WORKING WITH AN AGENT

CLOSING PROCESS

Your Real Estate Broker guides you step-by-step through the closing process and ensures that everything flows together smoothly

CODE OF ETHICS

Your Real Estate Broker subscribes to a strict Code of Ethics and is expected to maintain a higher level of knowledge of the process of buying real estate

NEGOTIATIONS

Your Real Estate Agent negotiates on your behalf to attain the best terms possible

PROPERTY SELECTION

Your Real Estate Broker assists you in the selection process by providing you a full list of properties that match your criteria and then providing objective info on each to help narrow down the choices

Q + A

DO I PAY FOR MY REAL ESTATE AGENT'S FEES?

Your Real Estate Agent gets paid by the Seller of the property. Buyer's typically do not pay any real estate commissions

SHOULD I BUY OR RENT?

Real Estate properties are investments that can be sold at a later date and often at a considerable return. When renting you are helping to pay off the Landlord's mortgage

WHAT CAN I AFFORD TO SPEND?

Dylan VanGerpen can connect you with knowledgable Mortgage Agents who can walk you through the mortgage process, and start the pre approval. What you can afford depends on:

  • gross household income
  • down payment
  • mortgage interest rate
  • current monthly expenses

ARE THERE ANY ADDITIONAL COSTS OR EXPENSES?

Dylan can show you all of the costs associated with buying real estate and how that will affect your bottom line

PURCHASE PROCESS:

  1. Dylan can help you connect with a mortgage agent to get pre-approved and to find out what you can afford to spend

  2. Inform Dylan of your budget and housing needs. With this info applicable listings will be provided and showings can commence

  3. Once the right property is found, an offer to purchase is written up, presented and negotiated. If accepted, any conditions need to be met and waived within the allotted time

  4. Prior to the closing date (date of possession), the Buyer's lawyer will review the agreement, check the status certificate, ensure the title is clear and all taxes and utilities are setup and paid

  5. On closing day the Buyer will get keys from title company

Q + A

CONDO AGE? It is important to find out how old condo is. Will it need repairs soon? Pending future renovations should appear on the status certificate

CONDO AMENITIES? New larger condos typically have modern recreational facilities for the enjoyment of its residents

  • swimming pool
  • gym/exercise room
  • billiards
  • running track
  • basketball court
  • party room
  • library
  • tennis court
  • green space

CONDO SECURITY? Many modern condos have 24 hour security, concierge, or video cameras. Some older buildings may not have these levels of security

PETS? Each condo has its own rules and regulations. Companion animals are typically allowed, however there may be restrictions on quantity and size

VISITOR PARKING? If you plan to have guests come to visit you, it is important to find out if the condo provides visitors parking. Some buildings have limited availability. Find out how many spots are reserved for guests, and what are the restrictions (time, size, etc)

GLOSSARY OF TERMS

CONDO MAINTENANCE FEES

condo maintenance fees vary between buildings. They are calculated based upon the square footage of the suite and the operating costs of the condo (inc. amenities, maintenance of the property, security, etc)

DEPOSIT

acts as a security and often accompanies an offer to purchase. 

DOWN PAYMENT

the remaining balance of the purchase price (minus deposit and mortgage amount) i.e. personal savings

HOME INSPECTION

is recommended when determining the condition of the property and relay any areas of concern. Typically costs between $350-$500

INSURANCE - MORTGAGE LOAN

(optional) If a Buyer cannot afford to put down 20% of the purchase price. Premiums vary

INSURANCE - PROPERTY

mortgage lenders require the property be insured on closing

INSURANCE - TITLE 

highly recommended to ensure that the property's title is free and clear on the date of possession. Contact your lawyer for full details

LENDER APPRAISAL FEE

your mortgage lender may request to appraise the property. Costs typically $250-$350 (may be waived)

STATUS CERTIFICATE

The status certificate is a document prepared by the condo corporation which contains all info regarding the financial health of the corporation. 

Let ME take the worry of the home buying process while YOU worry about how you are going to decorate your new home.

PURCHASE PROCESS

  1. Contact Dylan, who can help you connect with a mortgage agent to get pre-approved and to find out what you can afford to spend
  2. Inform Dylan of your budget and housing needs. With this info applicable listings will be provided and showings can commence
  3. Once the right property is found, an offer to purchase is written up, presented and negotiated. If accepted, any conditions need to be met and waived within the allotted time
  4. Prior to the closing date (date of possession), the Buyer's title company will review the agreement, ensure the title is clear and all taxes and utilities are setup and paid
  5. On closing day the Buyer will pick up the keys at the title company's office

GLOSSARY OF TERMS

DEPOSIT

acts as a security and often accompanies an offer to purchase. 

DETERMINE NEEDS

Location is typically of utmost importance, especially for resale purposes. Current and future needs should be considered

  • size
  • # of bedrooms
  • # of bathrooms
  • parking
  • rental potential
  • renovations
  • etc

DOWN PAYMENT

the remaining balance of the purchase price (minus deposit and mortgage amount) i.e. personal savings

 

 

 

 

HOME INSPECTION

is recommended when determining the condition of the property and relay any areas of concern. Typically costs between $350-$500

INSURANCE - MORTGAGE LOAN

(optional) If a Buyer cannot afford to put down 20% of the purchase price. Premiums vary

INSURANCE - PROPERTY

mortgage lenders require the property be insured on closing

INSURANCE - TITLE

highly recommended to ensure that the property's title is free and clear on the date of possession. 

