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Buyer's Guide

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Las Vegas Henderson Home Buyer s Guide Presented by The Blankfeld Group www blankfeldgroup com

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C 7475 WEST SAHARA AVENUE SUITE 100 LAS VEGAS NEVADA 89117 www blankfeldgroup com BlankfeldGroup BlankfeldGroup BlankfeldGroup BlankfeldGroup

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SELECTING AN AGENT Most people don t venture out into the Real Estate market without the support of an agent who finds new listings shows homes that are on tour and offers real estate advice The few who decide to look for a house on their own put themselves at a real disadvantage they may not know the market in a given area nor do they have help or access to the Multiple Listing Service MLS computerized listings of homes for sale that only an agent can utilize So before you start your home shopping you should first start shopping for a real estate professional YOUR REAL ESTATE PROFESSIONAL SHOULD BE A major factor in finding your special home that suits your personal lifestyle meets your needs and wants yet stays within your budget Able to access and analyze the multiple listing service system locating properties for sale in your specified area of interest Knowledgeable about your marketplace Respectful of your desires lets you make your own decisions and does not force you into buying something that isn t right for you Aware of the complicated local and state requirements affecting property that may affect your rights of ownership Successful in multi party face to face negotiating Your Realtor will write up your offer and then present it to the seller for you Willing to cooperate with all brokers to get the best value for you in your market

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FINANCING YOUR HOME PURCHASE Do Your Homework When Looking For a Mortgage A very important part of buying a home is finding the right lender and the right mortgage product There are many different kinds of lending institutions offering a wide range of loan packages Therefore it is important to do some research and shop around We have access to some of the best lenders in town who have many lending programs that you can choose from All of these lenders are experienced and will take you through the process to help you get a loan that fits your needs Getting Pre Approved It is recommended that home buyers get approved for a loan with a lender before searching for a home to purchase This way you will have completely reliable information about what you can afford Additionally any offer that you make on a home will be taken much more seriously if you have been pre approved than if you haven t In fact in today s market sellers generally will not consider an offer without a pre approval from a reputable lender Other good reasons to get pre apporved include You can determine which loan program best fits your needs and for which you qualify You ll know exactly how much you are approved for It s no fun to find your ideal home and then realize that you can t afford it Your down payment monthly payment and closing costs will be set so you can budget your money in advance If you are a first time buyer you may qualify for a special first time buyer program which may allow you to afford more home for your money

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HOMESERVICES IS THE 1 BROKERAGE IN US HomeServices of America has ended Realogy brokerage subsidiary NRT s two decade reign atop the Real Trends 500 rankings of top residential real estate brokerages in the United States beating NRT by nearly 10 000 transactions to become the number one real estate firm by sides in 2019 HomeServices closed 346 629 transaction sides for a total sales volume of 135 9 billion by representing the buyer or seller in deals in 2018 according to the report The same sale could be counted twice if the brokerage represented both the buyer and seller It s an increase of 6 percent and enough to upset the 20 year winning streak of NRT which operates through brands such as Sotheby s and Coldwell Banker Source Bloomberg https www bloomberg com news articles 2019 03 27 warren buffett s homeservices becomes top home brokerage in u s Inman https www inman com 2019 03 27 homeservices dethrones nrt as top brokerage in the us real trends

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BACKED BY LEGENDARY STRENGTH Berkshire Hathaway HomeServices Arizona California and Nevada Properties Our Company made the Inc 5000 list of the fastest growing privately owned companies in America Our Company is the fastest growing real estate company in NV and AZ and the 3rd fastest growing company in the nation 3 500 Our Company ranked 3 in the Berkshire Hathaway HomeServices Nationwide Network Our Company is honored to have more top teams agents than any other real estate company in the nation 34 Our Company sold more listings at a higher value than any other real estate company in the Valley 5 63 BILLION Agents Counting Gross Income in 2019 World Wide 3 Berkshire Hathaway HomeServices International network Consistently rated as one of the most productive companies in the nation 12 811 Total Transactions in 2019 Highest average sales price locally and nationwide

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AWARDS RECOGNITION Consistently in the Top 10 AWARDS RECOGNITION Consistently in the Top 10 at BHHSNV 2004 9th 2005 7th 2006 3rd 2007 5th 2008 6th 2009 6th 2010 8th 2011 7th 2012 6th 2013 9th 2014 8th 2015 6th 2016 7th 2017 7th 2018 8th 2019 7th

