Buying a Home

Let Us Walk You Through the Process of Buying a Home

Get pre-qualified

Schedule an initial meeting or phone conference call with a mortgage banker or mortgage broker. See our mortgage docs section on what to bring to this initial meeting.

Many people ask “WHO IS RESPONSIBLE FOR PAYING THE COMMISSION?” Our fee is generally negotiated from the seller of the property.

View listings

Review homes that meet your criteria on-line or if you prefer through e-mail listings can be sent to you. An efficient and very quick process!
Preview homes

Buyer’s Agent obtains information crucial to purchasing a home.

We have an absolute handle on the idea that you are the client and we respect you deciding to do business with us and treat you with the respect and courtesy you deserve.

Writing the purchase offer

Once you find a home that suits you both financially and personally

Broker will draft the offer in writting.
Offer is communicated to the Seller or Listing agent of the owner.
Seller has an option to accept, counter or reject the offer.
Seller is not reqired to respond in writting if they reject the offer.

When the offer is countered

You have the following options when the offer is countered by the Seller:

1.Counter the offer back with what you the buyer are willing to pay plus other negotiable things such as: closing date, Seller helping with closing costs etc.
2. Accept the offer
3. Reject the offer

When the offer is accepted

Purchasers and the Owner/Seller have agreed in writing on all the terms and conditions of the contract. There may be some contingencies to the offer such as a Home Inspection, Chimney Inspection, Radon testing, Chinese Drywall and others that can be discussed, when you meet with one of our associates.

And so…onward to the closing process for the next steps in the transaction process.

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Reasons to buy a house

Great Reasons to Purchase a Home

You will benefit from the mortgage interest deduction on your tax return.

You will own it! No more paying money on an apartment that you don’t reap any benefits on paying for and only the Landlord does.

Sense of pride owning your own home.

Offers a sense of security in building your retirement planning.

The right improvements made to the property could make you money when you go to sell.

Purchasing the property at the below current market pricing could make you money when you go to sell in the future. Ask your Realtor for details.

Allows you the freedom to improve the property to your style, without having to check with the landlord.

Having a yard ~ space for the kids, a pool, a patio, a dog etc.

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Pre-Qualification

Getting Pre-Qualified by a Bank or Mortgage Broker

Get pre-qualified for a loan first

Get pre-qualified by a reputable mortgage banker of mortgage brokerage company prior to beginning to view any homes. The mortgage company will figure out the amount of loan you would qualify for based on your income and debt ratio. When you are pre-qualified, you should receive a document stating the amount you are “pre-qualified” for.
A pre-qualification letter IS NOT the same as a mortgage commitment

The true mortgage commitment happens after there has been an accepted purchase offer and when the terms of the financing are acceptable by the mortgage company. The mortgage company then offers a written mortgage commitment telling you the mortgage price you will be paying, if there are any conditions etc. For more info. on what to bring along when visiting the Bank or a Mortgage Broker, see our Mortgage Documents section
Other necessities prior to viewing homes

Begin previewing homes online or via e-mail attachments from our office, pre-qualification is always the first step in the process in order to avoid common pitfalls – see the “Reasons for Getting Pre-qualified” section. Also be sure to check our FICO scoring section to see how much emphasis this scoring has upon you obtaining a mortgage.

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Mortgage Documents

Mortgage Documents Required by Some Banks for the
Pre-qualification or Pre-approval Process

Before you set out to purchase a home, it is first necessary to determine how much home you can afford. The information listed below gives you a general idea what a lender may require when they qualify you to see how much you can afford for a loan and/or to apply for a mortgage.

Employment History (2 Years)
Self-Employed – Tax returns (2 Years) Personal and Business {All pages}
Prior Year W2 Forms
Current Pay Stub(s)
Residence History
Bank Accounts (2 Most Recent Statements)
Monthly Debt Information
Divorce Decree (If applicable)
Lease/Rental Agreements
Mortgage and Account Numbers
Current Title Policy, Warranty Deed & Survey (If Refinance)
Insurance Binder
Any Foreclosure or Short Sale history-docs and exact date of occurence

Depending on which lender you choose, the list may vary and additional proof may be required.
All information is deemed to be accurate; however not guaranteed.

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Mortgage Pre-qualification Reasons

Mortgage Pre-qualification Reasons

* Obtaining a pre-qualification letter from a Lender will inform you the maximum dollar amount of a home you should purchase.

* You will know what is on your credit report since the Bank will pull a credit report. If there is an issue that you need to clear up first prior to purchasing, you will be aware of it and can get started on it.

