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BUYERS PACKET

There are basic steps in the home buying process.


Each step will get you closer to home ownership and keep the process smooth.
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Table of Contents
The Home Buying Process .................................................................... 2
Your Home Buying Team ...................................................................... 3
What Your Realtor Does For You ........................................................4
How to Buy a Home in Today's Market..............................................5-6
Documents We Sign & Negotiations .....................................................7

Real Estate Terminology .......................................................................8


Buyer Questionnaire ...................................................................... 9-11
Home Buying Checklist ....................................................................... 12

Critical Date Checklist ........................................................................ 13

Moving Checklist................................................................................. 14

Important Phone Numbers & Contact Info ........................................... 15

Referral Directory ............................................................................... 16


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The Home Buying Process

closing MEET WITH A


This is the transfer of
funds and ownership. A
REAL ESTATE
title company or an professional THE BUYERS ADVANTAGE
attorney typically acts Discuss the type of As the home buyer, your
as an independent home youre looking agent's commission is paid by
third party to facilitate for, including style, the seller of the home in
the closing. price, and location. almost all circumstances. This
means your representation
costs you nothing!
final
preparing for closing details Get pre-approved
You will be nalizing your Perform due diligence, You will need pay stubs,
loan, reviewing documents, order the appraisal, W2s, and bank state-
and discussing the ndings conduct an inspection, ments. Knowing what
from the inspection. Your and review terms with you can aord is critical
agent will be managing this the lender. to a successful home
entire process for you. shopping experience.

UNDER CONTRACT
You and the Seller have CONGRATULATIONS! search for homes
The fun part! Your agent
agreed to the price and
terms. The home is will schedule showings

THE CONTRACT eectively held for you YOU ARE A NEW and help you nd the

In most cases the contract


until closing. HOME OWNER! perfect home.

provides you with a


timeline to obtain
nancing, as well as time to
inspect the physical NEGOTIATION
condition of the home.
Your real estate
AND CONTRACT MAKE AN OFFER
It may take a few tries Your agent will prepare
professional will inform
to get it just right, but the oer based on the ADVANCED SEARCH
you of all your rights and
hang in there.Youre on price and terms you
responsibilities related to Not all real estate websites
your way! choose.
the contract. are the same. Your real
estate professional has
tools and systems to
ensure you see every
available home that meets
your criteria.
3

Your Home Buying Team


1. Real Estate Agent: Your realtor will assist you with the home buying process from beginning to end. Please see
the next section for realtor duties.

2. Mortgage Broker: You will need to find out what loan programs you qualify for and what kind of down payment
you will need. Ask your mortgage broker about mortgage insurance if you are going FHA or less than 20% down.
Your interest rate will be determined by your debt to ratio amount and credit history. You can pull your credit report
FREE from www.annualcreditreport.com. We suggest paying the extra $7.95 and getting a copy of your credit score
for your records. Ask your lender for a GFE (Good Faith Estimate) which will give you your base costs for getting
a mortgage. You will also be given a pre-approval letter from your lender that will be necessary before making any
offers. Your loan costs will be around 1.5% of the transaction and another 1% if you need mortgage insurance on an
FHA loan. You will need to provide a credit report, last 2 years of income tax returns, last 2 paycheck stubs and last
3 months bank statements. For lender referrals please see the Referral Directory.

3. Title Company: Your real estate agent will usually select the title company. The escrow agent will pull a title report
and check for any liens or encumbrances on the property. They will need your SSN to make sure there is nothing
that needs to be cleared up. Once the contract has passed all deadlines then the escrow agent will pull estimated
HUDS (Housing and Urban Development Statement). This document will show you all the costs and fees from the
title company and the lender. The title fees are around 1% of the purchase price of the home. You need to buy title
insurance for your lender (if you are paying cash you dont need to buy a title policy) and the seller pays for title
insurance for the buyer.

4. Home Warranty Company: If a home warranty is negotiated into your contract then you will want to understand
how it works. The current home warranty that our office is working with is a $600 policy. This covers a free rekey
of the property, a 1 year warranty on all appliances, washer, dryer, HVAC, A/C, and pays for 1 maintenance visit.
Additional maintenance visits you will need to pay for, but if anything that is under warranty should need to be
replaced, the home warranty company will do with a like product and no charge to you.