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RENTING VS BUYING FREEDOM RENT Landlord restrictions Maintenance depends of landlord Pet and guest limits OWN Paint decor appliances for you to decide Do your Own upgrades and repairs Open your home to whomever you would like INVESTMENT STABILITY RENT Your rent pays your landlords mortgage No increase in your equity with rent payment of market value OWN Every mortgage payment increasesyour equity and goes towards your loan Your home s appreciating value increases your Wealth RENT Always the threat of increases future fees and eviction Neighbors constantly changing HOMEOWNERS NET WORTH 34x Greater OWN Your mortgage payments end when your loan is paid and it s your home Fewer changes in neighbors sense of community

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AGENCY RELATIONSHIPS We are excited about working with you and helping you find your next home In Nevada as professional Real Estate agents we are required and must disclose in writing whom we represent in every transaction In order to meet this requirement I am enclosing a Duties Owed disclosure for your review This disclosure outlines our fiduciary responsibilities to you and that we represent you and only you in a given transaction In the event that you choose to purchase one of our own listings we are required by law of to provide you with Consent to Act form outlining that we represent both parties We will discuss this in more detail if this situation arises Finally we ask that you actually hire us as your real estate professionals How do you hire us It s pretty simple You do this by signing a Buyer s Agency Agreement We commit to you to work diligently in helping you find your next home We will make the process simple and as stress free as possible by sharing with you the secrets of buying a home in Las Vegas When you come into our office we will answer any questions you have about these forms and we will ask you to sign them so we can move forward

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WHAT KIND OF HOME ARE YOU LOOKING FOR The more we know about what kind of home you re hoping to buy the more effectively we will be able to facilitate your search When you get the chance please fill in the questionnaire below so that we will be able to schedule appointments to see homes that fit the profile Main Requirements Price range ________________________________ Lot Size ________________________________ Area ______________________________________ Square footage _________________________ Single Family or Condo Townhome __________ Number of bedrooms ___________________ Age of property ____________________________ Number of bathrooms ___________________ Pool Y N _________ Garage _________________________________ Gated Community Y N____________________ Specific Features Large lot fireplace garage size school district additional room preferences etc ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Additional Thoughts ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

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UTILIZING ALL REAL ESTATE SOURCES There are many different ways that you might find out about properties for sale For instance The Internet A local real estate magazine A real estate television channel Another agent s marketing materials Another agent s FOR SALE sign Another agent s OPEN HOUSE Another agent s exclusive listing A For Sale by Owner sign A friend or relative A new home subdivision advertising materials We just want to emphasize that we can help you buy a home from any of these sources More importantly we will represent your best interests and effectively negotiate the best price and terms for you When you work with us we search all of the available public and private sources so we can help you get what you want in the time you want However if you view a property with another agent we won t be able to represent you in connection with that property So if you see a sign an open house or even hear about a property that interests you please call us first and we will provide you with detailed information about it make all the necessary arrangements for viewing it and then view it with you to ensure that you don t in any way compromise your negotiating position ZILLOW TRULIA Realtor com

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NEW HOMES When looking for your next home you may consider new homes We have represented many buyers in their purchase of a new home and we will be happy to help you too You need to know that while the agent in the sales office will be happy to work with you they are paid by and have fiduciary responsibility to the builder seller We become your advocate in the deal and we don t cost you any commission We are with you throughout the process from finding the right home selecting finishes and upgrades negotiating the incentives and pricing to signing papers at close of escrow You need to know that the rules about us representing you in a new home transacton are quite simple WE MUST ACCOMPANY YOU ON YOUR FIRST VISIT TO THE HOMES OR THE WEBSITE Once we do that we are able to help you every step of the way but we don t have to accompany you every time you go back Most builders like to have the buyers of their homes represented and they do pay us a commission That commission does not affect the price you pay We also have access to a database that will give you information on all the available new homes in Southern Nevada Search for your New Home Here

