MARY SAMPLE Realtor
51 Pine Street Atlantic Beach, FL 32233 904.695.9933 Mary@authorify.com
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How I Can Help
What’s an HOA?
Benefits of Owning vs. Renting
Virtual Tours & Showings
Pre-qualified vs. Pre-approved
Desires vs. Needs
Let's Get Pre-Approved!
Home Inspections
Types of Mortgages
Closing Time
PMI & Grants for Homebuyers
Organizing Your Move
Home Improvements that Improve Value
Which Home Is Best for You?
©2024 Authorify
My goal is to help you go from “wanting to buy” to “getting the keys to your new home” easily and with as little stress as possible. As my client, you can rest easy knowing that you have an experienced advisor to help you find the best deal, make a good offer, expedite the process, and avoid costly mistakes. As your agent I can help you... 1. Access All Your Options From new-build developments to fixer-uppers, I have access to the entire market. I can put buying opportunities in front of you quickly, so you can act fast and win the deal. 2. Avoid Overpaying I know the value of properties in this market. I look at home values every day. I can tell you at a glance if a property is overpriced or underpriced, so you never pay more than you have to. 3. Prepare the Paperwork Buying a home takes a lot of tedious paperwork, and getting it wrong can cost you. I can take most of that paperwork burden off your hands and ensure that it’s done right. 4. Review Properties with an Expert Eye If you don’t review properties every day, it’s easy to miss things that will cost you down the road. My expertise with property review will catch things that most buyers miss. 5. Negotiate the Deal Make no mistake — every home purchase is a negotiation. Someone always makes key concessions. I can make sure you do not make concessions without getting something in return. That’s the essence of a win-win deal, and that’s what I deliver. 6. Connect With Experts Buying a home is a team effort. As your agent, I can reach into my deep network, built from years spent doing deals in this market, and recommend trusted professionals, from lenders to inspectors to handymen. 7. Make Good Decisions Ultimately, my value is the peace of mind I can provide for you. Buying a home is a big investment. Homebuyers are understandably worried about making a mistake. I provide insight, help you set expectations, and act as an experienced mentor and guide so you know you’re making the best decision possible for your family’s future.
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Pros of Owning Build Wealth. Renting is not as financially forward-thinking as owning. With your home payment, you are getting something in return. As you pay down your mortgage and your home appreciates in value, your net worth increases, building a legacy you can pass on. Stable Costs. Whereas rents can increase every year, locking in your mortgage to a fixed payment keeps your housing cost stable — and probably lower — over time. Make the Home Your Own. As a homeowner, you are free to personalize your home to your heart’s content! Source of Cash. As your home appreciates, you can refinance your mortgage to pull out cash for improvements, renovations, vacations, college tuition, or passion purchases. Tax Advantages. Your mortgage interest and property taxes can be deducted in April to lower your tax burden. If you sell the house for a profit, the profit may be taxed at a lower rate or even completely exempt from taxation. Builds Credit. Paying your mortgage on time builds your credit score, enabling you to qualify for more loans at lower rates. Possible Investment. If you move, you could always rent out the home to a tenant instead of selling, creating cash flow. Things to Keep in Mind Responsible for Repairs and Improvements. While your house payment will be lower over time, make sure to budget for repairs and improvements and form good relationships with home service professionals and contractors. Less Flexible. It’s easy to leave an apartment. Selling a home is a much longer process. If you plan to move around a lot, it’s harder to build wealth with a home.
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You can either be “pre-qualified” for a mortgage, or “pre-approved.” They sound similar, but they’re actually very different. Let’s make sure you understand the difference and how to leverage that difference to make a stronger offer.
Pre-Qualified Pre-qualification for a mortgage is an informal evaluation of your financial situation that ends with an estimate of how much you can borrow. It requires very little paperwork… but it also carries very little weight with sellers. Pre-Approved Pre-approval for a mortgage is a longer process with more paperwork. You will have to submit tax returns, proof of income, supporting documentation, agreement to have your credit pulled... it takes a little more effort. But at the end of the process, you get a pre-approval letter — an official statement from the lender of how much they are willing to lend you and at what terms. Sellers take pre-approval much more seriously because a lender has actually agreed, in writing, to lend you money and stated exactly how much.
