First Time Homebuyer Guide

First Time Homebuyer Guide

THE ROAD TO home

HOME BUYER' S GUIDE

REAL ESTATE AGENT

Michael Heissenbuttel

Meet Michael

As a Brevard native, Michael's hard work, charisma, and passion for helping others have earned him a reputation of unrivaled service. He uses his expertise to ensure that the process of buying and selling real estate can be stress free.

Call/Text: 321 - 626 - 8553 [email protected] michael.platinumgroupfl.com

@michaelsellsbrevard

@michaelsellsbrevard

The Platinum Group Team is focused on providing a 5 star experience to our clients. Our systems and everything we do are designed around delivering on this promise.

Our Mission Our Vision Our Values

TO DELIVER UNRIVALED Service

H E A R T

: Honest : Exceptional : Attentive : Relational : Thankful

TO BE THE Real Estate Team OF CHOICE By Building Lifelong R E L A T I ON SH I P S THAT CREATE Legacy and Wealth

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expectations by putting our families served at the heart of every

decision

MEET THE TEAM

Plat inum Group Kel ler Wi l l iams Real ty Plat inumGroupFL.com

FULL-SERVICE TEAM, MODERN TECHNOLOGY

Our Agents

Our Success Team

PJMcLoughlin Jen Peters Lisa Ramsey

JoAnnaMoffatt Corinne Rome AnnaWood

Erin Rogers Austin Garner Michael Heissenbuttel

Maria Slate Kristina Rubio

Susie Loria

Who do you know that we should know?

Soryda Ring Monica Abollo Shannon Barley

6905 N. WICKHAM RD. #110 MELBOURNE, FL 32940

8 Steps to Buying a Home

Pre Approval

Conventional: Minimum of 640 credit, 5 % down payment or 3 %with credit above 680 FHA: Minimum of 580 credit, 3 . 5 % down payment VA: Veterans/Active military only, 0 % down payment. The 3 main types of mortgage loans are Conventional, FHA, and VA. For all 3 , the maximum debt to income ratio is 43 % Before we can start looking for houses, we need to make sure you are able to qualify for a mortgage. To do this, you will work with a local Mortgage Loan Originator, where you will go through your income, debt, and credit to find out your mortgage amount.

Search For Homes

We’ll start by making (up to) 4 lists, Needs, Wants, Don’t Wants, and Can’t Haves. From there, I’ll set up a market update that will notify you as homes come on the market that might be a fit. When you see one you think you’d want to buy, text, call, or email me, and I’ll schedule a showing. If you like it, we will write an offer, if not, we will continue to search for the right home. If we aren’t seeing anything you like, we can take a look at the lists and edit the market update.

Make an Offer

When we find a house you’d like to buy, we make an offer by writing an as-is contract for the sale of the house. This a 12 -page contract that covers everything from start to finish for the purchase of the house. Writing the winning offer is more than writing a contract with the highest purchase price. Between inspection period, closing date, contingencies (or lack thereof), there are many negotiating points that aren’t just that final number. My job is to get you in the right house for the least amount of money in the shortest amount of time with the fewest number of hassles.

Deliver Earnest Money Once we are under contract, the first step is to deliver the earnest money to the title company. The earnest money amount is typically 1 - 2 % of the purchase price and is typically delivered within 3 days of the executed date.

Loan Application

In addition to delivering earnest money right away, it is important to apply for the loan immediately. The loan application is done through the lender, and they will usually need 60 days of financial history: Bank statements, paystubs, debt payments, etc. They typically need 2 years employment history as well. This is also the time in which you get quotes for insurance then pick one to bind. To be able to finance a house, it has to be insured.

Getting a full home inspection allows an expert to go through the house and do a full analysis of the property, pointing out any flaws or necessary repairs. They will also do a 4 -point inspection, which your insurance company will need to insure the home. During the inspection period is when you have the right to walk away from the deal and keep the earnest money, so if there is something that needs to be repaired, this is the prime opportunity to negotiate for repairs. After the inspection period, there are contingencies in place to protect you, but you need to have proof to keep the earnest money. Inspection

Appraisal

The bank will send out an independent appraiser to the house to perform an appraisal. They give an objective judgment on the house’s value. The bank wouldn’t give you a $ 250 , 000 loan on a $ 150 , 000 house, so this is their way of protecting their (and your) investment.

You’ll typically wire funds to the title company 1 - 2 days before closing, so closing day is where you sign documents and get your keys! Once that final paperwork is signed you will officially be a homeowner! Closing

Frequently Asked Questions

It depends on what loan type you choose, but it is typically the down payment (as little as 0 - 5 %) plus around 2 % of the purchase price. This 2 % covers closing costs and prepayments on property tax and insurance. Howmuch will this cost?

Howmuch does it cost to have a Realtor?

The seller pays the Real Estate Agent(s) (both the one helping seller and the one helping you). So, as the buyer, you don’t pay me any commission. The only cost is a $ 250 transaction fee that is paid at closing. Why can't I use my bank? The same way you wouldn't go to your primary care doctor for surgery, you don't want to go to just any bank for a mortgage. When you go to a mortgage company, they can get you the best interest rates, the highest quality of service, and an overall better experience.

Why do people say you need 20 % down?

Putting 20 % down gets you out of paying for mortgage insurance. Mortgage insurance is an extra payment that the FDIC requires when a mortgage is more than 80 % of the house's value. If you are using a VA loan, there is no mortgage insurance. If you are using a conventional loan, the mortgage insurance goes away once the loan becomes 80 % or less than the home's value.

How do I know if I'm ready to buy a house?

For most people, buying a house is a great decision both financially and emotionally. There a few times where this isn't true: you don't have reliable income, you can't pay the down payment and closing costs, or you're planning on staying in an area for less than 3 years. What's next? We’ll sign some paperwork, fill out the Needs, Wants, Don’t Wants, and Can’t Haves, and get you connected with a local lender. Once we get the Pre-approval from the lender, I’ll set up the market update and we’ll start looking for your home.