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PROPERTIES JUST A TAP AWAY TEXT PEEK to 32323 The Mobility texting platform provides 24 hour instant access on your listing That s what we call On the Road with Nevada Properties Mobile texting It s easy buyers just send a text to 32323 then enter the message PEEK and get photos of your property the most current price and property details instantly Potential buyers can also dial the number 1 866 464 6588 from any phone and get a complete voice description on your property in English or Spanish Run out of flyers in your box No problem With our text sign rider buyers will be able to see your properties and info 24 7 Automatically updated Property details are automatically pulled and updated from the MLX so your information is always current Your agent will get updates via text or email when a possible buyer is looking at our property and will be able to respond to any questions they may have Our app will alert interested buyers of open houses and price changes instantly by text message and get buyers in the door Buyers are able to download this feature as the LVHomeSearch App allowing them to continue their mobile search save your property to their account and send it to a friend Available in the iTunes and Google Play stores Our website is mobile friendly Buyers and sellers can enter BHHSNV com in any smart phone or tablet to search for properties get property details and photos Google maps of the area find more information about local communities and find an agent With our full mobile suite buyers and sellers are never more than a finger tap way from a Nevada Properties agent or latest property information

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Our Website A great resource for home buyers www BLANKFELDGROUP com A full service real estate web site

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The Steps to Buying a Home In Southern Nevada Establish a Budget Lender What is the perfect home for you Search for Homes Open Escrow Counter Offer s and Negotiation Preparing an Offer Price and Terms Due Diligence Inspections Escrow and Lenders Work Close of Escrow Moving Day Final Walk Through Final Approval CD Signing at Escrow

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Establish a Budget Lender Select a lender you can trust If you don t have one we will be happy to recommend several that we work with on a regular basis We highly recommend you select a local lender as out of state lenders often don t have a grasp of timelines here in Southern Nevada Review your financial situation with the lender and establish a budget for both down payment and monthly payments going forward Make sure you explore all your options Conventional FHA VA etc You will be a stronger buyer in a competitve market if you are Pre Approved instead of Pre Qualified Buyer closing costs can be paid by the seller in certain situations but sellers don t like to pay for your costs unless they have no other options You will need to provide the seller with either a letter from your lender or Proof of Funds if you are a cash buyer What is the perfect home for you Share the details of your perfect home with us and we will search everywhere to find it for you We look in MLS FSBO New Homes We encourage you to look on REALTOR com Zillow Trulia etc You may find ideas on homes that change our parameters The home you end up with may be very different from the home you thought you wanted You just didn t know what was available When searching for a NEW home keep in mind that we represent our buyers with builders and they pay our commission Our representation doesn t cost you The agent in the home center works for the builder We work for you PLEASE DON T SIGN IN AT ANY NEW HOME COMMUNITY OR ANY WEBSITE WITHOUT US BEING WITH YOU

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Search for Homes We will take you on tours of homes and neighborhoods If you are moving from another area we will be happy to show you around the valley to help you decide which area best suits you and your family PLEASE DON T SIGN IN AT ANY NEW HOME COMMUNITY OR ANY WEBSITE WITHOUT US BEING WITH YOU The home tours are designed to help you select the best home but often they are utilized to help you eliminate options Keep score and make a lot of notes The homes sometimes start to overlap Preparing an Offer Price and Terms We will prepare all the necessary paperwork for your offer We will review the offer and disclosures with you so you understand the documents Writing too aggressively sometimes gets a rejection We often use digital signing services and these are normally acceptable but sometimes we will need actual wet signatures The earnest money will be deposited upon acceptance of the offer Counter Offer s and Negotiation Negotiating your contract involves price terms disclosures timing and a lot more Normal course in Southern Nevada rarely takes a deal beyond 1 or 2 counter offers

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Open Escrow Earnest money to be sent to escrow This is your money and will be returned to you should the deal not go through based on any of the contingencies Most deals require the money be wired The money is yours and will be credited to you at closing The date we open escrow is the start date of all your timelines 10 days of diligence The escrow company acts as a neutral party to see that the monies and paperwork are properly distributed throughout the transaction The escrow company also provides Title Insurance in most transactions Due Diligence Inspections Home inspections are is usually conducted within 10 days of acceptance The home inspector will normally point out any areas that may require follow up inspections roof mold etc The incidence of termites in Southern Nevada is less than 5 of homes but for the price it s good peace of mind and required in VA deals If follow up inspections or certifications are required we will ask for sufficient time You may have to do a CIC document review The sellers will provide you with a package of documents from the HOA for you to review and approve This is one of your contingencies Appraisal is ordered by your lender but normally paid by you If it doesn t come in at value the deal may be renegotiated You will want to get your homeowners insurance quote at this time too and have a binder sent to escrow and your lender

