This is when it isofficially closed and funded)

Recommend all your friends and family to the Real Estate Agent who helped youthrough it all (MELISSA!!!)

RE/MAX Pinnacle Group2208 West Par k Row #100Arlington, TX 76013

Mobile: 817-980-9420

Fax 817-419-9187

[email protected]

Each Office Independently Owned and Op erat ed

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Me(jssa 1incher

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RE/MAX Associates of Arlington4105 South Bowen Road


Mobile: 817-980-9420

Fax 817-419-9187

[email protected]

Each Office Independently Owned and Oper ated

Under this system the selling Real Estate Broker represents and works for the

Buyerin the purchasing of a home - as the Agent for the Buyer- and has a duty

to represent theBuyers best interests, including: Negotiating the r ight pr ice for the buyer Structuring the transaction to the Buyers advantageHere are three of the most

important ways Buyer Agency works for you.

1)Meaningful Savings Are PossibleWe will help you negotiate to

obtain the right price, terms

and conditions.

2)You are RepresentedOur Buyer Agent will do a

compr ehensive market analysis

on the property you select. This

will help you establish fair

mar ket value before anoffer to pur chase is made.

3)You are Exposed to a Larger Mar-ket

In addition to MLS listed properties,

our Buyer Agency System allows us

to showyou a wider var iety of

available homes, including

unlisted propert ies-for sale byowners, foreclosure sales and

homes not yet on the market.

In other words, you will have

access to the

TOTAL MARKET.

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MeffJJa 1incher

What Buyer Agency Means to YOU

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Many people have asked me what Working By Referral on my business card means. Mostagents spend 75% of their valuable time searching for new business, not having much time

left for their present clients. I am able to dedicate most of my time to serving my existing

clients...the ones who need me the most! As a valued client you will receive more service

and better results...BECAUSE YOU DESERVE IT!In turn I encourage my clients to become TRUE ADVOCATES for me. I want and need

your heartfelt endorsement to family, friends & work associates who would appreciate beingserved by a REAL ESTATE CONSULTANT FOR LIFE. My commitment to my clientsis 100%.

I have a passion for helping and advising others and enjoy being a real estate counselor. I

have dedicated my life to helping people just like you obtain their dreams of owning ahome.

I look forward to having the opportunity to help you and get to know you. I will make this

an informative, yet enjoyable experience. My primary objective is to help you, guide you

and exceed your expectations. I come from a strong background in management and sales,which has prepared me to meet my clients' needs with a high attention to detail with integ-

rity. I am a multi-million-dollar top producer and contribute my success to building my

business by referral and using an enthusiastic approach to real estate. With the confidenceand referrals of my clients I will continue to be successful for many, many years to come.

The following list is a handful of some of my favorite past clients that have sent me multiple

referrals and would be more than happy to visit with you about my work ethic and their ex-perience with me. Please feel free to contact them. -Melissa

Rudy and Lynn Mar tinez

200 Trevino CT

Mansfield, TX 76063972-757-6490

Bought in 2002,2007;Sold 2007

Tar sha and Kenneth Ashley

1409 Baker

Cedar Hill, Texas 75104

214-282-2948

Bought in 2006

Ross and Michaela Jones

1200 Vistawood

Mansfield, Texas 76063817-875-0105

Bought in 2001,2006; sold2006

Keith & Shy Per ique

383 Softwood Drive

Duncanville TX 75137-4327

[email protected]

Bought in 2009

Matt and Amanda Cobb

1502 Briarwood

Arlington, TX [email protected]

Bought in 2002,2006,& sold 2006

Scotty and Patty Fearka

1105 Tanglewood

Mansfield, TX 76063

682-518-9602

Sold and bought in 2001

Craig and Rachel Kar r

6200 Cool Springs

Arlington, TX 76001817-483-6024

Bought house in 2003

Danny Bailey

5707 Sagebrush Drive

Arlington TX 76017

817-504-2080

Bought in 2007

Ju stin & Tr aci Ziebar th

7821 Black Willow Lane

Arlington TX 76002817-881-6132

Bought in 2005,2010,sold 2009

Roel & Rose Deleon

717 Running Creek Drive

Arlington TX 76001-7525

817-903-1187

Bought in 2009

Herb Parsons

2233 Park Springs Court

Arlington TX [email protected]

Bought in 2009

Sam and Shay Holland

2903 Cabernet

Arlington, TX 76001

817-228-0626

Sold in 2007,2008,2009,2010,

bought twice 2009

Past Clients:

What Working By Referral Means To You

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LISTING SIDE SOLD DOLLAR AMOUNTBased on data compiled from all Single Family residential properties sold in the Arlington/Mansfield Metroplex (areas 82-90) which were reported by the NTREIS MLS fo

the period from January 1, 2005 through December 31, 2005. These statistics represent the Sold Single Family Detached Residential Listing of all office locations and

independent offices of each multioffice or franchise or franchise organization identified, which listings were sold by such organization, according to the publications of the

Multiple Listing Service for Residential Properties (existing and new) in the NTREIS MLS areas for the time period indicated. Note: This representation is based in whole o

in part on data supplied by NTREIS MLS. Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association

or its MLS may not reflect all real estate activity in the market. Each RE/ MAX office is independently owned and operated.

Century 21 EbbyHalliday

KellerWilliams

ColdwellBanker

Prudential

PREMIER MARKET PRESENCE

IN THE ARLINGTON/MANSFIELD AREAS

24.23%

13.95%

11.28% 10.84%

7.98%

2.09%

www.remax-texas.com

TOWERS ABOVE THE COMPETITION

FOR THE MOST LISTINGS, VISIT

RE/MAX

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Page Under Construction...

Melissa's Directory of Favor ite Businesses

North Texas Granite - Shay Holland

817-821-6854

[email protected]

2069 Fm 1187 Ste M, Mansfield, TX 76063-5932

Lonnies Plumbing - Lonnie Duke M38746

817-937-0527

[email protected] Meadow Bend Dr. Arlington, TX 76002

Countertop Resurfacing- Gary Holland

817-501-1845

USANA Health Services - Craig & Lee Coria

817-975-8328 or 817-975-2041

[email protected] www.coria.usana.com

Dent Empire - Mark Rohne

Paintless Dent Repair

817-303-6400 or 817-905-0005

www.dentempire.com

Custom Paintworx - Calen McNulty

817-919-9792Residential/Commercial; Interior/Exterior Painting

Metroplex Area Detailers - Jerry McCullars

817-475-7804

Handyman

Custom Home Dcor Sewing-Michaela Jones

817-875-0105

Brick/Mortar Repair-Johnny Harper

817-905-5525

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MBR Foundation- Steve Webster

17-469-1090 817-372-8171

oe Hall Roofing - John17-822-0510

Roofer

Electrician - Doug 817-999-7446

Home Repair-Williams Home Maintenance

17-274-0661

Mary Kay Cosmetics-Amanda Cobb 817-266-9833

nsurance - Brad Bingham (Allstate) 817-460-5078

A/C - Elvis 817-703-2161

nspector-Dave Padgett 817-461-5205

Pool Installation Tom Owen Owen Custom Pools 817-207-9494

Pool Service-Jim Calkins Stillwaters Pool Company 817-680-4842

Tree Service-Tree Climbers 817-453-4758

Termite Treatment-TEXInspec Bryan Cooper

17-907-3617

tucker Construction-Rob Stucker03-454-9780

Moe Caya-CC Services Handyman

14-566-1414

Countertop Resurfacing- Gary Holland

817-501-1845

Peyronet Photography- Michelle Jones

[email protected]

817-707-7487

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RealtorRE/MAX Associates of Arlington

817-980-9420 Cell

817-419-9187 FAX

4105 South Bowen Road


[email protected]

Oh, By The Way...if you know of someone needing to buy or sell, please call me with their name and number and I will be happy to help them.

