Synergy Properties Comprehensive Buyer Guide : simplebooklet.com

At Synergy Properties, our team philosophy is simple: our clients come first. Wepledge to be in constant communication with our clients, keeping them fullyinformed throughout their entire home buying process. We believe that if you’re notleft with an amazing experience, we haven’t done our job. We don’t measuresuccess through achievements or awards, but through the satisfaction of our clients.Our MissionTo be the Real Estate team of choice: a team that offers exceptional Real Estateservices to clients and one that every Real Estate agent wants to be a part of.Our VisionSynergy Properties Home Buyer's Guide1Meet the TeamMANAGING BROKER, BUYER & LISTING SPECIALIST BROKER, BUYER &LISTING SPECIALIST BROKER, BUYER &LISTING SPECIALISTlisa Serratos-McGregor Clif Matthews Uriel Cabadas Ortiz

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www.synergyproperties.infoIntroductionThe journey to homeownership hasmany steps. This comprehensive guidewill give you a clear overview of howto navigate the home buying processand find a home you’ll love. This guidecovers the importance of getting pre-approved for a home loan, how tocreate your property wish-list, how thehome search process works, how tobest view properties with your agent,how to submit a winning offer, andhow to successfully navigate theclosing process. We’ve even outlinedhow to choose a team of experts tohelp you through the entire process!We realize you have choice whenchoosing an agent, and hope you findthis guide helpful in getting started onyour path toward homeownership.WelcomeOwner, Synergy Properties2P.S. Satisfied customers are our #1priority. If at any time you are unsatisfiedwith your Real Estate services, feel freeto reach me directly at: (206) 261-5884 orlsm@synergyproperties.info

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Pick A Winning TeamPurchasing a home will likely be one of thelargest financial decisions you ever make.Luckily, you don’t have to do it alone. Find aprofessional, or team of professionals, thatwill ensure your home buying experience is apositive one.When choosing your Real Estate agent orteam, look for an individual who knows theReal Estate market and buying processinside-and-out. Don't blindly support familymembers, friends, or neighbors who sell RealEstate on the side without ensuring they'requalified. After all, hiring a buyer's agent isFREE, but the cost of hiring an inexperiencedone is something to consider. Questions to Ask While InterviewingDo you work on a team or as an individual agent?Do you sell Real Estate full-time?How long have you/your team been in Real Estate?How many Real Estate transactions were youinvolved in last year?What’s your biggest strength in terms of the homebuying process?Which neighborhoods do you service?Why do you think you’re best suited to help me?How will you keep me updated during the process?What sets you apart from your competition?What haven't I asked you that I need to know?Can I access your client reviews?Step One: Hiring an Agentwww.synergyproperties.info4

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A Real Estate team is there to provide you with answers toall of your Real Estate questions - leave no stone unturned!KNOWLEDGEAvailability is important! Working with a Real Estate teamensures someone is there to help you through the processvirtually 24/7.FLEXIBILITYExperience matters, findan agent that isfamiliar with yourdesired area's Real Estate market. If they aren't, it can reallycost you.EXPERTISENegotiation is key;having strong negotiators on your teamwill ensure you have the best chance of securing yourdream home.STRATEGYAn experienced Real Estate team will have a plethora ofresources to draw from, making it a breeze to find yournext home.ASSURANCEHiring a Real Estate team puts the odds in your favor,allowing you to rest assured knowing you'll have anunparalleled buying experience.SECURITYBenefits of Hiring a Real Estate TeamSynergy Properties Home Buyer's Guide5

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Though "mortgage" may be a daunting term for some, getting pre-approved for one iseasier than you might think. Working one-on-one with a lender to get pre-approvedgives you a solid idea of how much home you can afford and places you in a position tomake a competitive offer when you find the right home. To ensure our clients are in capable hands, we work alongside the industry-leadingprofessionals at Fairway Independent Mortgage in Auburn. Our preferred lenders, TheHoward Team, have over 20 years of experience in loan origination and will carefullyevaluate your financial situation, credit history, and the type of property you will bebuying to determine your best-fit loan scenario. The Howard Team will lock in the bestinterest rates and help you arrive at a comfortable purchase price range that fits yourunique situation and lifestyle. It’s important to note that mortgage pre-approvals are typically good for 90-120 days,and it is highly recommended you obtain one before starting your home search.Getting Pre-ApprovedWALTER & EMILYHOWARDDirect: (206) 999-7262Office: (253) 289-8562 F: (888) 366-6435 Web: www.WalterHowardLoans.comNMLS 1633389, AL 87452, AK, AZ 1027987, CACA-DBO1633389, CO 100529097, FL LO95562, ID MLO 2081633389, IL 031.0078408,IN 60485, IA 48858, MI, MO, OH, OK, OR, TX, VA65008VA, WAEmily.Howard@neohomeloans.comWalter.Howard@neohomeloans.comStep Two: Finding a LenderOur Preferred Lenderswww.synergyproperties.info6

