Don’t forget to bring along this Home Buyer’s Book as a reference guide when you are looking at homes. The pages in the back of the book allow you to make notes on specific homes, which will make it easier to remember the specifics about each home. If you need to go back to a home for another look, The DeHanas Team will be happy to schedule an appointment. Be sure to ask any questions you have about the home, even if you feel you’re being nosy. You have a right to know. It’s important to know that the seller will supply the buyer with a Residential Property Disclosure, which will disclose any defects known by the seller. A copy of this form is found in the back of this book.

If you’re looking in more than one community, try to make the most of each house-hunting trip. Stop by the local chamber of commerce to pick up promotional literature about the community. Or ask The DeHanas Team for welcome kits, maps and information about schools, churches, and recreational facilities. Also, be sure to take along a camera and snap some pictures of all the homes you like. That’ll make it easier to remember.

As for individual neighborhoods within a village or city, there is no better source or information than The DeHanas Team! The DeHanas Team knows the people and the communities they serve, and chances are, they can help you find a neighborhood that really fits your family’s needs.

Usually, you call an inspector immediately after you’ve made an offer on a home. However, before you sign any written offer, make sure that it includes an inspection clause or other language which says that your purchase obligation is contingent on the findings of a professional home inspector. DeHanas Real Estate contracts automatically contain this important verbage!

Your home cannot "pass" or "fail" an inspection, and your inspector will not tell you whether he or she thinks the home is worth the money you are offering. The inspector’s job is to make you aware of repairs that are recommended or necessary.

A seller may be willing to renegotiate a price to accommodate needed repairs, or you may decide that the home will take too much work and money. A professional inspection will help you make a clear-headed decision. In addition to the overall inspection, you may wish to have separate tests conducted to check for termites, or the presence of radon gas. Talk to The DeHanas Team for information about these tests, and companies in the area that perform them.

In choosing a home inspector, consider one that has been certified as a qualified and experienced member by a trade association. The DeHanas Team may refer you to several qualified inspectors.

This money will be held in a special escrow account. If your offer is accepted, your earnest money be included as part of your down payment. If your offer is not accepted, you’ll get back all your earnest money. But keep in mind that if you back out, you forfeit the full amount.

After you’ve looked at the home’s features, asked questions, checked comparables, and talked about it with The DeHanas Team, you should have a good idea of what the home’s value is in the current market. Consider what you can afford, and make an offer that you consider to be fair.

Most buyers and sellers negotiate on price, with both sides "giving" a little until both agree. When the price is agreed upon, the paperwork will be initialled by both parties. At that point, you typically will begin the process of arranging for an inspection and applying for a mortgage.

And... As a continued service to our customers, if you ever need a truck, even after you're moved in, just call and reserve it! There's no charge. Charitable organizations can also use our truck just call the DeHanas Team for details.

The most popular mortgages available to home buyers today can be divided into two general categories: those which offer fixed interest rates and monthly payments, and those where one or both of those factors are adjustable.

Fixed rate/fixed payment loans are more traditional, and remain the most popular home financing method, currently accounting for about two-thirds of all residential mortgages. Their advantages are well-known: You always know what your monthly principal and interest payment will be, so your basic housing cost will remain unaffected by interest rate changes until the mortgage is paid off.

Mortgages that entail flexible rates and/or payments have grown in popularity during periods of high interest rates and/or rapidly rising home prices. Many, including the popular ARMs (Adjustable Rate Mortgages), offer lower-than-market initial interest rates that allow buyers a measure of affordability unavailable in fixed-rate loans. The tradeoff may be higher interest rates and higher monthly payments later on.

It’s important because getting a mortgage is not just a one-time signing of documents, a handshake and a check. You will be depending on your lender to fund the loan as promised, on time, and over the life of the loan, to keep good payment records, pay your taxes and insurance (if included in your monthly payment) and many other continuing services.

Look for a lender that has the authority to approve and process your loan locally. It’s easier to obtain information on the status of your loan and discuss conditions directly with the person who will approve your loan, rather than some faraway loan committee. It’s important that your lender know home values and conditions in your local area. And while biggest doesn’t always mean best, financial stability, reputation, qualifying procedures, and unique programs are the benefits they offer home buyers.

Most ARMs feature an interest rate that is often below market for the first year, and may only rise gradually after that.

VA and FHA-insured loans call for extremely low down payment (0-5% of the purchase price), and often offer a below market interest rate. Similarly favorable terms can also be arranged with the help of private mortgage insurance.

