THE HOME BUYER’S GUIDE

Everything You Need To Know About Purchasing A Home!

MACMACHHOMEOME

TTEAMEAM

Congratulations! The decision to purchase a home is an exciting one. The experience should

also be enjoyable. Thank you for the opportunity to assist you with this decision.

Purchasing a home is a very important decision. We would like to help you with honest and

accurate information so that you can make a well-informed decision. This booklet will give you

an idea of what to expect during each phase of the process. It also contains reference pages, note

pages, deadline information, etc. It will be a useful reference guide even after the transaction is

closed.

We will use all of our knowledge and experience to inform you about our market area and assure

that you receive the best value for your dollar committed. We will provide you with continuous

guidance and support until closing has occurred and the moving van has been unloaded.

Thereafter, we will always be available for your real estate needs. Before, during and after the

sale!

Providing service that “exceeds your expectations” is truly our mission as your REALTOR.

Your Realtors,The MAC Home Team

Keller Williams Realty . 972.618.7355 . MaryAnneCollins@KW.com

Listed in D MagazineBest Realtors in Dallas2004 -2012

The MAC Home Team

Mary Anne CollinsTeam Leader

17 years of Real Estate ExperienceListing Manager & Lead Buyers Agent

Kristen Z. WoodBuyer Specialist469.766.7602

kzwood@kw.com

Rachel SavantBuyer Specialist972-333-0284

Rachel@RachelSavant.com

Mary Anne CollinsDirect # 972.618-7355

MACHomeTeam@gmail.com

Why Do You Need a Realtor?

A Realtor brings a wealth of knowledge and experience to the business of buying a home. In fact,a licensed real estate professional provides much more than the service of helping you find thehome of your dreams. Realtors are not just sales agents; they are expert negotiators, seasonedfinancial advisors, and superb navigators around the local neighborhood. They are members ofthe National Association of Realtors and must abide by a Code of Ethics and Standards ofPractice enforced by the National Association of Realtors. A professional Realtor is your bestresource when buying a home.

Let Us Be Your Guide

Working with us can save you endless amounts of time, money and frustration;

We know the housing market inside and out and can help you avoid many commonmistakes;

We can help you with any house even if it is listed elsewhere, or is being sold by the ownerdirectly;

We know the best lenders in the area; We can help you get pre–approved for a mortgage anddiscuss down payments, closing costs, and monthly payment options;

We are an excellent source for general information about the community, specificinformation about schools, churches, shopping, transportation, plus tips on houseinspections and pricing;

We are experienced at presenting your offer to the homeowner and can help you through theprocess of negotiating the best deal. We bring objectivity to the buying transaction and canpoint out advantages and disadvantages of a particular property;

And the best thing of all, is that all this help won’t cost you a cent! Generally,the seller pays the commission to Realtors, however, that does not affect mydedication or the spirit of teamwork that I will put into helping you find andbuy the home of your dreams.

Keller Williams is the 2nd largest Real Estate Company in North America.

Mary Anne was the 45th agent in North Texas to join Keller Williams.

2007, 2008, 2009 , 2010 & 2011 Ranked #1 in Individual Production in Sales Volume at the

Keller Williams Preston Rd. Market Center with over 400 agents.

2012—Ranked #1 TEAM at Keller Williams Dallas Preston Rd. Market Center

2008—2009 - Ranked # 4 in Individual Production in Sales Volume in the North Texas /

New Mexico Region with 32 Market Centers.

2004-2012 D Magazine Best of the Best Realtors in Dallas

1995 - First Year in Real Estate - Rookie of the year

1995 - Current - Consistently Ranked as one of the top 4 Producers at Dallas Preston Rd.

Member of the Collin County Association of Realtors

ABR - Accredited Buyers Rep

GRI - Graduate of the Real Estate Institute

E-Pro - Designation for Technology Savvy Realtors

eAgentc Designation - for the Tech Savvy KW Agent

Member of the Agent Leadership Council

Instructor for Keller Williams Preston Rd and Keller Williams Urban Dallas

Co-Owner of Keller Williams Urban Dallas Market Center

Advocate for my clients

Wife to Jim for 30 years

Mother of 2 wonderful children, Jimmy & Kathryn

Hard Working Real Estate Agent & Your Realtor for Life

Listed in D MagazineBest Realtors in Dallas2004 –2012

Founded in Austin, Texas in 1983 by Gary Keller and Joe Williams, the company laid the

foundation for agents to become independent real estate business people. The Keller Williams

philosophy is “to build careers worth having, businesses worth owning, and lives worth living.”