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As you can see, pre-approval is the superior option. It can help you win deals and save money. It takes more time and paperwork, but if we get started now, we can have a pre-approval letter in our pockets as a tool to make stronger offers.
1. Proof of Income Usually two years’ worth. Recent pay stubs, tax returns, W-2s, proof of other income. 2. Proof of Assets Bank statements, investment account statements, deeds and titles … everything you own with resale value. 3. Credit Report The lender will usually pull your credit report. This is a “hard pull,” which does lower your credit score, — but the score reduction is minor and temporary. 4. Employment Verification Employment is verified through recent pay stubs, W-2 forms, or a written verification of employment (VOE) from your employer. Self-employed borrowers may need to submit additional documentation. 5. Other Documentation The lender will want to see your ID and will need your Social Security Number, so be prepared! Here’s what you need to get pre-approved:
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Conventional Loan The most common mortgage. Down payments can be as low as 3% and fees minimal, but requirements are fairly strict. Recommended for borrowers with good credit and stable income. FHA Loan A loan insured by the US Federal Housing Administration (FHA) to help open up homeownership to more people. Credit requirements are more lenient, and down payments are as low as 3.5%. VA Loan A loan insured by the US Department of Veterans Affairs (VA). Qualifying service members, former service members, or their families may be eligible for a VA loan with no down payment. USDA Loan A loan insured by the US Department of Agriculture (USDA) for homes in suburban or rural areas. Mortgage insurance is lower, and no-down-payment terms may be available. Other Loan Types to Be Aware of: Fixed-Rate Mortgage. A loan with the same interest rate and payment over the entire life of the loan. Most of the above loans are fixed-rate by default. Adjustable-Rate Mortgage (ARM). These have a low starting interest rate for a period of five, seven, or ten years, after which the interest rate fluctuates with prevailing market interest rates. This can cause dramatic increases in your monthly payment. Jumbo Loan. A “jumbo loan” is a loan for a higher balance than allowed by “conforming” standards (i.e. Fannie Mae and Freddie Mac). You may need this kind of loan if you want to buy an expensive home. Approval requirements are strict, and large down payments are usually required – at least 10-20%.
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PMI
PMI stands for private mortgage insurance. After the foreclosure crisis of the Great Recession, laws were passed requiring homebuyers who make low down payments to buy extra insurance against foreclosure or default. This is an extra expense you will face if you put less than 20% down. However, if at any point you pay down or refinance your loan to 80% of the appraised value or lower, you will no longer be required to pay for PMI.
If you are a first-time homebuyer, you may qualify for state-funded grants to assist with down payments. I can help you identify grants you might qualify for, which will make buying a home even more affordable and put you in a positive equity position from the get-go. Grants for Homebuyers
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The type of home you want to buy can affect which types of funding are available to you, so its good to have an idea of the kind of home that will best suit your lifestyle and needs. Below are some pros and cons of each: Condo A home that forms a part of a cooperative association for the maintenance of common areas. Think of it as an apartment that you own. Condos usually cost less to purchase and may have community amenities, but they are usually less spacious, come with association fees, and tend to appreciate more slowly. Townhome A bridge between a condo and a single-family home, townhouses are attached multi-story homes. Many of the disadvantages of condos apply, but one benefit is that townhouses can feel more "homey." They are more likely to have a backyard or front porch, and are often brighter, more spacious, share fewer walls, and so on. Single-Family Home More privacy, more space, all the comforts of a complete property. They tend to be found in more suburban or remote areas and may be situated on larger plots of land. Single-family homes have increased in popularity as remote work has increased due to the demand for home offices and no more need to live close to a workplace for a short commute. Multi-Family Home Duplex, triplex, or small apartment building. Great for “house-hacking” — living in one unit and renting out the other units for extra income.
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Your dream home may or may not be located within a Homeowner’s Association (HOA). Newer developments tend to have HOAs, but older developments can form them, too. Condominium Associations are a form of HOA. An HOA sets policies for homeowners in terms of curb appeal, neighborhood conformity, and resident conduct — parties, pets, exterior colors, guest parking, etc. They also maintain a fund for the maintenance of common areas and amenities. This means members must pay dues.
Amenities maintained by an HOA may include: Community Pool Community Fitness Center Clubhouse
Water Features Walkways
You need to know if you are buying in an HOA so you can budget for the dues. You should also review their rules and see if you can live with them, literally and figuratively.