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Loan Types & The Loan Life CycleConventional VA FHAThe U.S. Government madethe VA loan program to aidactive-duty and veteranmilitary members in gainingaccess to more affordablehome financing. This loantype has phenomenalinterest rates, no down-payment and requires nomortgage insurance.The conventional loanprogram is best for thosewith good credit and allowsbuyers to put as little as 5%down. Conventional loansfollow more conservativeguidelines, have fixed rates, and only requiremortgage insurance iffinancing over 80%.This popular governmentloan program was createdto level the playing field soborrowers with all types ofcredit can apply for a homemortgage with competitiverates and lower payments.People who have facedcredit issues in the pastlove the FHA program.The Life of A Home LoanSynergy Properties Home Buyer's Guide7

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Your Homebuyer WishlistWhat type of home are you looking for? There are so many home choices that it isimportant to have an idea of what you want and need before beginning to look athomes. Make a detailed list of amenities that are essential for you in a home, onesyou'd ideally like to have, and ones you absolutely don't want. Try to be realistic withyour choices, as finding a home that ticks all your boxes is not always easy.Want___________________________________________________________________________________________________________________________________________________Don't Want____________________________________________________________________________________Need_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Step Three: Defining Your Wishlistwww.synergyproperties.info8

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Starting your Home SearchAlthough home search websites such as Redfin and Zillow are great for providingbuyers a sense of their local market, they often fall short in providing the mostaccurate information. Once you’re serious about your home search, it is crucial tohave access to a system that provides real-time information and listing alerts. At Synergy Properties, we provide our clients with FREE access to our online searchportal and the Northwest Multiple Listing Service (NWMLS), two powerful searchtools that give you real-time access to all properties in your desired search areas . Ouruser-friendly systems allow you to enroll in instant listing alerts and help you receivenew listings in your inbox up to 48 hours faster than other sources. Find a variety of home search tools including detailed, interactive searches forforeclosures, new construction, equestrian properties, luxury homes, waterfrontproperty, and more on our website: www.synergyproperties.infoStep Four: Searching for Homeswww.synergyproperties.info10

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Average length of timebuyers searched for a homebefore hiring an agent8 WeeksHome Search Facts & TipsAverage length of timebuyers searched for a homebefore purchasingPercentage of buyers whointerviewed only one realestate agent during theirhome search67%Average number of homesbuyers viewed beforepurchasing10 Weeks 5 HomesPercentage of buyers whoused an internet-basedplatform to search for homesPercentage of buyers searchon their mobile device96% 60%Home Search TipsIf your search criteria changes, let your agent know so they can best serve you.Don't include pending properties in your home search.Set up listing alerts so you don't miss out on the latest and greatest listings.If the perfect home lands in your inbox, contact your agent immediately andschedule a showing so that you can view the home before anyone else.Don't search for homes outside of your comfortable price range.Remember interior and exterior finishes are rarely permanent.Research your home search locations and take your daily commute into account.10Synergy Properties Home Buyer's Guide11

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Step Five: Viewing PropertiesViewing Properties with Your AgentViewing properties is an artand a science. You have to beready to view a property at thedrop of a hat, as the bestproperties usually get snatchedup quickly. When viewing properties youshould do so with a game plan,otherwise different homes willstart to blend together andyou’ll forget which homes hadwhich features. Make sure to take a few quicknotes (using your phone or penand paper) after viewing eachproperty and score that homefrom 1 to 10. That way you’llhave a reference later whenthinking about your options. Things you’ll want to considerwhen viewing propertiesinclude: the overall condition,age of appliances, any majorrepairs needed, condition ofmajor mechanicals, updatedfixtures, etc. Keep in mind thatstaged and cosmeticallyupdated homes can feel newerthan they are, so make sureyou’re allowing yourself to lookpast the initial "wow" factor ofthese properties.www.synergyproperties.info12

