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TH E CO M PLE TE G U I D E TO B U Y I N G A H O M E WITH PE ACE O F M I N D
Your Home Buyer’s Guide Buying a home is most likely amongst the biggest purchases you’ll make, and therefore marks a major life milestone. It is a major investment not only financially, but also requires a lot of your time. While it is a major commitment and responsibility, it should be a thrilling process as this is an exciting time in your life. In this guide you will find information that will help you better understand the end-to-end process of purchasing a home. These few pages aim at helping you streamline your approach to the process in order to make it as transparent, carefree and rewarding as possible! We look forward to celebrating with you as we hand you the keys to your new dream home!
Personal Satisfaction For many people, home ownership makes life more enjoyable. Whether it’s the pride that comes from improving and maintaining your home or the knowledge that your family will grow up in the neighborhood of your choice, home ownership is an inherent part of the American dream
Tax Advantages
Equity
Your real estate taxes and the interest on your mortgage are deductible from your income tax. For many buyers, that tax break can go a long way toward making home ownership just as affordable as renting.
Because most homes increase in value, buyers steadily build equity. Equity creates wealth and can help you accomplish any number of financial goals, such as making other major purchases, paying for retirement or funding a child’s education.
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Sonoma County In a nutshell...
No place says Wine Country more than Sonoma County, whose rich soils and old vines produce some of the finest vintages in the world. Sonoma is also the closest wine region to San Francisco, just 45 miles north of the Golden Gate Bridge. Nestled between the Sonoma and Mayacama Mountain ranges, the Sonoma Valley is home to picturesque wine castles, quaint farms and expansive park land.
0.18%
POPULATION INCREASE PER YEAR1
10.4%
PROPERTY VALUE INCREASE PER YEAR2
Buying vs. Renting If having a mortgage for 15-30 years sounds intimidating, consider the following. You can either: Make your own mortgage payments for a portion of your life
Protection from Inflation
or Make someone else’s mortgage payments for the rest of your life
Once you purchase a home, most of your housing costs (i.e., your monthly mortgage) are not exposed to inflation. Your only housing expenses that will rise overtime with inflation are property taxes, homeowners insurance and maintenance costs. 3
Who we Are.. RE/MAX Marketplace’s core values are simple:
Honesty, Integrity, and Performance Our mission is to provide our clients with a superior real estate experience, which is why we pride ourselves on quality over quantity when it comes to selecting our agents. If you have selected a RE/MAX Marketplace agent, you have selected the very best that the industry has to offer. Marketplace is the brainchild of three of the founding partners, David Rendino, Erika Rendino, and Ken Schrier: All top producing RE/MAX REALTORSÂŽ with a collective 45 years of combined real estate experience. Their passion and dedication is not only evident with their clients, but also in the training and retention of their agents.
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. . Is all about you! Our real estate business has been built around one guiding principle: IT’S ALL ABOUT YOU! 1. YOUR NEEDS 2. YOUR DREAMS 3. YOUR CONCERNS 4. YOUR QUESTIONS 5. YOUR FINANCES 6. YOUR TIME 7. YOUR LIFE From pre-approval to keys in hand, we are patient and won’t be satisfied until we have exceeded your expectations. Our clients become our friends for life and it is our goal to be their community resource.
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The RE/MAX Brand RE/MAX offices are in more U.S. locations3 than those of any other brand. They serve thousands of communities, large and small. That’s made possible by RE/MAX Broker/Owners and agents who are empowered to tailor their services to fit the needs of local homebuyers and sellers. It’s not just on the web. With so many U.S. locations, the odds are good that a RE/MAX office is part of your neighborhood. Among the largest U.S. brokerages, RE/MAX agents outproduce the competition 2 to 14. Worldwide, RE/MAX has real estate’s largest footprint, one that spans more than 100 countries and territories.
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IS YOUR REAL ESTATE BRAND WHERE YOU NEED IT?