Community Pool
Clubhouse
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Virtual tours and showings have become more common and more sophisticated. Many buyers now opt to buy sight-unseen based on advanced video, 3D, AR, and VR technology that puts you “right there in the room.” Initially a matter of safety, virtual showings have evolved into a huge convenience. We may be able to identify and act quickly on your dream home without ever having to make the drive or set foot in it! Perfect for people relocating from a different city — fewer trips.
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Which items on your new home wishlist are a “need,” and which ones are a “desire?” You can be flexible on desires, but not on needs. Buyers are different — a “need” for one may only be a “desire” for another, and it may not even make the list of another buyer. Here are some home characteristics to qualify as either needs, desires, or non-factors…
Location Quality of the Neighborhood
Quality of Schools Tolerance of Pets Private Swimming Pool Community Amenities (pool, clubhouse, gym, etc.) Number of Bedrooms and Bathrooms Square Footage Parking and Garage Space Storage Kitchen Capacity Backyard and Outdoor Space Privacy
We will work together to come up with a list of your “needs” to find your perfect dream home!
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The purchase contract usually includes an inspection contingency — a period of time when the buyer can inspect the property or order a professional home inspection, and pull out of the contract with no penalty if the buyers don’t like what they see.
A professional home inspector will usually look at:
Heating system Central air conditioning system (temperature permitting) Interior plumbing and electrical systems Roof Attic, including visible insulation Walls Ceilings Floors Windows and doors Foundation & Structural components Basement
Inspections are usually performed at the buyer’s expense. The average cost of a home inspection in the US is $277-$399, but depending on the home, it could be a lot less, or a lot more. Don’t be alarmed if the inspector reports a long list of defects. No home is perfect. I will help you identify which defects are no big deal and which ones might be grounds to renegotiate or even cancel the contract.
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Here’s a brief rundown of what happens on closing day:
Final review of the purchase contract, closing statement, and title work by the title officer or attorney to make sure that the title is clear and all conditions of the purchase contract have been satisfied. You execute the loan documents. Once those documents are signed, the mortgage is official and the lender wires the loan proceeds to escrow. Once the escrow officer is satisfied that the purchase contract is complete and all required money has been wired to escrow, two things happen: 1. The escrow officer releases funds by wire transfer or check to everyone entitled to money according to the closing statement — particularly the seller and the seller’s lender. 2. The deed is sent to the county to be recorded, and title is officially transferred to your name. At that point, you are the legal owner of the property. You get the keys, and it’s time to move in! Closing used to take place at the title office, attended by the closing agent or attorney and possibly the real estate agent and representatives of the lender to make sure everything goes smoothly. In recent years, remote closing has become more common, using electronic signatures, digital notary services, and bonded couriers to transfer documents. If you don’t want to go to the title office, there may be options to accommodate that.
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As closing day approaches, it’s time to get ready to move in. Get excited!
Moving can be a chore, but there are things you can do to make them go more smoothly. Here’s what I recommend:
Get a Checklist. Create and print out a moving checklist. This will ensure nothing is forgotten. Make a Binder. The binder should include all your contracts, checklists, receipts, phone numbers for utilities … everything you need for your move at your fingertips. Color-Code and Label Boxes. Have an easy visual cue for which box comes from which room. Pack Strategically. Pack one room at a time, starting with the closet and moving to the door. Keep a List of What’s In Every Box. It’s an extra step, but you will thank yourself when you unpack. Tie Off Cords. Don’t punish yourself with a tangle of electrical cords when you unpack.
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Congratulations on your new home! One of the great joys of homeownership is improving and renovating the home, adding amenities, and making it your own. Of course, it may be tempting to make improvements that improve your quality of life — such as adding a jacuzzi, an outdoor deck — but it’s also important to think about which improvements will actually add value to the home. Home improvements are expensive, and not every improvement increases the resale or refinance value. Here are some that actually do …
Kitchen and Bathroom Upgrades Additional Dwelling Units (ADU) Extra Storage Dedicated Home Office Outdoor Spaces Wellness Spaces and Home Gyms Laundry Rooms Architectural Details Sustainability Features
Thinking of Buying?
MARY SAMPLE Realtor
51 Pine Street Atlantic Beach, FL 32233 904.695.9933
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