5. Home Inspector: You will have the opportunity to have a home inspection done. They cost around $300 and the
home inspector will walk through the property very thoroughly and inform you of any issues that you should be aware of.

6. Appraiser: The appraiser is selected by an independent 3rd party on behalf of the lender. The appraisal is around
$450 and will determine the amount that the lender will loan on the property. If you are going FHA you have to have
an FHA appraisal.

7. CPA: Consult your CPA for tax questions.

8. Moving Company: Schedule your move with your realtor and moving company to ensure the move-in/move-out
dates line up correctly.
5

What Your Realtor Does For You


Listing agent duties - Krista
1. Be your advocate in finding your dream home at a competitive price that makes sense for you.
2. Walk you though the new buyer packet so that you feel comfortable with the process and ready to take the next step.
3. Set you up on a home search on the MLS. You will get automatic emails as well as daily searches by your agent.
4. Provide access to our app and website www.homes-ut.com.
5. Providing CMAs (comparative market analysis) for each property of interest before making offer.
6. Handle all offers and negotiations to protect your earnest money and rights as a buyer.
7. Guide you through inspections, appraisal, and settlement.
8. Guide you through move in and key exchange.
9. Provide title report and closing documentation in a timely manner.
10. Provide you with copies of all paperwork.

Transaction coordinator duties - Alicia


1. Schedule showings
2. Schedule inspections with seller
3. Schedule appraisal with seller
4. Send copies of all paperwork to lender and title.
5. Weekly buyer under contract report.

We love marketing
As our client you will be added to our client database. Benefits include:

1. Referral program
2. Yearly calendar
3. Holiday raffle
4. 8 week buyer/seller program
5. Home by design emails and magazine for
6. Newsletter
7. Yearly CMA on home
8. Gift program
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How to Buy a Home in Todays Market


Pre-Approval Letter
Once you have given a lender your information so they can see what you are able to qualify for, you should leave
knowing the answers to these questions:

1. What kind of loan would you recommend for me?


2. What is the current mortgage interest rate for that loan?
3. What is the Annual Percentage Rate (APR) of that loan?
4. What are the discount points and origination fee? What are all the costs?
5. Is the rate fixed or adjustable?
6. If the rate is adjustable, how will the rate and loan payment vary?
7. What is the required down payment for this loan?
8. Is there a pre-payment penalty?
9. Will mortgage insurance be required?
10. Is it possible to pre-pay the mortgage insurance so it does not end up in my monthly payment?

Searching for Properties


The home search usually begins on the Internet and driving around and looking at neighborhoods. We have amazing
tools at your fingertips.

1. Phone App
Send us a text message to 801.865.1385 and we will send you our phone app that searches for homes
nearby and gives listing info and photos.

2. Most popular websites


www.utahrealestate.com
www.zillow.com
www.realtor.com
www.ksl.com

3. Our websites
www.homes-ut.com
www.thorntonwalker.com - Specializing in new development and 55+ communities
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4. MLS searches
You will be set up on a daily MLS search and www.homes-ut.com search for new listings

5. Driving around
If you find a new development or open house. Call us to obtain information, or if you speak to the
listing agent let them know you are working with an agent.

6. Newspaper
A few homes are still listed in the newspaper with open house information. Please let us know if
there is a listing you are interested in.

Viewing Properties
When you find a home that interests you, your realtor will have access to the home easier if it is listed on the MLS. We
can also show you homes by a builder or a for sale by owner.

Making an Offer
Once you have identified a home your REALTOR will pull a CMA and give a range of reasonable value. At that point you
can make an offer.

1. Be sure to ask for a home warranty

2. Closing costs are negotiable

3. Talk to your lender about your down payment and which loan you qualify for

Acceptance
If you offer is accepted, then you will have your inspection deadline, appraisal and loan denial deadline and settlement
deadline to cancel and keep your earnest money. If you pass all these deadlines and everything looks good then you
will be on your way to settlement (signing closing docs) and closing (funding, recording and possession)
You typically dont get keys until the transaction has funded and recorded.

