Homebuyers Handbook


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Homebuyers Handbook

  1. 1. Page 2 Congratulations on your new home and thank you for choosing EASYstreet Realty! We are committed to providing you with the individualized care and the personal attention you deserve. It is our mission at EASYstreet to create a positive experience for you throughout the home buying process. You have already made some important decisions about your new home with your EASYstreet Realtor. This booklet will provide some helpful tips and information to guide you through the rest of your home buying experience. Throughout this process you will be receiving additional information, discounts, and feedback requests from the Client Care Department. We will even keep in touch with you after your closing with other helpful reminders and tips to en- sure you enjoy your home for years to come! TABLE OF CONTENTS _____________________________ Client Care Resources 2 Client Discount Package 2 Pre-Approval & Final Approval 3 Mortgage Application Checklist 4 Financing Terminology 5 Your Homeowner’s Insurance 6 Builder Meetings & Walk-Thrus 7 Home Inspection Companies 8 Closing on Your Home 9 Utility Companies & Contacts 10 Post Close Tasks 13 Auditor Location by County 14 Questions? Comments? Concerns? Call Client Care (317) 205-4320 x12
  2. 2. Page 3 CLIENT CARE RESOURCES Your EASYstreet Realty Client Care Department will be providing you with helpful information and reminders about the home buying process. You can expect to receive information on the following topics: Mortgage Financing & Pre-Approval Getting Your Final Approval Homeowner Savings Book Homeowner’s Insurance Closing on your New Home County Contact & Utility Information Client Satisfaction Survey Filing Your Exemptions Home Maintenance Tips Post Close Reminders CLIENT DISCOUNT PACKAGE In keeping with our mission “to create an atmosphere and experience which turns our team, clients, and associates into Raving Fans,” we are continuously partnering with local businesses to give you more ways to save once you close on your new home. Our discount package currently includes offers from the following companies: A1 Concrete & Leveling Monson Concrete Construction All 4 Seasons Landscaping King of Green Lawn Care Bob Block Fitness Koorsen Fire & Security Dixon’s Professional Home Services Kurt Geiger Decorating Fairway Mortgage Legacy Poker Tables Fast Track Flight Pet Stop Pet Fence Systems Good Nature Inc Outdoor Services Petry’s Place Hardwood Floors & More Ratcliff Repair & Remodel HH Gregg Shelter Insurance Companies Indy Movers The Pampered Chef Ink Inventions Custom Shirts & More West Point Financial Group Homebuyer Handbook Courtesy of EASYstreet Realty, Inc (317) 205-4320
  3. 3. Page 4 PRE-APPROVAL After completing your purchase agreement, the next step towards home owner- ship is securing the best possible financing. As you prepare for your loan appli- cation there are some important documents you will need to take with you. There is a mortgage checklist on the next page. This lists most items that the mortgage company may require of you. It is a good idea to check with your loan officer prior to your appointment to see if you should add any additional documents to the checklist. It is critical that you attend your mortgage appoint- ment even if you are not able to provide every item listed. Remember, regard- less of the documents you do and do not have, you must attend your mortgage appointment. FINAL APPROVAL After you have received your pre-approval letter, you want to be sure you keep in touch with your mortgage company regarding your financial and employment status. If you have any changes in your employment, have any negative financial activity, or plan on opening any new accounts, call your mortgage broker immediately to discuss the impact it may have on your final approval. It is extremely important to keep your credit in good standing throughout the process. To avoid lowering your credit score and risking your final approval, don’t apply for any new credit, pay all of your bills on time, and maintain your good accounts to show lengthy positive credit history. Questions? Comments? Concerns? Call Client Care (317) 205-4320 x12