It is my pleasure to invite you to become a member of my Client Appreciation Program.This complimentary membership entitles you to a set of helpful services and information provided to my best customers and friends:

Yearly Market Analysis of your home or upon your requestFree use of our fax/copy machineFree Notary ServiceQuarterly NewsletterFree design consultation (tell me what you want designed and I will design it and prini.e. invitations, flyers, announcements, etc)Monthly letter with an item or idea of valueFree Real Estate advice/opinion/research

I make a constant effort to improve the level of service I provide to you as my client. This isbecause, in my business, the most profound asset I possess is your respect as my client.

In the near future, I will contact you either by phone or in person. I look forward welcoming

you personally to the Client Appreciation Program, and I want to thank you for the opportnity to serve you as your Realtor and I look forward to helping anyone you want to refer thatwould appreciate the real estate experience I offer.

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As you embar k on your venture to buy a home, one of the fir st decisions to make is whether to buy new or to pur chase aexisting home. Each choice has its advantages, and there is no single answer which works for everyone.

Existing homes offer many considerat ions for potential homebuyers, including:

Maintenance And Repair. If you' re considering an existing home, be sur e you have a good handle on the workingstatus of all major systems. Hire a pr ofessional home inspector to check out the house. As appliances and systems age thenaturally require repair and replacement, something which may be reflected in a purchase price.

Existing Featur es. When you buy an existing home, you typically don't have to worry about buying the extr as, such asblinds for the window, fences, built-in cabinets, a security system, or a landscaped back yar d. Land . In most metr o center s, existing homes have more land than newer properties. Why? Because of changes in landuse patterns. Location. Existing homes are often found in older, more convenient metr o core ar eas rather than out lying subur bs. Remodeling. In some cases buyers may pr efer an older home in a par ticular location which can be modernized or ex-panded. In effect, they use the existing home as a base to build a unique property over time. Price. In general terms, existing homes tend to be less expensive than new ones. According to the National Associationof Realtors, the median pr ice for an existing home is expected to r each $146,600 in 2001. In contr ast, says the NationalAssociation of Home Builders, the median price for a new home in August was $167,600. Tr aditional Layout. If you like the formal living and dining r ooms, an existing home will likely satisfy you. War ranties. Existing homes are often sold with limited warr ant ies pr ovided by owners.

NEW HOMESOn the other hand, new home considerations include:

Warranties. Many homebuilders offer 10-year warranties from third-parties who will be there if certain problems de-velop over time. In additional, ther e are manufactur ers' warrant ies for such items as stoves, clothes washers, etc. Modern Architectur e And Design. If you pr efer a great room (an oversized family room), bigger closets, more bath-rooms, and media niches over formal dining and living rooms, a new home is likely to better accommodate you. Options. When you buy a new home, you get to decide the par ticulars of what you want . You can also select any of theupgr ade featur es the builder may offer, choose the right paint for each room, select the cabinets you want, and do much tcustomize the property. Price. As we saw above, new homes are typically more expensive than existing homes. But, new homes are likely toneed fewer r epairs or replacements because everything is, well, new, war rant ies ar e in place, and normal wear and tearhas yet to begin. Safety Featur es. Most new homes now have hard-wired smoke detectors on every floor. They are usually inter con-nected so that if one goes off, they all go off. Energy Efficiency. Over t ime homes have become better insulated and energy costs for given pur poses have been re-duced. Better windows, more efficient heating and cooling equipment, better control of air infiltra tion, and gr eater use ofinsulation, new homes consume half the energy of homes built pr ior to 1980, according to the NAHB. Less Maintenance. New homes are often made with mater ials that r equire less maintenance, such as aluminum sidingvinyl windows and tr im that never need painting, and wood decks made with pr essur e-treated wood that r esists rot andinsects.

The Real Answer

So which is the better choice -- new or existing?

There's no single, objective answer that' s right for everyone. We each have different pr eferences, and the values that bessuit Jones may be all wrong for Smith.

Moreover, terms such as " new" and " existing" a re among the many factors to consider when looking for a home. Allhomes are un ique -- they each offer a combinat ion of factors which no other home quite duplicates. Ther e are tr ade-offswith every property.

The r eal question is not which is " better " -- new or existing -- but r ather which specific proper ty best meets your needs.The only " cor rect" answer is unique to you: I t's whatever you pr efer.

Me#ssa 1incher

Buying New Versus Buying Preowned

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Arlington, Texas 76016Mobile: 817-980-9420

Fax 817-419-9187

[email protected]


. /M OV[;V'vgAdlbessChageo Give forwarding address to Post OffIce 4 to 6weeks before movingEl Charge accounts, credit cardso SubscrIptions: Notice requires 6 to 8weekso Friends and relativesBtDtko Transfer funds. arrange check-cashing in new cityQ Arrange credit referencesInsuranceo Notify company of new location for coverages:life, health, fire and autoUtility Companieso Gas, light, water, telephone, fuel, garbageo Get refunds on any deposits madeo Retum cable boxesDelive ry Serviceo Laundry, newspaper, change over of serviceMedical, Dental, Prescription Historieso Ask Doctor and Dentist for referrals, transferneeded prescriptions, eyeglasses. X-rays. Obtainbirth records, medical records, etc.Pmo Ask about regulations for licenses, vaccinations,tags, etc.Don't Forget To:o Empty freezer, plan use of foodso Defrost freezer and clean refrigerator. Placecharcoal to dispel odors.o Have appliances serviced for movingQ Clean rugs or clothing before moving have themwrappedo Check with your Moving Counselor, insurancecoverage, packing and unpacking labor, arrivalday. various shipping papers, method and time ofexpected payment

o Plan for special care needs of infants or petso Check wlth Agriculture Department of new area tosee If they have restrictions on plants

OnMtwlne&y:o Carry enough cash or traveler's checkS to covercost ofmoving services and expenses until youmake banking connections In new cityo Carry jewelry and documents yourself, or useregistered mailo Plan for transporting of pets; they are poortraveling companions if unhappy.o Let close friends or relatives know route andschedule you will travel Including overnight stops,use them as message headquarterso Double check closets, drawers, shelves to be surethey are emptyo Leave old keys, garage door openers. broilerpans, landscape I house plans and instructionmanuals needed by new owner with Realtol$

At Yo",NewAddras:o Obtain certified checks or cashier's checksnecessary for closing Real Estate Transaction(check escrow I title company for details)o Check on service of telephone, gas, electrIcity,water and garbageo Check pilot light or stove, for water heater andfurnaceo Ask mailman for mail he may be holdIng for yourarrivalo Have new address recorded on Driver's Licenseo Visit city offices and register for votingo Register car within 5days after arrival In state ora penalty may have to be paid when getting newlicense plateso Obtain inspection sticker and transfer motor clubmembershipo Apply for state driver's licenseo Register family in your new place of worshipQ Register children In school

o Arrange for medical services; Doctor, Dentist.Veterinarian, etc.Yeliss" r'fincher

Moving Checklist

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The following is a list of the most common documents that the Buyer will be

required to sign a t closing:

You will need some form of photo I.D., preferably a drivers license. The Notary will need to see your

identification in order to notarize documents. Funds for closing are required by law to be certified.

Certified funds can only be obtained from a bank or credit union; brokerage firms cannot issue certified

funds. You may wire funds into our account if you prefer. Please inform your closing agent of your

intentions and they will instruct you accordingly.

We will make every possible effort to complete your Settlement Statement at least 24 hours before the

closing so that all parties have a chance to review their charges. However, we cannot complete the Buyers

figures unless we have been given instructions and approval by the lender.

The following is a list of documents generated by the Title Company that the Buyer will

generally be required to sign.

1. The Settlement Statement (also called, "HUD - 1"): Itemizes the fees paid by both the Buyer

and the Seller and gives the bottom line figure due to each party.2. Compliance Agreement:: An agreement to be executed by both parties regarding typographical

errors and any additional requirements to be met after closing.

