Home Buyers tips and information about buying a home in sacramento

I am totally focused on
my client's needs, and I
work to realize their
dreams as if they were
my own.

Tammy Pecht

KELLER WILLIAMS REALTY

916-425-8305
clients1st@yahoo.com

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Home Buyers information and tips

Keller Williams Realty
3001 Lava Ridge Ct suite 100
Roseville Ca 95661
Tammy Pecht Realtor
916-425-8305

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Top 10 Signs its time to own a home

10. You're ready to stop paying your landlord's mortgage payment, and essentially financing his retirement.

9. You really need the tax deductions associated with property taxes and mortgage interest.

8. You want to have a vested interest in your community.

7. You can no longer tolerate waiting a week, in the middle of summer, for your landlord to send a repair person
to fix your air conditioning unit.

6. You are working at a job where you aren't required to relocate out of the country every three years.

5. You want to provide your family with a sense of stability and plant roots.

4. The number of members of your household more than double the number of bedrooms in your current
residence.

3. You want your home to be your castle, your domain, your own property, which you can improve in any way
you please.

2. You are tired of saving all your quarters for the laundromat.

1. When you say you are "going home", you want to really mean it! Who Should I Work With You should
understand from the beginning of your relationship with your real estate agent what type of relationship exists.
In most states, real estate agents (both brokers and sales associates alike) are required by law to let
consumers know whether they represent the buyer or the seller.

In the past, real estate agents represented the seller exclusively, whether the agent helped a seller to market
and sell the home or helped a buyer find and purchase the home. In other words, agents were at one time
legally bound to represent the seller in a residential real estate transaction. In that same scenario, the seller
paid both the listing agent and the agent who brought the buyer.

However, in today's real estate market, you may find that you can choose between a wide variety of options for
representation. If you want to sell a home, you can work with a "seller's agent". If you are purchasing a home,
you can work with a sub agent of the seller's agent and, in many areas, you can engage an exclusive "buyer's
agent".

An additional situation in some states is dual agency. This type of agency exists when the buyer decides to
have the seller's agent prepare the offer on the buyer's behalf. A buyer who elects this situation, and all
additional parties to a transaction, should receive full disclosure of representation. In some states, dual agency
also affects the real estate professionals fiduciary responsibilities to the seller.

Keep in mind that real estate laws differ from state to state and even from locale to locale. And within this
framework of variety, laws can change. For more in-depth answers for your specific situation, talk with a
knowledgeable real estate professional and ask about local practices. Be sure that you understand and are
comfortable with the options involved when you engage the services of a real estate agent.

Questions you need to ask your Realtor

1. Are you a full-time professional Realtor®? How long have you worked full time in real estate? How long have
you been representing buyers?

Knowing whether or not your Realtor® practices real estate on a full-time basis can give you a piece of the
puzzle in foreseeing scheduling conflicts and, overall, his or her commitment to your transaction. As with any
profession, the number of years a person has been in the business does not necessarily reflect the level of
service you can expect, but it is a good starting point for your discussion. The same issue can apply to
professional designations.

2. Do you have a personal assistant, team, or staff to handle different parts of the purchase transaction? What
are their names and how will each of them help me in my transaction? How do I communicate with them?

It is not uncommon for high real estate sales producers to hire people to work for them or with them. They
typically work on a referral basis, and, as their businesses grow, they must be able to deliver the same or
higher quality service to more clients. However if a Realtor is working alone or working with a team , the
quality of work and/or service can not be guaranteed, this is why it is important to talk to an agent and ask for
referral's from past client's.

You may want to be clear about who on the team will take part in your transaction, and what role each person
will play. You may even want to meet the other team members before you decide to work with the team overall.
If you needed help with a certain part of your home purchase, who should you talk to and how would you
communicate? If you have a question about fees on your closing statement, who would handle that? Who will
show up to your closing? These are just a few of the many important considerations in working with a team.

3. Do you and/or your company each have a website that will provide me with useful information for research,
services, and how you work with buyers? Can I have those Web addresses now? And who does the e-mails?
Can I have the email address now?

Many home buyers prefer to search online for homes and home buying information. There are certain privacy
and comfort levels that you might appreciate in starting a preliminary search this way, and often it is just a
matter of convenience, having 24-hour access to information. By searching the Realtor®'s and the company's
Web sites, you will get a clear picture of how much work you would be able to accomplish online, and whether
or not that suits your preferences. When I have a question, how quickly do you respond to e-mails?

