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JRA Y K EL T

Choosing the Right Type of Home

Below are some basic pointers that can help direct you into the questions and considerations that need to be applied when beginning to think about what kind of home is right for you. Our House hunting check-list, contains a more in-depth list of specific features to look for when house hunting. Lifestyle &location-As described in Finding the right neighborhood, location and lifestyle play a vital role in choosing where to even begin your search for the right home. It is important to first make sure that the values, attitudes and lifestyles of the community you are looking in to match what works for you. Things to consider:

Steps of Home Buying

1. Talk with a lender and get prequalified to purchase a home 2. Find and begin working with a Real Estate Agent 3. 4. 5. 6. 7. 8. Begin home search Find a home and make an offer Open escrow Perform inspections Work with your lender to finalize financing Close escrow and enjoy your new home!

Do you have pets? Do you want recreational facilities nearby? Do you like to take care of a yard or garden?

What do you need?- How many people will be living in the home? Will there be any elderly? Young children? Handicapped? All of these are important when choosing the layout and design of a home. Multi-level homes with a lot of stairs may not be a good choice for someone who is elderly or that may have a walking disability. Things to consider:

How many bedrooms do you need? How many bathrooms? Special purpose rooms desired: o Recreation/TV o Office/study o Sewing/crafts/hobby room How much storage space/closet space? Do you need o A garage/carport? o Parking space(s)? o Room for pets? o Space for gardening/flowers? o Room for play/children? o Other outdoors space?

Multiple Listing Service (MLS)

The MLS is a database of all properties listed for sale by Realtors. This is a key tool when either listing your home or buying a home. It is available to thousands of Realtors.

Benefits of a Real Estate Agent

At JK Realty our agents are passionate trained individuals with your best interest at heart. From understanding market values, approaching the selling process with an expert edge, to negotiating and closing the deal JK Agents will exceed expectations. JK Realty- Your family comes first! 1. A skilled agent like those at JK Realty not only understands the selling process enough to complete the process with ease but know the process thoroughly enough to be able to educate clients. Making each individual completely aware of what steps have been made, what steps are next and how particular contracts work. 2. A great agent is a great problem solver. They dont wait for problems to occur to then try to figure out how to troubleshoot them, they think ahead and are prepared for every possibility. 3. Properly preparing forms, contracts and required disclosures along with understanding the legality behind each contract is a necessary skill for any serious agent. Knowing what questions to ask and preparing all documents ahead of time helps distinguish a true professional. 4. Understanding the local market and knowing what is overpriced and underpriced can be the difference between a seller loosing, gaining or breaking even in a home sale. 5. Even if every other aspect of the selling process is implemented flawlessly, without strategic marketing and advertising a sellers goals for selling a home in a timely manner and within a particular price range will not be met.

Listing Agent:
A listing agent or broker forms a legal relationship with you, the homeowner to sell your home and place it on the Multiple Listing Service

Buyer's Agent
The buyer's agent works with you, the buyer to help you find a home and negotiate a successful purchase.

Finding the right neighborhood

Finding the right neighborhood is different for every person and every family. Not everyones needs and priorities are the same so it is important to outline what attributes of a great area cater to you and your lifestyle. Looking up reviews, articles and statistics online is a good start, but nothing quite compares to giving the places youre interested in a visit and the feeling brought on with being physically present. Below is a list of basics to consider when searching for the right neighborhood.

Lifestyle Go to the areas youre interested in moving to and get a feel for what the people and the environment is like. See what kinds of places are busy, what the restaurants and gyms are like. Go to places you typically would find yourself spending a lot of time at and see if you feel comfortable. Are you single and looking to mingle? Or are you a family looking to live amongst others with similar values? A retiree looking to relax? Research the ratio to families and single-occupant owned homes along with what the major age-groups are. How long are you staying? How long a person is looking to stay in one place can really change a persons approach to what they want out of a neighborhood. Are you looking to dig roots in this location and start a family? If so is this a place that can cater to many phases of life for you and your future family? Is this area a stepping stone that you only plan to be in for a year or so? If so, what is most important to you now? Planes, trains and getting to work How far away is your work? Are you planning to drive? Use public transportation? Bike or walk? Think about your lifestyle and needs. Look into traffic in your area. If youre driving to and from work research what rush-hour times are like in the area. If you are interested in using public transportation look into bus routes and light-rail stations, biking or walking? Is the neighborhood bike and pedestrian friendly? Do you see a lot of others out walking and biking? Are there bike lanes and passageways? School ratings For families with school-aged children choosing a neighborhood parallels with which school your child will be attending. Be sure to check out district zonings for areas, sometimes choosing to live on one side of a street versus its opposite can change which school district or school your child will be attending. Look into school rankings and extracurricular programs. Consider crime stats How does the neighborhood youre interested in compare to the rest of the city? Will you be out at night a lot? Do you plan on walking around frequently? If so learning about crime in your prospective area is a good idea. You can contact police stations directly or look up crime information online. Cities typically each have data that shows and compares their crime rates against other cities and the states.

Gather Financial Date for Loan Application

Being prepared at the time of applying for a loan will not only make you stand out as a serious and qualified buyer but will help make the process go smoothly. At JK Realty we believe in not only preparing our clients but educating them ahead of time, ensuring that they are aware of all financing options and what will work best for their unique goals and lifestyle.

Information needed at the time of a loan application

Picture ID with proof of a social security number Residency history within the past two years Names and addresses of employers and W2s within the past two years along with a current pay stub Names, addresses, account numbers and balances of all checking and savings accounts and the last two months of bank statements Names, addresses, account numbers, balances, and monthly payments of all open loans Names, account numbers, balances and monthly payments of all credit cards Addresses of other real estate owned Estimated value of personal property Money for credit report and appraisal Full divorce decree, if applicable Certificate of eligibility and DD214s (VA Only)

Opening Escrow
By the time the contract is signed by all parties involved, or executed, the Agent for the Buyer usually has the Earnest Money check in their possession (some exceptions). Opening Escrow is as simple as bringing a copy of the contract and the Earnest Money check to the title company, this is often done on the first business day after the contract is accepted. When this is done, the title company has everything they need to open escrow.