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The "Hidden" Costs Buying a HomeMortgage Insurance:Required if DownPayment is <20%Earnest Money:Usually 1%+ ofPurchase PriceAppraisal Fee:Typically $800+Property Taxes:Up to 4% of theHome's ValueDown Payment:Amount Determinedby Your LenderHome Inspection:Typically $500+Sewer/Septic Scope:Average of $250+Lead/Mold Testing:Average of $300+Synergy Properties Home Buyer's Guide13

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Step Six: Writing an OfferWriting an offer is arguably thebiggest step in the buying process,and where buyers typically get coldfeet. However, if you’ve followed thefirst several steps in this guide, youshouldn’t have any worries aboutmaking an offer. During this process, your agent willhelp you draft a purchase and saleagreement that you’ll submit to theseller. This agreement will outline Offer Processthe price you’re willing to pay and the terms on which you’re willing to buy theirhome. This agreement may include a list of items that you want to remain on theproperty or any contingencies/special conditions you may require.Speak with your agent to find out what terms can hinder or make your offer moreenticing. When negotiating with the seller on the terms of the sale, figure out whatyou are and aren't willing to give up. You don't have to completely appease the seller,but know that most offers require an element of sacrifice. Be sure to keep in mindthat items that may seem like minor details to you, could mean everything to a seller.Make sure your buyer's agent asks the listing agent what items and conditions aremost important to the seller to ensure you submit a strong, acceptable offer.Tips to Submitting a Winning OfferConsider writing a personal letter to the seller detailing why you love their home.Include your loan pre-approval letter in your offer.Consult with your agent about how much earnest money to offer.Know that your first offer is not your only chance to negotiate with the seller.In multiple offer situations, be ready to put your best foot forward.Many sellers prefer to close early, if you can offer a shorter closing time frame, thatmight be more important to the seller than a larger offer.www.synergyproperties.info14

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Step Seven: Entering ContractIf you’ve reached this step, it means your offer was accepted - that’s a great feeling.However, this also means there are a few more things you must do as a buyer toclose the deal. The first thing you must do is deliver your earnest money to the listing brokerage.Your buyer's agent will help you do this via courier, personally delivering it for you, orhelping you send it via wire transfer (depending on the brokerage). The deposit istypically submitted with the offer or upon mutual acceptance.It’s very important to make sure that your deposit money is "liquid" and sitting in yourbank account as soon as you start looking at homes. It should not be in an investmentaccount or tied up somewhere else... nor should it be shoved under your mattress!Delivering Your Earnest MoneyFulfilling ConditionsOn top of delivering your deposit, you’ll also have tofulfill any conditions mentioned within your offer. Ifyou have a financing, inspection, or status reviewcondition within your offer, speak with your agent.They will remind you of the deadlines that need tobe met. Be sure to include your home inspector,lawyer, or lender to make sure they can help youmeet your deadlines.Once you’ve fulfilled all your conditions, there is stilla little left to do. First, you may desire to revisit theproperty while in contract. These visits will bescheduled through your agent at a time that isconvenient for all parties. It’s best practice to provideat least 48 hours notice. You’ll also want to touchbase and schedule a time to meet with your lenderand escrow representative to sign your mortgagedocuments and transfer paperwork. Theseappointments usually happen closer to closing, butyou may be asked complete them sooner.Synergy Properties Home Buyer's Guide15

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Transaction coordinator duties Transaction CoordinatorWhat is a transaction coordinator?A transaction coordinator is a professional whocompletes tasks related to real estate sales. work for realestate agents, helping to facilitate property sales. Insome instances, a transaction coordinator may workdirectly for a property seller. These coordinators usuallyhandle many of the tasks and paperwork associatedwith the process of closing a real estate deal.What does a transaction coordinator do?Here are some of the duties a transaction coordinator typically performs:Conduct contract reviews The coordinator reviews the paperwork and ensures the signing of all documents. Theseprofessionals might also check that paperwork is current and relevant to reflect ongoing andchanging negotiations agreed to by the sellers and buyers of a real estate deal.Facilitate communicationThere are often several parties involved in a real estate transaction, including a buyer, seller,banks, and title companies. A transaction coordinator can serve as a communication facilitatorbetween the various parties. Develop addendumsSometimes, a real estate transaction includes an addendum regarding the sale, whichbecomes part of the original real estate contract. Each one typically addresses an aspect of aproperty's transaction.Check deadlinesA transaction coordinator often monitors deadlines and ensures people adhere to them. Ensure the process progresses at a prompt pace.Gauge earnest money commitmentsEarnest money is a monetary commitment by a buyer that signals they plan to progress andpurchase the property.Confirm underwriting, title insurance and overseeing taxes.Synergy Properties Home Buyer's Guide16

