Home Buyers Guide 2014

YOUR GUIDE TO BUYING A HOME

The Jenkins Real Estate Group

“Connecting People to Houses and Homes”

H O M E B U Y E R ‘S G U I D E


www.LouisvilleAreaHomeFinder.com (502) 653-3668

TABLE OF CONTENTS

IT’S ALL ABOUT YOU .................................................................................................................................. 2

GETTING STARTED ...................................................................................................................................... 3

THE HOME BUYING PROCESS ................................................................................................................ 5

THE MORTGAGE AND LOAN PROCESS .............................................................................................. 6

FINANCING FYI’S ........................................................................................................................................ 7

YOUR HOME SEARCH ................................................................................................................................ 10

MAKING AN OFFER .................................................................................................................................... 12

INSPECTIONS .............................................................................................................................................. 13

CLOSING 101 ............................................................................................................................................... 15

MOVING .......................................................................................................................................................... 16

ABOUT US ...................................................................................................................................................... 19

WHY KELLER WILLIAMS REALTY ...................................................................................................... 20

http://www.louisvilleareahomefinder.com/




IT’S ALL ABOUT YOU

Our real estate business has been built around one guiding principle: It’s

all about You!

Your needs

Your dreams

Your concerns

Your questions

Your finances

Your time

Your life

Our focus is on your complete satisfaction. In fact, we work to get the job

done so well; you will want to tell your friends and associates about it.

Maybe that’s why more than 50 percent of our business comes from

repeat customers and referrals.

Good service speaks for itself. We’re looking forward to the opportunity to

earn your business and your referrals!





GETTING STARTED

We love helping buyers find their dream home. That’s why we work with

each client individually, taking the time to understand their unique lifestyles,

needs and wishes. This is about more than a certain number of bedrooms or

a particular ZIP code. It’s about your life, and it’s important to us.

THE BASICS

1. What part of town (or county) do you want to live in? ___________________________

2. What price range would you consider? Minimum _________ Maximum __________

3. Are schools a factor and, if so what do you need to take into consideration (e.g., specific

school system, walk to school etc.)? _________________________________________

4. Do you want an older home or a newer home (less than 5 years old)? ______________

5. What kind of houses would you be willing to see?

____ One Story ____ Two Story ____ Split Foyer ____ Bi-Level ____ Tri-Level

6. What style of house appeals to you most?

___ Contemporary ___ Traditional ___ Southwestern ___ Colonial ___ No Preference

7. How much renovation would you be willing to do? A lot ____ A Little ____ None! ____

8. Do you have to be close to public transportation? (Yes/No)

9. Do you have any physical needs that must be met, such as wheelchair access? (Yes/No)

10. Do you have any animals that require special facilities? (Yes/No) What? ___________

11. Lot Features:

Must Have Like to Have

Large Yard (1 Acre or More) ________ ________

Small Yard (1 Acre or Less) ________ ________

Fenced Yard ________ ________

Garage ________ ________

Patio/Deck ________ ________

Pool ________ ________

Outdoor Spa ________ ________

Extra Parking ________ ________

Other Buildings (Barn, Shed, etc.) ________ ________

Special View? ________ ________





THE INTERIOR

12. How many bedrooms must you have? _____ would you like to have? ______

13. How many bathrooms do you want? ______

14. How big would you like your house to be (square feet)? _____ min ______ max

15. What features do you want to have in your house?


Air Conditioning ________ ________

Wall-to-wall carpet ________ ________

Ceramic tile ________ ________

Hardwood floors ________ ________

Eat-in Kitchen ________ ________

Separate dining room ________ ________

Formal living room ________ ________

Family room ________ ________

Great room ________ ________

Separate den, office or library ________ ________

Basement ________ ________

Separate laundry room ________ ________

Fireplace ________ ________

Workshop ________ ________

No interior steps ________ ________

“In-law” or “Student” Apartment ________ ________

Spa in bathroom ________ ________

Lots of windows ________ ________

COMMUNITY FEATURES

16. Do you want to live in an area with a Community Association? (Yes/No)

17. What else do you want in your community?


Community pool ________ ________

Golf course ________ ________

Basketball court ________ ________

Tennis courts ________ ________

Gated community ________ ________

Clubhouse/Activities ________ ________

18. Are there any other special features of needs you must consider when you’re looking

for your home?