Community Involvement As a company we are dedicated to enriching many organizations locally and globally through partnerships, volunteer efforts, and community events. Our amazing agents and staff volunteer countless hours and donate financially year after year. We work hard to give back to our local communities and organizations across the world. Children’s Miracle Network
Miracle Home® Program
RE/MAX Associates generated more than $8 million in donations last year alone. Said Carolynn Bond, former liaison to Children’s Miracle Network for RE/MAX International, “Our business is about more than just buying or selling homes. Our business is to care for families, and what better way to show that care and concern than to support Children’s Miracle Network”
The Miracle Home® program enables RE/MAX affiliates to participate in a worthy cause and have positive impact on their individual business. Agents simply pledge to make a contribution for every real estate transaction.
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Everyone deserves a safe home to be the shelter of their new story.
Vicki Metzger
REALTOR®
707.479.0869 [email protected]
VickiMetzgerRealEstate.com DRE# 01702198
About Me… I was born and raised North of San Fransisco in Marin, CA and moved to Sonoma County over 30 years ago to start a family. Ever since the beginning of my career, I have invested myself in the mission to provide my trusted clients not only with their dream home, but most importantly with a home in which they can thrive.
Compassionate by nature, I like to give back to the community and dedicate myself to non-profit organizations such as the Children’s Miracle Network, Habitat for Humanity, and the Humane Society. I look forward to getting to know you. ~ Vicki
Let ’s Meet
Discussion Goals
Sitting down for a brief meeting won’t cost you anything, and you may pick up some tidbits of information to help you along the way. Either way, my meetings are held with no obligation, and no strings attached.
• Get to know one another better • Address your concerns and motivations • Answer your questions and provide honest feedback • Give you a better understanding of the real estate process
It’s an opportunity for you to ask any specific questions along the way; If I don’t have the answer I can find it for you.
• Outline important decision points and time-lines • Determine if I’m the right agent for you.
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REASONS
When buying a home, make sure you’re working with a REALTOR® A REALTOR® has extensive information all in one place about what is “on the market”, including homes listed by other REALTORS®. You won’t waste time looking at unsuitable homes. A REALTOR® helps you determine how much you can afford, how you can acquire the down payment, and what financing options may be open to you. A REALTOR® can help you find the home best suited to your needs, size, style, features, location, accessibility to schools, transportation, shopping, etc. A REALTOR® can suggest simple changes that could make a prospective home more suitable for you and improve its utility and enjoyment. A REALTOR® can supply information on real estate values, taxes, utility costs, municipal services and facilities and may be aware of proposed zoning changes that may affect your decision to buy. A REALTOR® has no emotional ties to a home, can be objective about, may point out its advantages and disadvantages and is an expert negotiator. A REALTOR® strives for fairness and agreement. He/she eliminates personality conflicts with sellers and is able to help you find the most suitable home at the most reasonable price in the shortest period of time. A REALTOR® can familiarize you with the transaction procedures by explaining them all in advance.
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Buying a Home On the surface, buying a home may seem like a relatively intimidating process. Indeed, there are dozens of variables in any transaction that can make home-buying quite complex. Being prepared and organized makes the process much easier and most importantly much more enjoyable!
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ASSESS YOUR FINANCIAL SITUATION
PREPARING Assess financial situation > Getting pre-approved
YOU’RE PREPARED TO BUY!
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THE SEARCH Establishing your expectations > Browsing listings
DREAM HOME LOCATED!
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SEARCH MLS FOR PROPERTIES
THE OFFER Make an offer > Negotiate
YOU’VE GOT A CONTRACT-TO-BUY!
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THE CONTRACT Inspect the home > Tie up loose ends
YOU’RE READY TO CLOSE!
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GUIDE YOU THROUGH CONTRACT DUE-DILIGENCE
THE CLOSING The closing table > Closing costs
YOU’RE A HOMEOWNER!
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AFTER YOU BUY Financial discipline > Refinancing > Home improvements 12
Congratul You’re a H
lations! omeowner!
YOU ARE PRE-APPROVED!
FACILITATE TIMELY CLOSING
DETERMINE SEARCH PARAMETERS
DISCUSS YOUR NEEDS
SCHEDULE AND ACCOMPANY YOU TO SHOWINGS
ANALYZE COMPARABLE PROPERTY RESULTS
DREAM HOME LOCATED!
