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Pre-qualify with a lender
Choosing a buyer broker or a transaction broker to represent you
Research Pre-owned properties through the MLS and our buyer instant notification system
Search market and select home
Negotiate Contract
Home Inspections
Appraising Home Value
Loan Approval
Closing
Getting Settled
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Pre-qualify with a lender |
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| Click here to complete the Loan Application form. |
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Choosing a buyer broker or a transaction broker to represent you |
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Definitions Of Real Estate Brokerage Relationships
Seller's Agent: A seller's agent works solely on behalf of the seller and owes duties to the seller which include the utmost good faith, loyalty and fidelity. The agent will negotiate on behalf of and act as an advocate for the seller. The seller is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. The agent must disclose to potential buyers or tenants all adverse material facts about the property actually known by the broker. A separate written listing agreement is required which sets forth the duties and obligations of the parties.
Buyer's Agent: A buyer's agent works solely on behalf of the buyer and owes duties to the buyer which include the utmost good faith, loyalty and fidelity. The agent will negotiate on behalf of and act as an advocate for the buyer. The buyer is legally responsible for the actions of the agent while that agent is acting within the scope of the agency. The agent must disclose to potential sellers all adverse material facts concerning the buyer's financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the parties.
Transaction-Broker: A transaction-broker assists the buyer or seller or both through out a real estate transaction with communication, advice, negotiation, contracting and closing without being an agent or advocate for any of the parties. The parties to a transaction sale not legally responsible for the actions of a transaction-broker and a transaction-broker do not owe the parties a number of statutory obligations and responsibilities, including using reasonable skill and care in the performance of any oral or written agreement. A transaction-broker must also make the same disclosures as agents about adverse material facts concerning a property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required. |
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Research Pre-owned properties through the MLS and our buyer instant notification system |
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Star Service Commitment
Daily computer searches for the perfect home for you!
As a part of our commitment to the best possible service for you, Moulton & Associates Realtors searches the information highway daily for homes that have just come on the market. We will fax, mail or call you about any homes that meet your search criteria. That way when your dream home comes on the market, you will be the first to see it! |
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Search market and select home: The Advantages Of A Buyer's Agency Agreement |
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Your interests are professionally represented
Enlisting the services of a professional Buyer's Agent is similar to using an accountant to help you with your taxes, a doctor to help you with your health care, or a mechanic to help you with your car. So the first advantage is pretty obvious. If you had the time to devote to learning all you need to know about accounting, medicine, and automotive mechanics you could do these services yourself. But who has the time? You probably already have a full-time career to which you are committed. This is why you allow other professionals to help you in specific areas of expertise. The Moulton Team has devoted nearly a 16 year career to perfecting real estate service. Continuous education, market research and vast experience are combined with an excellent team of real estate professionals to find you the perfect home quickly. The Moulton Team will guide you through the home buying process and exclusively represent your interests as we help you find a home, present your contract offer, negotiate, and close. It i
always better to make an informed decision to buy something than it is to be sold something. When you have a Buyer's Agent your interests are professionally represented, and you have more control and peace of mind than if you are simply sold a home you find. Buying a home is a big decision. Let your agent act as your specialist, even if you happen to find the perfect home yourself, finding the home is only one step in the entire home buying process.
You will get a great home quickly and conveniently
The advantage to signing a Buyer's Agency Agreement with The Moulton Team is that you will have an entire team of real estate professionals working to find and secure the perfect home for you exactly when you need it. It is nearly impossible to find a home that meets your needs, get a contract negotiated, and close the transaction without an experienced agent. We have developed this process to make sure you only tour homes that meet your specific needs. You won't need to spend endless evenings and weekends driving around looking for homes for sale. When you tour homes with your personal Buyer's Agent you will already know that the homes meet your criteria for bedrooms, bathrooms, garage space, basement, square footage, neighborhood, etc. Also your Agent will ensure you are looking at homes that are in your price range. |
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Negotiate Contract |
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Once you have found the home you wish to purchase you will need to determine what offer you are willing to make for the home. It is important to remember that the more competition there is for the house, the higher the offer should be, sometimes even exceeding the asking price.