Each Lender will have different documents for the Buyer to sign; however, almost all residential

loan packages will contain the following:

1. Note: The promise of the Borrower to repay the loan, and the basic terms of the repayment.2. Mortgage: The document which is recorded in the Public Records granting the lender a lien on

the property to secure the loan. This document gives the lender the right to foreclose if theborrower defaults on the Note.

3. Truth-In-Lending Statement: A required disclosure to the Borrower stating the annual

percentage rate (this rate contains the fees charged by the lender and adds them to the note rate)and the total cost of the loan over its life.

4. Anti-Coercion Statement: An acknowledgment from the Borrower that the lender did not

require the homeowner's insurance to be purchased from a particular company.

5. IRS Forms W-9 and 4506: The W-9 enables the lender to report the interest paid annually to

the IRS; the 4506 is used in the event of an audit by HUD and allows the lender to obtain copies

of tax returns directly from the IRS.

6. Payment Letter: Gives the amount and due date of the first payment.

7. RESPA Servicing Disclosure: Discloses to the Borrower that the lender has the right to transfer

the loan on the secondary market.8. HUD - 1 Addendum: A statement that the HUD - 1 Settlement Statement is a true, accurate,

and complete statement of the transaction.

9. Loan Application: A typed copy of the Borrower's Loan Application

10. Correction Agreement: An agreement by the Borrower to correct clerical or typographical

errors

Please allow adequate time for your closing. A normal real estate

closing when a loan is involved will take about an hour

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RE/MAX Associates of Ar lington4105 South Bowen Road


www.remax.com

Here's a list of the Top 10 Tax Breaks that you mayqualify for on your home. Visit the Internal Revenue

Service's website for more details on each item.

http://www.irs.gov/

lMortgage Loan Interest

l Home Improvement Loan I nterest: l Points

l Property Taxes

l Capital Gains Exclusion

l Home-Based Business Deduction

l Selling Costs and Capital Improvements

l Moving Costs

l Mortgage Tax Credit

l Energy Tax Credits

Top 10 Tax Breaks On Your Home

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Amortization Schedul'&.Schedule showing principal and I1terest payments throughout he fife of the loanAttorney's Fee Charges by independent attorney forpreparatioll on legal documents. i.e. deed, deed of trust, note, release, etc. and foraels of representation by an attorneyDiscount Points - Points lender charges to wease lhe investor's yield. May be paid by either the buyer and/or seDeron conventionalloans and FHA loans, Must be paid by sellerOIlVA loans. Numberofpoint fluctuates hmortgage.InterestProration - AmOlmt reimbtJ'sed to buyer from 1"of the monlh to closing date on assumption transadion. ifprorated.Tax Service Fee A fee required by the lender for collection and disbursementof tax escrow by a servicing oompany.UnderwritingFee Fee the IerJder charges for underwfiting for loans on behaU'of the investor.Warehouse Fee - Charges by the lender to cover his cost in borrowing funds for ashort term in order 10 fund amortgage prior to sellingthe mortga.ge to an investor.

Attomey's Fee (Release) - Charge for preparation ofthe release of tien documentwhen seUer ispay' ott his existing loan,CouriertAirExpense Cflarge for pick-up and deIveJy of Joan package or any required Federal EJlPressCharges.Escrow Fee - Charges by the title company to service transactiorl and to escrow money anddocuments. Amount variesWith company.Usually split equally between buyer and seller.Owner's ntle P Q I ~ y - Insures the against k)ss due to any defectof title not excepted to or excluded from the policyRecording Fee - Charged byCounty C1efk to record documents in the public records. Charges are based on per page recorded.Restrictions - Certified ropy ofdeed resmcoons required by the lender.Tax Certificates.- A fee required by tile IitIe company fQ inSUle no delinquent taxes and tile current lax amount on properly.Tax Proration - Sellers pat buyer's taxes from January i ll through IIle day of closing.

Mefissa 7=incher8"7 - 9 8 0 -94 .20

rn e l i s sa{ inche , .@corncas t .ne twww.rne l i s sa{ inche .. . com

warran , by' ~ o . s aM to be: j.laid

Definitions of Real Estate Terms

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Home Inspector List

Customer .Acknowledgement:________________________

Date_________

Dave PadgettP r o f ~ ) i O l l a l L l l ~ l l , * , /I 58Pest Control license 1t38207 PTAdvanced InspectorArlington, Texas 76013Phone: 817-461-5205Cen: 817-269-'1419www.arlingtonpropertyservices.comdave@arlingtonpropertyservices.comCrow. MikeTREC 111525U.S. InspectHonorary-Advanced Inspector305 NE Loop 820 Ste. 414Hurst, TX 7605]phone: 888'874-677]fax: 817-5951736email: [email protected]: www.usinsoect.comMurphy, DrillnTREC II ]948A-Action Home InspectionLP.I.P.O. Box 151652Arlington, TX 76015phone: 9725724500fax: 8174670210email: [email protected]: www.a-action.comHale, RonTREC#1705Inspections PlusAdvanced Inspector4719 Hillside Dr.Arlington, TX 76013phone: 817-4517]72fax: 817-4463368email: rehale@f(ash.netPlagens, JoeTREClt4715A-Action Home Inspection GroupAdvanced InspectorP.O. Box 151652Arlington, TX 76015phone: 9725724500fax: 817-467'0210email: [email protected]. CraigTREC II 5885Real Estate Inspections of TexasAdvanced InspectorP.O. Box 727Colleyville, TX 76034-0727phone: 817-5714073fax: 817-5715190email: [email protected], LarryTREC 114422Armstrong Horne InspectionAdvanced Inspector6000 Deborah LaneFort Worth. TX 76148phone: 817'485-9744fax: 8174851024email: [email protected]

Penn, GlynnTREC /I :103Homegard InspectionsAdvanced Inspector501 Merritt StreetFort Worth, TX 76114phone: 817-73266nfax: 8177]20900email: [email protected]:Plut, FredTREC 1141 tMetroSpec Horne InspectionsAdvanced InspectorP.O. Box 1811Grapevine, TX 760991811phone: 817999-4663fax:emait: [email protected]: www.insoect-texas.comDecuir, MerlinTREC 11683DFW Inspection serviceAdvanced InspectorP.O. Box 131Hurst, TX 76053phOfle: 817-5772920email: [email protected], lalTlOfltTREC 112176Helix Business Group, L.L.LInspectorP. O. Box 150087Arlington, TX 76015phone: 817.856.4447fax: 817.856.4449email: [email protected]: www.Hetix8usinessGroup.comLyon, FredTREe # 3195TexinspecInspector521 E. AbramsArlinllton, TX 76010phone: 817-265-5452fax: 817-469-1214email: [email protected], TerryTREe" 3312LoneStar Inspection Co.Inspector900 W. Abram, SUite AArlington, TX 76013phone: 817861-9229fax: 8178610476email:website:Kinnard, ThomasTREC I t 604Inspector2304 Shady Meadow Dr.Bedford, TX 76021phone: 817-28J0972fax: 817-354-4969email: [email protected]:

Willingham, GuyTREe It 5313Long Paw, Inc.InspectorP.O. Box 1291Colleyville, TX 76034phone: 817-296-3120fax: 817-5798814email: guv

