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Home Buying A Step By Step System Hal Riedling Your Realtor for Life 502 502 640 1274cell Hal ParkerAndKlein com

The Home Buying Process THE HOME BUYING PROCESS Q Should I Buy a Home Now The diagram helps explain the process you will go through to find the perfect home for you A Yes Prices of homes have been steadily increasing since the 1940 s Putting off buying a home will only allow the property values to increase and become more expensive Start Prepare for Ownership Also interest rates are still at an all time low allowing you to be able to afford more home Choose Realtor Q How do I Find the Right Home Pre Approval View Properties A First I will consult with you to determine your price range needs and desires for you new home I work with many buyers and understand that you do not want to 1 lose the perfect home 2 miss something better or 3 pay too much for your home With these things in mind I will send you properties in the Multiple Listing Service MLS through email or other means You may select potential homes you would like to see and I will set an appointment for us to view them Once we discover the home you love I will help you construct an offer to purchase Hal Riedling Make Offer Negotiate Rejected Accepted 502 640 1274

10 STEPS TO PREPARE FOR HOMEOWNERSHIP START THINKING 1 Talk to a lender to determine how much home you can afford Generally you can afford a home valued between two and three times your gross income 2 Develop a wish list of what you d like in a home Then prioritize the features on your list 3 Select three or four of your favorite neighborhoods Consider items such as schools recreational facilities area expansion plans and safety TALK TO LENDERS 4 Determine if you have enough saved to cover your down payment and closing costs Closing costs including taxes attorney s fee and transfer fees average between 3000 5000 Jumbo loans and higher priced homes will be more 5 Get your credit in order Obtain a copy of your credit report You may wish to wait until you choose a lender so your report will only be run once 6 Explore different loan options and decide what s best for you 7 Organize all the documentation a lender will need to pre approve you for a loan 8 Have your lender help determine if you qualify for special mortgage or down payment assistance programs MAKE DECISIONS 9 Calculate the costs of homeownership Include property taxes insurance maintenance and association fees 10 Find an experienced REALTOR who can help you through the process Call me and we can begin to make your dreams a reality Hal Riedling 502 640 1274

W H AT A R E A LT O R W I L L D O F O R YO U The REALTOR you work with is one of your most valuable resources Unlike many real estate agents who are simply licensed by their state to do business REALTORS have taken additional steps to become members of the local board of REALTORS and have agreed to act under and adhere to a strict Code of Ethics Plus A REALTOR will help you determine how much home you can afford Often a REAL TOR will suggest ways to accrue the down payment and explain alternative financing methods A REALTOR in addition to knowing the local money market also can tell you what personal and financial data to bring with you when you apply for a loan A REALTOR is already familiar with current real estate values taxes utility costs municipal services and facilities and may be aware of local zoning changes that could affect your decision to buy A REALTOR will usually research your housing needs in advance through a Multiple Listing Service even if you are relocating from another city A REALTOR will show you only those homes best suited to your needs size style features location accessibility to schools transportation shopping and other personal preferences A REALTOR often will suggest simple imaginative changes that make a home more suitable for you and improve its utility and value A REALTOR is sensitive to the importance you place on this major commitment you are about to make Look for a real estate professional to facilitate negotiation of a win win agreement that will satisfy both you and the seller www Realtor com Hal Riedling 502 640 1274

B U Y E R S AG E N C Y Buyer s Agency A n agent can at the Buyer s Dual Agency A real estate agent can legally request act as an agent be the agent of both the for the Buyer only Buyer and the Seller in a Even though the agent Buyers Agency is transaction but only may receive compensawith the consent of all the best as you tion from the Seller for parties The agent in this get 100 services rendered the situation has the dedication from Buyer s agent is not fiduciary duties of the agent working on behalf of the utmost care integrity seller Client status is honesty fairness and Everything they established once it is loyalty in dealing with do must be in acknowledged the both the Buyer and the your best interBuyer s agent is not an Seller In this situation est agent of the Seller The the agent must not give Buyer s agent then an unfair advantage to accepts the duties of a one party over the other client relationship A signed agreement which includes negotiating on the must accompany a sales contract Buyer s behalf informing the that all parties to the transaction client of all known material facts agree that the agent may represent both the Buyer and the Seller and maintaining confidentiality Hal Riedling 502 640 1274