To communicate your interest in purchasing a home The Moulton Team will present the Listing Agent with a written offer. When an offer is accepted by the Seller it becomes a legal contract. When you write an offer you should be prepared to pay an Earnest Money deposit. This is to guarantee that your intention is to purchase the property. The Seller can stop considering other offers knowing yours is valid and serious.
After The Moulton Team presents your offer to the Listing Agent it will either be accepted, rejected or the Seller will make a counter offer. This is when The Moulton Team will negotiate terms of the contract, if necessary.
It is at this time that you will want to have the property professionally inspected -- if that is what you choose to do. Please read the page titled "Choosing an Inspection Company".
The step-by-step contract procedure for most single-family home purchases is standard and is followed quite closely by most builders and Realtors. The Purchase Agreement used is a standard document approved by the Iowa Real Estate Commission. Some buyers retain lawyers to review the transaction contract but most do not if they are being represented by an Agent. The Purchase Agreement or contract constitutes your offer to buy and, once accepted by the Seller, becomes a valid, legal contract, so understand what is written on the contract offer. It will be prepared according to your instruction and contains required information to be provided. In general the contract asks for your name, tenancy, Earnest Money deposit, Inclusions and exclusions, Title Insurance policy, date for closing, purchase price and terms, date of possession, and signatures. A description of each section follows.
Your name: The name under which you wish to take title. Please read the section detailing Title. Many people use their full legal name. Keep in mind that whatever name you decide to use, you must use the same name to sell the property or transfer title.
Tenancy: This refers to how you "take title" to the property. It signifies your interest in the property and your rights of survivorship. How you take title to a property is a legal decision and you may wish to discuss which form of tenancy is best for you with your attorney. Also read the section about Title. Your Agent cannot, by law, advise you as to how to take title.
Earnest Money deposit: The amount of Earnest Money due is negotiable and varies with the value of the property. The range is usually between 2% - 5% and is rarely less than $500.00. Its purpose is to show good faith that your offer is serious. It also serves as a source of payment for damages to the Seller, should you default on the terms of the contract. A personal check is sufficient and should be made payable to the real estate company or the closing agent.
Legal Description and Street Address: The legal description is the technical information from the government regarding plat location, section, etc. The street address is the information you will be familiar with.
Purchase Price and Terms: This section details the agreed purchase amount and the terms of down payment, loan amount, interest rate, and other loan conditions. A description of the loan will be required. In new construction, the builder will probably have loans available and will detail the terms here. If you have not yet received loan approval (which you should have) you need to specify the interest rate, loan conditions, and down payment limits which are acceptable to you.
For example your contract can specify "offer is contingent upon Buyer's ability to obtain a 20% down, 8% interest rate, 30-year loan within 15 days" (that lets you out if you wish), if you cannot find such a loan. If you are planning to assume someone's existing loan, specify "offer contingent upon lender's approval of loan assumption." If you must have an FHA loan, specify "offer contingent upon -- etc.", etc." When in doubt, SPELL IT OUT!!"
Inclusions and Exclusions: This section details any items that are to be included in the purchase price that are not permanently attached to the real property. Also, this section details any items the Seller does not wish to leave, that may be construed as attached or staying with the property. For example these items may include window coverings, refrigerator, stove, dishwasher, microwave, shed, dog house, garage door opener, etc..
Liens, Encumbrances and Restrictions: The contract should detail all liens, encumbrances, easements, restrictions, etc. which are not recorded. You should have someone explain the liens, encumbrances, etc. which are recorded.
Special Assessments: Any special assessments should be revealed by the Seller. For example, if a property recently got a special assessment to build new sewers, who is to pay for it, etc..
Inspection: You have the right to request a physical inspection of the property and its inclusions. If the inspection proves unsatisfactory both Purchaser and Seller have a set time to reach a settlement of how to correct the unsatisfactory conditions. Detail all concerns and terms here.
Closing Date: The Closing Date will be scheduled after all financing and inspection contingencies have been met. We are in a "Good Funds" state meaning all monies at closing must be certified funds (cash, electronic transfers, certified check, Cashier's check, etc.). You will be notified prior to closing of the amount you will need, so you have ample time to obtain your funds. Also, if you are closing your current house first, Dianna's team will coordinate each closing to make it as convenient as possible.
