Buying a Home

The Importance Of A Buyer’s Agent

A buyer’s agent is an agent who is specifically working on behalf of the purchaser. That agent is not only responsible for helping you find the right home, but also is legally bound to represent your best interests. A REALTOR® serves a buyer in many ways, including:

Protection

You want someone who is looking out for your best interests as a buyer; asking questions, obtaining information, helping negotiate the transaction, and making sure you understand the legal process.

Confidentiality

MTA REALTORS® are trained to keep your information private and not share it with the seller or listing agent.

Representation

Your best interest is our first priority.

Strategy

We help you determine a bidding strategy and determine the best price to offer based on market conditions.

Searching Made Easy

With advanced home search access, our agents can pinpoint your best options out of thousands of homes for sale.

The Costs

It is important to understand the costs associated with purchasing a home. Early in the buying process, ask your real estate agent or mortgage representative for an estimate of costs pertaining to your specific situation. Remember to examine your settlement statement prior to closing and ask questions.

Cost When Collected
Earnest Money
credited back to the buyer at closing		 Upon Offer Acceptance
Appraisal Fee At time of Appraisal
Home Inspection At time of Inspection
Down-Payment At Closing
Home Owner’s Insurance Premium At Closing
Home Owners Association Dues At Closing
Closing Costs At Closing
Buyer Broker Commission At Closing

It’s extremely important to not do any of the following until after the home buying process is complete: buy a car, change jobs, open a new line of credit, miss a bill payment, make a major purchase, or move money around. It is standard practice for a lender to do a final credit check before closing. Any of these items could jeopardize your final loan approval.

The Service: My Services During The Buying Process

Before We Start Looking At Homes, I Will...

  • Answer any questions you might have about the process of buying a home.
  • Discuss the home style, location, schools, and features you desire.
  • Explain various financing options and refer a mortgage loan officer to pre-qualify and determine your mortgage amount and approximate closing costs.
  • Explain how to maximize your home search using our company website and your customized Client Connect Tools.

When Looking At Homes, I Will...

  • Schedule appointments in advance with homeowners.
  • Gain proper codes to access properties.
  • Provide detailed property information sheets and disclosures.

When Making An Offer, I Will...

  • Conduct a market analysis to determine a fair market value for the property.
  • Offer advice on a bidding strategy.
  • Explain the purchase agreement, sellers disclosure, and other legal forms involved with writing an offer.
  • Present the offer and all subsequent counter-offers in a timely manner.

When An Offer Is Accepted, I Will...

  • Work with your lender to prepare necessary documents for closing.
  • Help you arrange for any necessary inspections of the property, and review the inspection report with you.
  • Assist in obtaining a homeowner’s insurance policy.
  • Provide you with company contact information to set up utility transfers.
  • Order and review the title work and survey report.
  • Keep you up-to-date on closing details.

At The Closing, I Will...

  • Be present to answer all questions.
  • Advise you of wire fraud and how to avoid it.
  • Discuss the proceeds and settlement statement with you.
  • Arrange for payment of expenses from closing proceeds.
  • Maintain a file of closing papers.

After Closing, I Will...

  • Follow up with you regularly and be available to answer any questions you have.
  • Be your source of referrals for all types of businesses, whether related to a real estate transaction or not. I have partnered with competent professionals who would be happy to serve you.

The Financing

Required Documents

  • Pay stubs for past 30 days
  • Previous 2 years tax returns
  • 2–3 months recent bank statements
  • Homeowners Insurance information
  • Government-issued ID
  • Purchase contract
  • Employment History

Circumstantial

  • Evidence of Other Income (Child Support, Disability, etc.)
  • Documentation of any Gift Funds being used for purchase
  • Divorce Settlement Papers
  • Letters of Explanation for any adverse credit history
  • Most recent Investment Statements (401K, IRA, etc.)

Once you know what you can afford, take a moment to pause and think about what is realistic for your budget and lifestyle. In today’s market, be prepared to buy what is realistic in your budget and search. Here are some additional things to think about other than just the price of the home:

  • Cost of Utilities per month and what is included
  • Maintaining the home - land maintenance, furnace, AC, water heater, etc.
  • Home Owner’s Association fees and taxes
  • Cable TV/FIOS/DIRECT TV, Internet service, other home service fees
  • Furniture/furnishings/appliances/window treatments

Protections And Contingencies

Appraisal Contingency

The home must appraise at or higher than accepted contract price. If the home does not appraise, the buyer or seller can terminate the contract immediately OR negotiate a new agreed upon sales price somewhere in the middle. Typically the buyer will ask the seller to sell the home at the appraised value. If the seller does not agree, the buyer may terminate the contract and the earnest money will be returned to the buyer. The buyer may also choose to pay the difference between the agreed price and the appraisal price with cash at closing.

