DREAM HOUSE

10 STEPS TO BUYING YOUR

DREAM HOUSE FOR THE LOWEST PRICE POSSIBLE!

BY RICK CARRIER

TABLE OF CONTENTS INTRODUCTION - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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KNOW YOUR CREDIT REPORT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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KNOW YOUR BUDGET, STICK TO IT AND DON’T FORGET YOUR - - - - - - - - - - - - - - - - - - - - - CLOSING COSTS!

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FINDING A LENDER. GET PRE-APPROVED. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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DO YOU KNOW WHAT YOU WANT? - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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GET THE RIGHT REAL ESTATE AGENT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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LOOK FOR HOMES - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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MAKE AN OFFER - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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GET HOME INSPECTION - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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CLOSING - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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WHAT’S NEXT? - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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ENJOY YOUR NEW HOME - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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RICK CARRIER, HANCOCK MORTGAGE (281) 923-6956 NMLS 268110

ABOUT ME I came to the Mortgage Industry after 15 years of Sales and Customer Service experience to start a new and rewarding career that allows me to help my clients with the biggest investment and purchase of their lives. Now after 17 years in the mortgage industry, I would have to say that taking the time to educate my borrowers and help them to obtain a loan that best fits their needs, is the part I love most about my job. Everyone's needs and situations are different. As your award winning Loan Officer, I will help you understand how different loans and terms affect the lifetime cost of your home. We will also discuss strategies to help increase your cash reserves, maximize tax benefits, and how to save tens of thousands over the life of the loan.


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INTRODUCTION So you’re ready to buy a home! You’ve saved and discussed. The time is now. While it is a stressful and complicated process, being prepared is your best weapon against the pressure to find the right home and get approved. That’s why we’ve prepared the ultimate how-to guide, checklist and cheat sheet to help you on purchasing an ideal home for the lowest price possible. Some of the steps have to be done before others but not everything has to be in order. Just don’t let another buyer swoop in because you didn’t do your due diligence. Being on top of your financial profile will help you get into the house of your dreams.

Let’s get started with step #1. Note: put this checklist somewhere visible, like your refrigerator, and mark off each step as you complete it. This will ensure you stay on the right track to save the most amount of money!


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STEP 1

KNOW YOUR CREDIT REPORT

Knowing what’s on your credit report is a great place to start. It allows you to see what has been reported by your creditors; that way if there are things to correct, you can tackle it or make it look better before you look for your mortgage. Even in some cases, there could be mistakes on your report and those are really important to be addressed and corrected. According to regulations, you are allowed to get your credit report for Free once a year. Take advantage of that opportunity if you haven’t already. Head over to annualcreditreport.com to access your report from the three main bureaus; Equifax, TransUnion, and Experian. You can also access your score for a one-time or monthly fee at myfico.com. Your FICO credit score will range from 350 to 850. Typically the higher your score, the lower your interest rate will be on the mortgage (if your score is damaged a little bit or highly damaged, give me a call at (281) 923-6956 and, I’ll apply my “credit score boosting strategy” so you can get it back up ASAP for a better rate).

HERE’S WHAT YOUR SCORE IS BASED UPON: PAYMENT HISTORY, i.e. Have you paid your bills on time? DEBT TO CREDIT RATIO - What is your overall amount owed compared to your credit limits? CREDIT HISTORY - How long have you been borrowing money? (a longer credit history is typically more favorable) CREDIT MIX - Does your history consist of bank cards, car loans, students loans, and other forms of lending? (the greater variety of credit type the better) NEW CREDIT - How recently have you applied for or opened a credit account?

While a good score isn’t the only factor, you’ll find a better mortgage rate at 720 or higher. 580 or above usually allows people to secure an FHA loan. Pull your credit score now at: annualcreditreport.com. Once you’ve got your report in hand, call me at (281) 923-6956 and I’ll happily give you a FREE 30-minute consultation on improving your credit and feedback score.


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KNOW YOUR BUDGET, STICK TO IT AND DON’T FORGET YOUR CLOSING COSTS! STEP 2

Knowing and sticking to your budget is potentially the most important step. Thinking about moving into a new home can really get you excited! Because of this, it can be easy to forget what you can actually afford. So really examine your budget and stay within those parameters you’ve set beforehand. My #1 recommendation to every homebuyer is get your budget down on paper. Having a “rough idea” and actual hard numbers are two totally different concepts. Numbers never lie. Use a tool like mint.com to put things into perspective. Google “Free Budget Template: Easily Track Your Finances Mint” and you’ll find their page. They have many different excel budget sheets that will calculate your budget for you, based upon your financial situation.

