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A Guide for Home Buyer's Provided By The Susan Horak Group Re/Max Boone Realty

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  • As you begin looking for As you begin looking for Asthe home of your dreams with Susan, there are a few things you should few things you should do first. Advanced preparation will help make the home buying process smoother and more efficient.

    Of ce: (573)876-2849 (573)447-2146Fax: (573)447-0155 Hours: 8:30am - 6:00 pmwww.SusanHorak.com

    A Home BuyersGuide to the Home Buying Process

  • T H E S U S A N H O R A K G RO U P R E / M A X B O O N E R E A LT YT H E S U S A N H O R A K G RO U P R E / M A X B O O N E R E A LT Y

    YourFinancesO R G A N I Z I N G

    ourFinances With a RealtorBene ts of Working with a Realtor

    They help you sort out your nancial situation and offer advice on what exactly you can afford. They use the Mls and numerous other sources to nd information on properties listed for sale that might suit your needs. They organize appointments with home sellers. They are knowledgeable about the paperwork you will need to ll out when making an offer. They will help in the arrangement of nancing. They are skilled negotiator

    B E N E F I T S O F WO R K I N G

    YouHaveO P T I O N S W H E N C H O O S I N G A B A N K

    With a RealtorT H E H O M E B U Y I N G P R O C E S S C A N B E E A SY A N D Enjoyable!

    Get a free credit report here: www.freecreditreport.com Make a household budget and gure out where money is coming from and where it is going (income vs. bills/debt). begin to gather items such as: i. last 3 years of income tax returns ii. bank statements for the last 3 months iii. current copies of pay stubs iv. records of any past derogatory credit history that has since been paid off v. records of any supplemental income you may have vi. if you are self employed, you will need all business records and income tax returns for the last 3 years. If you have been divorced or led for bankruptcy, make copies of the settlements. Pay off minor debts if possible and do not incur new debt.

    B E AWA R E O F F I N A N C I A L P L A N S F O R C E R TA I N P R O F E S S I O N S

    Many lenders offer special programs for speci c service in-dustries and professionals such as teachers, police, remen, doctors, etc. be sure to check and see if you qualify for this type of loan during your pre-quali cation process.

    If you havent started the process of choosing a lender, while we are looking at homes, I will be recommending a few lenders to you who are best suited to handle the loan program that YOU need. And then I will help you navigate through bank fees and interest rates to determine witch loan is right for you. - Susan

  • With a Realtor

    All Graphics & Literature in this document are the exclusive rights of the Susan Horak Group-Re/Max Boone Realty, and may not be used, reproduced or altered in any way, even if property is not currently listed.

    T H E S U S A N H O R A K G RO U P R E / M A X B O O N E R E A LT Y

    Peace of Mind: If you are pre-approved, thats just one less thing you have to worry about while youre looking for your new home. Save time: once you are pre-approved, you will know what you can afford so you wont waste any time looking at homes that you arent quali ed for.

    Negotiating Power: once you nd the home you want and make an offer, being pre-approved will make your offer have more impact than others, and you will be more likely to get the terms and price you desire. Advanced Problem Solving: often, buyers will need a little work to get their loan approved. The best time to get these problems taken care of is prior to making an offer on a home.

    B E N E F I T S O F P R E - Q U A L I F I C AT I O N

    B U Y E R Q U A L I F I C AT I O N W O R K S H E E T FHA/C O N V E N T I O N A L M O R TG AG E A M O U N T

    It is practical to go ahead and get pre-quali ed with your lender before you actually start looking. During the pre-approval process the lender will verify credit worthiness and determine the price range of houses you are quali ed to purchase.

    L E N D E R P R E - Q U A L I F I C AT I O N

    A VA I L A B L E F U N D S

    Savings account $ _______________ Investments (stocks, bonds and mutual funds) $ _______________ Insurance (cash value) $ _______________ Gifts - Conventional Gifts - FHA (family member or blood relative) $ _______________ Other $ _______________ Monthly salary $ _______________ Gross Monthly Income $ ____________ (a)

    M O R TG AG E P AY M E N T

    Principal & Interest $ _______________ Taxes $ _______________ Hazard Insurance $ _______________ PMI (Private Mortgage Insurance) $ _______________ Homeowner association Dues $ _______________ Total Mortgage Payment $ ____________ (b)

    I N C O M E Q U A L I F I C AT I O Nfor FHA: Take 29% of line (a)for Conventional: Take 33% of line (a)(assuming at least 10% down payment) Total Mortgage Payment (b) must not exceed line (C) $ _______________

  • All Graphics & Literature in this document are the exclusive rights of the Susan Horak Group-Re/Max Boone Realty, and may not be used, reproduced or altered in any way, even if property is not currently listed.