Closing Procedures: This section details who is to be responsible for conducting the closing. Usually all monies and documents are handled by the Listing Agent's office or a Title Company (i.e. The Closing Agent). The Closing Agent acts as a depository for funds. They disburse funds to the proper parties, handle the adjustment of taxes, insurance, etc. between the Buyer and Seller. They are also responsible for obtaining pertinent documents such as the Deed, Title Insurance policies, and are responsible for the recording of documents with the State, etc..
Date of Closing Procedures: This section details what date you want to close the proceedings and take title to the property.
Date of Possession: Although this date is negotiable between the Buyer and Seller, it is customary for possession to occur between three (3) and five (5) days after closing.
Occupancy: This section details what happens if the Seller does not give occupancy.
Terms of Contract Termination: You may specify the number of days the Seller has to accept your offer. You and the Seller may also agree that you will forfeit your deposit if you default on your offer.
Additional Provisions: This is where you put all items which may be in doubt or which could be contested later. For example, what fixtures go with the house? If it is a new home, does the builder assume any responsibility for corrective work? Is there something that must be done before you will buy the house? If so, put each item in a "Contingency Clause".
Signatures: In Iowa, an offer and acceptance must be in writing. If acknowledged in the body of the contract, fax signatures will be binding until original signatures are obtained.
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Home Inspections: How To Choose A Good Inspection Company |
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Is an inspection necessary? You have the right to request an inspection of any properly you are thinking of purchasing by a professional inspector of your choice. You should always exercise your option to have the physical condition of the property and its inclusions inspected. Many of the more severe and expensive problems such as mechanical, electrical, structural and plumbing, are not noticeable to the untrained eye. If repairs are needed The Moulton Team can negotiate these in your contract offer. A professionally conducted home inspection followed by a written evaluation is becoming standard procedure in home buying because of increased buyer awareness and savvy.
Are inspectors licensed? The increase in buyers requesting property inspections has caused a rapid increase in the number of people entering the inspection field.
The State of Iowa does not require testing or licensing of inspectors in any way. So, investigate your inspector's qualifications carefully. Look for designation by the American Society Of Home Inspectors (ASHI). Since it is important to a Realtor's reputation and potential liability to know and recommend only qualified home inspectors, knowledge of professional inspector qualifications is essential. Ask Dianna to recommend a few qualified inspectors.
The American Society of Home Inspectors. Because you cannot ask for proof of a license the next best thing is to ask if the inspector is a member of member of the American Society of Home Inspectors. ASHI is a non-profit professional organization with strict standards and qualification criteria for membership. To become a member an inspector must demonstrate, through extensive testing, a proven knowledge of residential construction. They must have experience and expertise to recognize defects and problem situations. They are required to have the ability to convey their findings in a meaningful report. And, they are required to meet continuing education requirements. ASHl's Standards of Practice and stringent Code of Ethics serve as a professional performance guide which all members follow.
ASHI estimates the number of home inspectors in the U.S. to be about 10,000. While membership in ASHI grows daily, only about 1,200 to date have met ASHI's strict membership requirements. ASHI is recognized by government agencies and professional groups (including the National Association of Realtors) as the nation's leading home inspection organization. ASHI sets standards for professional practice and qualification which are recognized throughout the country.
What does an inspection entail? A qualified inspector will follow ASHI's Standards of Practice in conducting their inspection. The inspection consists of a physical inspection of the home with the purchaser present, followed by a written report detailing their findings. They report on the general condition of the home's electrical, heating and air systems, interior plumbing, roof, visible insulation, walls, ceilings, floors, windows, doors, foundation, basement, and visible structure. The inspection is not designed to criticize every minor problem or defect in the home. No home is perfect. It is intended to report on major damage or serious problems that require repair for the well-being of the home, and that might require significant expense.
Buyer education is necessary. The primary purpose of the inspection is to educate the buyer to enable them to make an informed purchasing decision. The inspector should allow and even encourage the buyer to attend the home inspection. A good home inspector knows how the home's many systems and components work together and how to minimize the damaging effects of sun, water, and the passage of time. Attending the inspection provides an important opportunity for the buyer to learn, first hand, how their prospective new home works, and about possible repair costs and maintenance routines. This is valuable information which could increase the life span, and perhaps the future selling price of the home.
Continuing education is important for inspectors. A competent home inspector is familiar with the latest construction materials, home building techniques, and professional equipment. Consumers should research whether prospective home inspectors actively monitor the changes in construction and real estate in order to keep their business practices current and professional. Members of ASHI must meet annual continuing education requirements for this purpose.