PRE APPROVAL In the beginning stage of your search process you should speak with a lender to explore your financing options Any lender you contact should be able to draw up a good faith estimate upon request This statement will outline your closing costs monthly mortgage payments taxes insurance points and other fees of the loan program they recommend Putting this step behind you will help you feel more prepared in your search and ultimately allow us to submit a stronger offer when you find a home Officially the last step you should take is to be pre approved Once you have spoken with lenders and have chosen the one you like you can go ahead and start the loan application process Pre approved means that you have submitted a loan application along with documents that the lender needs Based on the information you provide and your credit score the lender will approve a home purchase up to a certain amount The lender will provide you with a commitment letter stating this information We will include this in your offer to purchase a home Sellers are often impressed and put at ease when the letter is included in the offer The best part for you is that you will have no surprises Pre Qualified means you have SPOKEN with a lender and based on the verbal information he thinks that you should be able to purchase a home around x price Items Needed for Credit Application Addresses for full years Gross monthly income W 2 s Proof of income pensions rentals child support retirement etc Year to date pay stub or 1040 tax returns and current P L for self employed Creditors name address account type minimum payments and appx Balances Checking savings account numbers institution name type of account and balances List of assets stock bonds and land Life insurance cash value Social Security numbers Application fee Hal Riedling 502 640 1274

WHAT TO DO IF You are driving home from work and see a home listed by another company that you would like to view A friend calls and tells you about a great house that they thought you should see You come across a For Sale By Owner that you would like to see You see an ad in the newspaper for a home that looks appealing Looking on the internet you see a home that you would like to visit CALL ME 640 1274 To be able to represent you in a contract I have to be the one to call and set the appointment This is an important part of my services for you and part of how I get paid by the seller If you call I may not be able to represent you in the event you like the home enough to want to make an offer Hal Rielding 502 640 1274

FOR SALE BY OWNER AND NEW CONSTRUCTION For Sale By Owner You will undoubtedly see homes during your search that are For Sale By Owner FSBO There are FSBO s who welcome agents and their buyers and are willing to pay the buyer s agent commission and those who do not I always advise my clients to let me make the first call so that the FSBO will know you are represented It is much easier to tell them you have a Realtor before you see the home I am aware the perfect home for you may be a FSBO Even if the FSBO is not paying a buyer s agent commission I can still help you through the process and include my commission in the offer we give the FSBO Why You Need Representation I urge you to consider the value of a professional opinion and experience of a Realtor I will assist you in determining the value of the homes and making an offer accordingly FSBO s are more often then not overpriced which may make it difficult to appraise and prevent you from getting your financing Without representation it will be much more difficult to schedule and conduct the home inspection pest inspection and appraisal More importantly I will negotiate any necessary repairs or credits for you and have a greater chance of convincing the seller to cooperate I know the laws and procedures and will make sure that you are properly protected from start to finish New Construction A builder s Realtor represents the builder You should remember that a Realtor showing a new home works for and is paid by the builder The builder s Realtor will likely make the same commission if you have a Realtor or not and there will be no savings passed onto you There are no advantage to working directly with the builder and their Realtor You need your own representation to make sure that all of the upgrades and changes are completed as agreed and that the construction timeframe is adhered to There are many decisions to be made and deadlines to be kept and you need your Realtor working for you to have your dream home built the way you want it Hal Rielding 502 640 1274

MAKING AN OFFER 4 Forms in Purchase Contract 1 2 3 4 Offer to Purchase Contract detailed below Seller s Disclosure of Property Condition This document is the seller s account of any problems with the home during their ownership and must be signed by the buyer as part of the contract Lead Base Paint Form This form is completed and signed by both parties if the home was built before 1978 The seller will disclose if they are aware of Lead Base Paint in the home Agency Disclosure This form is signed by the Buyer and the Realtor disclosing who the Realtor and their firm is representing If dual agency occurs both buyer and seller and their Realtors will all sign the form Explanation of Purchase Contract Purchase Price Only you can decide what price you would like to offer but I will help you obtain all the information possible to make an informed decision This will include providing you with a CMA comparative market analysis Extra Request Items You may request certain personal items be left with the home such as window treatments and appliances Earnest Money Deposit You should be prepared to write a check to be considered a good faith deposit This check will be deposited in the listings company s escrow account and credited to you at the closing Type of Financing The three different loan choices you have are Conventional FHA and VA This area will include the amount of your down payment and interest rate Appraisal If financing is used the contract will be contingent upon the lender s appraisal of the home Closing Possession Date Choose this date according to the amount of time it will take you to have your loan processed and inspections done and negotiated Normally 30 45 days Choose the date you will take possession of the property It s best to take possession at closing Hal Rielding 502 640 1274