4. Will you show me properties from other companies' listings?

Some real estate companies do offer their buyers' agents a higher commission if they are able to sell
"in-house" listings. In such circumstances, there can be added incentive to show you a more limited range of
homes than you might consider. If this is the case with your Realtor®, you should be very clear on how this will
impact your home search, if at all. You also should determine it this affects how much your buyer agents fee
will be.

5. Will you represent me or will you represent the seller? May I have that in writing? How will you represent me,
and what is the direct benefit of having you represent me?

The goal here is to ascertain to whom the Realtor® has legal fiduciary obligation, which may vary from state to
state or even locale to locale. In the past, Realtors® always worked for sellers. Then the listing broker was
responsible for paying the agent or sub-agent that brought a suitable buyer for the home. And even though the
buyer worked 'with' an agent, the agent still represented and owed their fiduciary duty to the seller.

An additional situation in some states is dual agency. This is where the buyer decides to have the listing agent
prepare the offer for him. A knowledgeable buyer may elect this situation which should be fully disclosed to all
parties. In some states it also affects the broker's/agent's fiduciary responsibilities to the seller.

Although Realtors® today almost always have a sense of moral obligation to buyers, this original type of seller
agency still exists in certain areas. In other areas, a formal method of buyer representation called Buyer
Agency exists to protect buyers. Find out what is available in your area and make yourself comfortable with the
extent to which you will be represented.

6. How will you get paid? How are your fees structured? May I have that in writing?

This is an issue that can also be related to agency. In many areas, the seller still customarily pays all Realtor®
commissions through the listing broker. Sometimes, Realtors® will have other small fees, such as
administrative or special service fees, that are charged to clients, regardless of whether they are buying or
selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of buyer costs from
any agent you contemplate employing.

7. What distinguishes you from other Realtors®? What is your negotiating style and how does it differ from
those of other Realtors®? What geographic areas to you specialize in?

It should be important to know that your Realtor® has unique methods of overcoming obstacles and is an
effective negotiator on your behalf, but most importantly that your Realtor® can advocate for you in the most
effective ways.

8. Will you give me names of past clients who will give references for you?

Interviewing a Realtor® to help you buy a home can be very similar to interviewing someone to work in your
office. Contacting a Realtors® references can be a reliable way for you to understand how he or she works,
and whether or not this style is compatible with your own.

9. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our Buyer
Agency Agreement?

Understand that, especially in the heavily regulated world of real estate, it can be increasingly difficult for a
Realtor® to offer a performance guarantee. Sometimes you may find a Realtor® who is willing to guarantee
that if you are dissatisfied in any way with their service they will terminate your Buyer Agency Agreement. If
your Realtor® does not have a performance guarantee available in writing, it is not an indication that he or she
is not committed to perform, but rather that he or she is willing to verbally promise some kind of performance
standard. In fact, Realtors® at Keller Williams Realty understand the importance of win-win business
relationships, and that the Realtor® does not benefit if the client does not also benefit.

10. How will you keep in contact with me during the buying process, and how often?

It's a good idea for you to set your expectations reasonably in accordance with how your Realtor® conducts
business. You may be looking for an agent to call, fax, or email you every evening to tell you about properties
that meet your criteria which are new on the market. On the other hand, your Realtor® may have access to
systems that will notify clients of new properties as they come on the market (which could happen several
times a day or several times a week). Asking this extra question can help you to reconcile your needs with your
Realtor®'s systems, which makes for a far more satisfying relationship.

Correcting My Credit Report

When considering purchasing your first home, whether you get that mortgage or not, may depend on a network
of credit reporting agencies that either share information with, or are owned by, three major credit bureaus.
This report is what lenders use to issue mortgages or other loans.

It's a good idea to check your credit report to know where you stand before you get too far in the home buying
process, that way you can be aware of problems before they jump up and derail your plans.

Getting copies of your credit reports is easy. You can request a copy from each of the three major national
credit bureaus: Equifax, Experian and TransUnion. Checking your credit can cost you as much as $9 per report,
although it differs from state to state.

If you applied for a loan and were turned down, you are entitled to a free copy of your credit report, but you
must request a copy by writing the correct credit bureau within 30 days of the rejection. With your request, you
should include a copy of the declined loan application.

