Home Buyer’s Book

My business is built on relationships. I work to provide my clients with outstanding service and care during and after the purchase or sale of their home. My clients are my friends and I care about each one. I have served many clients and their families for over 20 years.

Before each transaction I take the time to educate my clients regarding the current real estate market and the home buying or selling process so they know what to expect. This knowledge helps my clients know what’s normal and what’s not, it also gives them confidence in negotiations and throughout the entire transaction.

Your referrals are the foundation of my business so I aim to exceed your expectation every step of the way. Working by referral allows me to spend my time focused on my client’s transactions and not drumming up business. It’s a win-win relationship!

I am devoted to serving your needs even after the sale is complete. If you need a professional referral, helpful advice or a great agent for your out of state friends or family, I am here to help

1. Since you’ll be discussing important financial information, pick a loan officer that you trust and enjoy working with.
2. Whenever possible meet them in person.
3. Get a loan pre-qualification letter and ask them to email it to both you and me.
4. Ask the loan officer to provide you with a closing disclosure and explain it to you. This interaction will help you decide if you like them or not.
5. Discuss which loan program is best for you. Factors of the loan program to consider are:
   1. Required down payment
   2. Closing costs
   3. “Pre-paids”
   4. Interest rates
   5. Underwriting process
   6. Closing time frame
   7. Cash required at closing
   8. Monthly payments

Provide the following information to your loan officer:

1. Last 2 years w-2’s
2. All pages of last 2 years filed tax returns
3. Social security card and driver license
4. One full month’s pay stubs showing year to date earnings
5. 2 months bank statements (all accounts & all pages)
6. 3 months of all retirement accounts; 401k, roth’s, stocks… (all accounts & all pages)
7. If you are not a u.s. Citizen, bring a copy of your resident alien card
8. Loans require additional documentation. Please discuss details with your loan officer

FHA Loan
Positives

• + 3.5% minimum down payment
• + Easier qualifications
• + Lower interest rates
• + First time home buyers may combine FHA loans with down payment assistance programs
• + FHA loans are assumable
• + Possible streamline no cost refinance

Negatives

• – Monthly Mortgage Insurance for the life of the loan
• – FHA Loan limits for single family homes:

• Salt Lake county: $416,300
• Utah county: $401,350

Conventional Loan
Positives

• + Conventional Loan Limit: $510,400 
• + Can be combined with first and second mortgages
• + You can pre-pay your mortgage insurance through closing, so you do not pay it monthly
• + You can drop mortgage insurance once the bank confirms there is 22% equity in the home.+ 3% or 5% minimum down payment required

Negatives

• – Higher Credit Score required
• – Lower minimum debt to income ratio allowed

List Price is: $300,000
Sales Price: $308,000
Seller to Pay $8,000 for Buyer’s Closing Costs
Seller Net is: $300,000

List Price is: $300,000
Sales Price: $300,000
Seller to Pay $8,000 for Buyer’s Closing Costs
Seller Net is: $292,000

List Price is: $300,000
Sales Price: $304,000
Seller to Pay $8,000 for Buyer’s Closing Costs
Seller Net is: $296,000

“Sometimes people can’t see past the decorating that’s been done,” says Rhyne, a Prudential agent. The fact is that many people can’t see the potential of some fine properties because of old paint, worn carpeting or dated appliances. “People like all-white kitchens. So they walk into a kitchen of a house with harvest gold appliances and then walk right out,” she says. Looking beyond the obvious, you could see that the house with the gold appliances may also have spacious bedrooms and fine hardwood floors underneath threadbare carpets. Smart home buyers know that since so few can see the potential of a house with dated décor, such a diamond in the rough can be a very good deal.

Buying a home is a costly proposition so some buyers try to cut corners on the expense of a home inspection. “People say, ‘We’ll get cousin Fred or Uncle Jake to do the home inspection,’” says Helfant. A well-meaning amateur may be skilled in understanding one or two home systems, but it is unlikely that he will have the breadth of knowledge necessary to evaluate all the systems in a property – as a high-quality professional inspector could. It’s far better to invest in a thorough home inspection from an independent source than to rely on the candor of the seller, their agent, or even Uncle Jake. Discovering hidden problems early can allow you to renegotiate the terms or back out if the problems are serious. Helfant points out that “Trying to save money on a home inspection is false economy.”

“In the many cases, home buyers find the property first and then try to smash the loan into the property.” Says Julie Garton author of “All About Mortgages“. “All too often, homebuyers commit to the purchase of a property before they’ve met with a mortgage lender to calculate exactly what they can afford. Failing to become “pre-qualified” can lead to disappointment,” Garton says. Unless you get your ‘reality therapy’ before you select a home, you could have to fall out of love with the property you want to buy.

The temptation to stalk the right trade-up property before you find a buyer for your old place can be overwhelming. After all, you reason, you want to be certain the grass on the other side is truly greener. But unless you sell your current place before trying to buy a new house, you could find yourself in a bad bargaining position. Timing could force you to sell your old home at a discount and giving up your chance at the move-up property you want to buy. You should have your present home in market condition, listed with a realtor, and under contract with a qualified buyer before you go shopping for a new one.

Real Estate experts emphasize that trying to acquire an unrealistic lifestyle through a home purchase is a huge mistake. “You can try to buy the dream but you have to live with the reality,” says Dorcas Helfant, former president of the National Association of Realtors. If you don’t have the money or the ability to maintain a pool or a house in the mountain, don’t buy it.