MAKING AN OFFER CONTINUED Inspections Decide if you are going to take the home as is or opt to have a home and pest inspection and choose the amount of time to have this done Normally 7 10 days Other Terms and Conditions This space allows us the freedom to customize your contract If this contract is going to be contingent on selling your home first this is where we would let the sellers know If you plan to have the seller help with any of your financing this is where you would make the request SELLERS RESPONSE Once your offer is submitted to the selling party they will have a deadline to respond This deadline is predetermined in the contract depending on how much time was written in the offer They may respond with any of the following 1 ACCEPT The seller accepts the offer and agrees to all the terms in the contract 2 REJECT The seller out right rejects the offer or lets it expire and all negations are done 3 COUNTER The seller can selectively change certain parts of the contract to better fit their needs and desires They will in turn submit the newly changed contract to you for you to accept reject or counter This cycle may continue until there is an agreement until the deadline passes or until it is determined that an agreement cannot be reached Hal Riedling 502 640 1274

HOME INSPECTIONS Inspections are typically done within 7 10 days of contract acceptance Inspectors will look for major defects in the home non functional systems appliances safety concerns and more Some items they will cover and examine Siding Foundation Structure of the home Exterior brick condition Insulation quantity Doors and Windows condition Roof Ceilings walls and moldings Porch Deck Electrical Plumbing Water Heater Furnace Air Conditioning Garage Basement Attic Septic Tanks Driveways Sidewalks There is no right or wrong repair request Sellers are not required to make repairs that are requested The sellers may selectively choose which repairs they will do and or offer a credit at close for a dollar amount in lieu of repairs After the seller responds to your request you have three choices ACCEPT NEGOTIATE some terms of the repair or VOID the contract Hal Rielding 502 640 1274

CLOSING ON YOUR HOME Closing Checklist 1 Home Inspection Complete 2 Pest Inspection Complete 3 Radon Complete 4 Survey Complete 5 Appraisal Complete 6 All Repairs with appropriate documentation Complete 7 Home Warranty Ordered if needed 8 Home Owner s Insurance Policy Ordered and sent to Closing Attorney 9 Utilities Scheduled to Transfer 10 Change of Address sent to Post Office 11 Final Walk Through Complete 12 Final Loan Approval 13 Owners Title Insurance included on HUD statement The closing will be held at the title company or attorney s office and should take about 45 minutes to an hour This is the final gathering where the buyers and sellers come together to sign all the papers and transfer the title from one party to the other Other people present will be the seller s Realtor the attorney and possibly your lender Before closing I will go over the settlement statement known as the HUD 1 form with you to make sure the numbers pro rations and closing costs are correct Be sure to bring your DRIVERS LICENSE and CERTIFIED CHECK to the closing Once all the documents are signed and you have completed all the paperwork you will be able to take the keys and take possession of your new home Congratulations Hal Riedling 502 640 1274

LOUISVILLE WEBSITES About Louisville New to Louisville Insider s Guide to Louisville Louisville s Internet Presence Louisville Metro Government Louisville Scene Louisville Convention Visitor s Bureau The Metro Chamber of Commerce Louisville Visitor s Guide www hellolouisville com www insiders com louisville www networklouisville com www louisvilleky gov www louisvillescene com www gotolouisville com www greaterlouisville com www kytravel com Government City of Louisville Kentucky State Government www louisvilleky gov www kentucky gov Schools Jefferson County Public Schools Jefferson County Public Schools Scores Parochial Schools Oldham County Public Schools University of Louisville Bellarmine University www jefferson k12 ky us www kde state ky us www archlou org www oldham k12 ky us www louisville edu www bellarmine edu Arts Museums Kentucky Center for the Arts Louisville Orchestra Actors Theatre Louisville Ballet Kentucky Opera Broadway Series Stage One Children s theatre Hal Riedling www kca org www louisvilleorchestra org www actorstheatre org www louisvilleballet org www kyopera com www broadwayacrossamerica com www stageone org 502 640 1274