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ELECTRIC

TXU Electric Company 972-791-2828

100 W. Abram, Arlington, Texas www.txu.com

WATER, GARBAGE, AND SEWER

Arlington Water Utilities 817-275-5931 or

101 W. Abram after 5:00 pm 817-261-2541

Arlington, Texas

City of Mansfield 817-276-4200

1305 B. Broad Street

Mansfield, Texas

City of Pantego Office 817-274-1381

1614 S. Bowen Road

Pantego, Texas

City of Dalworthington Gardens 817-274-7368

2600 Roosevelt Drive

Dalworthington Gardens, Texas

Grand Prairie 972-237-8209

317 College Street

Grand Prairie, Texas

VOTER REGISTRATION

For Precinct Information 817-884-1115

NATURAL GAS

Atmos Energy 1-800-621-1867

**Former TXU Customers 1-800-460-3030

P.O. Box 650205 www.atmosenergy.com

Dallas, Texas 75265-0205

TELEPHONE

Southwestern Bell 1-800-464-7928

Repair Hotline 1-800-246-8464

Telephone Company www.sbc.com

VEHICLE REGISTRATION www.texas.dmv.org

Arlington: Southeast Sub Court House 817-548-3935

724 E. Border Street

Mansfield: State Vehicle Registration 817-884-1100

BOAT REGISTRATION

Texas Park and Wildlife Department 817-831-3128

5400 Airport Freeway, Suite E

Fort Worth, Texas 76177

SCHOOL REGISTRATION

Arlington ISD 817-459-7342

Mansfield ISD 817-473-5600

UTA Registrars Office 817-272-2891

DRIVERS LICENSE www.txdps.state.tx.u

Public Safety Drivers License Office 817-274-1818

3901 W. Arkansas Lane, Suite 111

Arlington, Texas

Utility Numbers For Arlington

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Mobile: 817-980-9420

Fax 817-419-9187

[email protected] Office Independently Owned and Oper ated

M oLolMold may be a concern for homebuyers and sel le rs . real estate brokers,inspectors, and appra isers, and mortgage lenders. You can learn more aboutmold at. www.TexasReaIEstate.com/mold and from the Texas Department ofInsurance Mold Resource Page, www.tdi.state.tx.us/commish/mold.html.Here a re a few other i tems you should keep in mind: Real estate agents and brokers are not exper ts on mold. If you need more

information on this sub ject , you should exp lo re the online resources aboveor con tact an expert.

Insurability may be an issue. Buyers should discuss the insurability of aproperty w ith their insurance agent early in the t ransaction or, in somecases, before an offer is made.

You may have the property inspected for t he presence of mold. The costfor ~ u c h inspections varies depending on the size of the property, theext,ent of the, mold present, the type of expert conducting the inspection.and other factors.

Because there are present ly no l icensing or inspect ion standards fo r moldin properties, you may want to d iscuss mold inspect ions w ith more thanone expert. Most experts wi ll discuss the l imitations of the inspect ions . Forexample, an air-sampling test th at does not reveal extraordinary levels oftox ic mold does not necessar ily mean that mold is not present behind wallsor under f loors where the air samplers were not placed.

The last two questions in i tem f ive of the Texas Association of Realtorsdisclosure not ice is where the sel le r win likely disclos,e whether he is ,awareif mold, to the extent that it causes a health concern , is present in theproperty. f a disclosure notice from a source o ther t h ~ n the Te,x8sAssociation of Realtors is used, i tems for disclosing this information maybe located e lsewhere on the 'form.

Most experts suggest property owners undertake preventive action, suchas periodic cleaning of ale systems,. regular reviews of attic spaces,. andper iodic plumbing leak tests. The online sources l isted above have helpfulsuggestions.

NfeUssa 1incher

Mold?

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HOMESTEAD EXEMPTIONS

MAY LOWER YOUR HOMES PROPERTY TAXES

THE TEXAS HOMESTEAD

In Texas, the homesteadis the place of residence for a family or a single person, secure from forced

sale by general creditors. The Texas Constitution gives each spouse, or single person, a possessory right in

the homestead, which is lost only by death or abandonment, and cannot be compromised by waiver or

voluntary act of the homestead owner. The term exemption, as used in the state Constitution, stems from the

concept that the homestead is exempt from forced sale by a homestead claimant's general creditors. The

homestead cannot ever be mortgaged unless the mortgage is for one of the following SEVEN purposes:

1. To obtain money to finance the purchase of the homestead;

2. To obtain money to pay taxes due on the homestead;

3. To obtain money to improve the homestead (home improvement loan);

4. To obtain money to finance the purchase by one co-owner of another co-owners interest in the

homestead, by either agreement or court order (such as in a divorce decree);

5. To obtain money to pay off a federal tax lien;

6. To obtain money from a home equity loan; or

7. To obtain money from a reverse mortgage.

Article 16. Section 50 of the Texas Constitution sets forth the protection provided to the homesteadowner. Simply stated, a homeowner is protected from forced sale by his general creditors except for:

(1) the purchase money mortgage on the homestead;

(2) taxes due on the homestead;

(3) liens for work and materials used in improving the homesteadprovided

a. the contract to do the work was in writing and

b. signed by both husband and wifepriorto the commencement of work.

c. filed for record in the county of the homestead

(Unfortunately, many home improvement loan situations do not follow the requirements specified in (3)a, b

& c above, resulting in the loss of financing ability)

(4) a loan to buy out a co-owners (or ex-spouses) interest in the homestead as part of a divorce decree

or partition arrangement(5) a loan to pay off and release federal tax lien filed for the tax debt of BOTH spouses (or taxes owed

by the homestead owner if single)

(6) a home equity loan made pursuant to the requirements of the Texas Constitution

(7) a reverse mortgage made pursuant to the requirements of the Texas Constitution

In order to prevent the legislative branch of the government from casually changing the homestead

exemption, the exemption was incorporated into the State Constitution in 1845. Now only constitutional

amendments may change the substance of the exemption.

A Homestead Exemption May Lower Your Property Taxes

THE TEXAS HOMESTEAD

In Texas, the homesteadis the place of residence for a family or a single person, secure from forced

sale by general creditors. The Texas Constitution gives each spouse, or single person, a possessory right in

the homestead, which is lost only by death or abandonment, and cannot be compromised by waiver or

voluntary act of the homestead owner. The term exemption, as used in the state Constitution, stems from the

concept that the homestead is exempt from forced sale by a homestead claimant's general creditors. The

homestead cannot ever be mortgaged unless the mortgage is for one of the following SEVEN purposes:

1. To obtain money to finance the purchase of the homestead;

2. To obtain money to pay taxes due on the homestead;

3. To obtain money to improve the homestead (home improvement loan);

4. To obtain money to finance the purchase by one co-owner of another co-owners interest in the

homestead, by either agreement or court order (such as in a divorce decree);

5. To obtain money to pay off a federal tax lien;

6. To obtain money from a home equity loan; or

7. To obtain money from a reverse mortgage.

Article 16. Section 50 of the Texas Constitution sets forth the protection provided to the homestead

owner. Simply stated, a homeowner is protected from forced sale by his general creditors except for:

(1) the purchase money mortgage on the homestead;

(2) taxes due on the homestead;(3) liens for work and materials used in improving the homesteadprovided

a. the contract to do the work was in writing and

b. signed by both husband and wifepriorto the commencement of work.

c. filed for record in the county of the homestead

(Unfortunately, many home improvement loan situations do not follow the requirements specified in (3)a, b

& c above, resulting in the loss of financing ability)

(4) a loan to buy out a co-owners (or ex-spouses) interest in the homestead as part of a divorce decree

or partition arrangement

(5) a loan to pay off and release federal tax lien filed for the tax debt of BOTH spouses (or taxes owed

by the homestead owner if single)

(6) a home equity loan made pursuant to the requirements of the Texas Constitution

(7) a reverse mortgage made pursuant to the requirements of the Texas Constitution

In order to prevent the legislative branch of the government from casually changing the homesteadexemption, the exemption was incorporated into the State Constitution in 1845. Now only constitutional

amendments may change the substance of the exemption

The term homestead exemption also has another meaning with respect to local property taxes.