Close the Deal

Closing Costs

simplifying IT

Appraisal: This a one-time fee pays for an appraisal. The appraisal is made by an independent free appraiser. Credit Report: A fee that covers the cost of the credit Document Preparation: There may be a separate fee that covers the preparation of the final legal papers. Loan Discount: A fee used to adjust the yield on the loan to what market conditions demand. Loan Organization: The lenders administrative cost in processing the loan, this fee covers the loan. Title Charges: The title company charges fees for a title search, title examination, recording fees, endorsement fees, a settlement or closing fee and notary fees. Prepaid Interest: Depending on the time of the month your loan closes this periderm charge may vary from a full months interest to that of a few days. If your loan closes at the end of the month, you will have to pay interest only for a few days or so. Taxes & Insurance: You may be required to reimburse the seller for property taxes. Depending on the month in which you close. You will also need to pay a years hazard insurance premium up front. Also, you might be required to put a certain amount for taxes and insurance into a special reserve account held by the lender.

Estimated Closing Costs

Home Price $ _________

Money Down $ _________ Loan Amount $ _________ P.I.T.I Fixed Costs Pre Pay costs Total $ _________ $ _________ $ _________ $ _________

+Down Payment

House Hunters Score Card

Keep track of whats important to you! Priority Asking price Neighborhood School district Overall square footage Move-in ready Custom home Garage Age of home Single level/ multi-level Real estate taxes HOA fees Utility expenses Wood frame/ brick & wood frame Overall exterior condition Gas or electric heat Central air age Number of bedrooms Number of bathrooms Size of living room Closet sizes Kitchen space Storage Refrigerator Electric or gas stove Disposal Washer and dryer Laundry space Adequate water heater Carpeting , tile or wood floors Modern electric wiring Sewage system Backyard Fencing Landscaping Pool House A House B House C House D

Close Costs: Who Pays What?

Down payment Agent commissions Existing loan pay off Loan prepayment penalty (if any) Taxes Termite inspection Property inspection Property repairs (negotiable) Homeowners Association transfer fee HOA disclosure Fee Home warranty premium (negotiable) New loan origination Fee (negotiable) Discount points (negotiable) Documents preparation fee Credit report Appraisal (negotiable) Tax service contract Prepaid interests (approx. 30 days) Impound account FHA, MIP, VA funding fee, PMG premium Fire/ hazard insurance Escrow fee Homeowners title policy Lenders title policy and endorsements Recording fee (flat rate) Conveyance/ tracking fee Courier/ express mail fees Email loan documents CASH Buyer Seller Seller Seller Prorate Buyer Seller Split Seller FHA Buyer Seller Seller Seller Prorate Buyer Seller Split Seller VA Buyer Seller Seller Seller Prorate Seller Buyer Seller Seller Seller CONV Buyer Seller Seller Seller Prorate Buyer Seller Split Seller

Buyer Buyer Seller Buyer Buyer Seller Buyer Buyer Buyer Buyer Split Seller Buyer Split Seller Buyer Split Seller Split Buyer

Buyer Seller Seller Buyer Buyer Seller Buyer Buyer Buyer Buyer Seller Seller Buyer Split Seller Seller Seller

Buyer Buyer Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Split Seller Buyer Split Seller Split Buyer

Split Seller Split

What Will Your Payment Be?

JK Realtys principal and interest payment guide provides an easy-to-use chart that provides a monthly payment estimate at a glance.

Loan Amount $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $210,000 $220,000 $230,000 $240,000 $250,000 $260,000 $270,000 $280,000 $290,000 $300,000

3.0% 295 337 379 422 464 506 548 590 632 675 717 759 801 843 885 928 970 1012 1054 1096 1138 1180 1223 1265

3.5% 314 359 404 449 494 539 584 629 674 718 763 808 853 898 943 988 1033 1078 1123 1168 1212 1257 1302 1347

4.0% 334 382 430 477 525 573 621 668 716 764 812 859 907 955 1003 1050 1098 1146 1194 1241 1289 1337 1385 1432

4.5% 355 405 456 507 557 608 659 709 760 811 861 912 963 1013 1064 1115 1165 1216 1267 1317 1368 1419 1469 1520

5.0% 376 429 483 537 591 644 698 752 805 859 913 966 1020 1074 1127 1181 1235 1288 1342 1396 1449 1503 1557 1610

5.5% 397 454 511 568 625 681 738 795 852 908 965 1022 1079 1136 1192 1249 1306 1363 1420 1476 1533 1590 1647 1703

6.0% 420 480 540 600 660 719 779 839 899 959 1019 1079 1139 1199 1259 1319 1379 1439 1499 1559 1619 1679 1739 1799

6.5% 442 506 569 632 695 758 822 885 948 1011 1075 1138 1201 1264 1327 1391 1454 1517 1580 1643 1707 1770 1833 1896

7.0% 466 532 599 665 732 798 865 931 998 1064 1131 1198 1264 1331 1397 1464 1530 1597 1663 1730 1796 1863 1929 1996

7.5% 489 559 629 699 769 839 909 978 1049 1118 1189 1258 1329 1398 1468 1538 1608 1678 1748 1818 1888 1958 2028 2098

8.0% 514 587 660 734 807 881 954 1027 1101 1174 1247 1321 1395 1468 1541 1614 1688 1761 1834 1908 1981 2055 2128 2201