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Escrow and Lenders Work Once your diligence is complete the balance of the work involved is done by your lender and the escrow company The escrow officer takes the contract and the lender instructions and turns that into your deal The escrow company is normally going to validate title and procure title insurance for your transaction Your lender will continute to request items from you You will need to provide these items to your lender quickly so they can keep the timelines in the contract Delays in the closing usually occur when the lender cannot produce their documents in time and that is usually because the borrower doesn t repond to their requests promptly Final Approval CD The Closing Disclosure CD must be presented to you at least 3 days prior to signing your loan documents If you are a cash buyer this doesn t apply You will want to continually follow up with your lender s about the delivery of this document as it is normally the last piece of the lender s puzzle Our team will set an appointment for you to sign your closing document at the escrow office

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Signing at Escrow We will accompany you to the signing to help you understand the documents and answer any questions we can You will need to bring two forms of legal ID with you You will not receive keys until the deal records at the county That normally takes a day or two after you sign because the lender will need to review the documents before they are allowed to record You will also need to arrange your closing funds to be wired to escrow Escrow will not accept checks even certified or cash The wire is not an ACH and you will normally have to physically go to your bank to arrange it Your signing appointment usually takes about an hour and will be during bankers hours This is also the time we will discuss having the utilities changed in your name and the timing of that change Final Walk Through The final walk through is usually within the last 3 days of the escrow period You have an opportunity to make sure the home is in the same condition as when you last saw it and that any repairs made by the seller are to your satisfaction We will have you complete a form that our broker provides We aren t allowed to write on this document so please understand that we will need you to complete it The seller and listing agent may be there and or the seller s stuff might still be in the home too

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Close of Escrow Escrow will close after all of the following is done You have signed all necessary documents some might be after your signing appointment All the loan documents have been sent back to lender and approved by the lender this sometimes requires overnight delivery The lender has wired their funds to escrow might take 24 48 hours You have wired your funds to escrow might take 24 48 hours The deed and other documents have been recorded at the county Once recording takes place the home is yours Make certain you arrange for mail to be forwarded Sellers often won t allow you to move in early or even place items in the in the garage due to insurance concerns Moving Day CONGRATULATIONS Movers may need to provide some flexibility as the closing date is open changed in the last days of the escrow period

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WIRE FRAUD ADVISORY Please Read Protect your transaction protect your funds PROBLEM emails to buyers and sellers that request funds be wired to parties other than escrows and legitimate bank accounts These emails can appear legitimate and are often followed by phone calls requesting funds be wired immediately As a result hundreds of thousands of dollars have been lost leaving consumers scrambling to retrieve their funds and save their transactions This has had a devastating Please educate your clients and colleagues about wire fraud and how to prevent it SOLUTION There are some steps you can take to prevent this from happening to you or your clients OTHER TELEPHONE NUMBER TO CONTACT YOUR ESCROW OFFICER DO NOT USE ANY DO NOT EVER WIRE FUNDS PRIOR TO CALLING YOUR ESCROW OFFICER TO CONFIRM WIRE INSTRUCTIONS ONLY USE THE PHONE NUMBER YOU WERE PROVIDED PREVIOUSLY Verbally account number and other codes before taking steps to transfer the funds Avoid sending personal information in emails or texts Provide such information in person or Take steps to secure the system you are using with your email account These steps include creating strong passwords using secure Wi Fi and not using free services RED FLAGS Receiving emails from free accounts such as gmail and yahoo Equity Title of Nevada only uses SECURE HOSTED EMAIL SERVICES Wire instructions that ask you to wire to anyone other than Equity Title of Nevada or the company you are working with Equity Title will only request funds be wired to an escrow or title trust account in the name of our company Emails with phone numbers addresses or emails that do not match your escrow company Escrow A sudden sense of urgency for you to wire funds

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HOME WARRANTY HOME OWNERS INSURANCE Home Warranty A home warranty is a service contract that covers the repair or replacement of important home system components and appliances that break down over time A home warranty can help save you money It doesn t cover everything but it does cover a lot of important elements in your home Typically sellers will provde buyers with a one year warranty but not all sellers will provide one The warranty is renewable annually and has a deductible amount applied to each service call It can cover Home Owner Insurance 1 2 3 4 Structural Personal Belongings Liability Short Term Living Expenses if your home is inhabitable This type of insurance is not just recommended but required if you use a mortgage to purchase your home It may be impounded by your lender and paid by your lender to be certain your coverage doesn t lapse You can choose any insurance agent company you like Shop coverages and costs and be sure you compare apples to apples