NEGOTIATE ON YOUR BEHALF
DELIVER CONTRACT TO SELLER OR AGENT
REVIEW DISCLOSURES AND LAWS
ACCOMPANY YOU ON FINAL WALKTHROUGH
ENSURE COMMUNICATION AMONG ALL PARTIES
ALMOST THERE!
REVIEW CLOSING DOCUMENTS
FACILITATE CLOSING
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1. How to Prepare DOWN PAYMENT
UP-FRONT FEES
The down payment is money you give the home seller. The remainder of the payment comes from your mortgage. Most loans today require a down payment of between 3.5% and 5.0%. However, if you are able to come up with a 20-25% down payment, you may even be eligible to take advantage of additional loan programs and eliminate mortgage insurance (PMI). These key factors determine your ability to secure a home loan: credit report, assets, income, and property value.
Most monetary items will be paid at closing. However, there are certain costs, when purchasing a home, that may be paid “up-front”.
MORTGAGE QUALIFICATION Most lenders require that your monthly payment range between 25–28% of your gross monthly income. Your mortgage payment to the lender includes the following items: Principal on Loan (P), Interest on Loan (I), Property Taxes (T), and Homeowner Insurance (I). Your total monthly PITI and all debts (credit card, car loans, etc) should range between 33–38% of your gross monthly income. CLOSING COSTS You will be required to pay fees for loan processing and other closing costs. Typically, total closing costs will range between 2-4% of your mortgage loan.
FEES ASSOCIATED WITH BUYING A HOME
Appraisal Fee: If requiring a mortgage, lenders may ask for the appraisal fee before closing in order to secure your appraisal for loan approval. Fees will range from $350-$500 (estimated) depending on your lender, appraiser, or home size. Inspections: All inspections requested by the buyer will need to be paid at the time of the inspection. Estimated home inspection fees range from $250-$600 depending on the size and general condition of the home. Septic system, radon, termite, mold, and structural inspections will incur additional charges over and above the “basic” home inspection. Home Owners Insurance: Most lenders and insurance companies will ask for one year’s homeowners insurance paid in full before the closing. Rates will vary depending on the value, location and type of home. Homeowner’s insurance premiums will vary based on your deductible, credit history, your marital status, age and construction of home, roof condition, proximity of fire station, insurance score, location, how close you are to a body of water, claims history, pets, etc. It’s a good idea to shop around — we can give you referrals.
AVERAGE CLOSING COSTS Around 2-4% of mortgage loan
INSPECTIONS Estimate of $250-$600
APPRAISAL FEES Estimate of $350-500
HOMEOWNERS INSURANCE Approximately 1% of total home cost
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WHAT IS A PRE-APPROVAL?
HOW TO CHOOSE A LENDER
Sellers need to know you are financially ready to buy. A pre-approval is a letter from an accredited source that shows you are eligible for a loan up to a particular amount. This letter must accompany any offer you make.
A lender’s competence will dramatically affect the outcome of your home buying experience.
In today’s home-buying environment, a mortgage pre-approval is not only essential, it is also incredibly easy to obtain—whether online, over the phone or in person. A mortgage pre-approval lets you know exactly what you can afford to buy. It also demonstrates to a seller that you are a willing and able buyer, and it gives you a head start in getting an actual loan commitment.
Beware of some Internet lenders. Faceless loan sources can create problems and delays. The best results come when a local lender is chosen. Your REALTOR® can be more of an advocate for you if there is a local person to go to in order to keep the process moving. In this competitive market with multiple offers rising, having a pre-approval from a local lender also paints a better picture of you to the seller of your dream home. If the lender is local, ask if their processor and underwriters are in-house too. Choose a lender who meets contract deadlines. When talking with potential lenders, ask what percentage of their loans close on time.
WHY PRE-APPROVAL HELPS YOU Proper Expectations: It gives you a payment range so you know exactly what you can afford to buy.
There are several loan options and programs available that may suit your situation. Talking to a trusted lender is the best way to get the details on them as they can vary from month to month.
Improved Standing: A seller may choose to make concessions if they know that your financing is secured. This may make your offer more competitive. Better Choices: You can select the best loan package without being under pressure. Loan pre-approval with a lender establishes a maximum price range that you can afford, a maximum loan amount, and a total monthly payment. It will also include the total amount of cash needed to close.