Most taxing authorities permit a homeowner to file an application with their local appraisal district to

exempt a portion of value from taxation for local property taxes. This can result in savings of as much as

20% of the annual tax bill. While the requirements to obtain this tax exemption are basically the same

standards used to determine homestead status under the Texas Constitution, these are still two distinct and

separate concepts and one does not necessarily determine the other. That is, just because you have a property

named as your homestead on the tax rolls, for tax exemption purposes, does not necessarily mean that the

property would constitute your homestead under the Texas Constitution for protection from creditors. Tax

homestead breaks are largely a matter of affidavits and filing procedures; Constitutional homestead protection

is premised more on intent than anything else.

OMESTEAD FILING EXEMPTION INSTRUCTIONS

lease Note:

Homeowners automatically receive an exemption form from the Appraisal

District. However, you are encouraged to contact the appropriate Appraisal

District for information or to request an exemption form.

Deadline for filing is April 30.

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EXPLANATIONS OF EXEMPTIONS

GENERAL RESIDENTIAL HOMESTEAD EXEMPTION

1. To qualify for this exemption, you must own and reside in your home on January 1 of the tax year.2. If you temporarily move away from your home, you still can qualify for this exemption, if you do not establish

another principal residence and you intend to return.

3. YOU MAY RECEIVE ONLY ONE HOMESTEAD EXEMPTIO N.FOR MOBILE HOMES

Attach a copy of the document of title from the Texas Department of Housing and Community Affairs (1-800-500-7074), if home is 8' X 40' or larger and document has not been cancelled, or provide a notarized copy of thepurchase contract that shows you as the owner. NOTE: Document must list Mobile Home Identification

Number.

OVER-65 EXEMPTION1. To qualify for this exemption, you must be at least age 65. This exemption includes a school tax limitation, or

ceiling.2. You must submit proof of age. Acceptable proof includes either a copy of the front side of your driver's license

or a copy of your birth certificate.

3.

You must apply before the first anniversary of your qualification date to receive the over-65 exemption in thattax year. For example, if you turn 65 on June 1 of the current year, you have until May 31 of the next year toapply for the current tax year's Over-65 Exemption. This special provision only applies to the Over-65exemption and not to other exemptions for which you may qualify.

4. If you qualified for an Over-65 exemption at a previous address and have moved since January 1, you willqualify for a transfer of your prior tax ceiling. Please contact the appraisal district for details.

5. You may NOT receive both the Over-65 exemption and the Disability exemption.6. If you are already receiving a Disability exemption, your Over-65 exemption will be applied next year.

OVER-65 SURVIVING SPOUSE OF A PERSON WHO R ECEIVED THE OVER-65 EXEMPTION1. To qualify for an extension of the Over-65 exemption, you must have been at least age 55 on the date your

spouse died and death must have occurred on or after December 1, 1987.2. You must submit proof of age and proof of death of your spouse.3. Your deceased spouse must have been receiving the Over-65 exemption on this residence homestead or would

have applied and qualified before his/her death. (See Over-65 qualifications above.)

DISABILITY EXEMPTION1. To qualify, you must meet all of the qualifications for the General Residential Homestead Exemption as shown

above.

2. In addition, you must submit proof of disability. Acceptable proof includes a current statement from the SocialSecurity Administration (1-800-772-1213) showing that you are disabled and the date on which your disabilitybegan, or a current letter of verification from your physician stating you are disabled, the date your disabilitybegan, and you are unable to engage in any substantial gainful work for a period which has lasted or can be

expected to last for a continuous period of one year or more.3. You must be receiving payment of disability benefits under the federal Old-Age, Survivor's, and Disability

Insurance Act, or you must have met the definition of disabled in that Act on January 1 of the year for whichyou are applying.

4. You may NOT receive both the Disability exemption and the Over-65 exemption.LATE FILING OF HOMESTEAD EXEMPTION FOR P RIOR YEAR

You must file an application no later than one year after the date you paid the taxes on your homestead or thetaxes became delinquent, whichever is earlier.

SIGNATURE REQUIRED

The person signing this application must be the person qualified for the exemption(s) checked. If the ChiefAppraiser grants your application, you do not have to reapply annually. However, you must reapply if the ChiefAppraiser requires you to do so, or if you want the exemption to apply to property not listed on this application.You must notify the Chief Appraiser in writing, if and when, your right to this exemption ends. If this

application is not approved, you will receive written notification explaining why it was not approved.

EXPLANATIONS OF EXEMPTIONS

GENERAL RESIDENTIAL HOMESTEAD EXEMPTION

1. To qualify for this exemption, you must own and reside in your home on January 1 of the tax year.2. If you temporarily move away from your home, you still can qualify for this exemption, if you do not establish

another principal residence and you intend to return.

3. YOU MAY RECEIVE ONLY ONE HOMESTEAD EXEMPTION.

FOR MOBILE HOMES

Attach a copy of the document of title from the Texas Department of Housing and Community Affairs (1-800-

500-7074), if home is 8' X 40' or larger and document has not been cancelled, or provide a notarized copy of the

purchase contract that shows you as the owner. NOTE: Document must list Mobile Home Identification

Number.

OVER-65 EXEMPTION

1. To qualify for this exemption, you must be at least age 65. This exemption includes a school tax limitation, or

ceiling.

2. You must submit proof of age. Acceptable proof includes either a copy of the front side of your driver's license

or a copy of your birth certificate.

3. You must apply before the first anniversary of your qualification date to receive the over-65 exemption in thattax year. For example, if you turn 65 on June 1 of the current year, you have until May 31 of the next year to

apply for the current tax year's Over-65 Exemption. This special provision only applies to the Over-65

exemption and not to other exemptions for which you may qualify.

4. If you qualified for an Over-65 exemption at a previous address and have moved since January 1, you will

qualify for a transfer of your prior tax ceiling. Please contact the appraisal district for details.

5. You may NOT receive both the Over-65 exemption and the Disability exemption.

6. If you are already receiving a Disability exemption, your Over-65 exemption will be applied next year.

OVER-65 SURVIVING SPOUSE OF A PERSON WHO RECEIVED THE OVER-65 EXEMPTION

1. To qualify for an extension of the Over-65 exemption, you must have been at least age 55 on the date your

spouse died and death must have occurred on or after December 1, 1987.

2. You must submit proof of age and proof of death of your spouse.

3. Your deceased spouse must have been receiving the Over-65 exemption on this residence homestead or would

have applied and qualified before his/her death. (See Over-65 qualifications above.)

DISABILITY EXEMPTION1. To qualify, you must meet all of the qualifications for the General Residential Homestead Exemption as shown

above.

2. In addition, you must submit proof of disability. Acceptable proof includes a current statement from the Social

Security Administration (1-800-772-1213) showing that you are disabled and the date on which your disability

began, or a current letter of verification from your physician stating you are disabled, the date your disability

began, and you are unable to engage in any substantial gainful work for a period which has lasted or can be

expected to last for a continuous period of one year or more.

3. You must be receiving payment of disability benefits under the federal Old-Age, Survivor's, and Disability

Insurance Act, or you must have met the definition of disabled in that Act on January 1 of the year for which

you are applying.

4. You may NOT receive both the Disability exemption and the Over-65 exemption.

LATE FILING OF HOMESTEAD EXEMPTION FOR PRIOR YEAR

You must file an application no later than one year after the date you paid the taxes on your homestead or the

taxes became delinquent, whichever is earlier.

SIGNATURE REQUIRED

The person signing this application must be the person qualified for the exemption(s) checked. If the Chief

Appraiser grants your application, you do not have to reapply annually. However, you must reapply if the Chief

Appraiser requires you to do so, or if you want the exemption to apply to property not listed on this application.

You must notify the Chief Appraiser in writing, if and when, your right to this exemption ends. If this

application is not approved, you will receive written notification explaining why it was not approved.

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Many homeowners have questions about watering. How much is too much? How much istoo little? How close to the house should I water? How does watering affect thefoundation of my home?