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HOME INSPECTION APPRAISAL Home Inspection A home inspection is a limited non invasive examination of the condition of a home often in connection with the sale of that home Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections We encourage all our our buyers to pay for a home inspection After the inspection we are given a report with issues Then you as a buyer can choose to ask for some repairs or cancel the purchase The home inspection and the subsequent request for repairs must be completed within your diligence timeline usually 10 days Appraisal A home appraisal is a professional opinion of value based on facts Your lender will order it and have you pay for it It normally takes place within the first two weeks of an accepted offer If the appraisal comes in short of the contracted price negotiations can be opened to proceed or the deal can be cancelled The lender will only lend on the appraised amount and whatever percentage of loan was arranged When an appraisal comes in light it usally goes one of four ways 1 2 3 4 5 The buyer agrees to pay the difference in cash The seller agrees to reduce the price to the appraisal amount The buyer and seller agree on a price between the appraised value and the contracted value The deal is cancelled New rules The appraisal can be challenged but this normally doesn t result in any change of appraised value

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HOA CIC HOA CIC Homeowner s Association or Common Interest Community Here in Southern Nevada a vast majority of homes are in communities with an HOA Some associations are stricter than others and some homes have two or even three separate associations You will be given an opportunity to review a package of documents that will let you know about the associations rules financial health and other factors you will want to be aware of as you choose to live in that community These documents will be provided to you within the first 10 days of acceptance and you will have 5 days to review and accept them HOAs have a lot of power here in Nevada You should not fall into arrears on your monthly assessments or they could foreclose on your home

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WHAT IS AN ESCROW An escrow is an independent stakeholder account and is the vehicle by which the interests of all parties to the transaction are protected The escrow is created after you execute the contract for the sale of your home and becomes the depository for all monies instructions and documents pertaining to the sale Some aspects of the sale are not part of the escrow For example the buyer and seller must decide which fixtures or personal property items are included in the sales agreement Similarly loan negotiations occur between the buyer and the lender Your real estate agent can guide you in these non escrow matters HOW DOES THE ESCROW PROCESS WORK The escrow officer takes instructions based on the terms of your Purchase Agreement and the lender s requirements The escrow officer can hold inspection reports and bills for work performed as required by the purchase agreement Other elements of the escrow include hazard and title insurance and the grant deed from the seller to you Escrow cannot be completed until these items have been satisfied and all parties have signed escrow documents HOW DO I OPEN AN ESCROW Either your real estate agent or the buyer s agent may open escrow As soon as you execute the Purchase Agreement your agent will place your initial deposit into an escrow account at the title company HOW DO I KNOW WHERE MY MONEY GOES Written evidence of the deposit is generally included in your copy of the sales contract The funds will then be deposited in a separate escrow or trust account and processed through your local bank You will receive a receipt for the funds from the title company WHAT INFORMATION DO I NEED TO PROVIDE You may be asked to complete a Statement of Identity as part of the paperwork Because many people have the same name the Statement of Identity is used to identify the specific person in the transaction through such information as date of birth social security number etc This information is considered confidential HOW LONG IS THE ESCROW The amount of time necessary to complete the escrow is determined by the terms of the Purchase Agreement It is normally 45 to 60 days but can range from a few days to several months

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WHAT A TITLE COMPANY DOES REQUESTS A TITLE REPORT AND POLICY Title Report A report showing the condition of title before a sale or loan transaction After completion of the transaction a title insurance policy is issued Title Policy Title insurance is insurance against loss resulting from defects of title to a specifically described parcel of real property Defects may run to the fee chain of title or to encumbrances on the property PAYS OFF EXISTING LOANS The title company pays off existing loans when so ordered TAXES AND INSURANCE The title company prorates the taxes and insurance upon instructions from the buyer and the seller COMPUTES INTEREST ON LOANS ACQUIRES HAZARD INSURANCE SIGNING OF DOCUMENTS Assists the buyer and seller when signing documents RECORDING DOCUMENTS The title company records the appropriate documents with the county office giving public notice DISBURSEMENT The title company disburses the documents and money to each party involved

