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Realtors specialize in 3 basic services:

1. Determining the value or pricing of a property - This is an art not a science. Requires intimate knowledge of area and market.

2. Managing the transaction from start to finish - There are many components to a real estate transaction. The Realtor serves as

project manager, coordinating with all of the various real estate professionals involved in the process. Is ultimately responsible

for making sure all of the legal and contractual obligations are performed.

3. Negotiating - The ability to overcome obstacles that threaten the deal. Working with both buyer and seller to come to an

agreement that is mutually beneficial.

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Determine what you can afford. Figure out which mortgage is right for you.

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Decide which features are must-haves

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Start House- Hunting

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Put in offer. Negotiate. Execute purchase contract

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Home Inspections. Appraisal. Insurance. Contract obligations.

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Closing

Real Estate Buyer’s Guide

Guide to purchasing your property for the best price possible within the shortest amount of time from A to Z

Keith Heatly RMS Elite Properties 4700 9th Ave N St Petersburg, FL 33713 727.542.0234 (cell)

rmskeith@gmail.com

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Determine what you can afford. Figure out which mortgage is right for you.

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1. Our first step in the home-buying process is to determine your budget, just as you'd likely

do for any other major financial decision. It is recommended that payments generally not exceed 28% of your monthly gross income.

2. Look at your cash reserves to determine if you have enough money on hand for a down

payment which is normally 3.5% (FHA/VA loans) or 5% (conventional) of the purchase price. You will also need money for closing cost which are generally 5% of the purchase.

[Example a $200,000 house will require 3.5 % or $7,000 down payment + 5% or $10,000 closing cost = $17,000 total cash]

3. Make sure you have enough savings left over to help pay for any home improvements,

decorations or miscellaneous moving and maintenance costs that may pop up. 4. Apply for a pre-approval, the process in which a lender reviews your financial information

—like your credit report, W2s and bank statements—and commits to giving you a mortgage for a specified interest rate. This way the bank will just have to appraise the home—not the property and your finances.

But a word to the wise: A bank may approve you for a larger loan than you've determined you can afford. So don't be seduced by their findings—and stick with the number you landed on in step one. Below are a list of items the lender will need to process a loan application:

1. Most recent two months bank/asset statements (all pages of the statement) 2. Most recent three years IRS tax returns (all pages, please sign page 2-the signature page of return) 3. Most recent three years of W2s 4. Most recent 30 days of paystubs 5. Picture copy of driver’s license (please lighten up copy and enlarge if possible) 6. 401K Statement if using funds for purchase

5. Compare offers from competing lenders to get your best deal. This one of the smartest things

you can do and getting the best deal on your home loan could save you a lot of money.

To compare mortgage loans, consider interest rates, terms, characteristics and costs, and other factors that might apply to your individual situation. A mortgage broker has relationships with multiple lenders and can often get you a good deal on your mortgage by doing the comparison shopping for you.

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Keith Heatly RMS Elite Properties 4700 9th Ave N St Petersburg, FL 33713 727.542.0234 (cell)

rmskeith@gmail.com

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Decide which features are must-haves

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Before you go house hunting, brainstorm a list of what you absolutely must find in a home—and which features are simply nice extras. Examples of must-haves might include the number of bedrooms and bathrooms, proximity to work and other places you frequent and access to your preferred school districts.

Things that shouldn't be on your must-have list? The way a house is decorated, well-manicured landscaping, a pool—or anything else you can easily fix or install yourself. ____________________________________________________________________________________

Start House- Hunting

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House hunting can be the most exciting part of the home-buying process. This is especially true for first-time buyers who have never owned a place of their own.

The 1st step we take is to schedule a preview of properties online; either in person or virtually, before we try to arrange a showing. The goal here is to reduce the number of homes you have to visit, otherwise the search process could drag on for weeks. We do this by weeding out the ones that don't meet your needs. You start with hundreds of properties for sale, then we screen them based on size, price, appearance and location. A lot of listings have virtual tours, video content, and other features to help us screen properties. Suddenly, those hundreds of properties have been reduced to a few dozen contenders (or less). Now you're ready to do some actual house hunting!