  4. 4. Page 5 MORTGAGE APPLICATION CHECKLIST The following items may be required to complete your loan application. Please contact your lender to see if there are any additional documents they will need you to bring. __ Residence addresses for past 2 years __ Landlord name & phone numbers for past 2 years __ Pay stubs for past 30 days __ W-2 forms and tax returns for past 2 years __ Employer names, addresses, and dates of employment for past 2 yrs. __ All open bank accounts – bank name, acct numbers, balances, and last 2 months statements __ All open credit accounts – name, acct numbers, balances, minimum monthly payment. (Unless mortgage co. has a copy of your credit report) __ Addresses of all real estate owned. Acct numbers, balances, and monthly payments. __ Copy of purchase agreement with addendums __ If eligible for VA loan, bring Certificate of Eligibility __ Bankruptcy, Divorce, or Child Support documents (if applicable) __ Drivers License Remember! The sooner you get your documents to your lender, the sooner they can issue your pre-approval letter. Check with your Realtor to see if there is a deadline for turning your pre approval letter in to the sellers. Homebuyer Handbook Courtesy of EASYstreet Realty, Inc (317) 205-4320
  5. 5. Page 6 FINANCING TERMS Adjustible Rate Mortgage – A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Amortization – Loan payment divided into equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. Annual Percentage Rate – The measurement of the full cost of a loan including inter- est and loan fees expressed as a yearly percentage rate. Closing Costs and Prepaids – Expenses over and above the price of the property that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the type of loan and lender used. Escrow – An account held by the lender into which the home buyer pays money for property taxes, homeowner’s insurance, or mortgage insurance payments. FHA Loan – The Federal Housing Administration insures mortgages, allowing buyers to obtain financing with as little as 3% down & level payments at slightly below conventional rates for the 25-30 year loan term. HUD-1 Statement – A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commis- sions, loan fees, points and initial escrow amounts. Mortgage – An instrument that sets up the conditions of payment for a piece of property already transferred to the buyer. Note – A written promise to repay the money borrowed plus interest in a specified pe- riod of time. The note is secured by the mortgage. Origination Fee – A fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property. Usually computed as a percent- age of the face value of the loan. Prepayment Penalties – Fees charged to a borrower who pays off his or her loan bal- ance before it is due. Private Mortgage Insurance – On conventional financing, including adjustable rate financing, lenders require that the borrower purchase private mortgage insurance against default on loans with down payments less than 20%. The private mortgage premium is added onto the monthly payment, and a portion is collected at closing. Rate Lock – A commitment issued by a lender to a borrower or another mortgage origi- nator guaranteeing a specified interest rate and lender costs for a specified period of time. Underwriting – The decision whether to make a loan to a potential home buyer based on credit, employment, assets, and other factors and the matching of this risk to an ap- Questions? Comments? Concerns? Call Client Care (317) 205-4320 x12
  6. 6. Page 7 HOMEOWNER’S INSURANCE BASICS Your home is where you live and where your possessions are. Chances are, it’s your greatest asset, and you need to protect it. When you buy a home, you need to provide your lender with proof of insurance for the prop- erty. Insurance provides a safety net for you and your family when certain unfor- tunate events such as theft, fire, burglary, and vandalism occur. You will need to have liability and guest medical protection too, in case someone incurs an injury on your property. You can also add special coverage options to protect items such as jewelry, silverware, business property, electronics, etc. With most insurance companies, you have the option to insure your home at replacement cost or loan payoff. Replacement cost coverage will be slightly higher than loan payoff, as the pay-out in case of loss will be enough to cover re- construction of the home at a higher cost (since the cost of homes is always go- ing up). Loan payoff coverage will do just that – it will pay off the remaining in- debtedness on the property and