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If you’re thinking about new
construction, you’ve come to the right place.
Kelly’s affiliation with the National Association of
Home Builders and the Builders Association of the
Twin Cities allows her inside access to the latest
neighborhoods, builder incentives, and product
diversity. She knows the national builders and
custom builders and what makes each one unique.
There’s no one better qualified to assist you in
your new construction transaction.
Before you get in the car and
begin the process, take a moment to review the
following tips.
Can you afford a home?
When trying to determine if you qualify for a home,
consider this as a rule of thumb. You can usually
afford a home that costs about 2 ½ times your yearly
income.
How much money do you need for other bills?
Don’t forget to factor in other bills such as car
payments, insurance, groceries, utilities, etc.
How much money do you have for a down payment?
You can expect to pay anywhere from 3%, 5%, 10%, or
20% of the purchase price. The balance is considered
the loan amount. Some special financing programs
have lower down payment requirements, but you will
want to research these carefully. Down payments must
be verified funds and come from you, not the seller.
An exception to this rule is that you can obtain
down payment funds from family members, but you will
want to discuss this with your loan officer for
rules and restrictions.
Choosing a Lender
Make sure you look into your options. Don’t pick a
lender based solely on whether they can cut their
fees or give you the cheapest rate. You want to
verify that the loan officer is actively involved in
your loan throughout the process and right up to
closing. How long has the loan officer’s processor
been with the loan officer or even in the business?
It’s the processor who keeps everything moving
forward. How long has the lender itself been in
business? Sometimes more experienced companies will
offer the broadest portfolio of loans. Don’t be
afraid to check them out at the Better Business
Bureau. If they have a negative history, don’t use
them.
Loan Qualification
Use this chart to determine your qualification
estimate.
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Maximum Home Payment
Gross Monthly Income: _____________
Multiply by .28 for a conventional loan
_____________
Multiply by .29 for an FHA loan _____________
The total is your maximum monthly home payment.
Maximum Long Term Debt Payment
Gross Monthly Income: _____________
Multiply by .36 for a conventional loan
_____________
Multiply by .41 for an FHA loan _____________
The total is your maximum monthly debt payment
(including your house payment).
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Saving for Your Down Payment
Don’t take on any new debt if you are considering
buying a new home. Many people make the mistake of
purchasing a new car or new furniture or open new
credit cards while they are qualifying for their new
home. All of this debt counts against you when the lender determines how much home you can
afford.
Some Costs to Consider
Earnest Money:
This is money that is given to an agent once an
offer is made on the property. The amount can range
from $500 to $10,000. The earnest money goes toward
the down payment once the offer is accepted.
Homeowner’s Insurance:
You will need to obtain homeowner’s insurance and
bring the binder to closing. The cost depends on the
policy you purchase and can range anywhere from $500
to $2,500. The amount is determined by looking at
whether you package your insurance by including
cars, property value, and month of closing.
Inspection Fee:
If you choose to have an inspection done on the
property you are interested in purchasing, it is
usually paid by the buyer. How in-depth of an
inspection you need will determine your fee. This
fee can be anywhere from $500 to over $1,000.
Mortgage Fees:
There are various fees associated with your
mortgage. These fees are not inclusive of all loans,
so check with your loan officer and get a good faith
estimate which will itemize each fee associated with
your loan.
Origination Fee
Underwriting Fee
Appraisal Fee
Plat Drawing/Survey
Private Mortgage Insurance
Mortgage Insurance Premium
Mortgage Registration Tax
Closing Fee
Credit Report
Recording Fees
The People You’ll Be Working With
Your Real Estate Agent
In choosing a real estate agent, you may want to ask
a few questions.
How long have they been in the real estate business?
What training and/or designations do they have?
Do they have a list of references or past clients?
How many homes have they sold in the last 12 months?
How familiar are they with the area you are
interested in?
Your Loan Officer, Processor, Appraiser, and
Underwriter
This is the team that puts everything together to
get you a mortgage. It is the most time
consuming process for you as you will be asked for a
variety of paperwork (sometimes more
than once). Try not to take it personally. The more
helpful you are the quicker the loan approval
process.
Your Home Inspector
It is up to you to determine whether to hire a home
inspector. Having a home inspected will
determine if there are any major problems with the
property. If major problems do arise, you
will be in a better position to determine if the
home is right for you.
Your Closer and Title Company
The closer is responsible for ensuring that all
parties sign and date all documents and that the
funds get disbursed accordingly.
By choosing Kelly Lucente & Associates you will be
assured of a unique and aggressive marketing
approach to selling your home. Kelly has over 20
years of marketing experience, 14 of which have been
in the real estate industry exclusively. Her strong
“out of the box” thinking is what sets her and her
team apart from the average agent. Their goal is to
create a distinct brand for your property, to be
visible and appeal to the largest segment of your
property’s target market. Kelly and her team will do
extensive research to determine the best possible
selling approach and provide you with an extensive
and detailed marketing plan which will be presented
to you within two days of signing a listing
agreement.
In addition to Kelly Lucente & Associates marketing
capabilities, Kelly’s strong market knowledge, her
networking resources, years of experience,
negotiation skill and overall passion for the
business are just a few reasons why you will be
assured of a smooth selling transaction.
Kelly and her team would be pleased to meet with you
to discuss your property. Contact them for a
comparable market analysis today.
Buying a home is the biggest
investment you will ever make. Whether you are
purchasing for the first time or the 5th, Kelly
Lucente & Associates can help you. So often the
process of searching for a new home is too
overwhelming.
Kelly and her team understand this and the
importance of your time. By using Kelly and her
associates, you will be assured of expert service.
Kelly has helped over 1,000 families find their
dream homes throughout her real estate career so she
understands the right questions to ask. She will
meet with you to establish a list of criteria to
find the best possible properties to show you. She
will preview prior to putting you in the car to make
sure no time is wasted. Between Kelly and her team,
you will be notified via email and phone as to the
latest properties and best deals out there.
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