Tips To Guide You In Buying A Home

Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer and how much you'd be willing to spend each month for full and complete home expenses.

Be realistic. It's Ok to be picky, but don't be unrealistic with your expectations. There is no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property on its good and bad points.

Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs, then talk to a lender and get preapproved for a mortgage.

Don't ask too many people for opinions. It will drive you crazy. Select one or two people you trust if you feel you need a second opinion, but be ready to make the final decision on your own.

Think long term. What type of home are you thinking of buying and how long do you plan to own it. This decision may dictate what variety of home you buy and what type of mortgage terms will best suit you.

Insist on a home inspection. Florida real estate contracts usually call for the seller to fix deficiencies up to a point before selling.

Get help from a realtor. Hire a real estate professional who specializes in buyer's representation. Unlike a listing agent, a buyer's rep is loyal only to the buyer and their fees are paid from the seller's commission payments. Lighthouse Realty Of The Islands has excellent realtors waiting to help you.

If you get preapproved for a mortgage, you'll be able to make a firm commitment to buy quickly and the offer will be more desirable to the seller.

Stay in close contact with your real estate agent to find out about the newest listings or recent price reductions. Try to see homes when they just go on the market.

Scout out listings yourself. Use the internet to your advantage. The Lighthouse Realty Of The Islands web site, under "Property Search" let's you use the Multiple Listing Systems that cover Sanibel, Captiva, North Captiva, Pine Island, Fort Myers and Cape Coral. Save potential listings which catch your interest. Feel free to call us or email us with any questions you may have on any of the listings. Browse the local newspapers and magazines. Drive through any neighborhoods you like. Use your buyer's agent, not the listing agent on the sign in front of the home, to provide further in-depth research on any home and set up a showing for you.

Be ready to make a decision. Use your list of priorities of what type of home you seek so you won't be unsure when you have the chance to make an offer.

Bid competitively. Use your agent to give you the prices for all recent "solds" in this neighborhood. Have your agent compare offers and sold prices for similar homes. Many times the type of market you are in will help determine your initial offer. This is very true right now in the Southwest Florida real estate market. There are extremely good buys available at this time.

COMMON CLOSING COSTS FOR BUYERS

You will be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs prior to closing. The title company or other entity conducting the closing will tell you the required amounts for each item.

Down Payment

Loan Origination

Points Or Discount Fees

Home Inspection

Appraisal

Credit Report

Private Mortgage Insurance Premium

Insurance Escrow For Homeowners Insurance

Property Tax Escrow

Deed Recording

Title Insurance Policy Premiums

Land Survey

Notary Fees

Prorations For Your Share Of Costs

On closing day, expect to sign a lot of documents and walk away with a big stack of papers. Here is a list of documents your should keep in a file for future reference.

HUD-1 Settlement Statement. This itemizes all costs.

Truth In Lending Statement. Summarizes terms of your mortgage.

Mortgage And Note. Gives legals terms of your mortgage obligation.

Deed. This transfers ownership to you.

Affidavits. Can be binding statements by either party.

Riders. Amendments to contracts that affect your rights.

Insurance Policies. Legal record of proof of your coverage.

HOME INSPECTIONS - WHAT SHOULD THEY COVER?

Home inspections will vary depending on the type of property you are purchasing. A large home will require a more specialized inspection than a small condominium. For really complete information, visit the web site of the American Society Of Home Inspectors - http://www.ashi.org/. Following is a list of the basic elements that a home inspector should check.

Structure  -  Exterior  -  Roofing  -  Plumbing  -  Electrical  -  Heating  -  Air Conditioning  -  Interiors  -  Walls  -  Ceilings  -  Floors  -  Steps  -  Stairways  -  Railings  -  Countertops  -  Cabinets  -  Garage Doors  -  Ventilation  -  Insulation  -  Fireplaces.

Ask your real estate agent to recommend a few home inspectors they have worked with. Here are some questions to ask the inspectors before you hire one:

Will your inspection meet recognized standards?

Do you belong to a professional home inspector association?

How experienced are you?

How do you keep your expertise up to date?

Do you focus on just residential inspection?

How long will the inspection take?

What will it cost?

What type of inspection report do you provide?

Will I be able to attend the inspection?

TITLE INSURANCE - SOME THINGS TO KNOW

Title insurance protects the holder from any loses sustained from defects in the title. It is required by most mortgage lenders.

It protects your ownership right to your home from fraudulent claims against your sale and from mistakes made in earlier sales.

It's a one time cost usually based on the price of the property.

It is usually paid by the sellers, although this can vary in some states.

There are both lender title policies, which protect the lender, and owner title policies which protect you.

Discounts on premiums are sometimes available. Ask your title company about this.

HOMEOWNERS INSURANCE - SOME THINGS TO KNOW

Know about exclusions to coverage.

Know about dollar limitations on claims.

Know the home replacement cost.

Know the actual cash value.

Know the liability coverage.

Know the strength of the insurance company.

YOUR FINAL WALK-THROUGH

Things tend to get a bit hectic just before a closing. You should always find the time for a final walk-through. Your goal is to make sure that your home is in the same condition you expect it to be. Usually the sellers have already moved out. This is your chance to check that all systems are in working condition and that the agreed upon repairs have been made. In your walk-through, make sure that:

Repairs have been made. Obtain copies of bills or warranties.

There are no changes to the property since you last viewed it.

All items that were included in the sale price are there.

Screens and storm windows are in place or stored.

All appliances are operating.

Intercom, doorbell and alarm are operational.

Hot water heater is working.

No plants or shrubs have been removed from the yard.

Heating and air conditioning system is working.

Garage door opener and other remotes are available.

All sellers' personal items have been removed.

WHY YOU SHOULD WORK WITH A REALTOR

Buying a home can be complicated. Find a real estate professional to use as your buyer's agent. If you do:

You'll have an expert to guide you through the entire process.

You'll have someone on your side, loyal just to you, not the seller.

You will get objective information and opinion.

They will help you find the best property available.

You will benefit from their negotiating experience.

They will help you stay focused.

A buyers agent's fees are paid by the seller, not the buyer.

Realtors assist buyers all the time. They know the process.