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Step Eight: Inspection PeriodA new home is one of the biggest investments you'll ever make. Before you lock inyour purchase, a thorough home inspection by a qualified home inspector is key. Home inspections typically cost around $500-$800 and last between three and fivehours. During that time, your chosen inspector will evaluate the condition of severalaspects of the home and gauge their sustainability. Home inspections can uncoverissues that may compromise a sale or can point out problem areas which may requiremaintenance in the future. At the end of an inspection, your home inspector will provide you with a report thatincludes a narrative account of their findings. You should read this report in its entiretyand consult with your agent to formulate your inspection response to the seller.What to Expect when You're InspectingCommon Inspection Problem AreasFoundation Electrical PlumbingDIY Workmanship Roofing InsulationSynergy Properties Home Buyer's Guide18

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Step Nine: AppraisalSimply put, an appraisal is a detailed valuation of the property you wish to purchase.Appraisals are conducted primarily at the request of lending institutions, and arerequired if you plan to use the home as collateral for your loan.What is an Appraisal?An appraisal is conducted by an independent third party who has no financial stake inthe outcome of the appraisal. Mortgage companies typically hire an appraisalmanagement company which in turn hires a local, licensed appraiser on their roster.You will typically pay for the home appraisal as part of your home loan process.Who Conducts an Appraisal?What Impacts an Appraisal?Location andSituationHome Square Footageand Lot SizeInterior and ExteriorFeaturesComparable properties Repairs Needed Home Improvementswww.synergyproperties.info19

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Step Ten: ClosingCongratulations, you are now just days away from stepping foot into your brand newhome! During closing, the final touches will be made to your loan documents and thelender will wire your funds to the title company. The title company will act as anindependent third party, help facilitate closing, and initiate the transfer of ownership.Once your file is cleared to record and recording numbers have been received by thetitle company, the home is finally yours!Final Details & ClosingWhen do You Get Keys?Great question! You will get the keys to your new home once the property's title hasbeen transferred to you officially. This usually doesn’t happen until around 9PM onthe day of closing, so don't make plans for movers or other vendors until late thatevening or the next day. Synergy Properties Home Buyer's Guide20

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Let's Get StartedReady to Start Your Journey?Our team of experienced agents are ready to get you headed down the path towardhomeownership. To jumpstart your journey and start talking about your first steps,don't hesitate to reach out to us online, over the phone, or in person.Contact UsWebsite: www.synergyproperties.infoOffice: (253) 288-8034Synergy PropertiesPowered by Timber Real Etate3920 W Tapps Dr ELake Tapps, WA 98391Synergy Properties Home Buyer's Guide22POWERED BY

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Buyer ResourcesInspect Northwest - Andy SanchezPhone: (360)970-1121Email: andy@inspectnorthwest.comWebsite: www.inspectnorthwest.comSterling Home Inspection - Michael WicklundPhone: (253)841-1128Email:info@sterlinginspections.comWebsite: www.sterlinginspections.com(Ask for your $50 preferred customer discount)Mountains To Sound Home InspectionPhone: (253)344-4714Email: office@mshomeinspection.comWebsite: WWW.MSHOMEINSPECTION.COMHome InspectorsFirst American TitleHeidi Dinsmore - Sales RepresentativePhone: (253)392-4865Email: hdinsmore@firstam.comWebsite: www.firstAmking.comChristina NordykeEscrow Officer/ManagerFirst American Title Insurance CompanyPhone: 253-874-0400 Ext.Fax: 866-235-1757 Ext.Title & EscrowFidelity National Home Warranty - Cheryl GarrisonPhone: (800)308-1424 x3308Email:cheryl.garrison@fnf.comWebsite:www.homewarranty.comHome WarrantySynergy Properties Home Buyer's Guide24