REMEMBER THERE ARE ALSO TONS OF COSTS THAT YOU MAY NOT EVEN BE FACTORING INTO THE EQUATION:

D

GOO

BAD

MORTGAGE INSURANCE

SURVEY FEES

APPRAISAL FEES

HOA FEES

INSPECTION FEES

TITLE FEES

These are all part of the final equation. Now I know how expensive it can be to buy a new home so included with this package is a rolodex of experts from the aforementioned fields. I’ve been working closely with these professionals, since I work with a lot of homebuyers, and they’ve agreed to give discounts to my clients.


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STEP 3

FINDING A LENDER. GET PREAPPROVED.

Money, money, money. Money! In order to be taken seriously, sometimes a seller wants to know you can actually afford the home they’re selling. Getting pre-approved will show the seller you mean business and you can do it before you even start looking.

HERE ARE 3 REASONS GETTING A PRE-APPROVAL LETTER IS BENEFICIAL:

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Pre-approval is reliable. A pre-approval letter stating you can afford the home you’re interested in holds more weight than a pre-qualification letter. Here’s why; a pre-qual letter is easy to get. A pre-approval letter; not so much. The pre-qualification letter involves calling a Mortgage Lender, giving limited information and waiting for the letter via fax or email. You can get it on the web as well. See what we mean? A pre-approval letter requires more time, and potentially more stress. But because of this, instead of relying on your word alone, the seller will know you have current employment, a source for your down payment and the rest of your financials in order. It’s worth the investment of your time.

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You’ll actually know your budget. While you may have a rough idea, you won’t know your exact budget until you’ve been pre-approved. Down payment percentage, mortgage insurance, property taxes, adjustable interest rates, etc. are all a part of the equation. This is not a task you can do on your own so staying ahead of the game means getting pre-approved.


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You’ll have leverage when negotiating. Sellers want to know you can afford their home and in the case of multiple offers, you’ll have the upper hand. If you’re going up against an offer with a pre-qualification letter you may just come out on top. Plus, you’ll be confident you can back up what you’re offering and that takes away stress from an already stressful situation.

Keep this in mind: Pre-approval letters aren’t a guarantee. These letters are time sensitive and should your financials change, (i.e. you lose your job, max your credit cards) or if interest rates increase, the lender will need to reevaluate and supply you with a new letter. So… make sure to keep paying your bill on time. ;)

WHY YOU SHOULD WORK WITH A LOAN OFFICER/ MORTGAGE LENDER LIKE ME FOR YOUR MORTGAGE: They are flexible and can meet you on your time Access: their pool of lenders is larger, potentially up to 30 You could get a better rate (they make banks compete for your business) Your approved amount could be higher Negotiating is done by them. Less for you to worry about When your credit isn’t the best, they’ll find you the right lender (or help you build it back up) We can also do this part of the process over the phone to save you time. If you’d like to discuss, give me a quick call at (281) 923-6956 and I will quickly walk you through the details and answer any questions you might have, with no obligation.


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STEP 4

DO YOU KNOW WHAT YOU WANT?

This step is crucial in order to prevent both your time and your money being wasted. If you know exactly what you’re looking for you won’t end up buying the wrong house, preventing unneeded emotional stress as well.

Note: I have included in this package a checklist that will help you discover what your TRUE needs are for you and your partner

Here are some basic rules you need to know. The diagram below really provides you with the best idea of the give-and-take of buying a home.

L O C A T I O N

BRING YOUR HAMMER

IN YOUR DREAMS

P R I C E

SURE, IF YOU’RE RICH

WRONG SIDE OF TOWN

Q U A L I T Y

Based on your needs, you will more than likely have to sacrifice one of the areas above. While sacrificing isn’t fun, unless you are incredibly well-off, knowing where you can compromise is important. Think about it like this. If you are a DIY person, you could buy a foreclosure or a home that needs work and rehab it yourself. It really depends upon your needs, wants, and available time to invest into your new home. Start with the checklist included in this package and you’ll have a much better understanding of your home-buying desires. RICK CARRIER, HANCOCK MORTGAGE (281) 923-6956 NMLS 268110

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STEP 5

GET THE RIGHT REAL ESTATE AGENT

What is the one thing that people need most to make a relationship work? Communication. Finding a highly communicative Real Estate Agent is a key piece to the home-buying puzzle and you can do this at any point in your process. We recommend you do this before you start shopping. Reason being, the right agent will help you find DIAMONDS on the market. That’s their job.the perks of using an agent when you’re buying a house is they’re FREE to use. Agents don’t just represent sellers; they can make the process easier for buyers by accessing homes quickly and using knowledge of the marketplace to effectively find your dream spot. One of the perks of using an agent when you’re buying a house is they’re FREE to use. Since there are so many facets of the home buying process, your agent will guide you through the process and help you check off all the boxes. They’ve got access that you alone wouldn’t, so finding an agent is a huge part of the process. We’d be remiss to not advise finding a good agent that represents you because the seller’s agent is legally responsibility for THEIR best interest and not yours. You need someone who is working for YOU.

