Hey – if you already know what you want and just want to look, click HERE FOR PROPERTY SEARCH

If you want more information about buying and home and the entire process, we’ve gathered a bunch of really good information, and added in our own two cents worth…read on..

BUYING A HOME

Buying a home is a pretty big deal! Whether it is your first house, or your 12th income property, each transaction is an exciting process.

To take the mystery out of home buying, we have compiled some information and helpful hints that might help you make sense of the whole thing. Read on, make notes, and then feel free to ask a million questions!

Some of this information is from an article on Realtor.com, for the full article, click on http://finance.realtor.com/homefinance/guides/buyers.

1. WHAT DO YOU WANT TO BUY?

Whether you are a first-time homebuyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?

2. YOUR FINANCING SHOULD BE IN ORDER

Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require a 5 percent down payment or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down.

In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs.

Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most homebuyers choose to buy with some cash up front.

Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

The real issue with real estate financing is not getting a loan (virtually anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that's right for you -- the mortgage with the lowest cost and best terms.

Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies.

REALTORS® routinely suggest that consumers start the mortgage process well before bidding on a home. By meeting with lenders -- either online or face to face -- and looking at loan options, you will find which programs best meet your needs and how much you can afford.

REALTORS® also recommend preapprovals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won't be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

"Preapproval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a preapproval letter, which shows your borrowing power. You can visit as many lenders as you like and get several preapprovals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the preapproval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meets your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates (like VHFA), while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.

3. FIND A REALTOR

Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.

But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.

In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.

Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS® will keep you updated and alert you to each step in the transaction process.

4. BUYER BROKERS AND REPRESENTATION

Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers.

In Vermont, there are a number of different laws regarding your status in a real estate transaction. REALTORS® are required to provide you with a Consumer Information Disclosure that will explain that you have a right to decide whether you want to be represented in a real estate transaction as a Client of the REALTOR® or as an unrepresented Customer.

If you want a REALTOR® to represent you, you will need to enter into a written Buyer Representation Agreement as a Buyer. Once you sign an agreement, you become a Client, not a Customer. Among other services as noted in the disclosure, this means that the Real Estate Firm will put the Buyer’s best interests firsts and negotiate for the best price and terms for the Buyer.

If the REALTOR® is already representing the Seller, or has not entered in to a written agreement to represent you, then you are a Customer. In this regard the Real Estate Firm is representing the other party, and the Buyer Customer should not offer or disclose information that he/she would not want conveyed to the Seller.

In any case, all REALTORS® must observe specific practices whether you are a Client or a Customer, including disclosure of all material facts, treating all parties fairly, accounting for all money received, and complying with state and federal laws.

5. WHO PAYS THE REALTORS® COMMISSION?

The written agreement between a REALTOR® and the Client will govern the way that the REALTOR® will be paid. Note that every transaction is different and should be discussed in detail with your REALTOR® or a real estate attorney.

In the case of a REALTOR® representing a Seller Client, and you are the Buyer Customer, the Seller will often pay the commission. Often times, there will be one party representing the Seller, and one party representing the Buyer, and the Seller has agreed to compensate both parties in the transaction.

In the case of a Buyer Representation Agreement where you the Buyer are the Client, the method in which the REALTOR® will be paid is specifically spelled out in the agreement. If the Real Estate Firm is showing you listings through the Multiple Listing Service (MLS), many times the Seller is already offering the commission to your Buyer Broker.

There may be instances where the REALTOR® will specifically ask the Seller to pay their commission, or in some cases, you as the Buyer will be asked to pay their commission. This is more common in For Sale by Owner (FSBO) transactions.

6. DECIDING ON THE BEST HOME FOR YOU

A home is more than just a collection of bedrooms and bathrooms. Several properties -- each with four bedrooms, three baths, and the same price -- may well represent radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes.

Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).

Next, it's important to consider your priorities. If you can't get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?

