Guide ForHome Buyers

Evaluate YourFinances

Start with a simple mortgage calculation to easily estimate payments at different price-points. Vary the rate or down payment amount to gain a better understanding of how the formula works.

Know your credit. A good credit score will strengthen your ability to borrow money at the best rate. Save money. Most loan products require money down and there are various fees associated with obtaining and closing a loan. You will also need funds available when it comes time to present and negotiate an offer.

Apply For aMortgage

Once you have a good understanding of your finances, it’s time to consult with a lending expert. Your lender will help select the type of mortgage that best suits your needs and walk you through the application process. Meet our PREFERRED LENDERS and get the ball rolling. With a pre-approval letter in hand, you will have what’s needed to be a competitive buyer in today’s marketplace. Congratulations!

Choosing YourReal Estate Agent

Now that you’re armed with a loan commitment, it’s time to connect with a LADSTON real estate agent. We provide a host of skilled agents that are dedicated to guide you through this essential component for success in your journey to home ownership. Your agent will begin the process with a consultation to prioritize your search criteria and assist in navigating which platforms to best use when searching for properties. Our resources and tips will help save you time, energy, and frustration. Let the home shopping fun begin!

You FoundA Home

When you identify a suitable property, your LADSTON agent will gather information, analyze market data and develop a strategy for assembling a winning offer. Since a strong offer isn’t always defined by price, your agent’s advice and guidance is critical when determining what terms to include in your offer. Once accepted and the contract is signed by all parties, inspections will be scheduled and the loan process will be in full swing. Please note that time is of the essence during your offer, contract, and closing process.

What is aREALTOR®

Not all real estate agents are REALTORS®. A REALTOR® is a member of the local, state and national REALTOR® Associations and is a true professional in the industry. In addition to abiding by state license law and advocating for Fair Housing Policies, REALTORS® adhere to a strict Code of Ethics. Studies have proven that buyers who hire a REALTOR® have better success achieving their real estate goals. Real estate transactions are usually the biggest financial investments most people ever make. Hire an expert!

What AreContract Terms

Terms are items in the contract that you’ll negotiate in addition to the purchase price. Below is a list of some terms your contract may include.

• Closing date
• Closing attorney/Title company
• Earnest money/Amount/Escrow Agent
• Contingency: Financing (timeframe)
• Contingency: Inspections/Due Diligence/As-Is (timeframes and termination fee)
• Contingency: Selling buyer’s existing home (timeframe and right of refusal)
• Appliances/Personal property that conveys
• Warranties
• Title Search/Insurance
• Seller occupancy after closing (timeframe and fee)
• Buyer occupancy prior to closing (timeframe and fee)
• Tax/HOA prorations
• Deed stamps/Transfer taxes/Rollback taxes
• Survey

DisclosuresBuyer Beware

Disclosure statements exist to educate and help protect a buyer who is entering into a real estate contract. Types of disclosures vary with different states, regions and markets. Below is a list of some of disclosures you may encounter.

• Lead Based Paint Disclosure
• Flood Insurance Disclosure
• Wire Fraud Disclosure
• Brokerage Relationship Disclosure
• Property Condition Disclosure
• Home/Property Owner’s Association Disclosure
• Megan’s Law Disclosure
• Natural Hazards Disclosure
• Toxic Substance Disclosure
• Supplemental Tax Bill Disclosure

Things to AvoidDuring Your Homebuying Journey

• Buying a new car or trading-up to a larger lease amount
• Quitting your job, changing industries, or moving to a different company
• Switching from a salaried position to being heavily-commissioned
• Transferring large sums of money between bank accounts
• Late bill payments
• Opening new credit card accounts or allowing credit inquiries
• Making random, undocumented cash deposits into your bank account

Pre-approval vs Pre-qualificationThe Difference

Pre-Approval Letter

A pre-approval letter is a document stating that a lender “may” be able to lend you money to purchase a home up to a certain loan amount. It is based on non-verified information provided to the lender and is not a guaranteed loan offer.

Pre-Qualification Letter

A pre-qualification letter is issued as a result of additional steps taken by the lender during the approval process. This may include reviewing the file with underwriting or verifying your assets and employment. This provides a buyer with the highest degree of assurance that they have the ability to obtain the loan for which they’ve been approved. It’s also beneficial to have a pre-qualification letter in a seller’s market when multiple offers on a single property is common.

Documents & InformationWhat You'll Need

Get ahead of the game! Begin gathering the documents and information you will need for the approval process. To help you get started, below is a list of items your lender may request.

• Driver’s License
• Checking/Savings Account Statements (previous 2 months and include all pages)
• Proof of income (paystubs from previous 30 days)
• Retirement/Social Security income
• Alimony/Child Support income (copy of the divorce/separation decree)
• Alimony/Child Support payments (copy of the divorce/separation decree)
• W-2 and/or 1099 (previous 2 years)
• Federal tax returns (previous 2 year and include all schedules)
• Business tax returns, if self-employed (previous 2 years and include all schedules)
• Business bank statements, if self-employed (previous 3 months and include all pages)
• YTD Profit & Loss Statement, if self-employed
• DD214 for VA loans
• Paperwork from a previous bankruptcy
• Landlord contact information, if renting
• List of properties you currently own (include address, taxes, mortgage, insurance, HOA)