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Important Terms to KnowAdjustable Rate Mortgage (ARM): A mortgagewith an interest rate that changes over time inline with movements in the index. ARMs arealso referred to as AMLs (adjustable mortgageloans) or VRMs (variable rate mortgages).Adjustment Period: The length of time betweeninterest rate changes on an ARM. For example,a loan with an adjustment period of one year iscalled a one-year ARM.Amortization: Repayment of a loan in equalinstallments of principal and interest, rather thaninterest-only payments.Annual Percentage Rate (APR): The totalfinance charges (interest, loan fees, points)expressed as a percentage of the loan amount.Assumption of Mortgage: A buyer’s agreementto assume the liability under an existing notethat is secured by a mortgage or deed of trust.The lender must approve the buyer in order torelease the original borrower (usually the seller)from liability.Balloon Payment: A lump sum principalpayment due at the end of some mortgages orother long-term loans.Cap: The limit on how much an interest rate ormonthly payment can change, either at eachadjustment or over the life of the mortgage.CC&R’s: Covenants, Conditions andRestrictions. A document that controls the use,requirements, and restrictions of a property.Certificate of Reasonable Value (CRV): Adocument that establishes the maximum valueand loan amount for a VA guaranteedmortgage.Real estate Terms Definedwww.synergyproperties.info25

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Important Terms to KnowClosing Statement: The financial disclosurestatement that accounts for all of the fundsreceived and expected at closing, includingdeposits for taxes, hazard insurance, andmortgage insurance.Condominium: A form of real estate ownershipwhere the owner receives title to a particular unitand has a proportionate interest in certaincommon areas. The unit itself is generally aseparately owned space whose interior surfaces(wall, floors and ceilings) serve as its boundaries.Contingency: A condition that must be satisfiedbefore a contract is binding. Cooperative: A form of multiple ownership inwhich a corporation or business trust holds thetitle to a property and grants occupancy rights toshare-holders by means of proprietary leases orsimilar arrangements.Earnest Money: The portion of the downpayment delivered to the seller or escrow agentby the purchaser with a written offer as evidenceof good faith.Escrow: A procedure in which a third party actsas a stakeholder for both the buyer and the seller,carrying out both parties’ closing instructions andassuming responsibility for handling all of thepaperwork and the distribution of funds.Fee Simple: An estate in which the owner hasunrestricted power to dispose of the property asthey wish, including leaving by will or inheritance.It is the greatest interest a person can have inReal Estate.HOA Dues: Homeowners association (HOA)dues are paid by owners of certain types ofresidential properties to assist with maintainingand improving properties in the association.Synergy Properties Home Buyer's Guide26

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Important Terms to KnowHome Inspection Report: An inspector’s reporton a property’s overall condition. The reportusually includes an evaluation of both thestructural and mechanical systems of a home.Home Warranty Plan: Protection against failureof mechanical systems within the property.Usually includes plumbing, electrical, heatingsystems and installed appliances.Index: A measure of interest rate changes usedto determine changes in an ARM’s interest rateover the term of the loan.Joint Tenancy: An equal undivided ownershipof property by two or more persons. Upon thedeath of any owner, the survivors take over theindividual's interest in the property.Lien: A legal hold or claim on property assecurity for a debt or charge.Loan Commitment: A written promise to makea loan for a specified amount on specifiedterms.Loan-To-Value Ratio: The relationshipbetween the amount of the mortgage and theappraised value of the property, expressed as apercentage of the appraised value.Margin: The number of percentage points thelender adds to the index rate to calculate theARM interest rate at each adjustment.Negative Amortization: Negative amortizationoccurs when monthly payments fail to coverthe interest cost. The interest that isn’t coveredis added to the unpaid balance, which meansthat even after several payments you couldowe more than you did at the beginning of theloan. www.synergyproperties.info27

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Important Terms to KnowOrigination Fee: A fee or charge for workinvolved in evaluating, preparing, and submittinga purposed mortgage loan. The fee is limited to1 percent for FHA and VA loans.PITI: Principal, interest, taxes and insurance.Planned Unit Development (PUD): A zoningdesignation for property developed at the sameor slightly greater overall density thanconventional development.Point: An amount equal to 1 percent of theprincipal amount of the investment or note. Prepayment Penalty: A fee charged to amortgagor who pays a loan before it is due.Prepayment penalties are not allowed on FHAor VA loans.Private Mortgage Insurance (PMI): Insurancewritten by a private company protecting thelender against loss if a borrower defaults ontheir mortgage.Purchase Agreement: A written document inwhich the purchaser agrees to buy a propertyand the seller agrees to sell it under specific,stated terms and conditions. This document issometimes called a sales contract, purchase,agreement, agreement for sale, or earnestmoney contract.Realtor®: A Real Estate broker who is active in alocal real estate board which is affiliated with theNational Association of Realtors®.Tenancy in Common: A type of joint propertyownership which is characterized by no right ofsurvivorship.Title Insurance Policy: A policy that protects thepurchaser, mortgagee or other party againstlosses. Synergy Properties Home Buyer's Guide28

Synergy Properties Comprehensive Buyer Guide

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