essentially allow you to move on. Our advice: Compare the rates of a few different companies. When shop- ping for your homeowner’s insurance, be sure to get a total package quote includ- ing your auto coverage. One homeowner’s rate may be higher than another, but when the cost of insuring your vehicle and multiple policy discounts are consid- ered, you may wind up saving money. Also ask the agents about deductible op- tions, home security discounts, and good credit discounts. Need a quote? Contact these agents to get a quote today! Shelter Insurance: Mike Harvey (317) 837-0430 *Ask about Shelter’s new home discount. They offer up to 40% discount on annual premiums for recently constructed homes! Indiana Farm Bureau Insurance: Justin Zipperian (317) 654-2126 Liberty Mutual Insurance: Aaron Hill (317) 587-1481 x55284 State Farm Insurance: Wanda Bell Brown (317) 273-9300 Homebuyer Handbook Courtesy of EASYstreet Realty, Inc (317) 205-4320
  7. 7. Page 8 WHAT TO EXPECT Walk- Builder Meetings and Walk-Thrus --------------------------------------------------------------- Pre-Construction Pre- At this meeting, you will meet with your construction liaison to review the blueprints and discuss the stages of construction. They should review your design options to en- sure the building plans account for all of your personal selections. You should get the chance to view the plot map and see where your home will sit on the lot. Ask your builder about their rules for visiting the property during construction, and how they would like to receive notice of any incorrect items you may catch throughout the con- struction process. Pre-Drywall Pre- Once the exterior house is framed, and the “guts” of the home including the electrical wiring, plumbing, HVAC ducts, and interior framing have all been installed, you will have the opportunity to walk thru the home. At this meeting, you should be sure any structural changes to the property were made, and all wiring appears to be in the cor- rect spot. It is much easier to change wiring and plumbing now than it is after the dry- wall has been installed. Check to make sure any additional phone and cable outlets are where you have specified them to be. Pre Closing When the construction of your home is complete and you are just about ready to close, you will have a final walk thru with your builder. At this meeting, a representa- tive of your builder will discuss all of the major components of the home, show you how to operate all appliances, and discuss any safety features (GFCI outlets, water shut off, electric panel, etc.) Be sure the builder has provided all warranty informa- tion and user guides for the appliances in the home. Now is not the time to be shy! Be sure you point out any mistakes including defective fixtures, wall smudges, dry- wall repairs, and missing parts so they can be fixed prior to your closing. Questions? Comments? Concerns? Call Client Care (317) 205-4320 x12
  8. 8. Page 9 Do you need an independent inspection? You certainly have the right to obtain an independent home inspection prior to closing on your new home. Any independent inspections will be at your cost and will be your responsibility to schedule, if you so choose. If you do decide to have an independent home inspector take a look at your new home prior to closing, check with your builder well in advance to make the arrangements. The cost of a new home inspection will vary according to the company and scope of inspection desired. There are many inspection companies in the Central Indiana area. We encourage you to seek referrals or recommendations from friends and family and to investigate the company prior to contracting them. We have compiled a small list of the companies our buyers have used in the past. A-Association Home Inspection (317) 547-4865 Brick Kicker Home Inspections (317) 356-5555 Clearview Home Inspecions (317) 578-0890 Cornerstone Inspection Services (317) 845-9497 Hoosier Home Inspections (317) 826-1000 Larry O’Brien (317) 538-8953 Q Spec (317) 842-0376 Security Home Inspections (317) 848-1744 Surette Inspect (317) 844-5334 US Inspect (888) 874-6773 EASYstreet Realty makes no representation, recommendation, or endorsement as to the quality, reputa- tion, or integrity of any of the above listed inspection companies. Homebuyer Handbook Courtesy of EASYstreet Realty, Inc (317) 205-4320