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CLOSING COSTS Listed below are some typical closing costs you may incur as part of your loan transaction When you apply for a loan you will receive a Loan Estimate of closing costs and settlement charges and a booklet that will explain these costs Appraisal Fee This is a one time fee that pays for an appraisal The appraisal is made by an independent fee appraiser Credit Report Fee A one time fee that covers the cost of the credit report Document Preparation Fee There may be a separate fee that covers the preparation of the final legal papers Loan Discount A one time fee used to adjust the yield on the loan to what market conditions demand This fee often called a point Loan Origination Fee The lender s administrative costs in processing the loan are covered by this fee Miscellaneous Title Charges The title company may charge fees for a title search title examination document preparation recording fees a settlement or closing fee and notary fees PMI Premium You might be required to pay an upfront fee for mortgage insurance depending on the amount of your down payment Lenders may also require monies be placed into a reserve account held by them Prepaid Interest Depending on the time of month your loan closes this per diem charge may vary from a full month s interest to that of a few days If your loan closes at the end of the month you will have to pay interest only for a day or so Taxes and Hazard Insurance You may be required to reimburse the seller for property taxes depending on the month in which you close You will also need to pay a year s hazard insurance premium up front Also you might be required to put a certain amount for taxes and insurance into a special reserve account held by the lender

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MOVING EXPENSES When you meet the IRS s definition of a qualifying move the following items are tax deductible TAX DEDUCTABLE MOVING EXPENSES The cost of trips to the area of a new job to look for a home Your home shopping expedition does not have to be successful for the cost to be deductible The cost of having your furniture and other household items shipped including the cost of packing insurance and storage for up to 30 days The cost of getting your family to the new hometown including food and lodging expenses on the trip The cost of lodging and 80 of food expenses for up to 30 days in the new hometown if these temporary living expenses are necessary because you have not yet found your ideal home or it is not ready when you arrive Certain costs associated with the sale of your old home and purchase of the new one These expenses including real estate commissions legal fees state transfer taxes and appraisal and title fees could be used either to reduce the gain on the sale of the previous home or to boost the basis of the new one However it s usually beneficial to count them as moving expenses up to the allowable dollar limits because that gives you an immediate tax benefit

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MOVING CHECKLIST FORMER RESIDENCE Changing Address Moving Preparation Forward address at post office Defrost refrigerator Credit card accounts Auto transportation needs Publications Pet transportation needs Bank accounts Travel cash or checks Utilities to cancel Hand carry jewelry and valuables Telephone check for refund Leave keys Gas electric check for refund Leave garage door opener Water check for refund Medical services to obtain Garbage Medical records Cable check for refund Dental records School transcripts for kids Veterinarian records NEW RESIDENCE Changing Address Ask postman to hold mail for your arrival Utilities Telephone new number_____________________ Gas Electric Water Government Licenses Services Apply for state driver s license Register car New address on driver s license Register to vote Register children in school Medical Services Garbage New doctor Cable New dentist New veterinarian

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GLOSSARY OF TERMS Adjustable Rate Mortgage ARM A mortgage with an interest rate that changes over time in line with ARM movements with the index Adjustment Period Period of time between interest rate changes on an ARM For example a loan with an adjustment period of one year is called a one year ARM which means the interest rate can change once a year Agency A legal relationship in which someone principal hires someone else agent to represent them to a third party Amortization Repayment of a loan in equal installments of principal and interest rather than interest only payments Annual Percentage Rate The total finance charge interest loan fees points expressed as percentage of the loan amount Application Fee A fee to cover some of the charges of the loan process Assessed Value The value placed on property by the Appraisal District as a basis for taxation Assumption of Mortgage A buyer s agreement to assume the liability under an existing note secured by a mortgage or deed of trust The lender must approve the buyer to assume the loan Balloon Payment An instance in which the final installment payment on a note is greater than the preceding payments and pays the note in full Beneficiary The recipient of benefits often from a deed of trust usually the lender Buy Down A fixed rate loan where the interest rate and payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment Cap The limit on how much the interest rate or monthly payment can change either at each adjustment or over the life of the mortgage Chain of Title CCR s A history of conveyances and encumbrances affecting the property title Covenants Conditions and Restrictions A document that controls the use requirements and restrictions of a property