LOUISVILLE WEBSITES CONTINUED Arts Museums Kentucky Arts and Craft Foundation Speed Art Museum Louisville Palace Theatre Kentucky Derby Museum Louisville Slugger Museum Louisville Visual Art Association St James Court Art Show www kycraft org www speedmuseum org www louisvillepalace com www derbymuseum org www sluggermuseum org www louisvillevisualart org www stjamescourtartshow com Attractions The Kentucky Derby Festival Churchill Downs Louisville Zoo Louisville Bats Six Flags Kentucky Kingdom Louisville Science Center IMAX Theatre Kentucky State Parks Belle of Louisville Caesars Indiana Casino Belterra Casino Resort Kentucky Speedway www kdf org www churchilldowns com www louisvillezoo org www batsbaseball com www sixflags com www louisvillescience org www kystateparks com www belleoflouisville org www parkplace com caesars www belterracasino com www kentuckyspeedway com About Kentucky Kentucky Tourism Kentucky Tourism Council Kentucky Travel Guide Kentucky Statistics www kytourism com www tourky com www kytravel com www 50states com kentucky htm Miscellaneous Homes in Louisville Search Engine Courier Journal Newspaper Louisville Restaurant Guide Kentucky Golf Course Guide Louisville Stoneware www ParkerAndKlein com www courier journal com www iglou com restaurants www kentuckygolf com www louisvillestoneware com Hal Riedling 502 640 1274

PREFERRED VENDOR LIST LENDERS Envoy Mortgage Benchmark Mortgage Josh Hay Russ Gerry 502 889 6014 502 558 5580 Mark Oerther George Skeeter 502 459 1446 502 321 5960 Ryan Hartlage 502 396 2265 Earl Age Heating Air Weber Heating Air Earl Age Joe Weber 502 407 6618 502 896 1617 Brothers Plumbing Moser Plumbing Ray Hubbard Mike Moser 502 239 2880 502 773 2173 Carney Roofing Specialists Debbie or Corkey 502 426 3382 Electrician Matt Harrod 502 931 9389 Painter Jimmy Henderson 502 639 1022 Kentucky Farm Bureau Hayes Jason Broyles 502 966 0660 Utley Hedgspeth Chris Reynolds 502 493 7929 HOME INSPECTORS Mark Oerther Associates Assc Eagle Eye Home Inspection HOME IMPROVEMENT Hartlage Home Improvement SUBCONTRACTORS HOME INSURANCE Above list provided for your convince only Clients hold harmless broker from claims disputes or actions relating to above vendors Parker and Klein does not receive referral fees Hal Riedling 502 640 1274

MOVING CHECKLIST Send Change of Address to Post office Give forwarding address Charge accounts credit cards Subscriptions Requires several weeks notice Friends and relatives Bank Transfer funds arrange check cashing in a new city Insurance Notify new location for coverage life health fire and auto Automobile registrations Transfer of car title driver s license city windshield sticker motor club membership Utility companies Gas light water telephone fuel Be sure to get a refund of any deposits made and arrange for service in new town Home delivery Laundry newspaper School records Ask for copies or transfer of children s records Medical dental prescription histories Ask a doctor and dentist for referrals transfer needed for prescriptions eyeglasses x rays And Don t Forget to Dispose of hazardous materials 502 574 7336 57GREEN Empty freezer plan use of food Defrost freezer refrigerator place charcoal to dispel odors Call cable company and or leave remote antenna equipment Clean rugs and clothing before moving have them moving wrapped Check with your moving counselor check insurance coverage packing and unpacking labor arrival day various shipping papers method and time of expected payment Plan for special care needs of infants And on Moving Day Carry currency jewelry documents with you or use registered mail Plan for transporting pets they are poor traveling companions if unhappy Let a close friend or relative know your route and schedule and use this person as message headquarters Double check all closets drawers and shelves to be sure they are empty Leave all old keys needed by new tenant or owner with the agent or REALTOR Hal Riedling 502 640 1274