Your lender will provide a “Good Faith Estimate” that should, based on the terms of your loan, outline your closing costs, estimated monthly payment, and down payment required, if any.
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YOUR RE/MAX MARKETPLACE AGENT With their experience and expertise, the agents at RE/MAX Marketplace will take the complexity out of the process of buying a home. Representing you and your interests, your agent will keep the process going smoothly. The trust you develop in your agent will free you to make better decisions. Also, your agent is legally and ethically obligated to serve your interests and act as an advocate on your behalf.
THINGS TO AVOID WHEN APPLYING FOR A REAL ESTATE LOAN
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1. Changing jobs, becoming selfemployed or quitting your job 2. Buying a new car. 3. Using credit cards excessively or letting your accounts fall behind. 4. Spending money you have set aside for closing. 5. Omitting debts or liabilities from your loan application. 6. Buying furniture. 7. Originating any inquiries into your credit. 8. Making non-payroll deposits without first checking with your loan officer. 9. Changing bank accounts. 10. Co-signing a loan for anyone.
100% Total Monthly Income
33-38% Total Monthly PITI and All Debt
20-25% Mortgage Debt In order to live comfortably, your debt-to-income percentage should be 33-38%. This includes your mortgage and all other debt. Your mortgage debt should be about 20-25% of your income.
OWNING IS MORE EXPENSIVE
MORTGAGE MYTHBUSTERS YOU HAVE TO PUT 20% DOWN
MY CREDIT ISN’T GOOD ENOUGH
Although it helps you keep a lower overall payment, 20% is definitely not a requirement anymore.
Your credit score will significantly affect your loan approval and interest rate. The higher the score, the more options you will have when looking for a mortgage. However, this doesn’t mean that you cannot purchase a home if you’re on the low end of this scale.
You can purchase a home with as little as 3% down, depending on your overall financial picture. Putting at least 5-10% down opens up even more loan options for you. If you or your spouse have been in the military, VA loans require zero down.
There are many loan programs that allow for below average credit, and they’re still affordable. 16
Current data shows that if you bought a home today and lived there for seven years, you’d save 38% compared to renting. Why? Because you have inflation on your side. When you own a home, you don’t have to worry about the landlord raising your rent each year. Your monthly costs are essentially locked in for as long as you live there. As your home’s value goes up and your mortgage principal goes down, that’s money in your pocket down the road. There are also numerous tax advantages of owning a home that you can’t achieve if you’re renting.
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2. The Search SET YOUR PRIORITIES! Almost every home purchase involves some degree of compromise, which is why it is important to prioritize your wants and needs before you begin your search. There are many variables to consider, including your lifestyle, budget, and future plans. Though you may fall in love with a home’s living area, backyard, or rooftop deck, you also need to take into account what the community can offer you and your family—not only to ensure you live near great and useful amenities, but also to make certain you’re paying the appropriate price for a property. Your agent will help you with all of this.
Size and Type Each listing your agent shows you will have its own unique shape, size, and style, so it’s important to know what you want in your home, what you can live with, and how much space you actually need. A great diversity of housing exists: single-family homes condominiums lofts new construction gated communities rural
• • • • • •
Problems to look for include: Foundation Any cracks, breaks, mold, and pests discovered near a home’s foundation are big red flags. Power and Heat Faulty switches, poor wiring and insulation, low-performing air and heating systems, and window leaks are telltale signs of a residence that’s in dire need of some serious updates.
KNOW WHAT YOU WISH FOR... Location Each individual neighborhood offers its own unique flavor and sense of community. Consider the factors that are important to you. Look at the school systems available, your work commute, child care services, shopping and attractions, crime, water, and power. It’s also good to know the ownership situation in the area you’re looking at, as in is it mostly homeowners, renters, or newly built homes? This can affect home values and neighborhood growth. It can also give you an idea about who your neighbors might be.
• • • • • •
Condition It’s vital to discover which homes for sale are in prime condition and which will require some investment to fix.
vacant land row houses bungalows duplexes townhouses cottages 18
Exterior Closely inspect panel siding, roofing, window shutters, and holes and cracks in walls. Take a close look around the yard, at driveways, pools, sheds, and other outdoor areas for any potential defects. Odors Your sense of smell doesn’t lie. If something in or around a real estate listing causes a physical reaction—whether it’s general air quality or a specific problem area with mold—it may not be an ideal choice.