Finally, first-timers who can find a cooperative seller or third-party investor can look into such nontraditional financing methods as a lease/buy arrangement.

Similarly, VA-guaranteed loans often require no down payment for up to four times the amount guaranteed by the VA. These loans are reserved for either active military personnel or veterans, or spouses of veterans who died of service-related injuries. If there is a downside to these loans, it’s the qualifying process. Though you apply for government-insured financing through a lending institution, the Federal Housing Administration or the Department of Veterans Affairs must insure or guarantee the loan and may require specific documentation or procedures not necessarily required for conventional financing. That may take more time than is generally required for conventional mortgage approval. Additionally, FHA-required insurance must be added to your payment. Make sure the lender you select has delegated authority by each of these agencies to ensure a quicker loan process.

As with an FHA-insured loan, you must pay premiums for PMI coverage, the amount of which are determined by the lender. Moreover, PMI premiums are often lower than FHA insurance, and may be paid as part of your monthly mortgage payment, in annual installments, or in a lump sum at the time you obtain the loan. Your mortgage expert can help you determine which down payment option is right for you and your budget.

Allow yourself two to four weeks to complete the application process. Then once all the verifications have been completed, your lender will underwrite and approve the loan. Overall, the time from the date of application to the date of move-in is generally four to five weeks for conventional loans and five to seven weeks from the date of application for FHA and VA loans.

For instance, a lender may offer you a choice of two 30-year mortgages: the first at 10% with no points, and the second at 9½% with an additional three points. If the loan is for $100,000, those three points will cost you an extra $3,000 up front - but you’ll get a payback of significantly lower monthly payments ($840.85 vs. $877.57) for the lifetime of the loan.

Many lenders will advise you to pay the points for the better rate if you can afford it, especially if you plan on keeping the home for more than a few years. Like interest, the money you pay for points may be tax-deductible, and the investment may pay for itself through savings generated by lower monthly payments. We suggest you call your tax preparer.

You should review all costs, know which are non-refundable in the event your loan is not approved, and be prepared to pay outstanding fees at closing. You may also want to compare these costs to those charged by other lenders when shopping for your home plan.

As you’d expect, a 15-year monthly mortgage means higher monthly payments than an equivalent 30 year loan ... but not much higher as you may think. At the same rate of interest, payments on the 15-year mortgage are roughly 20-25% higher than a loan that takes twice as long to pay off. And one of the benefits of choosing a 15-year mortgage is that you can generally get a lower interest rate for an otherwise similar loan. Another advantage is faster equity build-up because a larger portion of your early payments are going to pay off principal. This makes the 15-year mortgage an ideal alternative for couples approaching retirement or anyone else interested in owning their home free and clear as quickly as possible.

One such safeguard is the rate cap. Many ARMs include provisions for the maximum amount your rate can rise, both annually and over the life of the loan. For example, if your initial rate is 8%, the loan many include 1% annual and 5% lifetime caps ... which means even if rates rise dramatically, you’ll pay no more than 9% next year, 10% the following year, and so on until a maximum rate of 13% is reached.

ARMs may also allow your rate to decrease when the index it is tied to goes down. As you might expect, decreases are usually capped as well.

A second protective device included in some ARMs is the payment cap. Under this provision, your monthly payments may rise by only a set dollar amount. The potential disadvantage of this type of cap is that it can slow or even reverse your equity build-up. If rates rise dramatically, you could actually wind up owing more principal at the end of the year that you did at the beginning.

Of course, ARM holders can also consider refinancing to a fixed rate loan after a few years. Some ARMs even include a provision for converting to a fixed rate after a set period of time.

Refinancing may require paying many of the same fees paid at the original closing, plus origination fees. Most mortgage experts agree that if you can get a rate 2% less than your existing loan, and you plan on staying in your home for at least 18 months, refinancing is a good investment.

Pre-approval goes a step further than pre-qualifying. It is an actual commitment to lend, provided that, when the borrower is ready to buy, he or she still meets all the qualifying conditions that were met at the time of conditional approval. We strongly recommend it!

Want to pay off your loan early?

• Save extra every month.
• With the interest you earn on savings you may be able to make an extra payment at the end of the year.
• Pay an extra twelfth of your P & I payment monthly.
• Or just send whatever extra you can every month.
• Whichever method you choose, be sure to clearly indicate that the excess payment is to be applied to principal.