Simplify Your Home Buying Experience
Buying
a home can be an enormous undertaking: be sure to retain the services
of a qualified Realtor. You can trust the Zaud Squad Realtors to always
keep your interests first. As qualified professionals, we will guide
you through the entire home buying process and assist you in being an
informed buyer.
Simplify Your Search
What
features do you require in a home to satisfy your lifestyle now and in
the future? Knowing your range of affordability, you can explore your
needs from design preferences to neighborhood choices.
 Moving Forward
Once
you have found the home that is right for you, move forward to present
an offer. This will consist of earnest money to be held in an escrow
account and a written agreement. This agreement will set forth your
terms of the purchase and a schedule of events in order to own the
property. This extremely important document is a legally binding
agreement and should be carefully prepared by knowledgeable Realtors
who are qualified to cover all your interests.
Final Steps
Upon
your complete satisfaction, arrangements will be made to attend a
closing. Coordinating the closing will usually be a title company who
has your escrow money in account. After furnishing the down payment and
whatever other applicable fees have been agreed upon prior to closing,
final papers will be signed. Once the deed and mortgage are recorded in
the state Registry of Deeds, you will be a homeowner.
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It
is highly rewarding to buy, own and maintain your own home. Whether
this is your first home or you have experience with the home buying
process, we can help. When you have the tools at your fingertips, you
can be confident in your ability to search, finance your home,
negotiate terms and be prepared at closing.
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Purchasing
a new home can be overwhelming. Without the right resources and
information, the buying process can be stressful and frustrating. With
our online services, you can avoid the pitfalls. We will be there to
help every step of the way.
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 Adjustable Rate Mortgage
A
mortgage that allows the lender to adjust the mortgage's interest rate
periodically on the basis of changes in a specified index. Interest
rates may move up or down, as market conditions change. The change in
interest rate will result in a change in the periodic payments due
under the mortgage. ARMs are attractive when short-term interest rates
are trending lower.
Balloon Mortgage
Usually
a short-term fixed-rate loan that involves small payments for a certain
period of time with the balance due in a single, large payment at a
time specified in the contract. When the balloon mortgage comes due,
the entire unpaid balance is due. Generally, the homeowner must either
refinance or sell the property.
Buy-Down
The
payment of extra money on a loan now so as to provide a lower interest
rate over either a given period or over the life of the loan. To
buy-down a mortgage, the buyer pays additional points to the lender,
which will decrease the interest rate for a specific period.
Conforming Loan
Conventional
home mortgages, first mortgages up to loan amounts mandated by
Congressional directive, which meets the qualifications for sale or
delivery to either the Federal National Mortgage Association (FNMA) or
the Federal Home Loan Mortgage Corporation (FHLMC).
Construction Loan
A structured, short-term loan to provide funds necessary to begin construction on buildings or homes.
Conventional Mortgage
A mortgage loan made by an institutional lender without the inclusion of government guarantees such as VA or FHA loans.
Convertible ARM
The
convertible ARM is a combination of both fixed-rate and adjustable rate
mortgages, allowing the best of both options in one package.
Deferred Interest Mortgage
A
mortgage in which the payment is not sufficient to cover the principal
and the interest and the payment portion of the interest is postponed
until a certain date at which time the interest postponed is added to
the principle owing.
Federal Home Loan Mortgage Corporation (FHLMC)
The
Federal National Mortgage Association, which is a congressionally
chartered, shareholder-owned company that is the largest national
supplier of home mortgage funds. It is commonly known as Freddie Mac.
The company buys mortgages from lending institutions, pools them with
other loans, and sells shares to investors. Detailed information may be
found at http://www.freddiemac.com.
Federal Housing Administration (FHA)
An
agency of the federal government, the Division of the Department of
Housing and Urban Development, both sets standards for the underwriting
of private mortgages and insures residential mortgages made by private
lenders.