Your Realtor, Mary Anne Collins, was the 45th Agent to join KW in the North Texas Region.

She is the # ONE Individual Producer in the Preston Rd. Market Center of over 400 Agents.

These goals were achieved by always putting our clients needs first and always doing right by

others. Our motto:

Win / Win – or no deal

Integrity – do the right thing

Commitment – in all things

Communication – seek first to understand

Creativity – ideas before results

Clients – always come first

Teamwork – together everyone achieves more

Trust – starts with honesty

Success – results through people

What our Clients say about our Service …..

I purchased my first townhome from Mary Anne and after Duke and I married she helped

us with our first Home and with the purchase of an investment property. She is awesome. I

totally trust her and she saved me a lot of headache by insisting that I not by the house I

originally wanted due to the poor location. You can count on Mary Anne to keep you

grounded during the buying process so that you not only end up with a home you love, but

one she can resale as your family grows. You Rock!

Steve & Jane Raish

Duke & Erin Strain

Mary Anne was so patient during our home buying experience. We were looking for just

the right home and when we found it, she quickly found us a buyer for our home before

she even had it listed in MLS. Her contacts and connections allowed us to juggle a very

quick close time and everything went according to plan. She never misses a detail and is

always available and makes you feel that you are her only client. We have referred her to

many of our friends and business associates and trust her completely.

Bob and Marlene

“I have worked with a number of agents, and Mary Anne is by far the best one I’ve donebusiness with! She is exactly the type of professional you want working for you. Her experi-ence is invaluable – from her detailed knowledge of the market, to her expert advice onmultiple topics, to her skillful negotiating of multiple offers.

Mary Anne has outstanding communication skills and did an excellent job at keeping every-one informed throughout the sales process. She was extremely professional in dealing withother agents, and she always knew exactly what to say and what not to say in order to keepnegotiations moving forward, to work through the issues that arose, to maximize bargainingposition, and to move everyone quickly and easily to a smooth close.”

Having been in the real estate appraisal field for many years, we knew that when it was time

to sell our home and buy another we wanted a realtor that was especially knowledgeable of

our neighborhood. Mary Anne was the only person we would consider. She knows Whif-

fletree and the Estates of Forest Creek inside and out. We received a contract in 8 and she

then went to Cedar Creek Lake with us to lock down our dream lot to build on. She is a

true professional and a great Realtor to have on your side.

Larry and Christine Novak

90% of Our Business are Referralsfrom our Past Clients! We love this!

Ungarean

Keller Williams Realty . 972.618.7355 . MaryAnneCollins@KW.com

The First Step ….In the home buying process is to find an experienced REALTOR thatyou can trust and sign a Buyer’s Representation Agreement. This guar-antees, by the laws of the state, that your needs are met professionallyand represented throughout the entire process of buying your home.

The Next Step ….Is to start looking at homes. Once we determine your criteria “needsand wants”, we will set up an automated search in our Multiple ListingService. As new homes hit the market that meet your criteria you will benotified. Count on us to let you know which homes are in the right lo-cation and condition for you. We see a lot of homes and will save youmany hours by screening these properties.

This is a BIG Step ….When you find your home, we will research the area and comparableproperties that have sold and determine what to “offer” We have exten-sive experience in contract negotiations. We will ensure that you make agood business decision.

We’re Starting to Jog now ….When the seller accepts your offer, you “go under contract.” You willwant to ensure that every detail is handled accurately and in a timelyfashion. We will ensure you adhere to these details and stay on track.

You are on the “Home” Stretch!Final details are handled and inspections are performed to ensure theproperty meets your expectations. Contract details are further negotiat-ed and we then head to closing!

After this, you are Moving in to your New Home …We meet at the Title Company to Close your Sale. This is a Good Day!