Inspection Contingency

In the State of Indiana a defect is defined as something that would reduce the value of the home or make the home unsafe to occupy. The buyer must give the seller the opportunity to remedy any defects. If the seller is unwilling to remedy the defect, the buyer may choose to terminate the contract and the earnest money is typically returned to the buyer. The buyer also has the option to accept the defect. The buyer will have a stated number of days to complete and respond to an inspection.

Financing Contingency

The buyer will have a stated amount of time to secure a mortgage, usually 30 days. If for some reason, the lender/underwriter denies the buyer a mortgage within that time period, the contract would be void and the earnest money would be returned to the buyer. The buyer’s lender will order the appraisal immediately once the application is completed.

Association Restrictions & Covenants

If applicable, the buyer can set a certain number of days to review any association rules. If the restrictions conflict with the buyer’s intended use, the buyer may terminate the contract and the earnest money is returned to the buyer.

Homeowners Insurance

The buyer will have a stated number of days to get an insurance quote for the home. This is important because the insurance monthly payment can alter your total monthly payment and potentially price you out of qualifying. The home may also have several claims that could increase the policy amount above normal standards.

Title Insurance, Zoning, & Flood Contingency

The seller will provide an insurance policy to guarantee a clear title to the home. If the home is found to have issues or unpaid liens attached, they must be remedied by the seller before closing. If the home is found to be in a flood zone or zoned anything other than the intended use, you the Buyer may terminate the contract and the earnest money is returned.

New Construction

We love new construction because you get exactly what you’re looking for and don’t have the headaches of needed or wanted updates and repairs. From finding a location and choosing a builder, to architectural layout and interior design, our agents will help you make the best decisions for your investment and will help you throughout the entire process!

Builders

We have great relationships with and represent a large network of local builders who have a reputation for quality, residential construction. Our agents work with you to determine the best builder for your price range, location and architectural style.

Where and What to Build

Building a home gives you the advantage of choosing a location, housing style and floor-plan that best suits your lifestyle. Our agents will help you navigate your options throughout the building process with consideration of your budget, comparable price points and long-term resale value.

Building Process

Building is an exciting process that requires knowledge of the market, clear communications with the builder and a thorough understanding of Indiana’s building codes, standards and laws. Our agents make it a priority to educate their clients and help navigate the entire home building process.

Financing

We are connected to a large network of mortgage loan brokers to secure the most competitive financing available for new home construction, and having us represent you with the building process will not cost you anything.

Mediate Between You & The Builder

You have someone on your side to mediate and guide you through the process.

The Buying Glossary Words to Know

Closing Costs

The cost to complete a real estate transaction in addition to the price of the home which may include lender fees, appraisal costs, title insurance, etc.

Contingency

Clause(s) in the purchase agreement that describe certain conditions that must be met and agreed upon by both parties in order to fulfill the contract.

Covenants & Restrictions

Governing documents that outline the rules and regulations regarding the use, appearance and maintenance of a property within a neighborhood.

Counter Offer

An offer, made in response to a previous offer that rejects all or part of it while enabling negotiations to continue towards a mutually-acceptable contract.

Deed

A written document by which title to real estate is conveyed from one party to another.

Down Payment

Money paid by the buyer at the time of closing for the difference between the sales price and the mortgage loan. Buyers must provide a cashier’s check or wire funds over $10,000 to the title company

Market Value

An average between the highest price that a buyer would pay and the lowest price a seller is willing to accept.

Multiple Listing Service (MLS)

A private database that is created, maintained, and paid for by real estate professionals to help their clients buy and sell properties.

Purchase Agreement

A detailed, written document which makes an offer to purchase a property, and may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the purchase agreement becomes a legally binding sales agreement.

Sellers Disclosure

Form that sellers are required to complete and share with prospective buyers. The sales disclosure contains information about the condition of the home’s major components and discloses any known issues to the buyer.

Survey

A map or plat used to identify properties boundary lines. Identifying markers may be set at the property.

Title

(1) A combination of all the elements that constitute the highest legal right to own, possess, use control, enjoy, and dispose of real estate or inheritable right or interest therein. (2) The rights of ownership recognized and protected by the law.

Title Insurance

A policy that guarantees and protects lenders and homeowners against any problems they might experience because of liens or defects in the title to the property.

Final Inspection (Final Walk-Through)

An inspection by the buyer(s) performed anywhere from a few hours to a few days before settlement of the transaction. Its primary purpose is to make certain that the property is in the condition you agreed to buy it, agreed-upon repairs (if any) were made, and nothing has gone wrong with the home since you last looked at it.

Upfront Costs For Buyers

Earnest Money

Also called “good faith money”, this is a deposit given by the buyer which is held by an agreed upon third party. This money is credited back to the buyer at closing. Buyer(s) may have their earnest money returned when a transaction falls through under certain circumstances.

Home Inspection

A professional evaluation of a home paid for by the buyer, to assess the quality and safety of a home’s major components.

Appraisal

Professional estimate of the market value of a property based on local market data and recent sale prices of similar properties. If you are obtaining financing, this will likely be required by your lender since the property you are financing is collateral for the loan.