Knowledge Is Power...
Accurate Information Is Essential

Before you start looking for a home, become an educated consumer. Knowledge is power and misinformation gets in your way. First, learn about the process and requirements for buying a home.

Here are the facts. You only need a work permit to buy a house. And in some cases, the starter costs of renting may be about the same as a house down payment. As you start your search to find a home, keep informed. Talk with people who've gone through the home-buying process ... attend home-buying seminars ... and visit with knowledgeable real estate experts like those at CENTURY 21 Gold Key Realty.

 

Deciding to find and buy a home is one of the most important decisions of your life. It combines your personal hopes and dreams with wanting what's best for you and your family. It means making changes. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, and works in the area where you want to live.

When you choose a CENTURY 21 Gold Key Realty agent, you're dealing with an experienced professional who understands your concerns and will provide you with the personalized service that makes all the difference. Our agents typically live in the areas we serve, and they have intimate knowledge of New Castle County Delaware and the surrounding communities.

Our agents will talk to you about the neighborhood where you want to live, home prices, schools, transportation, and the surrounding commercial and residential areas. Before you find a home, your agent can also assist you in talking with a mortgage representative about getting a  "mortgage pre-approval". It's helpful to get pre-approved before you find a home so you'll know how much money you have to spend. You also can calculate how much you can afford in monthly payments.

You can reduce the stress of home buying by thinking ahead. Before you find a home you want to purchase, develop a financial plan. This plan becomes your guide not only for saving money for the down payment, but also for covering other expenses such as your credit check, mortgage application and closing costs. For more details about what to expect financially, ask your CENTURY 21 Gold Key Realty agent.

Having an established credit history plays an important role in the home buying process. It's never too soon to start building a good credit history. Start by diversifying how you pay for things; don't pay for everything with cash. Pay your bills on time, limit your debt, reduce the number of credit cards you have, and use them responsibly. Your goal is to show that you are financially responsible and a "good credit risk."

It's also important to review your credit report. This is a record of past and current debt that states when, how and if you paid. Make sure that the information contained in your credit report is accurate. By reviewing your credit report now, you'll have the opportunity to correct any errors. Your CENTURY 21 Gold Key Realty agent can help you get a copy of your credit report to review. Don't wait until you've found a home to do this. Do it now.

Your credit history is one of the documents that give the mortgage lender confidence in you. The better your credit history, the better your credit score. And the higher your credit score, the more likely your mortgage lender will offer you more mortgage options with better terms.

You're smart to think ahead. The best approach to buying a home with few financial surprises is to learn how homes are financed, find out how and where to get financial assistance, and understand all the costs involved in addition to the cost of the house.

What follows is a brief explanation of (1) Mortgage Pre-approval, (2) Down Payment, (3) Mortgage Options, and (4) Closing Costs.

(1) Mortgage Pre-approval

(2) Your Down Payment

(3) Your Mortgage

(4) Closing and Other Additional Costs

 

 

You'll want to have an idea of the features you "want" versus "need" in a home to help your CENTURY 21 Gold Key Realty agent guide you in a successful home search. Then the fun begins! Your CENTURY 21 Gold Key Realty agent will provide you with information on houses for sale and take you to visit the ones that interest you. You'll have the chance to discuss the pros and cons of each house with someone who has real estate knowledge and experience. And don't be afraid to ask questions. Remember, one of these houses you visit could be your future home and a major financial investment.

Throughout the process, your CENTURY 21 Gold Key Realty agent will help you fine tune your search criteria to find the home of your dreams. As part of the search, you'll probably visit "Open Houses." Visiting an open house includes personally touring a house that's for sale to get a first-hand view of the home and property. You may want to visit open houses on your own or with your CENTURY 21 Gold Key Realty agent. Either way, it's a chance to get a better feel for the market, neighborhood, and styles of homes available.

With each house you tour, ask yourself these questions:

• What features are most important to me? Number of bedrooms? Number of bathrooms?
• Does it have special features like a garden, a fireplace, a yard or a garage? • Do I want a newly constructed house or a house that has been lived in before?
• Is it most important that the house be near a specific school, my job, or public transportation?
• What is the school district like?
• Are there kids in the neighborhood who are the same age as my own?
• Does this house need a lot of repairs?