The Buying ProcessStep by Step

FIND A

REALTOR

YOU CAN

TRUST

START LOOKING

FOR YOUR

HOME

MAKE AN

OFFER TO BUY

THE CONTRACT

INSPECTIONS

NOW THE HOME

IS YOURS!

In Texas

Real Estate Brokers and their Agents are required to disclose the type of working relationship

they have with their buyers in a real estate transaction. There are three basic types of

relationships that are available to you. You should understand these at the time a broker

provides specific assistance to you in buying a home or property. Buyer's Agent, Seller's Agent,

and Intermediary are commonly referred to as "agency" relationships. All agency relationships

carry with them legal duties and responsibilities for the broker as well as the buyer and seller.

Buyer's Agent

A Buyer's Agent acts solely on behalf of the buyer and owes duties to the buyer, which

includes the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of and act

as an advocate for the buyer. The agent must disclosure to sellers all adverse material facts

concerning the buyer's financial ability to perform the terms of the transaction and whether the

buyer intends to occupy the property. A separate written buyer's agreement is required which sets

forth the duties and obligations of all parties.

Seller's Agent

A Seller's Agent acts solely on behalf of the seller and owes duties to the seller, which

includes the utmost good faith, loyalty and fidelity. The agent will negotiate on behalf of and act

as an advocate for the sellers. The agent must disclose to buyers or tenants all adverse material

facts about the property known by the broker. A separate written agreement is required which

sets forth the duties and obligations of all parties.

Intermediary

A broker is permitted by law to act as an agent for more than one party to a transaction.

The broker's duties are limited if he or she represents both parties. The broker is required by law

to inform each party of all facts known to the broker, which would affect the party's decision to

permit the broker to represent both the Owner and the Buyer. The broker is required to treat

both parties honestly and impartially so as not to favor one party or work to the advantage of any

party.

Glossary of Real EstateBrokerage Relationships

YOUR INTERESTS ARE PROFESSIONALLY REQUESTED -

Enlisting the services to a professional Buyer's Agent is similar to using an accountant to help you with

your taxes, a doctor to help you with your health care, or a mechanic to help you with your car. So the

first advantage is pretty obvious. If you had the time to devote to learning all you need to know about

accounting, medicine, and automotive mechanics, you could do these services yourself. But who has

the time? You probably already have a full-time career to which you are committed. This is why you

allow other professionals to help you in their specific areas of expertise.

Mary Anne has devoted her career to perfecting real estate service. Continuous education,

market research, and experience are combined with her ability to find you the perfect home quickly.

Mary Anne and her team of professionals will take care of all the hassles of everyday real estate

transactions for you. She will guide you through the home buying process and exclusively represent

your interests as she helps you find a home, present your contract offer, negotiate, and close!

YOU WILL GET A GREAT HOME QUICKLY AND CONVENIENTLY-

The advantage to signing a Buyer's Agency Agreement with Mary Anne is that you have an

experienced real estate professional working to find and secure the perfect home for you exactly when

you need it. It is nearly impossible to find a home that meets your needs, get a contract negotiated,

and close the transaction without an experienced agent. Mary Anne has extensive computer networks

to make sure you only tour homes that meet your specific needs. You won't spend endless evenings

and weekends driving around looking for homes for sale or trying to search computer networks on

your own. When you tour homes with Mary Anne, you know that the homes will meet your specified

criteria of bedrooms, bathrooms, garage space, square footage, location, etc. Also, she will ensure that

you are only looking at homes that are in your price range.

YOU GET A PERSONAL SPECIALIST WHO KNOWS YOUR NEEDS-

Just as your accountant, doctor, and mechanic get to know your needs through a steady

relationship, Mary Anne will get to know your real estate needs and concerns. This type of relationship

is built by open communication at all times and by touring homes with your agent so she gets a good

idea of your feedback and concerns about each home. If you try to jump from agent to agent, you will

not receive the best available service and you will be violating your agreement to your agent. There is

The Advantages of aBuyer’s Representation Agreement

SCOUT OUT THE NEIGHBORHOOD!