Homes are generally receiving multiple offers in the Spring and Fall. Summer and Winter are better
markets for buyer, but generally have less inventory.
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Documents We Sign & Negotiations


1. Exclusive buyer broker agreement: This document states that you are entering into a contract with the Selling
Agents Broker for a certain period of time, usually 3 months. You are not required to pay the commissions as the
seller usually pays them. The selling agent is protected for 3 months after the initial agreement is signed on that
particular property. If there is 2 agents from the same brokerage or 1 agent is representing both parties then a Limited
Agency Agreement is also created.

2. Buyers due diligence: This document suggests to the buyers that there is a limit on the information that the agent
can present and the buyer is responsible to obtain additional information outside of the basic home inspection.

3. REPC: Having a third party, such as a realtor, negotiate on your behalf takes a lot of stress off your shoulders when
they can handle the pressure of talking about price, terms and content of the real estate transaction. If a price and
term can be reached you are onto your next step. The REPC addresses the following items: earnest money, included
items, excluded items, purchase price, settlement and closing, possession, agency disclosure, title insurance,
sellers disclosures, due diligence, appraisal, financing, addendums, home warranty, walk-through, mediation, default,
deadlines.

4. FHA addendum: If you are obtaining a FHA loan you will need a FHA addendum.

5. Closing costs: If you are asking the seller to pay for closing costs then you will need to address it on an
addendum.

6. Lead based pain addendum: If the home was built before 1978, then a lead based paint addendum will need to
be signed. You can also ask for the pamphlet on how to protect yourself from lead based paint.

7. Short sell addendum: If you are making an offer on a short sell property, a short sell addendum is required.

8. Negotiations are important as the documents that you sign. You negotiate everything when you make an offer.
Your offer needs to be made based on many factors that all come to play in the final exchange of property for
price. You can request the seller pay closing costs or include certain items that are not included on the MLS. When
you do your inspections and appraisal you can also negotiate based on the outcome of these 2 items. If they are
not satisfactory then you can cancel the contract before 5 p.m. on the deadline and still get your earnest money
refunded.
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Real Estate Terminology


Adjustable Rate Mortgage (ARM) - The interest rate is tied to a financial index making the monthly mortgage
payment go up or down over time.

Annual Percentage Rate (APR) - The percent of interest that will be charged on a home loan.
Appraisal - A report highlighting the estimated value of the property completed by a qualified 3rd party. This is typically
done for the benefit of the buyer to ensure the property is worth what they are paying.

Association Fee/HOA Fee - In addition to a mortgage, certain housing communities such as townhomes have a
monthly fee associated with maintaining the common areas and amenities.

Balloon Mortgage - A long-term mortgage loan that starts small but has a large payment due at maturity.

Closing - This is the final meeting where the buyer and seller sign the necessary paper-work, complete the
transaction, and release/take possession of the property. Usually the representing agents and attorneys attend.

Closing Costs - The buyer and seller have expenses associated with the transaction other than that of the actual
cost of the home. For example, the buyer has a variety of fees due for obtaining a new loan and the seller must pay
commission to both agents.

Closing Disclosure - A form that provides the final details about the mortgage loan. It includes loan terms, projected
monthly payments, and how much the extra fees will be.

Collateral - Something of value (in this case your home) that is held to ensure repayment of a mortgage or loan.

Commission - A percent of the sale price of the home that is paid to agents. The seller pays commission to both the
buyer and listing agent.

Comparables - Homes in the area of interest that have recently sold that have similar features.

Contingencies - Conditions which must be met in order to close. Contingencies are typically tied to a date, referred
to as a deadline. If the contingency is not satisfied the contract may be canceled.

Counteroffer - The response from the seller in regard to an offer.


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Debt to Income Ratio - A lender will look at a borrowers debt versus income to determine the amount of loan they
are eligible for and if they can repay their debt plus the home loan.

Down payment - A percent of the cost of the property that is paid up front as a part of the mortgage.

Earnest Money - The deposit made from the buyer to the seller when submitting an offer. This deposit is typically
held in trust by a third party. Upon closing the money will generally be applied to the down payment or closing cost.

Escrow - This term has multiple meanings; earnest money is typical held by a third party until closing in escrow. It
can also be referred to as the time period from when the con-tract is written and accepted by the seller to when the
home sale actually closes.