  9. 9. Page 10 CLOSING ON YOUR NEW HOME What To Bring: __ Valid government issued photo ID (Driver’s License) __ 2nd piece of ID (passport, social security card, military ID) __ Copy of paid receipt for 1 year’s homeowner’s insurance and policy coverage or declarations. __ Funds required to close in certified check or money order (Check with your lender prior to closing to get your final figures) Closing Costs: When you buy a home, all funds payable at closing will be listed on the HUD-1 or settlement statement. You should check with your loan officer to find out what the actual closing costs will be for your new home and how much money you will need to bring to closing. Some of the fees listed on the settlement statement will include: Title Insurance Recording Fee Survey Appraisal Credit Report Homeowner’s Insurance Mortgage Insurance Pre-Paid Real Estate Taxes Pre-Paid Interest Title Insurance Enforcement Fund Fee (TIEFF) Some of the items listed above, such as the appraisal, homeowner’s insurance, and credit report, may be paid to the lender prior to closing. Questions? Comments? Concerns? Call Client Care (317) 205-4320 x12
  10. 10. Page 11 UTILITY COMPANY GUIDE BOONE COUNTY ELECTRIC Duke Energy (800) 343-3525 Boone REMC (800) 897-REMC Lebanon Utilities (765) 482-5100 GAS Vectren Energy (800) 227-1376 CABLE Brighthouse Networks (317) 972-9700 Comcast Cablevision (800) COMCAST Insight Cable (866) 668-6059 PHONE AT&T (800) 288-2020 WATER/SEWER Lebanon Utilities (765) 482-5100 Zionsville Wastewater Dept. (317) 873-2469 HAMILTON COUNTY ELECTRIC American Electric Power (800) 311-4634 Duke Energy (800) 343-3525 GAS Vectren Energy (800) 227-1376 CABLE Brighthouse Networks (317) 972-9700 Comcast Cablevision (800) COMCAST Insight Cable (866) 668-6059 PHONE AT&T (800) 288-2020 WATER/SEWER Carmel Water Department (317) 571-2442 Fishers Public Works (317) 595-3160 Fishers Sewer (317) 595-3142 Hamilton Western Water (317) 848-6882 Indiana American Water (317) 773-2681 Noblesville Wastewater (317) 776-6353 HANCOCK COUNTY ELECTRIC Duke Energy (800) 343-3525 Greenfield Power & Light (317) 462-8522 Indianapolis Power & Light (317) 261-8222 GAS Citizens Gas (317) 924-3311 Vectren Energy (800) 227-1376 PHONE AT&T (800) 288-2020 Team Hancock (866) 326-9848 Embarq Communications (800) 877-7746 Verizon (800) 483-4600 WATER/SEWER Indianapolis Water Company (317) 631-1431 Greenfield Water Dept. (317) 462-8545 Greenfield Wastewater (317) 462-8530 Fortville Water Department (317) 484-4044 Fortville Wastewater (317) 485-5432 Homebuyer Handbook Courtesy of EASYstreet Realty, Inc (317) 205-4320
  11. 11. Page 12 HENDRICKS COUNTY ELECTRIC Duke Energy (800) 343-3525 Hendricks Power Coop (317) 745-3236 Indianapolis Power & Light (317) 261-8222 GAS Vectren Energy (800) 227-1376 CABLE Brighthouse Networks (317) 972-9700 Comcast Cablevision (800) COMCAST PHONE AT&T (800) 288-2020 WATER/SEWER Indianapolis Water Co. (317) 631-1431 Brownsburg Water (317) 852-1102 Plainfield Water & Sewer (317) 839-2561 West Central Cons. District. (317) 272-2980 JOHNSON COUNTY ELECTRIC Duke Energy (800) 343-3525 Johnson Co. REMC (317) 736-6174 So. Central Indiana REMC (800) 264-7362 GAS Vectren Energy (800) 227-1376 CABLE Comcast Cablevision (800) COMCAST Insight Cable (866) 668-6059 PHONE AT&T (800) 288-2020 Embarq Communications (800) 877-7746 WATER/SEWER Indianapolis Water Co. (317) 631-1431 Indiana American Water (800) 492-8373 Greenwood Sanitation (317) 887-5232 MADISON COUNTY ELECTRIC Anderson City Utilities (765) 648-6187 American Elec. Power (800) 311-4634 Henry Co. REMC (800) 248-8413 GAS Vectren Energy (800) 227-1376 CABLE Insight Cable (866) 668-6059 PHONE AT&T (800) 288-2020 Embarq Comm. (800) 877-7746 WATER/SEWER Anderson City Utilities (765) 648-6187 MARION COUNTY ELECTRIC Indianapolis Power & Light (317) 261-8222 GAS Citizens Gas (317) 924-3311 CABLE Comcast Cablevision (317) 872-2225 Insight Cable (866) 668-6059 PHONE AT&T (800) 288-2020 WATER/SEWER Indianapolis Water Co. (317) 631-1431 Lawrence Utilities (317) 542-0511 Beech Grove Sanitation (317) 788-4980 Questions? Comments? Concerns? Call Client Care (317) 205-4320 x12