It is important that you scout the neighborhood in person. You live in more than your

house. Talk to people who live there. Drive through the entire area at different times of the day,

morning, afternoon, evening, and late at night as well as going during the week and on weekends.

Look carefully at how well other homes in the area are being maintained. Are they painted, are

the yards well manicured, are parked cars in good condition, etc.?

NEIGHBORHOOD FACTORS TO CONSIDER!

Look for things like access to major thoroughfares, highways, and shopping. Listen for

noise created by commerce, roads, railways, public areas, schools, etc. Smell the air for adjacent

industry or agriculture. Check with local civic, police, fire, and school officials to find the

information about the area. Research things like soil and water. Look at traffic patterns around

the area during different times of the day and drive from the area to work. Is the neighborhood

near parks, transportation, schools, etc.? Does the neighborhood have a Homeowner's

Association? Our team can assist you in finding this information.

Choosing the Right Neighborhood is asImportant as Choosing the Right House!

There are many factors to consider when selecting a neighbor-

hood that is right for you. Below are just a few of the many

factors, you may think of others that are important to you.

Please write them on your requirement's list so they are not

forgotten.

Neighborhoods have characteristics & personalities designed to

best suit single people, growing families, two-career couples, or

retirees. Investigate to determine that the neighborhood in

which you choose to look for a home matches your lifestyle

and personality.

Before you start looking, sit down and make a list of your “wants and needs.” This will be a good

time to tell you that there is not a perfect house, so you have to be willing to compromise. So as

you are making your list, pick just 2 items that are a “Must Have” to make the move.

All the others are your wish list.

Buyer CriteriaSome things to think about …..

Geographic Boundaries / Areas / School Zones

Price Range (even though you may be qualified for more …. what is your comfort zone)

Size of Home / Square Feet ( minimum / maximum)

# of Bedrooms

# of Baths

# of Living Areas (formals / study / game room up for kids?)

Garage Spaces

Age of Home

Condition ….. Are you willing to update a home for the right floorplan and location.

Distance from office

Style …. Traditional / contemporary / townhome /single family home

Do you want a Pool

What Are Your “Wants & Needs”

Some Buyers prefer a new home. There are two ways to buy a new home. The first is to

purchase a “spec” home that a builder has already built or is currently constructing. Depending

on the stage of construction, builders will often let the Buyers make minor changes to the

property to suit their needs.

The second way to purchase a new home is to contract with a builder to build your home

either from a set of “plans” that they have available or by using your plans. The location desired

and the price range often dictates which builders we have to choose from.

Realtors sell over 98% of the new home construction in the Dallas Metroplex. Builders work

very closely with Realtors in this market. On a weekly basis, builders update our database on the

“specs” they have available and on any “special pricing.” More often than not, their “special

pricing’ is published to us before it is to the general public.

Buyers often feel that they can receive better pricing from the Builder if they visit new home

construction without their Realtor. This is not true. Builders offer incentives to Realtors to

show and sell their properties. They pay the Realtors commission out of their ‘marketing budget.’

There is no financial advantage for you to buy directly from the builder without our assistance.

Builders have a ‘single price” policy, meaning they will negotiate with you the same whether you

have a Realtor or not. They want you to have representation. If a Realtor is not involved, the

only one who benefits is the builder by increasing their profit.

The good news is ….. We have great relationships with our Builders, so they call us when they

have a “special deal” or a spec home that needs to be sold for a great price. These will not be the

prices you see printed on the sheets in the model home. We also know the best ways to negotiate

with the various builder.

I encourage you to visit model homes. Please be sure to let the Sales Person on site know that

Mary Anne Collins is your Realtor. We will assist you in selecting a reputable builder and a

suitable location.

Should you use a REALTOR when Buying a New Home from a Builder ….. YES!

Should you use Mary Anne and our expertise ….. Most Definitely!

Using a Realtor to Purchase a NEW Home

When you are ready to begin looking at various houses to find your new home, you

need to prepare all of the necessary materials to present to the lender. Your lender will tell you exactly what you

can afford so that you do not spend time looking at "too much" home. There are three key factors that you will

need to consider when determining how much home you can afford. These are 1) the down payment, 2) your

ability to qualify for a mortgage, and 3) the closing costs associated with your transaction.