Equity - The difference in the market value of a home versus what is owed on the home.

FHA - A mortgage that is financed through a private lender and insured by the Federal Housing Administration, often
requiring a lower down payment and income to qualify.

Fixed Rate - The interest rate will remain the same for the entire life of the mortgage.

Home Equity Line of Credit - A loan or line of credit that is determined based on the equity or homes value after
subtracting the loans owed.

Home Inspection - The process in which a professional inspects the sellers home for issues that are not openly
apparent, then creates a report for the buyer to review.

Home Protection Plan - An annual service that covers the cost of repairs or replacements to items covered in the
plan; items like stoves, washer/dryers, etc.

Hybrid - A loan that starts with a fixed rate period, then converts to an adjustable rate.

Mortgage Insurance - Insurance written in connection with a mortgage loan that protects the lender in the event the
borrower cannot repay their loan. This is usually not required if the borrower has 20% or more for the down payment.

Mortgage Note - A promise to pay a sum of money at a standard interest rate during a specific term that is secured
by a mortgage.
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Multiple Listing Service (MLS) - The national list of real estate properties that are available for sale. These are the
most reliable sources to receive up-to-date listing information.

Pre-Approval - The process in which a buyer must provide a mortgage professional the appropriate information on
income, debts, and assets that will be used to make the initial credit only loan decision.

Pre-Qualification - Once approved for a loan, this is the process in which the maximum sale price, loan amount, and
month payments are calculated for the borrow. This not a loan approval however, it useful to know prior to searching
for a home.

Principal - The underlying amount of the loan which is actually borrowed.

Property Taxes - These are the taxes that are enforced by the city, town, county, and state government entities.
These taxes are included in the total monthly mortgage payment and are held in escrow by the lender.

REO - Real estate owned properties or foreclosed properties currently owned by a financial institution such as the
bank that made the loan to the previous owner

Reverse Mortgage - This is specifically for seniors and it allows them to convert the equity in their home to cash.

Short Sale - A situation when the sellers lender is willing to accept an offer and allows the sale to be completed for
an amount less than the mortgage amount owed by the seller.

Title - A legal document proving current and proper ownership of the property. Also referred to as a Title Deed, this
document highlights the history of property ownership and transfers.

Underwriting - The process in which the potential home buyer is evaluated for their financial ability to obtain and
repay a loan. This normally consist of a credit check and appraisal of the property.

VA Loan - Loans that are given to Americans who have served in the armed forces. They are administered by the
Department of Veteran Affairs.
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Buyer Questionnaire
Finding the perfect home rarely happens, as compromises are inherent in the home purchase process. But with our
help, Ill work to get you as close as I can to your ideal home.

Please take a minute and help me by answering the following questions. Your feedback will provide information I can
use to simplify your property search and save you time. If there are any details that arent addressed in the questions,
feel free to add them.

General Questions
Where do you want to buy property? ___________________________________________________________________
Is there any specific part of the city/area that you prefer? __________________________________________________
Do you have children? Yes No
Is there a specific school or school district youd prefer to live in/near? Yes No
If yes, which school district(s)? ________________________________________________________________________
Do you have pets? Yes No What kind, and how many?_____________________________
Have you bought or sold a home in the past? Yes No
If yes, how long ago and where? _______________________________________________________________________
Do you need to sell a property before you can purchase another? Yes No On Market
Are you currently in a lease? Yes No If yes, when does it expire? ____________________________
How soon do you want/need to be in a new home? _______________________________________________________
Are you interested in a new home, a resale home, or both? New Resale Both
Do you or any members of your family have any disabilities, conditions, or other circumstances that would require
specific home features? Yes No
If yes, which features do you or your family members require? _______________________________________________
___________________________________________________________________________________________________

Financing and Pricing


Have you arranged financing yet? Yes No
Do you need assistance in locating financing? Yes No
Have you been pre-qualified, pre-approved, or otherwise informed as to what your maximum purchase amount is?
Yes No If yes, what amount have you been pre-qualified/pre-approved for? _____________________
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Do you have enough funds in your account to cover earnest money (typically 1 percent of the purchase price)?
Yes No
If yes, will your financial company issue a pre-qualified/pre-approval letter stating this amount? Yes No
What monthly payment range would you feel comfortable with? _________________________________
Will you require down payment assistance? Yes No

