PREPARING Seek help froma real estate professional / Lennar New Home Consultant Determine howmuch you can afford (total price and monthly payment) Determine howmuch you can spend on a down payment Determine payment method (cash or mortgage loan) Get information of collateral expenses (furniture, cookwear, etc.) QUESTIONS TOASKWHENSEARCHING What location or neighborhood is it in? Howmuch does it cost? What interior and exterior features do I want? HOMEBUYING CHECKLIST
GLOSSARY
HomeWarranty – a residential service contract that covers the cost of maintaining/repairing household systems or appliances for a set period of time Lender – an individual, a public or private group, or a financial institution that makes funds available to another with the expectation that the funds will be repaid, typicallywith interest Mortgage Insurance – an insurance policy, paid for by the borrower, typically required by a mortgage lender if a down payment does not meet a required minimum; it protects a mortgage lender if the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mortgage Pre-Approval – apreliminaryevaluationof apotential borrower by a lender todetermineanestimateof theeligibleamount of a loan Pre-Qualification – the first step in themortgage process; the evaluation of the credit worthiness of a potential borrower by a creditor for the purpose of providing a pre-approval Principal – the amount on amortgage loan that has not been repaid, excluding interest Property Insurance – provides financial reimbursement to the owner or renter if a home and/or its contents are lost due to damage or theft Property Taxes – a fee, calculated by a local government, which is paid by the owner of the property Purchase Contract – the legally binding document that includes the terms of the sale, establishes the rights and obligations of the parties involved, specifies the actions to be taken in order to close the sale, and establishes the time frames for those steps to be completed Seller Property Information Report (SPIR) – a report disclosing information about the condition of a property based on the seller’s knowledge; this report does not replace the need for a property inspection by a professional Settlement Statement – a document that summarizes all of the fees and charges that a borrower and lender are responsible for during the purchase/sale of real state Title Insurance – protects real estate buyers and/or mortgage lenders fromfinancial loss if defects of a property title are discovered Wire Transfer – electronic transfer of funds
Adjustable-RateMortgage – real estate loan inwhich the interest rate applied on the outstanding balance varies throughout the termof the loan Amenity – a feature of a property or community that makes it more valuable to potential buyers or tenants such as pools, clubhouses, fitness facilities Appraisal – a requirement for a loan/mortgage, a valuation of a home based on examination of the property/structure as well as comparativemarket analysis Assessed Value – the dollar value assigned to a property by local government to determine applicable taxes Closing – ameeting at which a sale of property is finalized by signing documents/contracts; the buyer pays closing costs and the down payment; the seller transfers the deed to the buyer Closing Costs – the expenses, over and above the price of the property, that buyers and sellers incur to complete a real estate transaction ComparativeMarket Analysis (CMA) – an examination of the prices at which similar properties in the same area recently sold Contingency Clause – a contract provision that requires a specific event or action to take place for the contract to be considered valid Down Payment – a cash payment made during the onset of the real estate purchase Earnest Money Deposit – a deposit made by the home buyer to demonstrate intent to buy a home Equity – the difference between the fair market value of a home and the amount remaining on amortgage loan Existing Home – a home that has previously been constructed and had at least one owner Fixed-RateMortgage – amortgage loan that has the same interest rate throughout the termof the loan Homeowners Association (HOA) – an owner-lead organization in a community that makes and enforces rules for the properties and their residents; these organizations typically collect dues used for the upkeep of common areas of the community (playgrounds, parks, etc.) Home Inspection – an examination of the condition of a home to determine if repairs and/or updates are necessary prior to closing
FINANCING/LEGAL PROCESS Securemortgage loan by providing proof of good credit, income, etc. Stay in contactwith lender/bank throughout buying process Get an appraisal Meet with an attorney or tax professional to discuss how titlewill be held (i.e. individual, LLC, etc.) Set up bank account in U.S. if needed CLOSINGYOURHOME Stay in contact with the title company throughout the buying process Prepare necessary documents
Schedule a final walk-through/inspection Sign closing paperwork and finalize sale
Howmany bedrooms/bathrooms? What are the community amenities? What is the school rating in the neighborhood?
NEEDEDFORMORTGAGEPRE-APPROVAL Good credit
Income information Asset information Personal information Passport and/or other citizenship documentation
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