You can also get a free report if you are unemployed, planning to apply for jobs in the next 60 days, receiving
public welfare assistance or believe the credit file contains mistakes resulting from fraud.

To obtain a copy of your credit report, call the number of the proper credit bureau and follow their directions, or
order it online. If you write, you will need to include your full name, date of birth, current and former address,
Social Security number, your spouse's name and your phone number. Each person requesting the report
should sign the request.

When planning to buy a home, you should check your credit at least three to six months before you apply for a
mortgage.

Once you get the report, you should make sure the following information is correct:

Your name, or names if you are or were married
Social Security number
Date of birth
Addresses of places you've lived
Names of places you've worked
Pending accounts and accounts that have been closed
Nothing has been on the report longer than is allowed by law:
-- Bankruptcies must be taken off your credit history after 10 years.
-- Suits and judgments, arrest records, and most other kinds of unfavorable information must be dropped after
seven years. Tax liens must be dropped seven years after the lien is paid in full.
Records of delinquent payments or other problems (i.e., make sure they aren't mistakes)

Any error that you find must be investigated by the credit bureau and with the creditor who supplied the data.
The bureau will remove any errors a creditor admits are there. If you disagree with the findings, you can file a
short statement in your record giving your side of the story. Future reports to creditors must include this
statement or a summary of it.

Making a Bid

Once you've found a house you like, you must decide how much to offer. In putting together your actual offer,
consider the following seven factors:

The advertised price of the house - Treat this as only a rough estimate of what the seller would like to receive,
and recognize that different sellers price houses very differently. Some sellers deliberately overprice, others
ask for pretty close to what they hope to get and a few (often the cleverest) underprice their houses in the hope
that potential buyers will compete and overbid.

What you can afford - What you can pay for a house will probably depend on how much you already have in
cash and how much you can reasonably borrow in a mortgage. When figuring out the cost of the house, be
sure to factor in your share of the closing costs, which will be about 2%-5% of the purchase price.

Prices for comparable houses - Before making an offer to purchase, you should know the selling prices of
nearby houses similar to the one you're interested in buying. For reliable comparable prices keep the following
guidelines in mind:

A comparable sale should have occurred within six months (the more recent, however, the better). In a market
where prices fluctuate fairly fast, comps should be on sale within the last month or so.
A comparable sale should be for a house quite similar to the one you're interested in -- in terms of age, size,
and type and number of rooms.
A comparable sale should be within six to ten blocks of the house you want to buy -- or less, if a freeway or
other dividing line splits the neighborhood.
Hot Market - In competitive areas, homes sell quickly -- often for 10%, 30% or more above the asking price -- as
bidding wars erupt among frenzied buyers. You'll want to arrive at a bid amount that will beat out the
competition -- but only just. Then again, some buyers deliberately bid sky-high in order to stop the madness and
find a home, reasoning that by the time they would have otherwise had a bid accepted, prices would have risen
anyway. In a cold market, however, you'll have more room to negotiate with the seller, and you may get a
bargain.

The seller's needs - Remember that price alone is not the only consideration for sellers. Your ability to close
the deal quickly -- for example, by getting loan approval or lining up inspections in advance of presenting your
offer -- is often crucial, especially in hot markets. Finally, your flexibility and sensitivity to the seller's needs --
whether it's extending the closing date for a seller who can't move for a few months or paying for repairs --
may make or break your offer.

Your Dream Home? - A modest house listed at a reasonable price may be a bargain if you have three kids, the
house is in an excellent school district and the lot is large enough to add on a few rooms. The same house may
be overpriced, however, for a couple not planning to have children. Don't get so carried away with judging
objective market considerations that you forget your personal needs.

How much you're willing to pay - While tactical considerations -- the temperature of the market, the seller's
needs -- are important, nothing should overweigh your own honest assessment of how much you are willing to
fork over.

Contract of Sale

What exactly is involved in a real estate contract? Here's a breakdown of what most contain, although the
exact structure might vary based on your location.

What: A legal description of the property as well as the street address.

How much: The selling price.

Mortgage contingency: Subject to obtaining a mortgage (if applicable) and the specifics of the
mortgage--amount, rate and term. Application to be made in X number of days.