Obviously, some of us are over-watering, as evidenced by long streams of water flowing

down the gutters and into the storm sewers. Not only is this wasteful, it is also harmful toyour lawn and foundation.

Conversely, many of us have not watered nearly enough, as evidenced by grass that isdead or very nearly dead in its peak growing season. Foundation problems caused byexpansive clay soils usually develop when the amount of water in the soil changes non uniformlyunder the perimeter or interior of the slab.

Our climate is such that these clay soils shrink when dry and swell when wet, resulting inup and down movement of the house. If this occurs unevenly (one area of soil under thehouse gets more water or dries out faster), the house may become strained andfoundation damage occurs.

Foundation maintenance, in general, consists of one major concept: The moisture in thesoil under and around the house should be as consistent and uniform as possible at alltimes. Bedrock Foundation Repair offers the following tips to watering and maintainingyour homes lawn and foundation:

1. Install good ground cover. This will prevent excessive moisture from seeping deepinto the soil. This will also prevent erosion of the soil and excessive drying of the soilthrough evaporation.2. Water the soil around the house during dry periods just enough to keep the grassgreen. More watering may be needed in areas with more abundant shrubbery andplants. The south and west sides of the house are more exposed to the sun, and they

may need more watering to offset rapid evaporation.3. Never water too close to the foundation. Stay at least 18 inches away from the baseof the foundation.4. Never water directly into cracks in the soil near the base of your foundation. Thesecracks usually go a few feet deep, and the water will reach soil that is normallyundisturbed by concentrated amounts of moisture. Depending on the shrink/swellpotential of the soil, the soil may upheave, or it may consolidate and lose volume.Either way, it can undermine the foundation.5. Never place sand, sandy loam or rocks around the foundation. They are very porous,and allow water to pass quickly to the soil below, where the sun and wind cannot dryit out. Clay soils are non-porous, and are recommended for proper water drainage

away from the house.6. Never allow water to pond around the foundation. If water stands for very long, it willseep under the foundation, causing problems. Create a positive slope for water toflow away.Bedrock Foundation Repair1018 FletcherDallas, Texas 75223 http://www.torpedopier.com/foundation_watering/

Nf eUssa 1incher

Watering Your Foundation in Texas

Many homeowners have questions about watering. How much is too much? How much is

Too little? How close to the house should I water? How does watering affect the

Foundation of my home?Obviously, some of us are over-watering, as evidenced by long streams of water flowing

Down the gutters and into the storm sewers. Not only is this wasteful, it is also harmful to

Your lawn and foundation.

Conversely, many of us have not watered nearly enough, as evidenced by grass that is

Dead or very nearly dead in its peak growing season. Foundation problems caused by

Expansive clay soils usually develop when the amount of water in the soil changes non uniformly

Under the perimeter or interior of the slab.

Our climate is such that these clay soils shrink when dry and swell when wet, resulting in

Up and down movement of the house. If this occurs unevenly (one area of soil under the

House gets more water or dries out faster), the house may become strained and

Foundation damage occurs.

Foundation maintenance, in general, consists of one major concept: The moisture in the

Soil under and around the house should be as consistent and uniform as possible at allTimes. Bedrock Foundation Repair offers the following tips to watering and maintaining

Your homes lawn and foundation:

1. Install good ground cover. This will prevent excessive moisture from seeping deep

Into the soil. This will also prevent erosion of the soil and excessive drying of the soil

Through evaporation.

2. Water the soil around the house during dry periods just enough to keep the grass

Green. More watering may be needed in areas with more abundant shrubbery and

Plants. The south and west sides of the house are more exposed to the sun, and they

May need more watering to offset rapid evaporation.

3. Never water too close to the foundation. Stay at least 18 inches away from the base

Of the foundation.

4. Never water directly into cracks in the soil near the base of your foundation. These

Cracks usually go a few feet deep, and the water will reach soil that is normally

Undisturbed by concentrated amounts of moisture. Depending on the shrink/swell

Potential of the soil, the soil may upheave, or it may consolidate and lose volume.

Either way, it can undermine the foundation.

5. Never place sand, sandy loam or rocks around the foundation. They are very porous,

And allow water to pass quickly to the soil below, where the sun and wind cannot dry

It out. Clay soils are non-porous, and are recommended for proper water drainage

Away from the house.

6. Never allow water to pond around the foundation. If water stands for very long, it will

Seep under the foundation, causing problems. Create a positive slope for water to

flow away.

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Arlington, Texas 76016Mobile: 817-980-9420

Fax 817-419-9187

[email protected]


The Commitment for Title Insurance is issued only as a preliminary instrument ininstances in which the title company has a bonafide order for the policy or policies oftitle insurance specified therein, to be issued (90) days from the effective date of theCommitment. There is no charge by any title company for the issuance of theCommitment.Basically, the Commitment for Title Insurance informs those to be insured by a titlepolicy of the condition of the property involved. In addition, it informs the futureinsured of any requirements that must be in place before the policy will be issued.The Seller is required to furnish the Commitment to the Purchaser. If a loan is part ofthe transaction, the Lender will require a Commitment at some time during theprocession of the loan.

A Commitment for Title Insurance consist of four (4) sections:SCHEDULE A- Schedule A sets out the effective date of the commitment, the names ofthe insured, the sales price, loan amount, the estate or interest in the land (fee simple,easement estate, lease-hold estate, etc.) the name of the person/s in title at the date ofcommitment and the legal description of the property under consideration.SCHEDULE B- Schedule B informs the insured of everything of record that affectsthe property such as restrictions, liens, oil and gas reservations, easements, and so on,guarantees any ad valorem taxes are paid current through your designated year and ingeneral, limits the liability of the policy/ies to be issued.SCHEDULE C- Schedule C informs the insureds to any requirements that must be metbefore a policy/ies will be issued.SCHEDULE D- Schedule D, according to the State Rules and Regulations, is adisclosure of the officers of the Title Company and Underwriter and also discloses thepremiums to be charged for the policy/ies and the beneficiary/ies of such premiums.All Commitment forms, furnished by underwriters, are exactly the same as to content.The only difference can be in the spacing of the items. The title industry is regulatedclosely by Rules, Rates, and Forms for the writing ofTitle Insurance in the State ofTexas.M e/issa rrincher

What is a Title Commitment?

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1. You will receive from the County Clerks office the original recorded WarrantyDeed that transferred title to the property to you. Store this document forsafekeeping, as you may need to refer to it in the future.

NOTE: A deed is not like a car title-you do not need the original to theproperty. When the deed is recorded, your title is on record with theCounty Clerk.

2. You will receive from the title company an Owner Policy ofTitle Insurance.This document should also be stored for safekeeping with your otherimportant papers. You should be certain to verify the name and addressshown on the policy.

3. You will receive a coupon book or other instructions about making yourmonthly loan payments from your lender. If you do not receive the couponbook or instructions on t ime to make your first payment, call your lender ortitle company to assist you.

4. Make certain to file for your homestead exemption with the various taxingauthorities who collect taxes on your property. You must be the owner of theproperty on January I"' to file for this exemption or others you may qualifyfor, and can do so anytime between January I"' and April 30 lb

5. Uyour property taxes are being escrowed/impounded by your mortgagecompany forward any tax notices you may receive in the mail to your lenderso they ean pay the taxes in a timely manner.

6. It is the taxpayer's responsibility to be certain that the property is rendered inthe taxpayer's name for the upcoming tax year. Contact the County AppraisalDistrict for assistance in making certain this is done.

7. Enjoy your new home!

RE/MAX Associates ofArlington4105 South Bowen RoadArlington, Texas 76016Mobile: 817-980-9420Fax [email protected]

Oh By The Way,"Iam never too busy

for you or your referrals!!!

What Happens After Closing?

Oh By The Way...if you know of someone needing to buy or sell,Please call me with their name and number and I will be happy to help them.