THE HOME BUYING PROCESS

•Analyze your specific needs and wishes. Lifestyle, Wish List, Neighborhood 1 - Consultation

•Talk with a mortgage company or bank to get pre-approved for a loan 2 - Pre-Approval

•Online and offline searching for homes that fit your criteria

3 - View and Select Properties

•Make an offer on the home of your dreams 4 - Make an Offer

•Working to agree on pricing, terms and dates that the seller requests 5 - Negotiate

•Hire a 3rd party inspector to check out the house. This covers everything from the foundation to the roof 6 - Inspections

•No home sale can be final without proof of title and homeowner's insurance 7 - Buy Insurance

•Complete a final walk-through of the home to make sure the state of the house matches the terms of sale

8 - Final Walk-through

•Approve all dates and terms of the deal, then sign on the dotted lines. 9 - Closing

•Congratulations! You're a new home owner. 10 - Moving





THE MORTGAGE AND LOAN PROCESS

FUNDING YOUR HOME PURCHASE

1. Financial Pre-Qualification or Pre-Approval

Application & Interview

Buyer provides pertinent documentation, including verification of employment

Credit report is requested

Appraisal scheduled for current home owned (if any)

2. Underwriting

Loan package is submitted to underwriter for approval

3. Loan Approval

Parties are notified of approval

Loan documents are completed and sent to title

4. Title Company

Title Exam, insurance and title survey conducted

Borrows visit Title Company to sign final documents

5. Funding

Lender reviews the loan package

Funds are transferred by wire

WHY PRE-QUALIFY?

We recommend our buyers get pre-qualified prior to beginning their home search.

Knowing exactly how much you can comfortably spend on a home reduces the

potential frustration of looking at homes beyond your means.

As a qualified, motivated buyer you’ll be taken more seriously when you make an

offer on a home

Lenders will know if you qualify for any special programs that enable you to afford a

better home

THINGS NOT TO DO AFTER YOUR PRE-APPROVAL

1. Do not make odd deposits. For example, Birthday money

2. Do not make big credit purchases

3. Do not apply for any other credit





FINANCING FYI’S

When borrowing money and getting a mortgage, it is important to think of money as any

other commodity. You need to shop for the best deal. Just like buying any product the

lowest cost is not always the best deal. We like to guide you in the process and provide

information so you can make the best decision for your circumstance. We work closely with

our lenders to assure you get the best possible deal.

TYPES OF LOANS AND OPTIONS

Conventional: This type of loan required 5% or more on a down payment. If you have less

than 20% down, private mortgage insurance will be required. The less money you have to

put down and the lower your credit score is the cost of the mortgage insurance goes up.

FHA (Federal Housing Association): This loan requires 3.5% down payment, with less

stringent guidelines than the conventional loan. Mortgage insurance will be required for 5

years. The money you can put down lessons the cost of the mortgage insurance. FHA does

charge an upfront funding fee which may be added to the loan amount.

VA (Veterans Administration): This loan will allow a veteran with eligibility the

opportunity to buy a home with zero money down. There is a funding fee; however the

buyer is allowed to add that to the loan amount. There is no private mortgage insurance

required.

RHS (Rural Housing Service – also known as USDA): Allows homes in rural areas to be

purchased at 100% loan to value. Mortgage insurance is not required. USDA charges an

upfront funding fee which may be added to the loan amount.

Homepath: This is a loan Fannie Mae makes available on their foreclosure homes. It

requires a minimum of 3% down payment. No appraisal is required, along with no mortgage

insurance required by the buyer. They do not charge an upfront funding fee. This is a great

product, but limited homes are available.

