Buying a home?

MKB, REALTORS offers a wide range of services to assist you throughout your home buying process. From finding a home to helping you move in - MKB, REALTORS will be there every step of the way.

Buying a home, especially if it is your first home, can often seem to be a daunting task. Finding a home that meets your needs, getting the financing to purchase the home, inspecting your new home, information about the neighborhood, setting up utilities, and packing up and moving can seem like a large burden. MKB, REALTORS takes the worry out of buying a home by assisting you in all areas of the home buying process.

MKB, REALTORS will be there to answer all of your questions and to guide you along every step of the way.

The Home Buying Process with MKB, REALTORS

1. The Management Team assigns a MKB Sales Associate to take care of you and your family.

2. The MKB Associate will interview you to determine your needs and then be available to meet with you at your convenience. If you're new to the area, you may choose to just take a tour or you may want to combine a tour with looking at homes that the agent has previewed ahead and feels will meet your criteria. You may also want to visit schools, daycare centers or other places that are of interest to you and your family.

3. Become prequalified for a mortgage loan if you have not already done so before we meet. With the advice of your MKB Associate and lender, you will have a fairly good idea about the price range for your new home and your ability to make mortgage payments. In order to be prequalified for a mortgage loan, most lenders require the following information:
   

   1. The last two years W2 forms (K1s or 1099s, if applicable).
   2. Your current paystub(s) covering a 30-day period.
   3. Your most current bank statements and stock statements covering a 3-month period and quarterly report of your 401K or Profit Sharing Plan if you have one.
   4. Landlords' names and addresses for the past two years if renting or name and address of mortgage lender plus your mortgage loan account number if you own your current home.
   5. A list of all debts with account numbers, monthly payments and balances due.
   6. If self-employed or paid by commission, personal and business tax returns for the last two years.
   7. If divorced with an obligation to pay alimony or child support, you need a copy of your final divorce decree and/or settlement.
   
   

4. After you have found a home that suits your family's needs, you will sit down with your MKB Sales Associate and complete an offer to purchase, which your agent will then present to the Seller's agent and Seller. The offer to purchase (Purchase Agreement) should be properly signed and accompanied by an earnest money deposit.

5. The MKB Associate will present the contract to the Seller's agent and Seller, who may choose to accept, reject or make a counteroffer. After all of the details of the Purchase Agreement are worked out, everyone will sign it and it will be legally binding, enforceable contract.

6. Buyer will apply for a mortgage loan. Remember that most lenders collect funds to pay for credit report and appraisal at loan application.

7. MKB Associate coordinates and follows-up on the elements and time frames of the contract to assist all parties meet their obligations.

8. MKB Associate will work with inspectors, mortgage lender and closing attorney's office to be sure that all the details of the transaction are taken care of and a closing date scheduled.

9. The closings are typically held at an attorney's office or other settlement company. Generally, by the time of closing, the seller has signed the necessary documents to consumate the transaction, and the closing is usually attended by the Buyer and Buyer's Agent.  At this time all the legal documents are signed including the deed and deed of trust, the closing statement is explained, keys and garage door openers are turned over to the Buyer and the transaction is consumated. Once the deed and deed of trust has been recorded, proceeds and expenses can be disbursed. 

10. Move into your new home!

Commonly used terms and definitions

Agent

A person acting on behalf of another, called the principal.

Agreement of Sale

Known by various names, such as “contract of purchase”, “purchase agreement”, “sales agreement”, or “binder”, according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties. 

Annual Percentage Rate (APR)

Includes quoted interest rate on the loan plus all additional service and finance charges associated with the loan. Includes all costs of financing; those paid at the time of closing and those paid over the term of the loan. The APR is usually slightly higher than the note rate.

Appraisal

An expert judgment or estimate of the quality or value of real estate as of a given date.

Assessed Value

The valuation placed upon property by a public tax assessor as the basis for taxes.

Bill of Sale

An instrument which transfers title to personal property (chattels); a “Deed” transfers real property.

Certificate of Title

A document signed by a title examiner or attorney, stating that the seller has a good marketable and insurable title.

Closing Statement (Settlement)

The computation of financial adjustments between buyer and seller as of the day of closing a sale to determine the net amount of money which buyer must pay to seller to complete purchase of the real estate and seller’s net proceeds. Also, “settlement sheets”, “HUD-1”.

Commission

Payment to a real estate broker for services performed.

Convey

To deed or transfer title of property from one person to another.

Deed

A formal written instrument by which title to real property is transferred from one owner to another. Also, “conveyance”.

Deed of Trust

Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument: the borrower, the trustee, and the lender (or beneficiary).

Earnest Money

The money given to the seller by the potential buyer (usually held in escrow) upon the signing of the agreement of sale to show that buyer is serious about buying the house. Also, “deposit”.

Equity

The interest or value which owner has in real estate over and above the debts against it. (Sales Price – Mortgage Balance = Equity.)

Escrow

Funds, property, or other things of value left in trust to a third party. The escrow may be released upon the fulfillment of certain conditions or by agreement of the parties.

Fixture

What was formerly personal property which is now permanently attached to real property and goes with the property when it is sold.

Hazard Insurance

Protects against damages caused to property by fire, windstorms, and other common hazards.

Listing Contract

Between a homeowner (as principal) and a licensed real estate broker (as agent) by which the broker is employed to market the real estate within a given time for which service the owner agrees to pay a commission. Also, “listing agreement”.

Market Value

The highest price which a buyer, ready, willing and able but not compelled to buy, would pay, and the lowest price a seller, ready, willing and able but not compelled to sell, would accept. Basis for “listing price”, or “asking price”.

Market Price

The actual amount for which a piece of property is sold. Also, “sales price”, “purchase price”.

Mortgage

A lien or claim against real property given by the buyer to the lender as security for money borrowed.

Mortgage Note

A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. Also, “deed of trust note”.

P.l.T.I.

Principal, interest, taxes, and insurance. Most residential mortgage payments include the above and are therefore referred to as P.I.T.I. Also, “carrying charges”.

Points

Sometimes called “discount points”, a point is one percent of the amount of the mortgage loan.

Prepayment Penalty

Penalty for the payment of a mortgage note or deed of trust note before it actually becomes due.

Principal

This word has several meanings:

(A) to denote the most important;

(B) a capital sum lent on interest;

(C) one who appoints an agent to act on their behalf;

(D) either party to a contract.

Property Management

The operation of real property, including the leasing of space, collection of rents, selection of tenants, and the repair and renovation of the buildings and grounds.

Prorate

To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a prorate of real property taxes, fire insurance, or condominium fee.

Sales Associate

A person with a real estate license and associated with a specific real estate broker.

Survey

A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure a building is actually sited on the land according to its legal description.

Title

As generally used, a document that indicates rights of ownership and possession of a particular property.

Title Abstract

A summary of the public records relating to the title to a particular piece of land. An attorney or title company reviews an abstract or title to determine whether there are any title defects.

Title Insurance

Protects lenders and homeowners against loss of their interest in property due to legal defects in title.

Title Search or Examination

A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims.

Transfer Tax

State tax, local tax (where applicable), and tax stamps (in some areas) required by law when title passes from one owner to another.