Down Payment Requirements: Most loans today require a down payment of between 3.5% and 5.0% depending

on the type and terms of the loan. If you are able to come up 20 - 25% down payment, you may be eligible to take

advantage of special fast-track programs and possibly eliminate mortgage insurance.

It is often thought that bigger is better when it comes to down payments. In many cases, this may be true.

However, the arithmetic will differ from case to case. A bigger down payment means smaller monthly payments

and lower interest expense for as long as you remain with a mortgage. This can be an important factor for many

people. But if you can put your available funds to work for you so that they can earn more than the interest rate

on your loan, you could be dollars ahead with a smaller down payment. Also, a smaller down payment may allow

you to keep your extra cash liquid and available for an emergency.

Closing Costs: Don't forget to think ahead carefully. In addition to the down payment on your home, you will be

required to pay fees for loan processing and other closing costs. These fees must be paid in full, in cash, at the

time of the final settlement unless you are able to include these fees in your financing. Typically, total-closing costs

will range between 2-5% of your mortgage loan. A more detailed schedule is included in the section detailing your

closing.

Qualifying for the Mortgage: Most lenders require that your monthly payments range between 25-28% of your

gross monthly income. Your mortgage payment to the lender includes four items…the PITI. These items are

discussed in detail on the page entitled "Predicting Your Monthly Payment (The PITI)." Remember, when you buy

a home all interest is tax deductible, so you will qualify for a major tax advantage that will effectively increase your

take-home pay. Your total monthly PITI and all debts (from installments to revolving charge accounts) should

range between 33-38% of your gross monthly income. This is a general rule of thumb, but other key factors

specifically determine your ability for a home loan. These factors are as follows:

INCOME: History of employment, stability of income, potential for future earnings, education, vocational

training and background, and any secondary income such as bonuses, commissions, child support, etc.

CREDIT REPORT: History of debt repayment, total outstanding debt and total available credit. If you have

concerns about your credit record, consider contacting one of the major credit bureaus for a copy of your file:

TRW (800-422-4878), Trans Union (800-933-1200), and CSS Credit (800-759-5979).

ASSETS: Cash on hand, other liquid assets such as savings, checking, CDs, Stocks, etc.

PROPERTY: The home you are buying must be appraised to determine that it has adequate value and is

marketable to ensure it will secure the loan.

How Much Home Can Your Afford

Your monthly payment (PITI) is the sum of four items: the principal on the loan (P), the interest on theloan (I), property taxes (T), homeowner's insurance (I)

To predict your monthly payment for a 30-year fixed rate loan, there are many calculators on line andone on our website.

Once you have your monthly principal and interest, then you will add your monthly insurance premiumand your property tax to your principal and interest and this is your monthly payment.

Hazard Insurance covering your home for its contract value is required by your mortgage lender. You areat liberty to choose any insurance company and agent you wish. Ask your agent to quote you a policy forinsurance coverage.

Our preferred loan officers can assist you with determining the best loan for YOU. If you want to runsome examples, below are some sites with great calculators.

YourHomeSearch.com

MACHomeTeam.com

Bankrate.com

Calculating Your Monthly Payment(The PITI)

General: Picture ID with social security number of all borrowers Payment to cover the application fee Name and complete address of all landlords for the past two years

Income: Employment history for the past two years including names, addresses, phone

numbers, and length of time with employer Copies of your most recent pay stubs and W-2 forms (past two years) If self-employed, you need copies of the past two years signed tax returns including all

schedules, and a signed profit and loss statement of the current year. Retirees need taxreturns for the past two years.

IF you have rental property income, bring a copy of all lease agreements.

Assets: Copies of all bank and credit union statements for the past three months Copies of all stock/ bond certificates and /or the past three statements from all

investment and retirement accounts. Prepare a list of household items and their values Copies of title documents for all automobiles, boats, motorcycles, etc. Face amount, monthly premiums, cash values of all life insurance policies.

Creditors: Credit cards (accounts numbers, current balances, and monthly payments) Installment loans (car, student, etc. Mortgage loans (property address, lender with address, account number, monthly

payments and balance owed on all properties presently owned or sold within the lasttwo years.) Bring proof of sale of properties sold.