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Reprinted from REALTOR magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS.Copyright 2008. All rights reserved.

Common Firs t-Time Home Buyer Mistakes

1. They dont ask enough questions of their lender and end up missing out on the best deal.

2. They dont act quickly enough to make a decision and someone else buys the house.

3. They dont find the right agent whos willing to help them through the homebuying process.

4. They dont do enough to make their offer look appealing to a seller.

5. They dont think about resale beforethey buy. The average first-time buyer only stays in a home for four years.

Source: Real Estate Checklists and Systems,www.realestatechecklists.com.

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Lender Checklis t: What You Need for a Mortgage

W-2 forms or business tax return forms if you're self-employed for the last two or three years for everyperson signing the loan.

Copies of at least one pay stub for each person signing the loan.

Account numbers of all your credit cards and the amounts for any outstanding balances.

Copies of two to four months of bank or credit union statements for both checking and savingsaccounts.

Lender, loan number, and amount owed on other installment loans, such as student loans andcar loans.

Addresses where youve lived for the last five to seven years, with names of landlords ifappropriate.

Copies of brokerage account statements for two to four months, as well as a list of any other major assets ofvalue, such as a boat, RV, or stocks or bonds not held in a brokerage account.

Copies of your most recent 401(k) or other retirement account statement.

Documentation to verify additional income, such as child support or a pension.

Copies of personal tax forms for the last two to three years.

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Specialty Mortgages: Risks and Rewards

In high-priced housing markets, it can be difficult to afford a home. Thats why a growing number of home buyers areforgoing traditional fixed-rate mortgages and standard adjustable-rate mortgages and instead opting for a specialtymortgage that lets them stretch their income so they can qualify for a larger loan.

But before you choose one of these mortgages, make sure you understand the risks and how they work.

Specialty mortgages often begin with a low introductory interest rate or payment plan a teaser but the monthlymortgage payments are likely to increase a lot in the future. Some are low documentation mortgages that come witheasier standards for qualifying, but also higher interest rates or higher fees. Some lenders will loan you 100 percentor more of the homes value, but these mortgages can present a big financial risk if the value of the house drops.

Specialty Mortgages Can:

Pose a greater risk that you wont be able to afford the mortgage payment in the future, compared to fixedrate mortgages and traditional adjustable rate mortgages.

Have monthly payments that increase by as much as 50 percent or more when the introductory periodends.

Cause your loan balance (the amount you still owe) to get larger each month instead of smaller.

Common Types of Specialty Mortgages:

Interest-Only Mortgages: Your monthly mortgage payment only covers the interest you owe on the loan forthe first 5 to 10 years of the loan, and you pay nothing to reduce the total amount you borrowed (this iscalled the principal). After the interest-only period, you start paying higher monthly payments that coverboth the interest and principal that must be repaid over the remaining term of the loan.

Negative Amortization Mortgages: Your monthly payment is less than the amount of interest you owe on

the loan. The unpaid interest gets added to the loans principal amount, causing the total amount you owe toincrease each month instead of getting smaller.

Option Payment ARM Mortgages: You have the option to make different types of monthly payments withthis mortgage. For example, you may make a minimum payment that is less than the amount needed tocover the interest and increases the total amount of your loan; an interest-only payment, or paymentscalculated to pay off the loan over either 30 years or 15 years.

40-Year Mortgages: You pay off your loan over 40 years, instead of the usual 30 years. While this reducesyour monthly payment and helps you qualify to buy a home, you pay off the balance of your loan much moreslowly and end up paying much more interest.

Questions to Consider Before Choosing a Specialty Mortgage:

How much can my monthly payments increase and how soon can these increases happen? Do I expect my income to increase or do I expect to move before my payments go up? Will I be able to afford the mortgage when the payments increase? Am I paying down my loan balance each month, or is it staying the same or even increasing? Will I have to pay a penalty if I refinance my mortgage or sell my house? What is my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house

than I can realistically afford?

Be sure you work with a REALTOR and lender who can discuss different options and address your questions andconcerns!

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5 Factors That Decide Your Credit ScoreCredit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage.The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late?Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe. If youowe a great deal of money on numerous accounts, it can indicate that you areoverextended. However, its a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The averageconsumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time,according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are consideredmore risky, even if you pay them promptly.

5. The types of credit you use. Generally, its desirable to have more than one type of credit installment loans,credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.com.

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5 Property Tax Questions You Need to Ask 1. What is the assessed value of the property? Note that assessed value is generally less than market value. Askto see a recent copy of the sellers tax bill to help you determine this information.

2. How often are properties reassessed, and when was the last reassessment done? In general, taxes jumpmost significantly when a property is reassessed.

3. Will the sale of the property trigger a tax increase? The assessed value of the property may increase based onthe amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.

4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appealthe tax assessment and lower the rate.

5. Does the current tax bill reflect any special exemptions that I might not qualify for? For example, many taxdistricts offer reductions to those 65 or over.

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6 Creative Ways to Afford a Home

1. Investigate local, state, and national down payment assistance programs. These programs give qualifiedapplicants loans or grants to cover all or part of your required down payment. National programs include theNehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from theDepartment of Housing and Urban Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of thehome and let you repay them gradually, just as you would do with a mortgage.

3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends,or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. Theowner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names areusually on the mortgage. Companies are available that can help you find such an investor, if your family cantparticipate.

4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward

your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. Youusually have to pay a small, nonrefundable option fee to the owner.

6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would giveyou money to make a larger down payment. This may be possible if youre in good financial standing, with a strongincome and little other debt.

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8 Tips to Guide for Your Home Search

1. Research before you look. Decide what features you most want to have in a home, what neighborhoods youprefer, and how much youd be willing to spend each month for housing.

2. Be realistic. Its OK to be picky, but dont be unrealistic with your expectations. Theres no such thing as a perfecthome. Use your list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you theheartache later of falling in love with a house you cant afford.

4. Dont ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel youneed a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental marketin your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stayin this home for a longer period? This decision may dictate what type of home youll buy as well as the type of

mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a REALTOR. Hire a real estate professional who specializes in buyer representation. Unlike alisting agent, whose first duty is to the seller, a buyers representative is working only for you. Buyers reps are usuallypaid out of the sellers commission payment.

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10 Questions to Ask Your Lender

1. What are the most popular mortgages you offer? Why are they so popular?

2. Which type of mortgage plan do you think would be best for me? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required?(NOTE: Private mortgage insurance is usually required if your down payment is less than 20 percent. However, mostlenders will let you discontinue PMI when youve acquired a certain amount of equity by paying down the loan.)

5. Who will service the loan your bank or another company?

6. What escrow requirements do you have?

7. How long will this loan be in a lock-in period (in other words, the time that the quoted interest rate will be honored)?Will I be able to obtain a lower rate if it drops during this period?

8. How long will the loan approval process take?

9. How long will it take to close the loan?

10. Are there any charges or penalties for prepaying the loan?

Used with permission from Real Estate Checklists & Systems,www.realestatechecklists.com.

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Budget Basics WorksheetThe first step in getting yourself in financial shape to buy a home is to know exactly how much money comes in andhow much goes out. Use this worksheet to list your income and expenses below.

INCOME

Take Home Pay (all family members)

Child Support/Alimony

Pension/Social Security

Disability/Other Insurance

Interest/Dividends

Other

Total Income

EXPENSES

Rent/Mortgage (include taxes, principal, andinsurance)

Life Insurance

Health/Disability Insurance

Vehicle Insurance

Homeowners or Other Insurance

Car Payments

Other Loan Payments

Savings/Pension Contribution

Utilities (gas, water, electric, phone)Credit Card Payments

Car Upkeep (gas, maintenance, etc.)

Clothing

Personal Care Products (shampoo, cologne, etc.)