Other products you may have heard about include:

KHC (Kentucky Housing Corporation)

LPMI (Lender Paid Mortgage Insurance)

HUD REO (Housing of Urban Development Real Estate Owned)

Down Payment Assistance Program

Portfolio Loan





COMMON LOAN TYPES – PRO’S AND CON’S

Loan Type Pro’s Con’s

FHA – 31/43

Low down payment (3.5%)

Perfect credit not required – 24 months of good history

3 Years since Foreclosure

2 Years since Bankruptcy

Down payment can be gifted

Seller can cover 6% of closing costs

Lot pickier on property

Restrictions on homes resold quickly for profit (“flips”)

Mortgage Insurance continues for minimum of 5 years

Upfront and annual Mortgage Insurance

Loan limits typically lower than Conventional

Cannot finance 2nd Home or Investment Properties

VA – 41/41 - Served in Armed Forces - Honorable Discharge - Certificate of Eligibility

Lower Rates, Better Pricing

100% Financing, Zero down

2 Years since foreclosure or bankruptcy

No cash reserves needed

Seller can give up 4% + 4% in total concessions

Widows of Deceased Veterans are eligible

No Credit = OK

No Mortgage Insurance

Funding Fee waived for disabled Veterans

Non-Veterans = Not Eligible

Non Occupant co-borrowers not allowed

Spouse’s debts to be counted

Rigorous VA Appraisal on property

Seller may behave unfavorably

Conventional – 28/36 Easier property appraisal standards

No upfront mortgage insurance

Typically higher loan limits

Mortgage Insurance can be eliminated at 80% LTV

Special Conventional Loans (Homepath)

Longer wait times

Stricter underwriting guidelines

PMI, not automatic, can be denied

NO Credit Score = not allowed

Cash reserves often needed

Only 3% seller concessions above 80% LTV

USDA – 29/41 - Guaranteed by USDA

100% Financing

Flexible Underwriting

No limit on borrowing amount

Seller can pay $ unlimited amount of closing costs

Repairs can be financed

Income from 2nd job = 1 yr history

Owner Occupied Only

Income limitations on County & Household size

Geographic restrictions

3 years seasoning since Bankruptcy and Foreclosure





DOCUMENTS YOU NEED TO START COLLECTING

Once you are under contract, you will need to provide the following documents when you

make a formal application for a loan:

Your two most recent pay stubs

Your tax returns from the past two years

W-2’s from the past two years

Last two bank statements

List of assets

Social Security Number for each applicant

Each applicants Date of Birth

Current address

A picture ID





YOUR HOME SEARCH

We love helping buyers find their dream home. That’s why we work with

each client individually, taking the time to understand their unique lifestyles,

needs and wishes. This is about more than a certain number of bedrooms or

a particular ZIP code. It’s about your life, and it’s important to us.

When You Work With Us, You Get:

Knowledgeable and professional REALTORS®

Committed allies to negotiate on your behalf

The backing of a trusted company, Keller Williams Realty

Where Will We Find Your Next Home:

We are licensed Realtors and have access to every home listed by a Realtor via the

MLS

For Sale by Owners (FSBO’s) and the Newspaper

Builder, Model Homes and Open Houses

Our websites:

o www.LouisvilleAreaHomeFinder.com

o www.JenkinsRealtyGroup.com

We have the systems in place to streamline the home-buying process for

you. As part of our service we will commit to helping you with your home

search by:

Personally touring homes and neighborhoods with you

Keeping you informed of new homes on the market

Advising you of other homes that have sold and for how much

After we preview homes online, there are a couple of steps that you will

need to take to make sure that we are making the best use of your time:

Do some drive bys

Make notes and right down questions as you tour the neighborhoods

Write down any FSBO’s or open house information from yard signs.



http://www.jenkinsrealtygroup.com/




WHAT FITS MOST COMFORTABLY WITHIN YOUR BUDGET?