    T H E S U S A N H O R A K G RO U P R E / M A X B O O N E R E A LT Y

    There is no real mystery in guring out what the bank feels you can afford to spend on a home. I will ask you a few questions, such as your income, your debt load, your cash on hand, and about your credit worthiness.

    And from that I will have everything that I need to help you pin point the price range we should be looking in and will be able to calculate a

    payment for you.

    I will ask you to begin gathering the nancial documents that youll need when applying for a loan.

    Keep your nances in order until you close on your new home, make all your payments on time and dont acquire

    new debt, unless of course debt to income is not an issue.

    W H AT CA N YO U A F FO R D ?

    D E BT Q U A L I F I CAT I O N WO R K S H E E T MO N T H LY O B L I GAT I O N S

    Total Mortgage Payment $ _______________ Auto Payments* $ _______________ Monthly Charge Card Payments (minimum payments) $ _______________ Loans* $ _______________ Child support/alimony $ _______________ Child Care expenses (FHA only) $ _______________ Other Monthly Payments $ _______________ TOTA L MO N T H LY O B L I GAT I O N S $ _______________ (D)

    A L LOWA B L E O B L I GAT I O N SFor FHA: Gross Income (a) X 41% orFor Conventional:Gross Income (a) X 38%Total Monthly Obligations (d)M U ST N OT E XC E E D L I N E ( E ) $ ____________ (E)

    *You need only count debts that will extend beyond six months (FHA) or 10 months (CONV). However, if an obligation is greater than $100 per month, it may count against the buyer even if it has less than the allowed time.

  • All Graphics & Literature in this document are the exclusive rights of the Susan Horak Group-Re/Max Boone Realty, and may not be used, reproduced or altered in any way, even if property is not currently listed.

    Before W E G E T I N T H E C A R

    Before we get in the car, we need to get Prepared, Organized, and Educated! Only then can we successfully navigate through every step of this process.

    First Step: We need to educate each other so we know what to expect.

    I would like to nd out from you where you see yourself in ve years, I need to know your current nancial situation as well as your prospects, I would like to know what type of homes you grew up in, I would like to go through a list with you of what you think you need in a house, your must haves and your wish list, and then Im going to explain to you why we are going to ignore most of that list!

    From our rst meeting, then at every house we look at, to the closing and beyond, I will be teaching you everything I know as we go.

    Lets face it, it is not in my best interest to sell you a house that I am not thrilled to get to sell for you when that time comes. With over 25 years under my belt and a good 25 to go, I want to make sure you were happy in the house I sold you, and that it has excellent resale value. Why would I want to make my job harder? For me, todays sale to you is tomorrows great listing!

    Get organized ahead of time. Keeping a notebook and calendar dedicated to the home-buying process is a good idea.

    You will be set up with a portal on the web where you can keep track of your favorite listings, send me comments, and make notes on homes you have seen and homes you would like to see. You will be automatically emailed every time a home matching your criteria is listed or whose prices has been reduced into your range. You will also see when homes sell and this will help you keep your nger on the pulse of the market. - Susan

  • F I N D I N G T H E P E R F E CT H OM E

    It is extremely benecial for you to have an idea of what you want and what you need in a home before you start looking. lling out this questionnaire will help you and your Realtor nd the perfect home quickly.

    T H E H OM E I A M LO O K I N G FO R :

    . . . I S I N T H E P R I C E R A N G E O F _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ TO _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .

    . . . I S T H I S ST Y L E :

    1 STO RY

    2 STO RY

    M U LT I - L E V E L

    TOW N H OM E

    C O N D OM I N I U M

    . . . I S T H E FO L LOW I N G AG E :

    N E W H OM E

    1- 5 Y E A R S

    6 - 15 Y E A R S

    6 - 2 5 Y E A R S

    2 6 + Y E A R S

    A N Y AG E

    . .