  12. 12. Page 13 MORGAN COUNTY ELECTRIC Duke Energy (800) 343-3525 Johnson Co. REMC (317) 736-6174 So. Central Indiana REMC (800) 264-7362 Indianapolis Power & Light (317) 261-8222 GAS Vectren Energy (800) 227-1376 CABLE Comcast Cablevision (317) 872-2225 PHONE AT&T (800) 288-2020 WATER/SEWER Rural Water Corp. (765) 342-7372 Martinsville Utilities (765) 342-2449 SHELBY COUNTY ELECTRIC Duke Energy (800) 343-3525 Johnson Co. REMC (317) 736-6174 Rush/Shelby Energy (317) 398-6621 GAS Vectren Energy (800) 227-1376 Fountaintown Gas Co. (800) 379-1800 CABLE Comcast Cablevision (800) COMCAST PHONE AT&T (800) 288-2020 Embarq Communications (800) 877-7746 TDS Telcom (888) CALL TDS Verizon (800) 483-4600 WATER/SEWER Morristown Water Co. (765) 763-7112 Indiana American Water (317) 773-2681 St. Paul Water Co. (765) 525-6343 TIPPECANOE COUNTY ELECTRIC Duke Energy (800) 343-3525 GAS Vectren Energy (800) 227-1376 CABLE Insight Cable (866) 668-6059 PHONE AT&T (800) 288-2020 Verizon (800) 483-4600 WATER/SEWER Lafayette Water Co. (765) 476-4488 Lafayette Utility Billing (765) 807-1100 American Water Co. (800) 492-8373 W. Lafayette Wastewater (765) 775-5140 Homebuyer Handbook Courtesy of EASYstreet Realty, Inc (317) 205-4320
  13. 13. Page 14 POST CLOSE TASKS File Your Exemptions! As a homeowner, you are generally entitled to have a Homestead Credit and Mortgage Exemption applied to your property tax bill. You will be responsible for filing these exemptions yourself. You must wait until the deed has been recorded and you are listed as the property owner to file. Generally this will be complete by the time you make your first payment. At that time, you will need to take your closing package or settlement statement to the auditor’s office in your county to file these exemptions. The addresses and phone numbers are listed on the next page. **A reminder letter will be mailed to your new property address around the time of your first payment. Change Your Address! Of course you will notify your friends and family of your address change, but don’t forget about your employer, financial institutions, and account providers. Go to http://moversguide.usps.com to change your address with the post office. Mail will stop going to your old address on the effective date specified, and will begin arriving at your new address 7-10 delivery days later. You are required by law to change your address with the Bureau of Motor Vehicles (BMV), Internal Revenue Service (IRS), and the Indiana Depart- ment of Revenue within 90 days of moving. You must visit your local BMV branch to change your address on your driver’s license or state ID. Visit http:// www.in.gov/bmv/branches/ to find the nearest branch. Go to http://www.irs.gov/ taxtopics/tc157.html for information on how to change your address with the IRS. You can change your address with the Indiana Department of Revenue online at http://www.in.gov/dor/individual/address-change.html Register To Vote! You may be moving to a new voting district, so it is important to register to vote with your new address. You can register to vote at the BMV or at http:// www.declareyourself.com Questions? Comments? Concerns? Call Client Care (317) 205-4320 x12
  14. 14. Page 15 AUDITOR LOCATIONS Boone County Auditor 116 W. Washington Street Suite 101 Lebanon, IN 46052 (765) 482-2940 Hamilton County Auditor Historic Courthouse in Noblesville 1st Floor (317) 776-9602 Hancock County Auditor 9 E. Main Street Greenfield, IN 46140 (317) 477-1105 Hendricks County Auditor Government Center 355 South Washington Street Danville, Indiana 46122 (317) 745-9207 . Johnson County Auditor Courthouse Annex Building - 1st floor 86 W. Court Street, Franklin IN 46131 (317) 736-3745 Madison County Auditor Madison County Government Center 16 East 9th Street Anderson, IN 46016 (765) 641-9419 Marion County Auditor City-County Building – Suite 1360 200 E. Washington Street Indianapolis, IN 46204 (317) 327-4698 Morgan County Auditor Morgan Co. Administration Building 180 South Main Street – Suite 104 Martinsville, IN 46151 (765) 342-1001 Shelby County Auditor Courthouse Annex 25 West Polk Street – Room 104 Shelbyville, IN 46176 (317) 392-6310 . Tippecanoe County Auditor Tippecanoe County Office – 2nd Floor 20 North 3rd Street Lafayette, IN 47901 (765) 423-9207 Homebuyer Handbook Courtesy of EASYstreet Realty, Inc (317) 205-4320
  15. 15. Doyou know of someone that may be interested in buying or selling a home? We would love the opportunity to help make home- ownership a reality for your friends and family. Just give your EASYstreet agent a call. A referral is the best compliment your agent could ever receive! Questions? Comments? Concerns? Contact the Client Care Department (317) 205-4320 clientcare@easystreetrealty.com