Some buyers like to search REALTOR.com® by looking at listings on the basis of location or price; others prefer to have local REALTORS® suggest properties; and many buyers prefer both approaches.

Regardless of your choice, it's important to target your search. By using basic measures such as general location and affordability, you can refine your search and focus on homes that offer the most desirable features.

7. MAKING AN OFFER

As a buyer, here's what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices: accept the seller's offer and create a contract; reject it and not make an offer; or suggest different terms and make a counter-offer. If you choose this last option, the seller may accept, reject or make a counter-offer.

No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. This is the point where the value of an experienced REALTOR® is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.

You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.

The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.

Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.

In terms of the different aspects of a contract of sale, there are a number of variables that will be included in your offer. Consider that these are items that you would include in your offer:

Purchase Price Financing Conditions Closing Date

Contract Deposit Inspections Items to be included in sale

You and your REALTOR® will review and write up the offer that best suits your needs and your situation. Remember that it is always only an offer until both parties accept it.

8. OFFER ACCEPTED – YOU’RE UNDER CONTRACT!

The owner has accepted your offer, the contract is signed by all parties and now the clock begins ticking. At this time, it is up to you, the Buyer, to complete all of the items that you have promised to perform under the contract.

Remember, this is a legally binding contract! If you do not perform or complete the required items, you could lose your deposit or held liable under the contract. Your REALTOR® will keep you on track and on time!

During this time, your bank will be working hard on your financing, your attorney will be working on the legal side, and you may be completing any inspections that you have specified for in the contract.

A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.

Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.

Prior to closing, determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by owners as of closing and you also want services transferred to your name for billing. Usually such transfers can be done without turning off utilities. REALTORS® can provide contact numbers and related information.

9. YOU’LL NEED SOME INSURANCE..

No one would drive a car without insurance, so it figures that no homeowner should be without insurance. The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

There are various forms of insurance associated with home ownership, including these major types:

Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.

Homeowners' insurance provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.

Flood insurance: Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as $250,000 in coverage for a single-family home plus $100,000 for contents. Local REALTORS® can explain which locations require such coverage.
Home warranties With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?

Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two years, and structural defects for up to 10 years.

Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.

10. THE CLOSING PROCESS

The closing process, which in different parts of the country is also known as "settlement" or "escrow," is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.

In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.

Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.

Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.

Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.

There is typically an attorney representing your lender and that same attorney may also represent you in the closing. Some people prefer to have their own attorney in addition to the lenders attorney.

Prior to closing, about 24 to 48 hours in advance, your attorney will contact you to discuss the HUD-1, the settlement statement. This a uniform statement that describes every bit of information regarding the transaction. The HUD-1 covers both the buyers and the seller’s side. In the end, your attorney will let you know if you will need to bring money to the closing and the exact amount. Buyers funds brought to closing almost always have to be certified or cashiers checks. Be sure to check with your attorney, as this is a very important detail. It is best to have the check made payable to yourself, then you can sign it over to the attorney or re-deposit it in your own account if there is a delay.

And let it be known, there are delays in closing! While every effort is made to have a smooth and hassle free closing, things happen. Sometimes the lenders paperwork is not delivered, or their money has not been wired to the attorney’s office. Other times there might be an issue from the walk-through inspection that needs to be resolved. Have patience and have faith, 9 times out of 10 everything is worked out to the great satisfaction of all of the parties!

11. AFTER THE CLOSING

Take a deep breath and relax! Now its time to move and get settled and enjoy your new home.

Those papers you received at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.

About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property.

For most owners a home is the largest single asset they hold, so it makes sense to protect that asset. Many owners make a photo or video record of the home and their possessions for insurance purposes and then keep the records in a safety deposit box. Your insurance provider can recommend what to photograph and how to secure it.

You want to maintain fire, theft and liability insurance. As the value of your property increases such coverage should also rise. Again, speak with your insurance professional for details.
Lastly, enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what's most important is that homeownership should be a wonderful experience.

Enjoy!