Older Home 3 Bed 2 Bath

Newer Home 3 Bed 2 Bath

Older home 4 Bed 2 Bath

Newer Home 4 Bed 2 Bath

Condo 2 Bed 2 Bath

Area 1: Downtown, Old Louisville, West End

$118,000 $121,000 $147,000 None $303,500

Area 2: Butchertown, Highlands, Germantown

$223,500 None $260,000 $616,333 $147,500

Area 3: St. Matthews, Clifton, Crescent Hills

$243,000 $255,950 #320,000 $435,000 $115,000

Area 4: PRP, Valley Station $99,900 $133,000 $108,950 $159,900 $128,500

Area 5: Iroquois Park $115,000 $225,500 $133,500 $264,000 $85,000

Area 6: Okolona, Hillview $123,000 $169,000 $134,500 $209,798 $97,125

Area 7: Jeffersontown, Fern Creek $155,000 $253,390 $179,700 $285,500 $110,000

Area 8: Middletown, Anchorage $252,000 $297,750 $289,000 $359,000 $172,500

Area 9: Anchorage, Lyndon, Prospect $217,000 $303,735 $257,895 $330,000 $157,000

Area 10: Nelson County $120,000 $133,005 $191,500 $237,000 $127,250

Area 11: Bullitt County $136,000 $144,700 $189,000 $206,307 $122,000

Area 30: Shelby County $144,900 $166,950 $237,450 $242,000 None

Area 19: Spencer County $168,250

$180,000 $197,000 $260,000 $106,250

Area 20/21: Oldham County $230,000 $315,000 $253,625 $367,375 $135,750





MAKING AN OFFER

Once you have found the property you want, we will write a purchase agreement. While

much of the agreement is standard, there are a few areas that we can negotiate:

THE PRICE

What you offer on a property depends on a number of factors including its condition, length of time on

the market, buyer activity, and the urgency of the seller. While some buyers want to make a low offer

just to see if the seller will accept, this often isn’t a smart choice, because the seller may be insulted

and decide not to negotiate at all.

THE MOVE-IN DATE

If you can be flexible on the possession date, the seller will be more apt to choose your offer over

others. Some Sellers will want a few days after closing to move out of the property and some will be

happy to give the keys to you at closing. This will all be a part of the negotiation process.

ADDITIONAL PROPERTY

Often the seller plans on leaving major appliances in the home; however, which items stay or go is

often a matter of negotiation.

GOOD FAITH DEPOSIT

A good faith deposit will be required when the offer is accepted. This deposit secures you to the

contract and shows the Seller you are serious about your intentions to purchase their home. The

deposit is cashed but sits in an escrow account. The deposit is refundable if you are unhappy with any

inspection results, if the property does not appraise, or if you are unable to obtain financing.

Otherwise, the deposit will be refunded to you at closing.

Typically, you will not be present at the offer presentation; we will present it to the listing agent

and/or seller. The seller will then do one of the following:

Accept the Offer

Reject the Offer

Counter the Offer with Changes

By far the most common is the counter offer. In these cases, our experience and negotiating skills

become powerful in representing your best interests.

When a counter offer is presented, we will work together to review each specific area of the counter

offer, making sure that we move forward with your goals in mind and ensuring that we negotiate the

best possible price and terms on your behalf.





INSPECTIONS

Once we have successfully negotiated the price and terms of your new home, you will need

to do inspections. Typically the inspection is designed to investigate the home to make sure

that everything is working. Your Home inspection will cover the following:

Basic overall structure of the home

Foundation

Roof

Electrical

Plumbing

Water heater

Air Conditioning

Furnace

In addition to your home inspection you may want to have additional inspections done.

Mold - spores commonly found in AC units, carpets, household posted plants, etc.

Radon – radioactive gas caused by the breakdown of uranium and radium. Radon is

invisible, odorless, and tasteless; and seeps into the walls, floors and crawl spaces, etc.

Lead – A highly toxic metal that was used for many years in paint, but can also be found in

dust and water. The federal government banned the production of lead based paint in 1978.