Time and fee guidelines for the inspection. The time necessary to properly inspect a home, as well as the fee charged by an inspector, varies according to market location, the size and age of the home, and the individual inspection company. However, you can expect that it will take an average of two to three hours to competently inspect a typical one-family, three-bedroom home, with an average cost of $100 to $300.
Beware of false claims Consumers must be cautious in evaluating some of the claims made by people hoping to fill the growing demand for home inspection services. Many new companies request only an application fee. Some claim to offer certification but do not require exams or proven credentials. Still others boast engineering licenses as assurance of competence, even though the engineering license has nothing to do with home inspecting. |
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Appraising Home Value |
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| The lender will hire an appraiser to do an appraisal on the value of the home. This is necessary to prevent a buyer from overpaying for the home and to insure the bank that the home is worth the amount of money they are lending out on the property. |
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Loan Approval: Loan Application Check List |
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General: Picture ID with social security number of borrower and co-borrowers. Payment to cover the application fee. Name and complete address of all landlords for the past two years.
Income: Employment history for the past two years including names, addresses, phone numbers, and length of time with the company. Copies of your most recent pay stubs and W-2 forms (past two years). Verification of other income (social security, child support, retirement). If self-employed you need copies of the past two years signed tax returns including all schedules, and a signed profit and loss statement of the current year. Retirees need tax returns for the past two years. If you have rental property income bring a copy of all lease agreements.
Assets: Copies of all bank and credit union statements for the past three months. Copies of all stock/bond certificates and/or the past three statements from all investment and retirement accounts. Prepare a list of household items and their values. Copies of title documents for all automobiles, boats, motorcycles, etc. Face amount, monthly premiums and cash values of all life insurance policies. (Cash value may be used for closing costs or down payments. You need documentation from the carrier indicating cash value.)
Creditors: Credit cards (account numbers, current balances, monthly payments). Installment loans (car, student, etc.). Same details as for credit cards. Mortgage loans (property address, lender with address, account numbers, monthly payment and balance owed on all properties presently owned or sold within the last two years). Bring proof of sale of properties sold. Child care expense/support (name, address, phone number).
Other: Bankruptcy - bring discharge and schedule of creditors. Adverse Credit - bring Letters of Explanation. Divorce - bring Divorce Decrees, property settlements, quit claim deeds, modifications, etc. for all divorces by yourself or your spouse. VA only - bring Form DD214 and Certificate of Eligibility. Retirees - bring retirement and/or Social Security Award Letter. |
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Closing: Now We Close Your transaction |
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What is a real estate "closing?"
The meeting between the Buyer, Seller, their agents (optional), and representatives from the lending institution and title company wherein the actual transfer of title to the property occurs. The purchase agreement or contract you have signed describes the property, states the purchase price and terms, sets forth the method of payment and usually names the date and place where the closing or actual transfer of the property title and keys will occur. This meeting is also referred to as the settlement. A new deed will be prepared by the title company transferring ownership of the property to you. Your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying the loan. You will also sign a mortgage or deed of trust on the property as security to the lender for the loan. The mortgage or deed of trust gives the lender the right to sell the property if you fail to make the payments. Before you exchange these papers the property may be
surveyed, appraised, or inspected and the ownership of title will be checked in county and court records.
What should I do to prepare for the closing?
As previously mentioned, you should have already conducted any inspections, etc. you wish to have done on the property.
You will also be required to pay all fees and closing costs in the form of "guaranteed funds" such as a Cashier's Check. You will be notified of the exact amount by your agent or lender prior to the closing.
What is an escrow account?
An escrow account is a neutral depository for funds that will be used to pay expenses incurred by the property such as taxes, assessments, property insurance or mortgage insurance premiums which fall due in the future. You will pay one-twelth of the annual amount of these, bills each month with your regular mortgage payment. When the bills fall due, they are paid by the lender from the special account. At the closing it may be necessary to pay enough into the account to cover these amounts for several months so that funds will be available to pay the bills as they fall due. You may also be required to refund items prepaid by the Seller. For example if the Seller has paid the special assessments or taxes for that you may be required to refund the value of the months remaining in the year when you take possession of the property. An escrow fee is usually charged to set up the account. |
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Getting Settled: |
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You have closed on your new home and now you are ready to move. The next few pages contain tips and checklists so mat your move is as organized and effortless as possible. Think about your move as a series of small projects that you can begin while your home is under contract. Your move will progress as your contract and closing progress. That way, when the day comes when you have to physically move your belongings most of the other details will be taken care of.