When you find a home you want to buy, you'll make the seller an offer in writing. Your offer is typically the first step toward negotiating a sales contract. That's why determining how much to offer is more complex than simply determining a price. Because of the large amount of money involved, both the buyer and the seller need to protect their investments and limit their risk.

This is why when you make an offer, you not only specify the price you are willing to pay, but also the other details of the purchase such as:

• How you intend to finance the home
• Amount of the down payment
• Who pays the closing costs
• What inspections will be performed
• Whether or not personal property is included in the purchase
• Terms of cancellation
• Any repairs you want done
• Date you will take physical ownership and possession of the property
• How to settle disputes should they occur

Contingencies generally allow you to anticipate potential problems so if something goes wrong, you can cancel the contract without penalty. If you cancel a contract without having agreed upon conditions and contingencies, you could find yourself forfeiting your good faith deposit and money spent to inspect the property, as well as other damages. For this reason, it's recommended you retain an attorney. Your attorney will advise you about what to include in your offer to protect yourself.

Before making an offer, thoroughly evaluate the property (including but not limited to the following):

Property Conditions
Your CENTURY 21 Gold Key Realty agent can tell you how the property compares with the rest of the neighborhood.

Home Improvements
Take note of what the previous owners have done to the house to determine if these improvements warrant the asking price and/or were done correctly.

Market Conditions
If the market is "hot," it's often considered a "seller's market." This may give you, the buyer, less room to negotiate your ideal price because there may be other people willing to pay more for the home.

If the market is "slow," then it's considered a "buyer's market." In times like these, houses often sit for longer periods of time without receiving acceptable offers. When reasonable offers do come in, sellers may be more willing to negotiate.

Seller Motivation
If an individual needs to sell quickly due to his or her personal situation, he or she may be more willing to negotiate

Once you find a home and submit your offer, you then wait for the seller's response. The seller can accept, reject or counter your offer with one for a higher amount. This begins the process of price negotiation that continues until both parties either agree on a price or decide to go their separate ways.

Your Good Faith Deposit
Along with your offer, you'll provide a "good faith" deposit that demonstrates to the seller your serious interest in buying. This is one of the additional costs mentioned earlier. This money is deposited only once the offer has been negotiated and accepted by both parties.

The Home Inspection
After you find a home and make an offer, a house inspection is often ordered. The seller should have the property available for inspection by a professional.

In a typical inspection, experts examine the existing conditions of the property. Inspections may be required by law with the elements inspected varying by region, state, and/or your agreement.

The most common type is the General Home Inspection. A home inspector can provide you with a complete service that covers from the basement to the attic, as well as the exterior of the home, walls, chimneys, and fixed appliances such as refrigerators and stoves.

Other specific elements that can be included (not a complete list):

• Termite inspection
• Plumbing
• Water Quality
• Lead
• Radon
• Septic Tank
• Asbestos
• Electric

Before the closing and property ownership is transferred, you and your CENTURY 21 Gold Key Realty agent will want to visit your future house. This "walk-through" is an opportunity to ensure that the house has been left in the expected condition.

You should make sure that all the items the owner agreed to leave are still there, such as kitchen appliances. This may also include furniture and accessories listed in the final sales contract. If there are problems, discuss them with your CENTURY 21 Gold Key Realty agent and attorney. In some cases, you can ask for a discount or credit at the closing to cover missing items or last-minute damages to the property.

To be knowledgeable and prepared, ask your CENTURY 21 Gold Key Realty agent and attorney to go over the details of the closing with you beforehand. The closing process can vary by area of the country and even within the same state.

Generally, the seller is required to provide clean title to the property at closing. Your CENTURY 21 Gold Key Realty agent, mortgage lender representative, and real estate attorney/legal counsel can help you make sure all documents are provided and steps followed. Making Your Dream a Reality! Finding and buying a new home should be a rewarding experience. At CENTURY 21 Gold Key Realty we know the search for your dream home is about more than just putting a roof over your head. It's an expression of your hopes and dreams, your lifestyle and values. It's a place to spend time with family and friends, as well as your personal retreat at the end of your day. It's about making changes for your future. We understand how difficult the real estate process can be, and that's why we're here to offer our assistance. We help transform dreams into reality.