Deposit: How much money accompanies the contract and who will hold it.

Closing: When and where.

Inclusions and exclusions: What is and is not included in the sale of the property.

Home inspection: Contingency for and to be done in X number of days.

Warranties: Any that are included with the house and description of the warranty.

Condominium: If the property is a condo, other provisions will apply.

Well and Septic: If applicable, they must be tested (and pass).

Termite and Pest inspection: Who will pay and if there is infestation or damage, who will repair.

Possession Date: When the buyers take possession of the house--before, at or after closing.

Acceptance: How long the sellers have to respond to the offer with either acceptance or a counter-offer.

Arbitration: Any provisions for arbitration of disputes.

Insurance: Whose insurance covers the property up until the closing date.

Property Disclosures: Notices of any property disclosures concerning the house.

What is Escro

w Once the offer is agreed to by all parties concerned, the agent will take the written final agreement and the
deposit check and deposit them "in escrow." Escrow will then be deemed open.

The purpose of an escrow is to enable a buyer and seller to deal with each other without risk. Before title to the
property can be transferred to the new buyer, the buyer must deposit into escrow all monies necessary to pay
for the home. This is most commonly done when the buyer obtains a loan.

Then, the seller must be paid, the seller's old mortgage paid off, and any other liens on the property must be
paid off. All responsibility for handling funds and documents is delegated to the escrow holder, a neutral third
party, which is usually a title insurance company or escrow company.

Your title insurance officer can answer many of the frequently asked questions about title insurance,
preliminary reports, and alternative ways of holding title to property in California. In a simple transaction, the
buyer delivers the agreed upon funds to the escrow holder. The buyer also instructs the escrow holder to
deliver to the seller the stated sum only after all conditions have been met, and title is vested in the buyer.
Concurrently, the seller deposits his deed and other documents with the escrow holder, authorizing their
delivery when the buyer has deposited the agreed purchase price.

The contracting parties deposit funds or documents with the escrow holder, for delivery to the respective
parties upon performance of all conditions of the agreement.

Closing the Deal

Closing is the last step in buying a home. Unless you are paying cash for the house, you cannot buy without
backing from a lender, which comes in the form of a commitment letter. The lender will require that you have a
homeowner's insurance policy on the property, so you will need to arrange this before the closing.

At closing you will be asked how you want to hold the title, which basically refers to ownership. If you alone will
own the house, it's sole ownership; joint tenancy applies when two or more people are purchasing, but each
holds the right to dispose of his or her share. Tenancy in common applies when the property is owned jointly
with an agreement that if one owner dies, the share goes to his or her heirs. Tenancy by entirety is only an
option for married couples who will make joint financial decisions and, if one spouse dies, the property is
inherited automatically by the survivor.

The down payment is due at closing and must be provided in the form of a cashier's check. Usually there's
already a deposit on the house being held in escrow by the real estate agent; the deposit is produced at closing
and included in the down payment.

Closing costs are an aggregate of itty-bitty administrative fees incurred behind the scenes to process the loan,
the appraisal, the title search, and so on. These many individual costs add up, but they are also beyond your
control, so it's really a matter of accepting the inevitable early on. When you first apply for a loan, the lender is
required by law to give you a Truth-in-Lending estimate of what the closing costs will be.

Costs payable in connection with the loan alone include points, loan origination fee, assumption fee, application
fee, credit report, appraisal fee, home inspection fee, and processing fee. Depending on the loan package you
select, you may not have to pay points. Consider that one point is equal to about 1 percent of the loan amount.
This is negotiated when you decide on a lender.

The main purpose of closing is to review and sign all appropriate documents. While it is essential that you
understand everything you sign, it's not feasible to read through the volume of documents put before you on the
actual day. Whenever possible, try to get documents you will be signing ahead of time so you can review them.
This way, you can get your questions answered before you sign.

After all signatures are on the dotted lines and the money is transferred to the proper accounts, you are finally
the proud owner of a home. Many buyers make the mistake of thinking they can move out of the old and into the
new on a very tight schedule. It's far wiser to give yourself a five- to seven-day overlap in case loan closing gets
delayed or the seller doesn't meet the deadline. In the long run, paying a little extra rent is not nearly so
expensive as holding up moving trucks and camping in hotels. Plus, you'll have that added peace of mind at a
very nerve-wracking time.