Groceries

Food Outside the Home (restaurant meals andcarryout)

Medical/Dental/Prescriptions

Household Goods (hardware, lawn, and garden)

Recreation/Entertainment

Child Care

Education (continuing education, classes, etc.)

Charitable Donations

Miscellaneous

Total Expenses

Remaining Income After Expenses(Subtract Total Income from Total Expenses)

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How Big o f a Mortgage Can I Afford? Not only does owning a home give you a haven for yourself and your family, it also makes great financial sensebecause of the tax benefits which you cant take advantage of when paying rent.

The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be,too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.

Rent: _________________________

Multiplier: x 1.32

Mortgage payment: _________________________

Because of tax deductions, you can make a mortgage payment including taxes and insurance that isapproximately one-third larger than your current rent payment and end up with the same amount of income.

For more help, use Fannie Maesonline mortgage calculators.

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Loan Types to Consider

Brush up on these mortgage basics to help you determine the loan that will best suit your needs.

Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the

term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.

Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate as long as you hold themortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage isdesigned so that your loans interest rate will rise as market interest rates increase. ARMs usually offer alower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest ratecan be increased and how frequently they can be raised. These types of mortgages are a good choice whenfixed interest rates are high or when you expect your income to grow significantly in the coming years.

Balloon mortgages. These mortgages offer very low interest rates for a short period of time often threeto seven years. Payments usually cover only the interest so the principal owed is not reduced. However, thistype of loan may be a good choice if you think you will sell your home in a few years.

Government-backed loans. These loans are sponsored by agencies such as the Federal HousingAdministration (www.fha.gov) or the Department of Veterans Affairs (www.va.gov) and offer special terms,

including lower down payments or reduced interest rates to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help indetermining how much your monthly payment will be for various loan amounts, use Fannie Maes online mortgagecalculators.

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Get Your Finances in Order: To-Do List

1. Develop a household budget. Instead of creating a budget of what youd like to spend, use receipts to create abudget that reflects your actual spending habits over the last several months. This approach will factor in unexpectedexpenses, such as car repairs, as well as predictable costs such as rent, utility bills, and groceries.

2. Reduce your debt. Lenders generally look for a total debt load of no more than 36 percent of income. This figureincludes your mortgage, which typically ranges between 25 and 28 percent of your net household income. So you

need to get monthly payments on the rest of your installment debt car loans, student loans, and revolving balanceson credit cards down to between 8 and 10 percent of your net monthly income.

3. Look for ways to save. You probably know how much you spend on rent and utilities, but little expenses add up,too. Try writing down everythingyou spend for one month. Youll probably spot some great ways to save, whether itscutting out that morning trip to Starbucks or eating dinner at home more often.

4. Increase your income. Nows the time to ask for a raise! If thats not an option, you may want to consider takingon a second job to get your income at a level high enough to qualify for the home you want.

5. Save for a down payment. Designate a certain amount of money each month to put away in your savingsaccount. Although its possible to get a mortgage with only 5 percent down, or even less, you can usually get a betterrate if you put down a larger percentage of the total purchase. Aim for a 20 percent down payment.

6. Keep your job. While you dont need to be in the same job forever to qualify for a home loan, having a job for less

than two years may mean you have to pay a higher interest rate.

7. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all yourother bills, too. Pay off the entire balance promptly.

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Tax Benefits of HomeownershipThe tax deductions youre eligible to take for mortgage interest and property taxes greatly increase the financialbenefits of homeownership. Heres how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)

______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreasedwhen total income reaches a certain level.

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Tips for Lowering Homeowners Insurance Costs

1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property youre interested inbuying. CLUE reports detail the propertys claims history for the most recent five years, which insurers may use todeny coverage. Make the sale contingent on a home inspection to ensure that problems identified in the CLUE reporthave been repaired.

2. Seek insurance coverage as soon as your offer is approved. You must obtain insurance to buy. And you dont wantto be told at closing that the insurer has denied your coverage.

3. Maintain good credit. Insurers often use credit-based insurance scores to determine premiums.

4. Buy your home owners and auto policies from the same company and youll usually qualify for savings. But makesure the discount really yields the lowest price.

5. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower. Avoidmaking claims under $1,000.

6. Ask about other discounts. For example, retirees who tend to be home more than full-time workers may qualify fora discount on theft insurance. You also may be able to obtain discounts for having smoke detectors, a burglar alarm,

or dead-bolt locks.

7. Seek group discounts. If you belong to any groups, such as associations or alumni organizations, they may havedeals on insurance coverage.

8. Review your policy limits and the value of your home and possessions annually. Some items depreciate and maynot need as much coverage.

9. Investigate a government-backed insurance plan. In some high-risk areas, federal or state government may backplans to lower rates. Ask your agent.

10. Be sure you insure your house for the correct amount. Remember, youre covering replacement cost, not marketvalue.

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What You Can Do to Improve Your Credit

Credit scores, along with your overall income and debt, are big factors in determining whether youll qualify for a loanand what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someoneelses poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt fromone card to another could lower your score.

3. Dont charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. Youre penalized less for problems after a year.

5. Dont order items for your new home on credit such as appliances and furniture until after the loan isapproved. The amounts will add to your debt.

6. Dont open new credit card accounts before applying for a mortgage. Too much available credit can lower yourscore.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries fromthe same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered asign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie MaeFoundation. To obtain a complete copy of the publication,Knowing and Understanding Your Credit, visitwww.homebuyingguide.org.

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Your Property Wish List

What does your future home look like? Where is it located? As you hunt down your dream home, consult this list toevaluate properties and keep your priorities top of mind.

Neighborhoods

What neighborhoods do you prefer?

Schools

What school systems do you want to be near?

Transportation

How close must the home be to these amenities:

Public transportation Airport Expressway Neighborhood shopping Schools Other

Home Style

What architectural style(s) of homes do you prefer?

Do you want to buy a home, condominium, or townhome?

Would you like a one-story or two-story home?

How many bedrooms must your new home have?

How many bathrooms must your new home have?

Home Condition

Do you prefer a new home or an existing home? If youre looking for an existing home, how old of a home would you consider?

How much repair or renovation would you be willing to do?

Do you have special needs that your home must meet?

Home Features

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Please circle one of the choices: Must Have, Would Like, Willing to Compromise, Not Important

Front yard Must Have Would Like Willing to Compromise Not Important

Back yard Must Have Would Like Willing to Compromise Not Important

Garage ( __ cars) Must Have Would Like Willing to Compromise Not Important

Patio/Deck Must Have Would Like Willing to Compromise Not Important

Pool Must Have Would Like Willing to Compromise Not Important

Family room Must Have Would Like Willing to Compromise Not Important

Formal living room Must Have Would Like Willing to Compromise Not Important

Formal dining room Must Have Would Like Willing to Compromise Not Important

Eat-in kitchen Must Have Would Like Willing to Compromise Not Important

Laundry room Must Have Would Like Willing to Compromise Not Important

Finished basement Must Have Would Like Willing to Compromise Not Important

Attic Must Have Would Like Willing to Compromise Not Important

Fireplace Must Have Would Like Willing to Compromise Not Important

Spa in bath Must Have Would Like Willing to Compromise Not Important

Air conditioning Must Have Would Like Willing to Compromise Not Important

Wall-to-wall carpet Must Have Would Like Willing to Compromise Not Important

Wood floors Must Have Would Like Willing to Compromise Not Important

Great view Must Have Would Like Willing to Compromise Not Important

Other notes:

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5 Things to Know About Homeowners Insurance1. Know about exclusions to coverage. For example, most insurance policies do not cover flood or earthquakedamage as a standard item. These types of coverage must be bought separately.

2. Know about dollar limitations on claims. Even if you are covered for a risk, there may be a limit on how muchthe insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insuredseparately.

3. Know the replacement cost. If your home is destroyed youll receive money to replace it only to the maximum ofyour coverage, so be sure

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