Your New Home


What style of home would you prefer? __________________________________________________________________
Are stairs acceptable? _______________________________________________________________________________
Is a master bathroom important to you? Yes No
If yes, which would your prefer: 1/2 Bath 3/4 Bath Full Bath 5-Piece Bath
What square footage do you prefer?
Under 1,000 1,000-2,000 2,000-3,000 Over 3,000
Do you want a basement? Yes No No Preference
If yes, which style? Unfinished Partially Finished Totally Finished Walk-out
Is air conditioning important to you? Yes No
Open floor plan? Yes No An office or study? Yes No
Formal dining room? Yes No Patio/deck? Yes No
Sprinkler system? Yes No
Do you want a garage? Yes No No Preference
If yes, how many garage spaces? 1 2 3 4+ No Preference
If yes, do you want a heated garage? Yes No No Preference
What size lot would you prefer? Small Medium Large Specific Acreage ________
Is mature landscaping important to you? Yes No
Are there any other specific features that were not addressed in this questionnaire that you would like to be factored
into your property search? ____________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
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Are you currently working with another real estate agent? Yes No
Are you in an Exclusive Buyer Agency Contract with another agent? Yes No

Contact Information
Daytime phone: _____________________________________________________________________________________

Evening phone: _____________________________________________________________________________________

Mobile phone: ______________________________________________________________________________________

Text: ______________________________________________________________________________________________

Email address: ______________________________________________________________________________________

Thank you for taking the time to complete this questionnaire!


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Home Buying Checklist


Item Date Time
Pre-approval letter from lender ____/____/____
Search for properties on www.homes-ut.com
Add phone app to your smart phone or ipad
Put on hot sheet and daily email
Property previewed and selected
Offer presented
Contract accepted ____/____/____
Deposit earnest money (1% of purchase price) ____/____/____
Order title report
Sellers disclosures received, CCRs & minutes
Inspections ordered (meth, mold, radon tests also) ____/____/____ _________
Appraisal ordered
Loan program selected
Contact moving company ____/____/____ _________
Loan package submitted to underwriting
Loan documents delivered to title
Hazard insurance ordered
Home warranty ordered
HUDS reviewed
Final walk-through ____/____/____ _________
Obtain wiring instructions & certified check
Closing date confirmed ____/____/____ _________
Signing of papers
Transaction funds and records
Keys released to the new owner
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Critical Date Checklist


Seller: ________________________________________________________________________ Seller File: __________
Buyer: ________________________________________________________________________ Buyer File: __________
Property Address: __________________________________________________________________________________
Escrow Company: _______________________________________ Escrow Phone: _____________________________
Escrow Officer: _________________________________________ Email: _____________________________________
Co-Op Agent Name: _____________________________________ Company: __________________________________
Phone: ________________________________________________ Email: _____________________________________
Co-Op Agent Assistant: __________________________________ Phone: ____________________________________
Email: _________________________________________________ Closing Date: ______________________________

Actions Deadline Date Completed


Loan Application Deadline ____________ _____________
Contract Acceptance Deadline/Time ____________ _____________
Earnest Money Deposit Deadline ____________ _____________
Inspection Deadline ____________ _____________
Inspection Resolution Deadline ____________ _____________
Sellers Property Condition Disclosure Deadline ____________ _____________
Title Document Delivery Deadline ____________ _____________
Title Review/Objection Deadline ____________ _____________
HOA Document Delivery Deadline ____________ _____________
HOA Document Objection Deadline ____________ _____________
Appraisal Objection Deadline ____________ _____________
Appraisal Resolution Deadline ____________ _____________
Loan Approval Deadline ____________ _____________
Closing Date ____________ _____________
Buyers Possession Date ____________ _____________
Listing Start Date ____________ _____________
Listing Expiration Date ____________ _____________
Existing Home Sale Contingency ____________ _____________