LENDER APPRAISAL FEE

your mortgage lender may request to appraise the property. Costs typically $250-$350 (may be waived)

  1. Interview mortgage lenders to find the best fit. Dylan can you provide you with a list of lenders he recommends.

  2. COMPLETE THE RESIDENTIAL LOAN APPLICATION

    It requests information about your income, assets, liabilities and a description of the property.

  3. SUBMIT ALL DOCUMENTATION REQUESTED BY YOUR MORTGAGE LENDER

    The lender will need documentation pertaining to your personal finances — your earnings, your monthly expenses, and your debts — to help gauge your willingness and ability to repay the mortgage. You may be requested to provide any or all of the following information:

    • Social Security Number
    • Birth date
    • Most recent pay stub showing year-to-date earnings
    • W-2 tax forms and tax returns for the last two years
    • Names, addresses and telephone numbers of your employers for the past two years
    • For all loans and charge accounts, the name of the borrower, name and address of the institution, account number, monthly payment and current balance
    • For all deposit accounts, such as checking accounts, savings accounts, stocks, bonds, etc., the name on the account, name and address of the institution, account number and current balance
    • Three months of your most recent statements for deposit accounts, stocks, bonds, etc.
    •  

  4. PAY AN APPLICATION FEE TO COVER PROCESSING COSTS (IF THE LENDER CHARGES ONE)

    All other closing costs will be itemized in separate disclosure documents, which the lender is required to provide to you upon receipt of your application.

  5. YOUR LENDER IS REQUIRED BY LAW TO PROVIDE YOU WITH THE FOLLOWING ONCE YOU SUBMIT YOUR APPLICATION:

    • Truth-in-Lending Disclosure: This statement includes a summary of all costs associated with the loan.
    • Your Annual Percentage Rate or "APR": This is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fee and certain other charges that you (the borrower) are required to pay.
    • A Good Faith Estimate (GFE) of the costs associated with the loan.
    • ARM Disclosure (if applicable): Information on the important terms and costs of an adjustable-rate mortgage, the past performance of the index to which the interest rate will be tied and a copy of the booklet, "Consumer Handbook on Adjustable-Rate Mortgages."
    • "A Home Buyer’s Guide to Settlement Costs":  A government publication that describes the closing or "settlement" process and its costs as well as information on your rights.
    • A notice concerning your right to a copy of the property appraisal, if you are being charged for that appraisal. You are entitled to a copy if you have paid the cost of the appraisal to the lender.

ONCE YOU SUBMIT YOUR APPLICATION, SEVERAL THINGS TAKE PLACE BEHIND THE SCENES:

  • APPRAISAL: The lender will order an appraisal on the property because it is the collateral for your mortgage. You are entitled to a copy if you have paid the cost of the appraisal to the lender.

  • CREDIT REPORT: Lenders will also examine your file at the credit bureau to learn if you pay your bills on time. You have a right to know what information is contained in your credit report and to have someone from the credit bureau help you understand what the report says. The major credit bureaus are:

     

     Equifax(800) 685-1111www.equifax.com 

    TransUnion(800) 888-4213www.transunion.com 

     Experian(888) 397-3742www.experian.com 

    You can order a free annual credit report online at www.annualcreditreport.com , by calling (877) 322-8228, or by completing the Annual Credit Report Request Form found at: www.annualcreditreport.com , and mailing it to:

    Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281

     

  • FLOOD HAZARD DETERMINATION: The lender will determine if the property is in a flood hazard zone, and if so, you'll be required by Federal law to purchase flood hazard insurance prior to closing your loan. If you do not purchase the required insurance, the lender will not fund your loan.  You are required to maintain flood insurance for the life of your loan while your property is in a designated flood zone.

  • PEST INSPECTION: You may want to pay for a pest inspection to be fully aware of the condition of the home you are about to purchase.

  • CREDIT DECISION – UNDERWRITING: Your lender will review all of the information obtained as part of your loan application. This information can include your application, your credit history, your tax returns, the appraisal for the property, the title search for the property, your financial condition (assets, debts, income and expenses), the amount of your down payment, as well as the type and terms of the loan you are requesting.  When all of the information is considered, the lender will take one of the following actions:

    • The lender may approve your application.
    • The lender may ask for additional information.
    • The lender may decide not to lend you the money you've requested.
    • The lender may make you a counter-offer. For example, you may apply for a 30-year fixed-rate loan with a 15% down payment. The lender may offer to make you a 30-year fixed-rate loan with a 20% down payment.
    • If your application is turned down, Federal law requires the lender to tell you so in writing and to provide you with the specific reasons for the denial.  Make sure you understand the reasons given — you may be able to find answers or alternatives that will satisfy the institution's lending standards.

      For instance, you may discover that you inadvertently reported your monthly income rather than your annual income, or that your credit history includes information that is inaccurate.