Tip # 1 Don't just pick up the phone, call the number on a For Sale sign, and go by yourself. First, it's unsafe. Second, you can end up looking at a bunch of properties that don't meet your search criteria or price range, wasting your time. Third, it can make sellers think you are unrepresented and, thus, that they have the greater bargaining leverage from the get-go. Let your Realtor do his job; if you drive by an interesting property your Realtor hasn't mentioned to you, call your Realtor with the property address and phone number from the sign, and let them research the asking price and property details, nine times out of 10, your Realtor hasn't sent it to you because the property doesn't meet one or more of your search criteria. The 10th time out of 10 - your Realtor can escort you there and show it to you while the seller is out of the house, and out of your hair.

Tip # 2 If you walk into a home and dislike it immediately, it is probably best to heed your gut reaction. Don’t force yourself to like a home because it looks good on paper. However, if you walk in the front door and immediately feel at home, note that. It shouldn’t be the only factor you consider, but it is significant.

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Put in offer. Negotiate. Execute purchase contract

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1. With the help of an Attorney or real estate agent a contract or offer to buy a house is written.

It includes all of the necessary information, such as your offer, deposit amount and clauses that

cover inspections, financing and other details.

2. When you go to buy a house, you’re certainly hoping to get the

best price and terms. To do that, you need to know when to start

negotiating and when to stop. That begins with being familiar with

the market, down to the neighborhood and maybe even the street.

Real estate agents bring knowledge and experience, which can be

the deciding factor in a bid for your dream home.

If there are more homes for sale than people who want them, there is usually more room for

negotiation than if there’s a shortage of inventory, as is the case in many desirable neighborhoods

throughout the country.

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Home Inspections. Appraisal. Insurance. Contract obligations.

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Home inspections are conducted by a home inspector who has the training and certifications to perform such inspections. The inspector prepares and delivers to the client a written report of findings. The client then uses the knowledge gained to make informed decisions about their pending real estate purchase. Attendance may not be mandatory, but it's a good idea. “Just reading that inspection report isn't enough for most homeowners to get the full picture,” experienced inspectors say. "If they don't see it, they don't understand it." An Appraisal is important, no credible financial institution will lend you money for a house without one. The appraisal lets a bank or lender know what the loan collateral will sell for in a worst-case scenario. So appraisals exist for good reason, but what can make them a tense time for all parties is that they're conducted after you've negotiated a price, agreed to buy or sell the house and signed the contract. So it's in everyone's best interest that the appraisal is close to the price that both seller and buyer have agreed on.

A home inspector is sometimes confused with a real estate appraiser. A home inspector determines the condition of a structure, whereas an appraiser determines the value of a property.

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No one would drive a car without insurance, so it figures that no homeowner should be without insurance. The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Homeowners’ insurance provides fire, theft, storm damage and liability should someone get injured on your property and sue. Homeowners’ policies are required by lenders. Flood insurance: Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as $250,000 in coverage for a single-family home plus $100,000 for contents. Your Realtor® can explain which locations require such coverage.

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Closing

At the closing, all agreements between buyer and seller are finalized. Closings generally take place at the office of the title company, an agent of the title company conducts the closing. At the closing the buyer reviews and signs all loan documents. Once all necessary signatures have been obtained and monies disbursed, the buyer takes possession of the property. Congratulations on your new home!

Contract time-line tracking Chart Effective Date :

Contractual Obligation Timeframe Deadline Date Vendor

Initial deposit to be held in

escrow

3 days Title Agent

Financing – Mortgage Loan

Application

5 days Mortgage Broker

Schedule General Repair, Wood

Destroy Organism &

Permit Home Inspection

15 days Hughes Exterminators 727.734.8688

www.hughes-exterminators.com

Schedule 4 Point Inspection &

Wind Mitigation Inspection

15 days HHH Home Inspections

727.504.5053

www.pinellasinspector.com

Property Inspection Period 15 days

Financing – obtain written loan

commitment

45 days Mortgage Broker

Utilities Transfer 2 days prior to

closing

Duke Energy 727.443.2641

www.duke-energy.com

Walk-Through Inspection /

Closing

Title Company

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