Buying a Home - Illustrated Guide by Tom Glass. Co-Branded with Rich Margarino Specific to South Carolina

1. BUYING A HOME
an illustrated guide
by tom glass

2. the
KEYS
to a successful real estate transaction
KNOWLEDGE
Info from this guide
PLANNING
Apply to your situation
EXPERIENCED PARTNERS
Get a good realtor & lender

3. Are you ready?
Get a Lender &
Pre-Approval
no particular order
Get a Realtor
Find a House
Contract
Loan Processing The
Closing Process

4. Are you Ready?
Need? Want?
Rent vs. Own?
Can I afford it?
Do you know what you want?
Do you need to buy or is it optional?

5. Get a Lender Bank or Broker?
Bank Mortgage Broker
2/3rds of Americans use a mortgage broker to purchase a home. A mortgage
broker has relationships with the top lenders, but works for you and is able
to offer personalized service, more options and wider loan selections. They offer
competitive rates, financial planning and competency. paid only when
successful in providing the service!

6. What is a Mortgage?
You hold ownership, title and possession of the property as long as the
loan payments are made. The Lender only has rights to the property as
collateral to the loan. Basically, as long as you make the payment, the
house is yours.

7. Mortgage Insurance
80 %
Required on loans with low down-payment.
Mortgage Insurance protects the
interests in the portion of the mortgage
above 80%. Can typically be cancelled
when you reach 20% equity. *with some exceptions

8. Get a Pre-Approval Why?
Sellers require a pre-approval letter before accepting a
preliminary check to determine your financial position as
well as working through:
- The loan that is right for you.
- What you can afford for purchase and monthly payment.
-
(the difference between the sales price and the amount of your mortgage)

9. What does it involve?
Your Lender will recommend a loan type, how much you
can afford, and how much will be needed for down
payment based on your credit, income, and assets.

10. Credit
Most lenders require a minimum credit
score of 640 to qualify for a loan!
These requirements vary depending on the
type of loan that you are applying for.
Lenders are now starting to require that in
addition to meeting the minimum credit
score you also meet a minimum of 3 trade
lines (accounts) rated on the credit report
for minimum of 12 months. There are
some alternative options, but this can affect
your ability to qualify for a loan.

11. Get a Realtor Why?
A B
Getting from A to B is a difficult process
and no two transactions are alike.
Realtors have the training and experience to
walk you through the many steps.

12. Choosing a Realtor
You Seller
Listing Agent
The Listing Agent works for the Seller.
You can work directly with the Listing Agent, but keep in mind

13. Find a House
Think carefully about what you want & need!
Distance to work, schools, and shopping.
Sales price. Size. Design. Needs.
Budget. Neighborhood.
Look at several options to have a basis of comparison!

14. How do you search for a home?
85 %
of homebuyers use a REALTOR
87% use the internet
62% look for yard signs
48% go to open houses
47% look in the newspaper
30% look in Real Estate Guide or magazines
many use a combination of the above sources, guided by a realtor

15. Contract
This is the pivotal document to a real estate transaction! It
outlines the terms and deadlines for the purchase.
Your realtor will help you negotiate all the details based on
what fits your needs and what you are able to afford.

16. the clock starts ticking on the list of items that need to
be finished to close the transaction. It is important to
cooperate with your Agent & Lender in a timely
manner to avoid delays!
Locking the Rate? Home Inspection? Repairs?
Appraisal? Loan Signatures?
Pest Inspection? Documentation? Underwriting?

17. What is a Home Inspection vs. an Appraisal?
Home Inspection Appraisal
*Optional *Required
*Condition of home *Value of home
*For You *For Lender

18. What is Locking Rate vs. Floating Rate?
With a purchase contract in hand, the mortgage interest can be locked
in for a certain amount of time. Locking is a protection from
fluctuating rates in the marketplace, this will keep the interest rate and
any points from changing during the lock period. Floating the rate
involves starting the loan approval process and waiting to lock the
rate at a later point in the process.

19. Loan Processing Application
the loan application and processing can start!
application, and disclosures. The lender will verify all of the information
you provided during the pre-approval by collecting documentation.

20. Documentation
typically required:
•drivers license
•social security card
•recent pay stubs
•recent bank statements
(all pages required, needs to be similar to mailed stmts)
•tax returns & W2s (last 2 yrs)
•rental checks

21. Required Services
Closing Attorney Hazard Insurance Appraisal
These services are required to obtain final approval, the cost is already
included in your closing costs. The appraisal must be ordered through
the Lender. South Carolina requires that you have the option to
choose your Attorney and Insurance Agent. Feel free to ask your
Realtor or Lender for recommendations!

22. Underwriting
Underwriting is how the Lender makes sure all loan requirements are
met by having an Underwriter carefully review the loan application,
underwriters to request additional documentation and/or explanations
before the loan is approved.
Once the review is completed, the file will have final approval!

23. Closing
Closing Attorney
Your mortgage has been approved. All your ducks are in a row. What
happens next? You close the deal! The closing involves signing to
settle all the financial details associated with the purchase and title to
your new home. S.C. requires that an attorney be present at the closing.

24. and enjoy your new home!

25. Presented by:
Tom Glass Rich Margarino
Mortgage Loan Officer Real Estate Agent
864.884.0108 864.915.7758
tglass@hanovermtg.com richupstate@gmail.com
Call for more information!

26. Sources
www.hanovermtg.com
www.mgichome.com
www.namb.org
www.bankrate.com
www.privateMI.com
www.realtor.com