Features and Amenities Garage parking, hardwood floors, a fireplace, a large yard, and convenience to parks. In the end, these are the kinds of details that drive the decision to purchase one home versus another. In creating this list, some things to consider are resale value, your daily routine, and the cost of making changes or additions down the road. Price Narrow down your search by price point first so you only view homes for sale you can actually afford. Parks agents have tools available to help you narrow down your initial search by affordability. However, this is the point at which your agent will encourage you to obtain an honest pre-approval from a local lender, such as Legacy, to set you in the right direction of determining the best home price range to suit you.
Your Home Selection Checklist
HOW TO GET THE MOST OUT OF BROWSING LISTINGS... Using the guidelines you set forth, your agent will present you with available listings, or you can contact your agent about a listing you see online. In addition to price and property attributes, pay close attention to data like property taxes, market time, and monthly assessments for condos and townhomes.
Communication is key. When choosing the house itself, which of the following features will be included?
Open Houses Remember, if you are attending Open Houses without your agent, be sure to mention that you are being represented by one. This will save you from being inundated with calls from other agents trying to represent you. Ask your agent to supply you with some of his or her business cards to make the Open House sign-in process even easier.
We suggest having all members of the family make a copy of the below list to record their preferences and most important features. You can then compare notes and come to a consensus about which items are “must-haves� and which are negotiable. House Style ___________________________ No. of Levels __________________________ No. of Bedrooms _______________________ No. of Bathrooms _______________________ Gourmet Kitchen _______________________ Formal Dining Room ____________________ Breakfast Nook ________________________ Master Bath ___________________________ Walk-In Closet _________________________
Cut to make copies of your checklist and bring them with you!
Fireplace _____________________________
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Basement ____________________________ Garage _______________________________ Porches ______________________________ Patio ________________________________ Fenced Yard ___________________________ Large Yard ____________________________ Garden ______________________________ Storage Room/Shed ____________________
SonomaCountyHub.com 707.479.5085 8220 Old Redwood Hwy Cotati, CA 94931
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Your Home Comparison Checklist Make several copies of this checklist and fill out one for each home you visit. Comparing your ratings later will be extra convenient and easy! Address:
Good The Home Square Footage No. of Bedrooms No. of Bathrooms Floor Plan Closet / Storage Space Basement Fireplace Exterior Appearance Lawn / Yard Space Fence Patio or Deck Garage Energy Efficiency Roof
Average
Poor
The Neighborhood Appearance / Condition Noise Level / Traffic Safety / Security Average Age Pet Restrictions Parking HOA Fire Protection Police Garbage Service
Good The Schools Age / Condition Reputation Teachers Test Scores Play Areas Curriculum Class Size Busing Distance
Convenience To Supermarket Schools Work Shopping Child Care Hospitals Doctors Parks Entertainment Religious Facilities Airport Highways Public Transport Other _______________ _______________ _______________ _______________
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Average
Poor
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3. The Offer MAKING AN OFFER
To communicate your interest in purchasing a home, we will present the listing agent with a standard document approved by our local real estate board that specifies all of the terms and conditions of the purchase. When the seller accepts an offer it becomes a legal contract called a Binding Agreement. The Purchase and Sale Agreement constitutes your offer to buy and, once accepted by the seller, becomes a legal contract. Discuss your offer strategy with your agent. They will take you through the offer details before it’s submitted to the seller. HOW TO NEGOTIATE After we present your offer to the listing agent it will either be accepted, rejected, or the seller will make a counter-offer. This is when we will negotiate terms of the contract if necessary. Contingencies If your offer states, “this offer is contingent upon [or subject to] a certain event,” you’re stating you will only complete the purchase if that event occurs. The following are some common contingencies contained in a purchase offer:
Buying Power You’re in a stronger bargaining position if:
• Financing Contingency: If financing the purchase, the contract will state that it is contingent on the home appraising for the contract price and financing.
• You’re able to offer a significant earnest money deposit.
• You’re an all-cash buyer or you’re already prequalified for a mortgage. • You don’t have a present house that has to be sold before you can afford to buy.