Any home built prior to 1978 or with knowledge of lead based paint must disclose that fact

to buyers.

Septic Systems – treats and disperses water waste from the home using a four-

component system: septic tank, drain field, soil, and groundwater.

Structural Engineer – an expert qualified by education training and experiences in the

behavior and design of structure.

The following is a list of a few types of inspections that can be conducted on your new

home. Prices are estimates to give you an idea of cost.

1. Home Inspection ($200-$300)

2. Termite Inspection ($30-$50)

3. Radon Inspection ($100-$200)

4. Mold Inspection ($50-$150)

5. Lead Base Paint Inspection ($200-$300)

6. Staked Survey ($300-$1,200)

See the Preferred Vendors page at the end of this guide for those we would recommend.









CLOSING 101

PREPARE FOR IT

Closing day marks the end of your home-buying process and the beginning

of your new life! To make sure your closing goes smoothly, you should bring

the following:

A certified check for closing costs and down payment. Make the check

payable to yourself; you will then endorse it to the title company at

closing

An insurance binder and paid receipt

Photo ID’s

OWN IT

Transfer of title moves ownership of the property from the seller to you. The

two events that make this happen are:

DELIVERY OF THE BUYER’S FUNDS

This is the check or wire funds provided by your lender in the amount of the

loan.

DELIVERY OF THE DEED

A deed is the document that transfers ownership of real estate. The deed

names the seller and buyer, gives a legal description of the property, and

contains the notarized signatures of the seller and witnesses.

At the end of the closing, the deed will be taken and recorded at the county

clerk’s office. It will be sent to you after processing.





MOVING

New Telephone Number: ________________________________________________

New Address: _________________________________________________________

Before you move, you should contact the following companies and service providers:

Utilities: Insurance Companies: _______ Electric _______ Accidental _______ Telephone _______ Auto _______ Water _______ Health _______ Cable _______ Home _______ Gas _______ Life Professional Services: _______ Renters _______ Broker Business Accounts: _______ Accountant _______ Banks _______ Doctor _______ Cellular Phones _______ Dentist _______ Department Stores _______ Lawyer _______ Finance/Credit Cards Government: Subscriptions: _______ Internal Revenue Service _______ Magazines _______ Post Office _______ Newspapers _______ Schools Miscellaneous: _______ State Licensing _______ Business Associates _______ Library _______ House of Worship _______ Veterans Administration _______ Drugstore Clubs: _______ Dry Cleaner _______ Health and Fitness _______ Hair Stylist _______ Country Club





Preferred Vendors and Helpful Numbers

Mortgage Lenders Home Inspectors 5/3 Bank:

Missy Blanford – 502.548.4777

[email protected]

East End Home Inspections:

James Breslin – 502.458.9690 [email protected]

US Bank:

Tod Sackella – 502.562.6426

[email protected]

Home Team Inspection Service:

Brian O’Rear – 502.357.0813

www.hometeaminspection.com/louisville Chase Bank:

Jason Lawrence – 502.566.3630

[email protected]

Louisville Home Inspections:

Joe Cattan – 502.299.6572

www.cattaninspection.com Prime Lending:

Lynda Wilcox – 502.710.0232

[email protected]

Greg Jones Home Inspections:

Greg Jones – 502.429.9379

www.gregjoneshomeinspections.com

Closing Attorneys Termite Inspectors Borders and Borders – 502.894.9200 Black Diamond Pest Control: 502.585.1919 Bright Pest control: 502.425.9600 Mold Issues / Radon Testing

World Radon Control:

Joe English – 502.718.1330

[email protected]

Before you move, make sure to contact the following utility and service providers…

Gas/Eclectic Phone/Cable LG&E (Jefferson/Oldham): 502.589.1444 Time Warner: 1.855.800.5935 Salt River (Bullitt County): 502.955.97 Bellsouth: 1.800.557.6500 Ky. Utilities (Spencer/Oldham): 502.981.0600 Windstream: 502.217.0090 Shelby Energy (Shelby): 502.633.2840 AT&T Uverse: 855.858.4589