Child care expense / support (name, address & phone numbers)

Other: Bankruptcy - bring discharge and schedule of creditors Adverse credit - bring letters of explanation Divorce - bring Divorce Decrees, property settlements, quit claim deeds, modifications,

etc. for all divorces by yourself and your spouse. VA only - bring Form DD214 and Certificate of Eligibility Retirees - bring retirement and / or Social Security Award Letter

Loan Application Checklist

This is what your lender may need …. Be Prepared

Get Pre-Qualified with a Reputable Lender

Before you start looking for a Home, you must get pre-qualified with your lender.The lender will meet with you either over the phone or in person. They will getpermission to review your credit report and ask you questions to let you know whatsales price you will be qualified to purchase. You must be extremely Honest withyour lender. If you have an issue with your credit, they will be able to advise you onhow to correct this.

We will not show homes without a pre-qualification letter from a reputable lender.When you find the home you wish to purchase, the first thing the seller’s agent isgoing to ask for is this letter of qualification.

If you do not have a relationship with a lender, below are some lenders that werecommend to our clients.

Sharon McCormick

Prime Lending

(866) 301-2343smccormick@primelending.com

Wade Betz

Guardian Mortgage Company, Inc.Office: (972) 248-4663

www.wadebetz.com

Lender Approval Letter

Examples of Insurance Rates:

Collin & Denton County Dallas County

Based on: Replacement Cost, Brick Veneer, Claim Free, 1% Deductible

Below is a list of Insurance Agents for your convenience. You are required by your Mortgage Company

to have Homeowners Insurance on the property you are purchasing. These Insurance Agents have been

used satisfactory by some of Keller Williams Clients.

Preferred Guardian Insurance

(Affiliated with Keller Williams Preston Rd.)

18383 Preston Rd.

Dallas, TX 75252

972-331-5100

State Farm Insurance

(My Insurance Agent)

John Kraft

2070 W. Spring Creek Pkwy. #314

Plano, TX 75023

(972) 517-8859

Dwelling Premium Escrow Dwelling Premium Escrow

80,000 417.00 34.75 80,000 733.00 61.08

100,000 500.00 41.66 100,000 876.00 73.00

125,000 601.00 50.08 125,000 1050.00 87.50

150,000 693.00 57.75 150,000 1212.00 101.00

175,000 787.00 65.58 175,000 1376.00 114.67

200,000 875.00 72.91 200,000 1530.00 127.50

Homeowners Insurance

IS AN INSPECTION NECESSARY?

You have the right to request an inspection of any property, you are considering, by a

professional inspector of your choice. In your contract, you will negotiate an "option period"

which will allow you time to have the property inspected. You should always exercise your option

to have the physical condition of the property and its inclusions inspected. Many of the more

severe and expensive problems such as mechanical, electrical, structural, and plumbing are not

noticeable to the untrained eye. A professionally conducted home inspection, followed by a

written evaluation, is standard procedure in home buying because of increased buyer awareness.

ARE INSPECTORS LICENSED?

The number of buyers requesting property inspections has caused a rapid increase in

people entering the inspection field, the State of Texas does require testing and licensing of

inspectors.

WHAT DOES AN INSPECTION ENTAIL?

A qualified inspector will follow Standards of Practice in conducting their inspection.

The inspection consists of a physical inspection of the home with the purchaser present if

possible, followed by a written report detailing their findings. They report on the general

condition of the home's electrical, heating and air systems, interior plumbing, roof, visible

insulation, walls, ceilings, floors, windows, doors, foundation, and visible structure. The

inspection is not designed to criticize every minor problem or defect in the home. No home is

perfect. It is intended to report on major damage or serious problems that need repair for the

well being of the home and that might require significant expense. In Texas, a special concern is

expansive soils. They can be destructive when water causes these high clay content soils to swell

and exert upward pressure on foundation and driveway slabs. If improperly constructed, these

structures can crown up in the middle.