Be clear about what you’re looking for in a home, which you’ve discovered in Step #4, and remember they are working for you. Before you enter into a formal agreement, make sure there is a clause regarding cancellation in case you aren’t happy with the service they’re providing. This is your home that’s being decided upon so speak your mind and speak often. If you’d like to use some of my references, look at the rolodex that I’ve included and you’ll see some of my top players


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STEP 6

LOOK FOR HOMES

This is where the home buying process can really get interesting and thrilling. You have the opportunity to find all of the amenities you require; a vanity in the bathroom, a large open kitchen, that screened in porch you’ve always wanted. With your budget clearly stated, work with your agent and utilize online search tools to find the house of your dreams. Remember to keep in mind what the future holds. Having more children, parents moving in or finding space for a home based business down the road are all examples of future circumstances that would necessitate a larger home, should you not get a large enough space now. Thinking about what lies ahead will help you make the best decision in the moment. Your home is where you life happens, so it inevitably contains an emotional factor.


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DON’T LET YOUR EMOTIONS, HOWEVER, ADVERSELY AFFECT YOUR DECISIONS. AVOID THE FOLLOWING:

1 FALLING IN LOVE WITH A HOME. You want to love your home, but allowing your feelings to overcome rational decisions and the reality of your situation is an easy mistake to make. Look through several homes before settling on one. Even if you end up picking the first home you found, you’ll know you made the right decision. Be wary of the seller’s agent playing into your emotions in order to sell you on the house.

2 LOSING CONTROL. It’s your home and you need to make the decisions. Family and friends will have opinions, and the seller’s agent may persuade you to buy the home they’re representing, but it’s ultimately your decision. Pick an agent and broker that suits your personalities best to avoid unnecessary conflict.

3 INDECISIVENESS. Making concrete decisions is inevitable but if you’re having problems deciding, take into consideration why you may be having reservations and evaluate what is ultimately most important to you. Too much indecisiveness could mean you’re falling victim to the last mistake to avoid.

4 BAD TIMING. Is this the right time for you to buy a home? When you’re ready, you will know. If you can’t decide on a budget, a location, or even what you want most in a home, you might not be ready and that’s alright. Take your time, consult with your financial advisor, your mortgage professional, and your real estate agent and move forward when you’re ready.


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STEP 7

MAKE AN OFFER

Alright, so you’ve visited a few houses or condos. You’ve reviewed the top 5 choices, finally end up picking one, and it’s time to make an offer. The art of the offer is important and that’s why you have a real estate agent. They’ve been in negotiations before and will guide you based on previous experiences, the market, your budgetary and financial needs, and the feel from the seller’s agent. The listing price is just the starting point so don’t be discouraged if it’s initially higher than you’d like. It’s important to remember the price is also only part of the equation. Are there any glaring issues that need to be resolved first? Are there any other contingencies? Is an inspection required? All these things are factor and need to be considered. When you put in your offer, waiting is the hardest part. A simple yes or no isn’t all you can expect. There may be a counter-offer, and you could go back and forth several times. If the answer is a firm no, don’t force it. There are several homes on the market that are right for you. If it’s not the right home, it’s okay to move on. Remember to not let emotional involvement to be your downfall.

NEGOTIATION HOW-TOS TIME ON MARKET - If the house has been on the market for a while, you may be able to offer a lower price. INSPECTION - Get an inspection done. Any glaring flaws or issues will help you make the best decision. MOTIVE - Why is the house for sale? It could be the seller has a job offer in another state or a desperate financial situation. Take the seller’s reasons for selling into consideration so you can make the right choice.


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STEP 8

GET HOME INSPECTION

An inspection is a key component to making the right offer. A quality inspector is well trained in what to look for in the structural integrity of a home. Use their expertise as a tool for making a smart investment. Find an inspector based upon a solid recommendation and make sure they are certified, as the home-inspection industry is not licensed or regulated.

NOTE: YOU CAN USE THE ONE FROM MY INCLUDED ROLODEX Being present for the inspection may be important to you. If that is the case, ask if you can be there. If you are met with a no, it’s time to find somebody else. Their report will help you in negotiations with the seller to get appropriate repairs done or know if walking away is best. Full disclosure is important, and typically sellers are required to state all defects in writing. Obtain a copy of these written statements and provide it to your inspector as well.