* Seller’s will feel more confident showing you their home after your Realtor shares that you have been pre-qualified within the specific price range of their home.

* When you decide to write a purchase offer and the Seller’s requests (which they often do) a copy of the pre-qualification letter, your Realtor can provide the Seller with your pre-qualification letter from the Bank. This will strengthen your purchase offer.

* When two Buyers write a purchase offer on the same home, the Seller’s may look at your offer as being a more solid offer knowing that you have been pre-qualified by the Bank. This in turn would work in your best interest if the other Buyer has not been pre-qualified.

* Being pre-qualified may give your Agent better negotiating power when it is time to write an offer.

* Confidence that you know what the Bank will give you for a mortgage loan and this will make you feel more comfortable before previewing homes.

* Your Broker will feel confident to proceed with your “house hunting” plans knowing that the Bank has pre-qualified you.

* All information is considered to be accurate; but not deemed to be guaranteed.

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The Closing Process

The Closing Process

*The chart below indicates the steps after the offer is signed, to the closing
on your new home .

1 – Realtor

Purchase agreement signed. Good faith deposit delivered as per contract. Either held in escrow or at Title Co.

2 – Title Company

Seller chooses title company or attys’ office for closing. Buyer/Seller may also choose to have atty review the contract.

3 – Mortgage Lender

Mortgage loan application made by buyer.
4 – Mortgage Lender

Request job, savings, checking verifications and credit report. Order Appraisal.

5 – Mortgage Lender

Receive verifications and Appraisal. Exhibits reviewed for corrections and completeness.

6 – Mortgage Lender

Loan file assembled for underwriting approval.
7 – Mortgage Lender

Loan approved. Commitment letter with closing instructions sent to Buyer, Title Company and Real Estate Agent. Process ceases if not approved.

8 – Title Company

Title company gathers all closing docs such as abstract, deed and survey.

9 – Mortgage Lender

Mortgage Banker forwards the completed file to the title company or attorney if atty is closing the property.

10 – Buyer

Buyer obtains homeowners insurance for the property as required by the Lender.

11 – Title Company

As per contract, the Title Company aims to have the closing occur per the date on the contract. Closing time is arranged with buyers and sellers.

12 – Title Company

In the State of Florida, it is possible to close much faster than in Northern parts of the country.

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FICO Score

Your Credit Report and FICO Score

The higher your FICO score, the less risk the Bank looks at for promise to repay your mortgage. At Independence Realty Group, we can obtain your FICO score through means of a credit reporting system in house upon your first meeting to discuss your purchase of a new home!

FICO score…

Stands for Fair Isaac and Company and is the combination of credit scores which are reported through each of the major credit bureaus. Items which may effect the FICO score are listed below:

Too many companies checking your credit if you have applied for credit cards for example or other credit items
Delinquency in payment for example your car or a mortgage payment
Too many open accounts – accounts maybe that you are not even using but have not been closed out
Judgments
Tax Liens
Too many accounts opened within the last year

One reason…

A Lender would check your credit report would be to see what your kinds of credit you have established and what kind of outstanding debts there are. This is important because it helps the Lender decide how much you will qualify for and the information will help determine whether your loan will be approved or not. This information will also be used in how much you will pay for your loan.

What the Bank looks at…

Often times during the pre-qualification process , the Lender will pull a credit report on you and whoever will be purchasing the property with you. The credit report will reflect a “total score” of all the credit which has been established at the bottom of the report. This “total score” at the bottom is called the FICO score.

At Independence Realty Group…

We like our customers to feel as comfortable as possible. The pre-qualification process can begin right in our office. We have the resources available to get you started in the important decision of purchasing a home. This is just one of the steps in purchasing a home .

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ABR Designation

Accredited Buyers Rep Designation (ABR Designation)

You may have heard of this Real Estate Designation, or have seen it in printed material, but never knew the full extent of achieving the ABR Designation.

Realtors that have the ABR Designation have taken the educational steps to endure this benchmark of excellence in Buyer Representation. It is awarded to Real Estate practitioners by the Real Estate Buyers Agent Council (REBAC) of the National Association of Realtors.

Currently there are only 8 Realtors with this designation in Winter Garden, FL as of 3/17/14.

Andrew Philippone, Broker, ABR, ABRM achieved the ABR designation in 1995. He also has the ABRM Designation (Accredited Buyers Management Designation) which he acheived in 2002. These designations play an important role when representing buyers in a real estate transaction. Andrew was featured in the Orlando Magazine in 2008, 2009 and 2010 and 2012 for Orlandos’ Top 100 Realtors.

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