RELOCATION GUIDE Welcome to Mody Real Estate's relocation guide page. We felt it was important for our web site to have valuable information that will give you a better understanding of real estate terminology and help you through each and every phase of your real estate transaction. Please select a topic below that interests you. Relocation Menu: How To Choose A Real Estate Sales Associate Home Purchase Procedures & Costs Types Of Mortgages Legal Aspects Of Buying A Home Closing and Move Checklist About Property Inspections Insuring Your New Home How To Choose A Real Estate Sales Associate Ask friends and neighbors for a personal recommendation Buying and selling a home involves making many personal decisions and, above all, you want someone who understands your needs and concerns. We realize that people rely on friends and neighbors when choosing a sales associate. This is a good way to find a reputable person. Find out who your friends use and why they did or did not like that person. Look for a sales associate who is familiar with the neighborhood A sales associate who is well acquainted with the neighborhood will be able to inform you about comparable values of other homes in the area, city ordinances and regulations, and access to schools, churches, grocery stores and retail shops. This perspective can be invaluable in helping you make a decision. Research the firm the sales associate represents Does the firm belong to a board of relators? To a multiple listing service? Ask about the firm's resources and find out about the products and services they offer locally and nationally. You should inquire whether they offer a home warranty and whether they stand behind their warranty. Make sure they can answer your financial questions and find out if they can refer you to other real estate related professionals, such as mortgage bankers, lawyers, accountants and insurance agents. Work on an exclusive basis with the sales associate you choose Working on an exclusive basis does not limit your choice of houses to buy or curtail the number of potential buyers who will see your home. Almost all sales associates use multiple listing services and can show you just about any house on the market. If you are already working with an associate yet drive by a house that interests you but has another company's yard sign, call your associate and he or she should be able to show you the home. It is not a good idea to change sales associates frequently. Instead, as you work with someone, that person will begin to instinctively know what you want, thereby becoming better able to to show you the type of home you desire.If you find a sales associate with whom you feel comfortable, stay with that person. If you are not getting results, consider changing associates Although switching sales associates frequently is not a good use of anyone's time, under some circumstances it does make sense to make a change. For example, if you have spent a week to 10 days working intensively with a sales associate who is still not showing you properties that are close to what you want, it may be time to consider a change. The best option is to discuss the situation with the associate. If you do not feel comfortable even addressing the problem with that person, look for someone else to help you. Return To Relocation Menu Return To Mody Real Estate Home Page Home Purchase Procedures and Costs Procedures: Step 1: In negotiating the purchase of your new home, the initial step will be to instruct your broker to make an offer of purchase. This offer should be in writing and accompanied by a check (5-10% of the purchase price) to show "good faith". The offer should include: The amount you are willing to pay Closing and occupancy dates Any contingencies, including obtaining of a mortgage and building and pest inspections Any personal property specifically included or excluded If the offer is not acceptable, further negotiations are necessary to reach terms agreeable to both the buyer and seller. Step 2: When the buyer and seller agree on terms The buyer immediately applies for financing and arranges for building and pest inspections The seller arranges with his attorney for the drawing of the contract of sale based on agreed terms Step 3: The sale of contract should include among other things, the following: Purchase price Mortgage contingency, if any Quality of title to be conveyed Date of possession Itemized list of personal property included in sale Satisfactory building and pest inspection (if desired) Costs: Points or loan organization fee Interest On The Loan. Interest covering the period from date of closing until end of month. Title Insurance. Often the banks require this insurance. Attorney's Fees Survey Fees. If not recently surveyed the lender or title insurance company may require a registered survey or map showing the location of the house and the boundries of the property, as well as easements and rights of way. Recording Fees. The buyer usually pays the fee for legally recording the new deed and mortgage. Homeowners Insurance. Proof of current policy is necessary at the closing. Adjustment Costs. paid to seller at closing (where applicable) Buyer's share of pre-paid property taxes Heating oil remaining in tank sewer service charges, if applicable Building Inspection Pest Inspection Return To Relocation Menu Return To Mody Real Estate Home Page Types Of Mortgages Conventional - These mortgages are currently made through banks, savings and loans and mortgage companies. they are typically made for 15 to 30 years and are called fixed rate mortgages. The amount of money on a conventional mortgage ranges from approximately 75% to 95% of the value of the home. FHA - This loan is made through banks, savings and loans and mortgage companies but backed by the Federal Housing Authority. There are different programs with FHA, such as FHA 203 loan and FHA 245, both of which are different types of FHA loans. Qualification, interest rate and down payment can be different from conventional mortgages. VA - Qualified veterans are eligible for VA loans. The maximum interest rate is set by the federal government and these loans may not require a down payment. Short Term Balloon - These loans are typically for a set period of time, 1, 3, 5 years for example. Although based on a payment schedule of 30 years, they must be paid off at the end of 1, 3 or 5 years. The term "balloon" is used because the entire amount of the "balloon" amount is paid off at the end of the loan period. Adjustable Rate Mortgages - This is a type of mortgage that allows the interest rate to fluxuate. Graduated Payment Mortgages - This plan allows people to make less of a monthly payment in the early part of the mortgage and a greater amount of payment in later years. Shared Appreciation Mortgages - Under this program, the borrower obtains a lower interest rate in exchange for giving the lender or some other party a share in the increased value of the home, so that when the home is sold the equity is shared. Assumptions - This is a method of financing that allows a buyer to take over an existing loan on a home with permission of the seller and lender. This type of loan is normally less than current interest rates. Typically, all VA and FHA loans can be assumed. Owner Financing (also called seller take back) - In some cases the seller is in a position to take back or hold the first or second mortgage on the property. This provides the buyer a mortgage where none was available or, more importantly, at a lower interst rate