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GLOSSARY OF TERMS CONTINUED Closing Statement The financial disclosure statement that accounts for all of the funds received and expected at the closing of the escrow including deposits for taxes hazard insurance and mortgage insurance Conventional Mortgage A mortgage securing a loan made by investors without government underwriting that is not FHA insured or VA guaranteed Convey or Conveyance Process of transferring ownership of property from one person to another Courier Fee Charges for delivery Credit Report Fee Assessed by the lender for a required credit report from a credit bureau Deed A document which when properly executed and delivered conveys title of real property Deed of Trust An instrument used in many states to place a mortgage Disclosure To make known or public When dealing with real property all disclosures should be made in writing Discount Points A negotiable fee paid to the lender to secure financing for the buyer Discount points are upfront interest charges to reduce the interest rate on the loan over the life or a portion of the loan s term One discount point equals one percent of the loan amount Due on Sale Clause An acceleration clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership Earnest Money Money deposited by a buyer as evidence of good faith Encumbrance Anything that affects or limits the ownership of real property such as mortgages liens easements or restrictions of any kind Escrow Fee Charged by the title company to service the transaction and to escrow money and documents Usually paid by the buyer Escrow The deposit of documents and funds with instructions to a neutral third party to carry out the provisions of an agreement or contract

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GLOSSARY OF TERMS CONTINUED Exclusive Right to Sell Listing A written agreement between owner and agent giving agent the right to sell a property and collect a fee for a set term Fair Market Value The price at which a willing seller would sell and a willing buyer would buy neither being under abnormal pressure Fannie Mae A private corporation dealing in the purchase of first mortgages at discounts Freddie Mac A mortgage that has a rate that is adjusted at certain intervals during the loan period The adjustment can either be higher or lower depending on the current market rate at the time adjustment is due Ginnie Mae A federal association working with FHA which offers special assistance in obtaining mortgages and purchases mortgages in a secondary position Finance Charge The total cost a borrower must pay directly or indirectly to obtain credit Impound Accounts A trust type of account established by lenders for the accumulation of borrower s funds to meet periodic payments of taxes mortgage insurance premiums and or future insurance policy premiums required to protect their security Legal Description A description of land recognized by law based on government surveys spelling out the exact boundaries of the entire piece of land It should so thoroughly identify a parcel of land that it cannot be confused with any other Lien A form of encumbrance that usually makes a specific property the security for the payment of a debt or discharge of an obligation For example judgments taxes mortgages and deeds of trust Loan Origination Fee Normally 1 of the loan amount charged by the lender to the buyer Mortgage A legal document that provides security for repayment of a promissory note Mortgagee s Title Policy Required by lenders to ensure that the lender has a valid lien It does not protect the buyer Also required for second mortgages Owner s Title Policy Insures the buyer against loss due to any defect of the title not excepted to or excluded from the policy Points Paid by the buyer or seller One point is equal to one percent of the loan amount

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GLOSSARY OF TERMS CONTINUED Principal The employer of an agent in an agency relationship Recording Fee Charged by the County Clerk to record documents in the public records Charges are based on number of pages recorded Septic Inspection The septic system must have certificate by the city or county health department Survey Survey of property required by lender shows lot size easements any encroachments locations of improvements etc Tax Service Fee Required by the lender for collection and disbursement of tax escrow by a servicing company Termite Inspection Required by lender to show property free and clear of active termites Time is of the Essence Demands punctual performance in a binding contract Title Policy Insurance policy on the ownership of real property against defects in title Title In dealing with Real Property title means ownership Underwriting Fee Charged by a lender to underwrite the loan VA Funding Fee Veteran s Administration charge for originating a VA loan Warehouse Fee Charged by the lender to hold the loan locally before selling it in the secondary mortgage market to an investor Zoning Act of city authorities specifying type of use for which property may be used

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OUR RADIO SHOW www LVRealEstateRadio com

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OUR COMMITMENT TO YOU As you ve seen from this presentation there are many factors that go into the successful purchase of a home That s why as your buyer s agent our job is to help you find the right home and buy it at the best possible price and terms We will also educate you about market trends purchasing options and more so you can make the most informed decisions possible In addition you ll have the benefit of our extensive professional network developed through years of experience So if you need additional home services you ll be guaranteed of getting quality work at a competitive price And the great thing is that our commissions are paid by the home seller In short we will provide you with comprehensive high quality buyer s service from helping you with the home search to negotiating an acceptable price to making sure that everything s signed sealed and delivered on closing day That is our commitment to you and we look forward to being of service Respectfully The Blankfeld Group