Direct TV: 855.833.4388

Water Louisville Water Co. (Jefferson): 502.589.1444 Garbage/Recycling Oldham County Water: 402.222.1960 City Service (Louisville Metro): 502.574.5000 Mt. Washington Water (Bullitt): 502.583.4216 Waste Management: 502.969.2355 Shelby County Water: 502.633.2840 Rumpke: 502.568.3200 Taylorsville Water (Spencer): 502.477.3234 * Check Home Owners Assoc. for Private Service


mailto:[email protected]



http://www.hometeaminspection.com/louisville


http://www.cattaninspection.com/


http://www.gregjoneshomeinspections.com/





Worksheets

HOW MUCH ARE MY UP FRONT, OUT OF POCKET COSTS?

Earnest Money (Needed at time you write your offer) $__________

Home Inspection (Within 2-5 days of ACCEPTED offer) $__________

Termite Inspection (Within 2-5 days of ACCEPTED offer) $__________

Radon (Within 2-5 days of ACCEPTED offer) $__________

Appraisal (Within 2 weeks of ACCEPTED offer) $__________

Total $__________





ABOUT US

Mark and Mary Lynn are a husband/wife team that offers personal and professional services

for all of our real estate needs. Mary Lynn has a degree in Interior Design and Architecture.

She can uniquely position your home to sell; and understand the type of home you are

looking for. Mark has a Technology degree and years of experience as an executive in the

Hospitality industry. He can help in easing your search and optimizing marketing plans to

aid in buying or selling your home.

EXPERIENCE

We bring over 10 years of experience in buying and selling real estate in Louisville and

surrounding areas.

TECHNOLOGY

We are efficient and effective. We are your advocate and offer you access to our innovative

technology systems, which allow you to have the best information at your fingertips,

allowing you to quickly get into the home of your dreams.

EXPERTISE

We specialize in finding homes in great neighborhoods, near great schools, or any other

criteria that helps you find the home you want with confidence.

OUR COMMITMENT TO YOU

We will be at your side from start to finish of any real estate transaction. We will safeguard

your interest and do everything we can to ensure a smooth and rewarding experience.

Mary Lynn Jenkins – Buyer’s Specialist Office – (502) 653-3615; Mobile – (502) 418-2926

Email – [email protected]

Mark Jenkins – Listing Specialist Office – (502) 653-3668; Mobile – (502) 457-4556

Email – [email protected]







WHY KELLER WILLIAMS REALTY

Founded in 1938, Keller Williams Realty Inc. is an international real estate company with

more than 600 offices and 76,000 agents located across the United States and Canada. The

company began franchising in 1991, and following years of phenomenal growth and has

succeeded by treating its associates as partners and shares its knowledge, policy control

and company profits on a system-side bases.

TECHNOLOGY

Leading-edge tech tools and training give us the edge in finding the perfect home for you.

TEAMWORK

Keller Williams Realty was designed to reward agents for working together. Based on the

belief that we are all more successful if we strive toward a common goal rather than our

individual interests, we’re confident that ever Keller Williams professional shares the

common goal of serving you, our client, in the best way possible.

KNOWLEDGE

Keller Williams Realty helps us stay ahead of trends in the real estate industry through its

comprehensive, industry-leading training curriculum and research resources. It’s what

prepares us to provide you with unparalleled service.

RELIABILITY

Founded on the principles of trust and honesty, Keller Williams Realty emphasizes that

importance of having the integrity to do the right thing, always putting your needs first. It

reinforces our belief that our success is ultimately determined by the legacy we leave with

each client we serve.

TRACK RECORD

We’re proud to work for the most innovative real estate company in North America and the

largest real estate company in the United States. It’s proof that when you offer a superior

level of service, the word spreads fast.


Documents

Home Buyers Guide 2014