Earnest/Trust Money Trust Money is a deposit you give when making an offer on a house. A seller looks favorably on an offer accompanied by a deposit to show “good faith.” The seller’s REALTOR® or attorney usually holds the deposit. It can become part of your down payment. When you write an offer, be prepared to pay an earnest money deposit. We deliver a copy of your earnest money check with any potential offer. This is to help guarantee to the homeowner that your intention is to purchase the property. The check will be deposited into an escrow account upon acceptance of offer.
• Inspection Contingency: Have the property professionally inspected. Submit a list of repairs to the seller. The seller can make those repairs or refuse and cancel the contract. A satisfactory report by a home inspector within a certain time period after acceptance of the offer is an example. At this point, you may make repair requests. • Home Sales Contingency: Selling your current home. • Job Contingency: Getting the job you just interviewed for. 23
NEGOTIATION
Tactics
IN REAL ESTATE DEALS
1 Be quick on the uptake A quick response to counteroffers can make a deal. While getting the most out of your offer is important, making a counteroffer with terms that aren’t truly deal-breakers may force you to start house-hunting again if the delay allows another offer or starts a bidding war. 2 Cut in the middle (wo)man Always use your agent to communicate with the seller. If your agent is out of the loop you could quickly create problems with the transaction, your lender, or overlook some tricky terminology that is legally binding you to this purchase. 3 Check the comps It’s not always necessary to offer over asking price. Ask your agent for your CMA (comparative market analysis) and the full MLS listing details of multiple recent similar comparables. This will help you decide on an offer that is just right. 4 Get the dirt on pendings Occasionally an area’s comps aren’t helpful, making it difficult to place a fair offer or negotiate. Ask your agent to call the listing agent of pending comps and ask some broad questions about the selling price and competition. You may get enough information to make an educated guess. 5 Make your agent work for it Your agent’s presentation of your offer can set you apart from other buyers. Make sure you’re on the same page and communicating well so they can sell you to the seller. 6 Crunch the numbers Get your lender to run a monthly payment calculation based on your offer, property taxes, and insurance so you know if your offer is going to be within your monthly comfort zone. 24
4. Contracts to Closing INSPECT THE HOME Once a seller has accepted your offer to purchase their property, it’s time to bring in a home inspector to ensure the property meets the required standards. Any serious issues that arise should be brought to the attention of the seller. Your agent will help you negotiate who should take care of the problems. After the inspector has confirmed that everything else looks in order and you and the seller are still intent on moving forward, it’s time to start signing the paperwork. TIE UP LOOSE ENDS In a real estate transaction, there are dozens of loose ends to tie up between signing the contract and closing the sale: • Deliver earnest money to the seller or seller’s agent. • Recommend real estate attorneys. • Obtain important documents, such as property disclosure forms and condominium documents, and deliver them to the buyer and buyer’s attorney. • Recommend mortgage brokers help expedite the loan-application process. • Assure all contingencies have been met. • Recommend service providers for moving, homeimprovement, and repairs. • Schedule a final walk-through. Both buyer and buyer’s agent should be present. • Coordinate and attend your closing. BEFORE CLOSING THE DEAL 1. Provide any additional documents requested by the lender. 2. Secure homeowner’s insurance for your new property. 3. Arrange for utilities to be turned on the day of possession. 4. Arrange funding for closing costs. 5. Do a final walk-through on the property. 25
Congratulations You’re officially a
HOMEOWNER
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5. Closing THE DEVIL’S IN THE DETAILS
THE CLOSING TABLE
You’re on the cusp of closing the deal and owning your very own home, but it’s important to pay attention to all of the minor details that need to be handled in order to make the purchase official. Thankfully, your agent can help you with these tasks, like facilitating paperwork between your mortgage lender and signing the requisite forms.
A “closing” is where you and the agent meet with a representative from the lending institution and a representative from the title company in order to transfer the property title.
It’s absolutely vital to double-check every document and agreement to make sure you and the seller are on the same page. Your agent will work diligently with you to get the deal past the finish line in a timely and efficient manner.