Federal Housing Administration (FHA) Loans
Low-rate
loans that are available to Americans with smaller incomes who are
interested in modestly priced homes. Down payment requirements are
usually lower than the prevailing ones. |
Federal National Mortgage Association (FNMA)
The
U.S.'s largest supplier of mortgages to home buyers and owners, a
corporation established by Congress and owned by stockholders. It is
commonly referred to as 'Fannie Mae,' this government-sponsored
enterprise is chartered by Congress. This federally chartered agency
buys mortgages from lending institutions, pools them with other loans,
and sells shares to investors. Detailed information may be found at
http://www.fanniemae.com
Fixed-Rate Mortgage
The
interest rate you pay and the monthly principal and interest payments
are agreed upon from the outset and will not change throughout the
entire term of the mortgage.
Government National Mortgage Association (GNMA)
Referred
to as 'Ginnie Mae', this government agency guarantees the payment of
principal and interest on all of its pass-through securities, and its
guarantee is backed in turn by the full faith and credit of the U.S.
Government.
Graduated Payment Mortgage (GPM)
A
mortgage that usually starts the borrower with low payments that are
gradually increased over five to ten years, before leveling off for the
remainder of the term of the loan until the loan is fully amortized.
Negative amortization usually occurs until the payment reaches the
level payment stage. Usually government insured loans (VA or FHA)
Growing Equity Mortgage (GEM)
This
is a long-term mortgage whereby the borrower agrees toincrease his
payment each year by an agreed amount. The added money per payment is
applied directly to the outstanding principal on the mortgage. The
mortgage thereby is paid off in a shorter number of years.
Renegotiable Rate Mortgage (RRM)
Similar
to an Adjustable Rate Mortgage, this type of mortgage allows the
interest rates and payments to be adjusted periodically according to an
index.
Reverse Annuity Mortgage (RAM)
A
type of mortgage where the property's equity serves as security for
periodic payments made by the lender to the borrower. Mortgage is
generally paid out upon the sale of the property.
Rollover Mortgage (ROM)
A
mortgage where the payments are only guaranteed for three, four, or
five years. The borrower is allowed to refinance at the end of the term
at the interest rate then applicable.
Shared Appreciation Mortgage (SAM)
It
is a loan arrangement where two or more parties participate in the
purchase of real estate and share the appreciation and tax deduction.
Similar to shared equity mortgages.
Veterans' Administration Loans
Mortgage
loans to veterans by banks, savings and loans, or other lenders that
are guaranteed by the Veterans' Administration, enabling veterans to
buy a residence with little or no money down.
Wraparound Mortgage
A
secondary financing option in which a new larger mortgage is created to
encompass the first mortgage. This large second mortgage is used to
preserve the low interest rate on the first mortgage for a potential
buyer. |
Drive To Learn
Evaluate as you drive though a community. Consider the following questions as a basis for determining your location needs:
- Where is the nearest shopping center, bus line, police station and library?
- What school district is the home in, and what schools are available?
- What types of homes (single family, apartments, condominiums) are in the neighborhood?
- How far apart are the homes?
- How far is your commute to work?
- What community resources are available?
- Generally, where are the cars parked (driveways, garages, street)?
- Do you notice a lot of noise, traffic or pollution?
- Are the homes in good repair and the landscaping well kept?
 Finding The Right Home
Keep your eyes open
and your notebook in hand as you walk through a potential home.
Consider the following questions as a basis for determining your needs
as a homeowner:
- How long has the home been on the market?
- Why is the home being sold?
- What is the asking price of the home?
- >Has the price been lowered?
- Is the price comparable to other homes in the neighborhood?
- What is the down payment required?
- Is the house structurally sound?
- Is there room enough for the present and the future?
- Do you like the floor plan of the home?
- What is the condition of the yard?
- What improvements must be made?
- Will the seller repair or replace any items that need repair or replacement?
Think carefully about each house you see and don’t be in a hurry. Your
real estate agent can point out the pros and cons of each home from a
professional standpoint.
The Offer
Making an offer to
buy a home entails many factors. You and your Sales Associate will
discuss the following factors prior to putting the offer on the table:
- Amount of earnest money
- Down payment
- Price you are offering
- Details of financing
- Proposed move in date
- Proposed closing date
- Details of the sale
- How long the offer is valid
The
seller will either accept the offer as presented, or make a counter
offer and ask you to resubmit a proposal. When all the parties involved
have agreed upon the details, initialed any revisions and signed the
final agreement then an offer becomes a contract.
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Legal description of the property and the exact street address