When you are fairly sure you will be moving somewhere soon you can:
+ Visit your local Post Office to get a Change of Address package for moving.
+ Pick up any laundry, dry cleaning or alterations.
+ Return library books.
+ Drain sprinkler system.
+ Pack a copy of the local telephone directory for future reference.
+ Clean rugs or clothing before moving; have them wrapped.
+ Service all appliances, computers, etc.. for moving and pack in manufacturer's packaging.
+ Start reducing the number of things in your home that you really don't need or that won't go well in your new
home.
+ Start packing items you don't use daily (good china, out-of-season clothing, etc.).
When your closing has been set you can get a little more serious about moving.
+ Secure all birth and baptismal records for all family members.
+ Obtain medical, dental and other records for all family members.
+ Refill prescriptions and transfer prescriptions to a pharmacy in your new area.
+ Ask your doctor and dentist for referrals in your new area
+ Get transcripts of school records, including immunization records.
+ Check with your attorney to see if you must have your will rewritten when moving across state lines.
+ Notify your church and social clubs of your move. Ask for referrals in your new area
Now that you have your new address send out all of your change of address notices.
+ Complete your Change of Address notices and mail them to the following. Keep in mind that the post office will
forward your mail for 30 days but they do expect that you are sending notices to everyone who mails to you.
+ Post Office Friends and relatives
+ Magazine and mail order subscriptions
+ Professional organizations of which you are a member
+ Clubs, social or civic organizations with mailings
+ Charge accounts, insurance carriers, and creditors
+ Driver's bureau to receive tag renewal notices
+ Voter Registration officials
Don't forget the needs of your furry friends!
Do not transport your pets much farther than they have safely traveled in the past without consulting your veterinarian. To transport animals by air, you need an airline-approved animal carrier. A moving company can inform you of any state regulations for pet entry, vaccination or quarantine procedures. Ask about regulations, licenses, tags, etc. for pets. Also, do not forget to obtain a copy of your pet's medical records.
Keep detailed records - some moving expenses are tax deductible Keep detailed records of all moving expenses if your move is job related. Many expenses, including house-hunting trips, are tax deductible. If your move is 35 miles or more from your home, you can deduct your family's travel expenses, including meals and lodging; the cost of transporting furniture, other household goods and personal belongings; food and hotel bills for up to 30 days in the new city if you have to wait to move into your new home; and the costs associated with selling your old home or settling a lease, plus the costs of buying or leasing your new home.
Note: There is a ceiling on deductions which is outlined in detail in the Internal Revenue Service's Publication 521, "Tax Information on Moving Expenses", available free from IRS offices.
When you close on your new home you should complete the following:
+ Ask your bank about electronically transferring your funds to a bank in your new area. Discuss branch options
and arrange for check cashing in your new location.
+ Close out your safety deposit box.
+ Obtain traveler's checks for traveling funds and for funds while you are settling into your new location.
+ Ask your insurance agent to transfer coverage to your new home. Make sure all coverage (life, health,
automobile, personal belongings, etc. ) is in force while you are en route.
+ Schedule a moving company to assist you or begin notifying people who are helping you of your planned move
date.
+ Begin depleting your store of canned and frozen foods. Defrost your freezer and use charcoal to dispense
orders.
Now that you have a new address you can begin transferring or canceling home services.
+ Make arrangements for canceling home utilities such as the following. Advise them of your desired date of
shutoff and give change of address for final billing. Request deposit return if appropriate, and arrange for
immediate service to your new address.
+ Electric and gas (Mid-American Energy 1-800-427-5632 )
+ Telephone (Qwest Communications 1-800-244-1111)
+ Cable television (Mediacom 515-244-1156)
+ Water (Des Moines Water Works 515-282-6115)
+ trash (Waste Management 515-265-5267)
Make arrangements for canceling home deliveries and services such as the following. Arrange for service at your new address.
Newspaper (Des Moines Register 515-284-8311) |
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