How to Choose A Good Inspection Company

BUYER EDUCATION IS NECESSARY

The primary purpose of the inspection is to educate the buyer to make an informed

decision. The inspector should allow and even encourage the buyer to attend the home

inspection. A good inspector knows how the home's many systems and components work

together and how to minimize the damaging effects of sun and water. The buyers' presence at the

inspection provides them with an estimate of possible future repair costs and routine

maintenance. This is valuable information that could increase the life of, and perhaps the future-

selling price of, the home.

CONTINUING EDUCATION IS IMPORTANT FOR INSPECTORS

A competent home inspector is familiar with the latest construction materials, home building

techniques, and professional equipment. Consumers should determine whether prospective

home inspectors actively monitor the changes in construction and real estate in order to keep

their business practices current and professional. Members must meet annual continuing

education requirements for this purpose.

TIME AND FEE GUIDELINES FOR THE INSPECTION

The time necessary to properly inspect a home, as well as the fee changed for an

inspection, varies according to market location, the size and age of the home, and the individual

Inspection Company. However, you can expect that it will take an average of two to three hours

to competently inspect a typical one-family, three-bedroom home, with an average cost of $300 to

$400. We may or may not be present at the inspection, so be sure to notify us after the

inspection is complete and see that the our office has a copy of the report.

BEWARE OF FALSE CLAIMS

Consumers must be cautious in evaluating some of the claims made by people hoping to

fill the growing demand for home inspection services. Many new companies request only an

application fee. Some claim to offer certification but do not require exams or proven credentials.

Still others boast engineering licenses as assurance of competence, even though the engineering

license has nothing to do with home inspecting.

INSPECTIONS EXTRAS

Some inspectors may be qualified to provide other types of services with their inspection

that go beyond the scope of the American Society of Home Inspectors ("ASHI") standards.

More Inspection Information

Below is a list of Home Inspectors for your convenience. These inspectors have

been used satisfactorily by some of Keller Williams past clients. However, if you

wish to contact a different Home Inspector through your own resources (referral,

yellow pages, etc.) please do so. After deciding on an inspector, please have them

contact our office at (972) 618-7355 to make the necessary arrangements.

Isbon Engineering - David Isbon, P.E. (professional inspector and registeredengineer) 817-794-0770

Plano Inspections – Steve Wright or Tom Tidwell (972) 985-9999

Cahill Inspection Services – John Cahill (972) 491-9919

Home Report – Jerry Reed (469) 450-8682 / (972) 463-3267

For Additional information on Inspections and a List of Texas Licensed Inspectors,you may visit: http://www.trec.state.tx.us/inspector/

Licensed Home Inspection Companies

NEW HOME WARRANTIES

When you purchase a newly built home, the builder usually offers some sort of full or

limited warranty on things such as the quality of design, materials, and workmanship. These

warranties are usually for a period of one year from the purchase of the home.

At closing, the builder will assign to you the manufacturer's warranties that were provided

to the builder for materials, appliances, fixtures, etc. For example, if your dishwasher were to

become faulty within one year from the purchase of your newly built home, you would call the

manufacturer of the dishwasher - not the builder.

If the homebuilder does not offer a warranty, we’ll be sure to ask why!

RESALE HOME WARRANTIES

When you purchase a resale home, you can purchase warranties that will protect you

against most ordinary flaws and breakdowns for at least the first year of occupancy. The warranty

may be offered by the Seller as part of his overall package or by some Realtors who have access to

programs that will insure the buyer against any defects in the home. Even with a warranty, you

should have the home carefully inspected before you purchase it.

A home warranty program will give you peace of mind knowing that the major

components covered in your home will be repaired if necessary. Ask any one of us for more

details about home warranty packages.

A comparison of Home Warranty Companies has been prepared by

Hexter Fair Title and will be provided upon request.

Home Warranty Companies

WHAT IS A REAL ESTATE "CLOSING"?

A closing is the meeting at which the Buyer, Seller, their agents (optional), the loan officer

(optional) and the title company meet together to transfer title to the property. It is

customary in Texas for the Buyers and the Sellers to close at separate times on the same

day. The closing documents states the purchase price and terms, sets forth the method of

payment, and usually names the date and place where the closing or actual transfer of the

property title and keys will occur. This meeting is also referred to as the settlement

statement or HUD-1.