than the current market. Fannie Mae - Federal National Mortgage Association - this is a national organization which "buys" mortgages from local lenders to keep a constant flow of mortgage money available to home buyers. Return To Relocation Menu Return To Mody Real Estate Home Page Legal Aspects Of Buying A New Home The following is a brief summary of how your attorney will assist you in the purchse of your home. The Contract: Once you have made the decision to make an offer on a house, your broker will prepare a printed purchase offer form, called a contract. The contract is the single most important document in a real estate transaction. It should set forth the entire agreement between the buyer and seller. It becomes a legally binding contract when signed. The contract sets forth the basic terms of the agreement including the purchase price, method of financing, personal property to be included, closing date and the rights and liabilities of each party in the event the transaction fails to close. It is important for the buyer to consider making the offer contingent upon making the necessary financing, specifying the amount of the loan to be obtained, the points to be paid by the seller and other pertinent terms of the mortgage. Since many contracts contain additional conditions, it is advisable to seek legal advice prior to signing. You should discuss with your broker and attorney any conditions which you feel should be included in the contract. Financing: Before you make an offer to purchase, you should consider the type of financing you will use. Normally the buyer has several options. You may purchase the seller's equity and assume the seller's obligations under an existing mortgage loan if permitted to do so by the lender. You may pay cash for the transaction. You may qualify for a new loan through a bank or other lending institution. The seller may finance the purchase by taking back a purchase money mortgage. All alternatives should be discussed with your attorney and broker. Title Examination: To insure you receive good title to the property, a title search is made by your attorney. This usually consists of an examiniation of an abstract and of the public records in the county in which the property is located. The search will uncover liens, judgements, lawsuits, unpaid taxes, mortgages, easements, and other similar matters affecting the title of the property. It is important to have your attorney review the title to adaquetly protect your interests. The lending institution will also require a title examination or title insurance prior to advancing its mortgage proceeds to the buyer. Closing: The closing of a real estate transaction is the event where the necessary legal documents are signed and completed by the parties. It is normally held at the office of the lending institution. The funds are collected and disbursed in accordance with the closing statement and contract of sale. Choice Of Attorney: Choosing an experienced real estate attorney is an important step in insuring that the buyer will be adaquetly represented and protected in the real estate transaction. Your attorney will work in close cooperation with the broker and lending institution to provide an orderly transaction. Your choice of attorney should be based upon the experience and reputation of the attorney and his or her ability to get work done efficiently. You should not hesitate to seek advice and opinions from your attorney during the course of the transaction. Return To Relocation Menu Return To Mody Real Estate Home Page Five Days To A Smooth Closing And Move A day by day checklist of things to do during your final week in your old house. Four Days Before... Schedule final utility meter readings for day of closing including: gas/fuel oil electricity water/sewer In case the meter readers come while you're at the closing, arrange for a friend or relative to be home during the time you're away. Three Days Before... Go to post office and arrange for mail to be forwarded to new address. Cancel newspaper subscriptions, cable TV service, telephone and garbage collection. Two Days Before... Talk to the title officer, your lawyer and your agent to verify that all necessary paper work will be ready for your closing. The Day Before... Pick up a written copy of your estimated closing costs from the closing officer, or have your agent do it - you're entitled to it by law. Check to make sure all fees, tax adjustments and other charges are correct. Gather all documents you're expected to bring to the closing meeting, such as: paid property tax receipts property survey copies of your mortgage and other leins on the property Closing Day... Before you leave, sweep out the house and make certain all your belongings are out. When you leave for the closing, make sure you have your documents along with all house keys and garage door openers. After the closing is completed, call your insurance agent and cancel your homeowners policy. Return To Relocation Menu Return To Mody Real Estate Home Page What Is a Property Inspection? A property inspection is a service designed to aid consumers in making informed decisions regarding their homes or commercial properties. A qualified inspector will examine all of these components: Foundation Interior Plumbing Electrical Service Heating and Air Conditioning Wood Deterioration and Insect Infestation Structure- Load Bearing Framing, Walls, Floors Exterior- Siding, Roofs, Windows, Doors, Stairs and Landscaping Chimneys and Fireplaces Driveway and Walks Garage Major Appliances Why Have A Property Inspection? A property inspection provides you with an objective written report that identifies the positive elements as well as major deficiencies of your home or commercial property. This overview insures that you will be a knowledgeable consumer, aware of the soundness of your investment. Return To Relocation Menu Return To Mody Real Estate Home Page Insuring Your New Home The amount of homeowners insurance you should carry depends on the replacement cost of your house; what you need to spend to replace it as it stands. Make sure not to confuse this with the market value or you could end up over or under insuring your house. Also, remember that insurance is really there to cover a catastrophy. If you want to keep costs down, do it with the deductible, not with the amount of coverage. Insure your new home for it's full replacement cost. Make sure your policy keeps pace with inflation cost to the actual region increase. Selecting a high deductible can help keep your premium down. Be aware that valuables such as fine arts, jewelry, furs, coins, etc., might need additional or seperate coverage. Ask for premium discounts for new homes, installing dead bolts, smoke detectors, and for sophisticated fire and burglar alarm systems. An understanding of how life and disability insurance can sometimes play a major role in covering your mortgage is important. Be sure to insure personal contents in your home for their replacement value as opposed to their actual cash value. For total coverage and assurance, consider an umbrella liability policy. Investigate all of your options. Return To Relocation Menu Return To Mody Real Estate Home Page Return to Top Of Page   For more information on any of these properties email - modyrealestate@yahoo.com   Go to the folloing page [Recreational Listings] [Residential Listings] [Commercial Listings] [Investment Listings] [Meet Mody Real Estate] [Services] [Relocation Guide] [Norwich Home Page] [Area Profile] [Mody Home Page]