The Contract The purchase agreement or contract you signed describes the property, states the purchase price and terms, sets forth the method of payment, and sets the date when the “closing” or actual transfer of the property title and keys will occur. The Financing If financing the property, your lender will require you to sign a promissory note as evidence that you are personally responsible for repaying the loan. You will also sign a mortgage or deed of trust on the property as security to the lender for the loan. The mortgage or deed of trust gives the lender the right to sell the property if you fail to make the payments. The Title Insurance When someone is considering a purchase of a property, it is important that the property has marketable title - that is, clear of any liens, judgments, defects or encumbrances. Title insurance is designed to protect property owners and mortgage lenders against losses which result from imperfections or omissions in title.
CLOSING COSTS If the seller isn’t covering closing, you will be required to pay all fees and closing costs in the form of “guaranteed funds” such as a cashier’s check or wire transfer. Your lender or escrow office will notify you of the exact amount.
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6. After you Buy CONTINUED SUPPORT You’ve started moving your things into your new home. There are still a few tasks to complete: setting up your utilities, getting your mail sent to your new address, and, more generally speaking, settling in to your new home. As with the closing process, this isn’t something you have to go through alone. Our agents will be there for you to make sure the transition to your new property is a smooth experience. They will also keep in touch with you to check in to see the progress you’ve made with your home. As you’re getting settled into your new home, we’ve provided a few situations you may encounter in the coming months and years that are important to think about.
FINANCIAL DISCIPLINE
REFINANCING
Buyers should definitely take the time to review and evaluate their finances after a home purchase. One important step to consider is setting up an automatic electronic payment with your mortgage lender, which lets you avoid costly penalties associated with late payments.
Keep an eye on interest rates even after you purchase your home. If rates go down, you may be able to save money by refinancing, which simply means you take out a new mortgage at a lower interest rate to replace your original loan. Another common situation that calls for refinancing is the expiration of the initial, fixed-rate period on an Adjustable Rate Mortgage (ARM). If prevailing fixed rates are substantially lower than the rate your ARM will carry once it adjusts, then it might make sense to refinance into a fixed-rate loan.
Also, make a plan for gradually rebuilding your savings account, which many buyers deplete in order to make their down payment and to pay for moving costs. As a homeowner, it’s more important than ever to have a cash reserve set aside for unanticipated maintenance that your home may require. In fact, a general rule of thumb is that homeowners should expect to spend about 1 to 3 percent of the cost of their home per year on maintenance and repairs. HOME IMPROVEMENT Whether it’s a fresh coat of paint, new hardwood floors or a major kitchen remodel, most new homeowners have at least a few projects they want to undertake once they move in. Your agent can help you find a variety of service providers and tradesmen to perform work on your home.
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Today, many lenders offer no-cost refinancing, which basically means they take the costs and fees associated with refinancing and roll them into the interest rate. It’s a way for homeowners to lower their monthly payment with little or no money out of pocket. While refinancing a mortgage has become much easier in recent years, it is still a major financial transaction with important implications. So be just as diligent in a refinance as you were in securing your original mortgage.
Your Move-In Checklist
Send change of address to:
Leave keys and any necessary legal papers with your REALTOR®
Post Office
Charge Accounts
Transfer memberships
Subscriptions
Religious
Friends
Clubs
Relatives
Civic organizations
Make arrangements with the moving company
Notify insurance companies
Disconnect utilities and advise where final bills are to be sent
Health
Life
Water
Auto
Electricity
Home owners
Gas
Trash
Check with insurance agent on coverage of life, car and household goods en route to new home
Internet
Obtain school records for kids
Phone
Obtain legal records
TV
Obtain medical records
General practitioner
Dentist
Milk
Optometrist
Papers
Other doctor
Other
Have drug prescriptions refilled
Get
refunds for any deposits made
Cancel
automatic deliveries
Transfer bank accounts
Checking Savings Safe Deposit Box
Useful numbers in Sonoma County PG&E Pacific Gas and Electric Company 1-877-660-6789 RECOLOGY Garbage Disposal Company 1-800-243-0291 29
Ratings & Reviews
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T his Buyer’s Guide is presented by
Vicki Metzger REALTOR®
707.479.0869 [email protected] | VickiMetzgerRealEstate.com DRE# 01702198
Serving Sonoma & Marin Counties
MARKETPLACE