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STEP 9

CLOSING

The culmination of all your hard work and preparation is coming to a close. You’ve waited long enough. You’ve prepared and completed everything the lender asked you to do. You read and signed, and signed and then read some more. Then signed again. The process may take a while, and while it involves a lot of sitting, the whole process can be pretty exhausting. Take a deep breath because it’s almost over. Then one day, you will receive an email, call or even maybe a text that says: “ CLEAR TO CLOSE” At this moment, you can start jumping for joy and celebrating your victory. A few days after closing, the title company should provide you with what is called a Closing Disclosure Settlement Statement. This statement includes a detailed outline of all your expenses for the home. It also separates the buyer and seller's expenses. The last number you will see at the end of your Closing Disclosure summary is the amount of cash needed to close.

NOTE: MAKE SURE EVERY NUMBER OF THE SUMMARY IS CORRECT AND THAT NOBODY MADE A MISTAKE BEFORE APPROVING IT.


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WHAT’S NEXT?

You’re finally in your new home and you’re wondering; what’s next? Well, that all depends upon you. Understanding your home is really important. If your house is older, knowing when appliances we’re installed or when they’ve been replaced is incredibly helpful. It can help you save and budget for anything unforeseen down the road. Decorating could be something that’s on your mind. Think about your personal style and find inspiration online and in your favorite catalogs. You can look for unique pieces online or in a local flea market. Updating parts of your home could be a priority, so take on those projects as you see fit. Your new home is truly a blank slate for you to express yourself and create new memories. Soak in each and every moment in your new home. And don’t forget to change your air filter every couple of months. Cheers to a new place of your own.


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STEP 10

ENJOY YOUR NEW HOME

You are officially a homeowner! You did it. While move in day will vary based on the terms of sale, you are ready to start enjoying the joys of homeownership.


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THE ULTIMATE CHECKLIST TO BUY YOUR DREAM HOUSE FOR THE LOWEST PRICE POSSIBLE!

1

FIND OUT WHAT’S ON YOUR CREDIT REPORT AND CORRECT ANY MISTAKE

3

5

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FIGURE OUT YOUR CLOSING COST AND FIND THE MONEY TO PUT IT ASIDE

FIGURE OUT EXACTLY WHAT YOU WANT ON PAPER BEFORE YOU START SHOPPING

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2

COMPLETE THE CHANGE OF YOUR ADDRESS

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6

BAD

FIND A LENDER AND GET PRE- APPROVED.

FIND A REALTOR TO HELP YOU FIND YOUR HOUSE

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HAVE THE REALTOR HELP YOU MAKE AN OFFER

HAVE THE REALTOR HELP YOU NEGOTIATE THE DEAL

ONCE THE OFFER IS ACCEPTED, MAKE SURE TO GET A HOME INSPECTION

ONCE ACCEPTED, IT’S TIME TO CELEBRATE AND GRAB YOUR NEW KEYS

FIND OUT YOUR CREDIT SCORE

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ONCE THE HOME INSPECTION IS CLEARED, SEND EVERYTHING TO YOUR LENDER

HELPING PEOPLE ON THE MOVE

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JOSH PROSPERIE My wife and I hired Rick Carrier from Hancock Mortgage. We were nervous about the flow of the house buying and loan process and had a lot of questions as first time home buyers. When interacting with Rick I was impressed with his thoroughness and professionalism. He provided answers to all of our questions and walked us through each document required in the process. He had everything taken care of promptly, from the last minute touch ups on the day of closing, to the confirmations the week before. We thoroughly enjoyed working with Rick in the process of buying our first home. I highly recommend him for your mortgage needs.

BRANDON RODRIGUEZ Excellent choice. Rest asure you are in good hands. Rick knows what he is talking about and will go the extra mile to make sure everything is perfect. Not only did he help me achieve my goals, he has repeatedly offered excellent advice long. It is easy to see Rick loves his job and is genuinely trying to do what is best for you and your family. I would recommend anyone to Rick. Thank you Rick for all your help.

MARC VERSCHUREN Dealing with Rick has been easy, he is courteous and patient. I especially liked his personal attention working through the qualification process on questionable credit report entries - his support was perfect, we communicated via phone and email with served just fine. I recommend using Hancock mortgage and make sure you ask for Rick!

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ZOHRA NESSARY

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KELLY EZZELL

Rick and his team were truly amazing to work with. They helped us in a very short period of time to improve our credit and close on our home. Thank you for everything Rick!

Rick is amazing! He answers every question honestly and does not make you feel undereducated. He is the guy I chose for my first loan and is the guy I will choose for every Ioan after. Rick is your guy!

SELINA PONNIAH Rick is a very conscientious loan officer and focuses on getting the loan done. He is easy to reach and takes care of my clients well.

MARIBEL G. SOTO Rick helped us get approved to move into our new home! Couldn't be happier!

SAM BURNS Rick was great to work with, extremely helpful and attentive.

HANCOCK MORTGAGE PARTNERS, LLC 25807 Westheimer Pkwy ste 230A, Katy, TX 77494 +1 281-923-6956