Notes: ___________________________________________________________________________________________
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Moving Checklist
Estimates from moving company
Estimates from truck rental companies
Create a floor plan of your new home for furniture and appliance placement
Make an inventory of your household goods and begin to remove clutter
Start a file for all your moving paperwork
Arrange to transfer school records
Get your new home ready: contact painters, carpenters, plumbers, roofers, etc
Obtain and fill out post office change-of-address cards
Make arrangements for storage
Schedule disconnect of all utility services and arrange for reconnection of services
Get packing boxes, packing tape, magic markers
Check with insurance company to see how your things are covered during transit
Cancel or transfer newspaper delivery
Notify creditors of the move
Assemble a file folder of information for the new owner of your home
Change your address once week before you move
Pack a travel kit of necessary items while moving: checkbook, credit cards, flashlight, keys, tools, paper
plates, cups, towels, toilet paper, paper towels, band aids
Disconnect and prepare major appliance
Have boxed labeled by most important Load Last so you will have access to it
Confirm the arrival time of the moving van
Dismantle large furniture
Note all utility meter reading
Leave your home broom swept clean
Unload truck and pay close attention to the bill of lading
Be prepared to pay movers
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Important Phone Numbers & Contact Info


Questar Gas 1-800-324-5111 Utah Power 1-888-221-7070
Century Link 1-877-837-5738 Comcast XFINITY 1-800-934-6489
Post Office 1-800-275-8777

Location Power Water/Sewer Gas


Bountiful 1-888-298-6100 801-298-6180 Questar Gas for all cities
Cottonwood Heights 1-888-221-7070 801-943-7671 800-323-5517
Draper 1-888-221-7070 801-571-1166
Murray 1-888-264-2626 801-264-2626
Riverton 1-888-221-7070 801-208-3133
Salt Lake City 1-888-221-7070 801-483-6900
Sandy 1-888-221-7070 801-568-7110
South Jordan 1-888-221-7070 801-569-5020
West Jordan 1-888-221-7070 801-569-5020
West Valley 1-888-221-7070 801-968-3551

Additional Contact Info


HOA Name ______________________________________ Number _________________________________________

Email___________________________________________ Address _________________________________________

HOA due _______________________________________ City/State/ZIP ____________________________________

Agent Name _____________________________________ Phone __________________________________________

Lender Name ____________________________________ Phone __________________________________________

Title Co Agent ___________________________________ Phone __________________________________________

Phone __________________________________________ Email ___________________________________________

Home warranty Name _____________________________ Contact Person ___________________________________

Phone __________________________________________ Policy # _________________________________________

Inspector Name __________________________________ Phone Number ___________________________________

Insurance Name __________________________________ Phone Number ____________________________________


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Referral Directory
Business Type Name Phone Number
Carpet Cleaning Clean Green Carpet Cleaning 801-554-7336
Carpet Installation Ned Adams 801-792-8902
Contractor Intricate Builder/Brandon Stevens 801-231-8686
Electrical Wagner Electric/Fred Wagner 801-450-2199
HVAC JR Medina 801-856-6091
Inspectors All Point/Sid Walsh 801-598-6167
House Inspector/Wayne Hensen 801-404-0300
Pillar to Post/Fred Larsen 801-281-0484
The Home Inspector/Dan Hess 801-466-1874
Insurance Jason Niebuhr/CN Insurance 801-261-5540
Locksmith Action Lock Smith 801-262-6912
Mold Mold & Disaster 866-895-9300
Mortgage Sharla Ellis
Cornerstone Home Lending 801-580-1861
Marylee Gilchrist
City Wide Home Loans 801-898-6784
Security National Mortgage
Leesa Millham 801-915-4630
Academy Mortgage
Aaron Morgan 801-980-1003
Moving Company Utah Moving 801-810-9725
Newspaper Salt Lake Tribune/Deseret News 801-237-2066
Painting Alan Stoddard/Stoddard Painting 801-597-6455
Plumbing Danny Schultz/Schultz Plumbing 801-509-9426
Pool & Hot Tub Dolphin Pool & Spa 801-277-8700
Security ADT 801-364-7694
Windows Devon/Amsco Windows 801-671-8311

Thornton Walker does not guarantee satisfaction of service of any of the above companies.
Please do your own due diligence when selecting a service provider.