A new deed will be prepared by the Title Company transferring ownership of the property

to you. Your lender will require you to sign a document, usually a promissory note, as

evidence that you are personally responsible for repaying the loan. The mortgage or deed

of trust gives the lender the right to sell the property if you fail to make the payments.

Before you exchange these papers, the property may be surveyed, appraised, or inspected,

and the ownership of title will be checked in county and court records.

WHAT SHOULD I DO TO PREPARE FOR THE CLOSING?

As previously mentioned, you should have already conducted any inspections, etc. you

wish to have done on the property.

There are two kinds of title insurance. First, a lender's or mortgagee's title insurance

policy protects only the lending institution. Lenders require this type of insurance and

require the borrower to pay for it. That does not mean that the borrower will receive its

protection. Second, an owner's policy is necessary to protect the owner against loss.

You will also be required to pay all fees and closing costs in the form of "guaranteed

funds" such as a Cashier's Check. You will be notified of the exact amount by your agent

or escrow officer prior to closing.

Prior to closing, we will request a closing statement, called a HUD-1, and review prior to

closing. This way if there are any corrections, we can make them in advance. Closing

Day will be a FUN day because you will get the keys to your new home as soon as the

funding of your loan has occurred.

Now We CLOSE Your Transaction!

(Or let's stick to this plan to close your home quickly and with a minimum of hassle)

A successful real estate transaction hinges on numerous details involving deadlines that must be

met so that you can move into your dream home as soon as possible.

TO DO: DATE COMPLETED BY:

Loan Application: __________________________

Option Period: __________________________

Credit report and appraisal fees: __________________________

Seller's Disclosure must be signed: __________________________

Set Inspection date and time: __________________________

Written Amendment if needed __________________________

(All items from the inspection that you

wish to be fixed: Keep in mind you may

or may not be buying a new home.)

Negotiation of repairs to be completed: __________________________

Title Commitment due: __________________________

Insurance: __________________________

(You are required to arrange for

insurance coverage and to inform your

mortgage company of your agent's

name and phone number.)

Loan Approval: __________________________

Closing Date: __________________________

Please Note: During the loan and home-buying process, you will be asked to supply documents,

respond to phone calls requesting information, schedule dates into your calendar, etc.

Let’s Adhere to “The Plan”So everything moves smoothly!

Your Real Estate RosterPlease keep this book with you throughout the home selling process;

it is also very helpful if you keep it for future reference.

Mortgage Lender

Loan Officer

Phone

Address

Insurance Company

Loan Officer

Phone

Address

Title Company

Loan Officer

Phone

Address

Forms, Agreements, Contracts, Etc.

The following forms, agreements, contract, addendums and such are integral in establishingexpectations and securing your home. *Some of these forms are mandatory and required by the Texas Association of Realtors or by KellerWilliams Realty.

Information about Brokerage Services: Explains the relationships between Real Estate Brokersand Owners/ Buyers. Sign & date this form.

General Information and Notice to a Buyer: this form is designed for Buyers & Sellers to informthem of general information relating to the purchase of a property.

Inspector Information: For Sellers and Buyers (informing Buyers of the need for an inspectionand for Sellers making them aware that their property will be inspected.)

Information About Mineral Clauses in Contract Forms: For Sellers and Buyers

Affiliated Business Arrangement Disclosure Notice: Keller Williams has a business relationshipwith a Lender and a Title Company. This document is intended to inform you of this relationship.You are not required to use these services in your transaction. Please sign to acknowledge that youhave received this document.

Purchase Contracts and Addenda

One to Four Family Residential Contract (Resale): The promulgated form used in Texas for

Resale Properties

Third Party Financing Condition Addendum: Addendum if your contract is contingent upon

Financing Approval.

Addendum for Seller’s Disclosure of Information on Lead Based Paint and Lead Based Paint

Hazards as required by Federal Law - (for Homes built prior to 1978)

Amendment: Used to negotiate Repairs or make changes to the Executed Contract

Please note that not all forms, agreements, contracts, etc. are listed as each transaction is unique and

may not require each item or may require more items that have been listed.

Forms May be Emailed to You in Advance for Review