Sys

• Determine your housing price range;

• Locate the home of your choice;

• Negotiate affordable price and terms;

• Handle closing to your best

advantage.

Step 1 Deciding to buy

Step 2 Defining your price range

and your preferences

Step 3 Finding your new home

Step 4 Starting the buying process

Step 5 Financing and closing the deal

Step 6 Calling it your own

Today, home buyers have more choices  than ever before. You can choose financing options that are flexible and

 affordable, home styles that fit a variety of lifestyles, and professional services that make the process fast, effective and

 enjoyable. Here are some facts about homeownership that may surprise you: Homeownership can be a good

 investment opportunity. A house offers leverage and the possibility for appreciation in value. And, you can use  this

 investment while it’s working for you! You can’t afford to overlook the tax  breaks of homeownership. Since mortgage

 interest and property taxes are deductible, homeownership can save you money each year. Young people aren’t priced

 out of the market. Figures from the National  Association of Realtors put the average age of first-time buyers at 32

 years old. Renting doesn’t protect you against rising prices. Rental units are just as susceptible as houses to increases

 in taxes, insurance, utilities and other costs. Landlords will pass along these increases to the tenants. The waiting game

 is a losing game. Don’t put off buying a home waiting for prices to come down. Ask your sales professional for a

 copy “50 Facts About Owning a Home.” This brochure outlines basic information about homeownership.

Choose a professional who specializes in residential real estate. She or he should have specific knowledge of the local

 real estate and mortgage markets. Consider references carefully. An experienced, confident sales professional can

 provide you with names of recent buyers in your market with whom he or she has worked. Select a professional who

 will listen to you. Your sales professional should be interested enough in you to find out about you and your housing

 needs and preferences. Select a professional who puts service first. Strong customer service is key in today’s real

 estate business. For GMAC  Real Estate sales professionals, this service goes above and beyond giving buyers only

 what they expect and need. 

Your GMAC Real Estate sales professional can show you any house that’s for sale in your market — not just the

 homes listed by our company. If you see a house for sale that you like, arrange a viewing through us. Commit yourself

 to working with one sales professional who can learn your likes and dislikes in homes and make your home buying

 process much easier. Turn to a GMAC Real Estate sales professional for your real estate needs. Defining your price

 range and your preferences

Where to begin

Before you start driving around looking for yard signs, do some homework to fine-tune your dreams and expectations.

 Know how much house you can afford. Review your budget and determine how much you want to pay each month.

 Lenders will consider the home’s sale price and your down payment in determining how much to loan you, but your

 monthly payment is of primary importance. In addition, housing costs are usually more than just mortgage principal and

 interest, because they often include property taxes and insurance. As a general rule, your monthly housing cost should

 not exceed 28 percent of your gross monthly income. If you have outstanding long-term debt (things like car loans,

 student loans or credit card balances), that monthly debt plus your monthly housing costs shouldn’t exceed 36 percen

 of your monthly gross income. Ask your sales professional for a Lender Information Worksheet. This worksheet

 allows you to organize all those details needed for the financing application process. It will also help you itemize your

 living expenses and income, so you may analyze your budget more thoroughly. Mortgage Chart — Your guide to

 affordability Your mortgage power may surprise you. This chart shows how much house you  can afford at any given

 interest rate. To use it, simply find the monthly payment you can afford and read across to the nearest current interest

 rate. The point where the two intersect shows you how much mortgage that monthly payment will buy. Many lenders

 offer mortgage preapprovals, and this can be a real time-saver when you come upon the house you want to buy.

 Mortgage preapproval is like securing a loan before you find a house, and it’s real peace of mind to know exactly what

 you can afford. Payments are based on a 30-year amortization and include principal and interest only. 

Monthly Payment 7.5% 8% 8.5% 9% 9.5% 10%

$600 $85,811 $81,770 $78,032 $74,569 $71,356 $68,370

700 100,112 95,398 91,038 86,997 83,249 79,766

800 114,414 109,027 104,043 99,425 95,141 91,161

900 128,716 122,655 117,048 111,854 107,034 102,556

1,000 143,018 136,283 130,054 124,282 118,927 113,951

With the Home Buying System, we’ll help you define your needs, tastes and preferences. Narrow down the search by

 identifying the home styles you like best — two-story, ranch, contemporary, townhouse or another look. Decide what 

 features you must have in a home and those you’d like to have. Do you want a two-car garage, family room or

 fireplace?

Ask your GMAC Real Estate sales professional for a copy of the “Home Buyer’s Checkbook.” Use this home features  checklist to 

 help you define your needs and wants. 

Consider your lifestyle realistically. If you don’t like yard work, you might want a condo or a home with little

 landscaping. Hobbyists may need a work room or extra garage space. Think about the neighborhood in which you’d

 like to live. The neighborhood often contributes to the value of a home. Pick out neighborhoods that appeal to you, 

 and talk to people who live there. Call your city government or ask your sales professional for information about

property taxes, including any pending increases or special assessments. Look for evidence of good zoning practices.

 Businesses or industries should not be mixed in with residences. Other regulations, such as on-street parking, may also

 be in force. Factor in the costs of commuting as you’re looking at neighborhoods. If your daily commute to work,

 school, shopping or other locations will be very long, you may have greater automobile expenses, such as gas, 

maintenance and insurance.

Now the hunt begins. The task should be easier since you’ve already completed important preliminary steps.

Your GMAC Real Estate sales professional will show you the homes  that meet your needs and weed out the ones that

 don’t. He or she will make arrangements for you to see only those homes that match your requirements, so your time is

 well spent. Remember to record your impressions about the homes you visit with a Home Selection Card obtained

from your sales professional. A key benefit of working with a GMAC Real Estate sales professional is that you’ll be

 informed about homes that are new on the market or those with price changes. He or she will identify all the potential

 sellers in your market by working with the entire real estate community — not just those who list with GMAC Real

 Estate. You’ll need to balance emotion with fact. Your new home has to feel right, and it has to work right, too. When

 you are seriously considering a house, you’ll want to inspect it thoroughly looking for any problems. And, because no 

 house is perfect, you’ll have to decide what you can live with or afford to repair. 

You’ve found the right house, and it’s time to make an offer. Your sales professional will help you through the

buying process step-by-step.

Decide how much you want to pay for the home you’ve chosen to buy. Consider how long the house has been

on the market and how reasonable the asking price is. You should also decide the top amount you’d be willing to pay

(but keep that figure to yourself to maintain your ability to negotiate). Spell out the special conditions of the

purchase. Your purchase may be contingent on certain things such as your ability to obtain financing or a

favorable inspection report. After determining who the settlement agent will be, you’ll select the dates for

closing and for possession. Give yourself plenty of time in the transaction to take care of financing and other

paperwork. Ask for a title search. This is typically the seller’s responsibility. The search shows if the title is clear with

 no claims or liens against the property.

Your GMAC Real Estate sales professional will also work closely with you through this important stage of the

home buying process. Here’s what you’ll need to know:

Contract: Your offer is made in the form of a contract to buy and sell property. This contract lists the items to be

included in the sale, including such things as appliances, window treatments, etc. It also includes the dates for closing

 and occupancy. Your sales professional will help you write the purchase agreement and present it to the sellers.

Earnest Money: Your offer is submitted with a financial commitment, often called earnest money. If you buy the

house, the earnest money is applied to the down payment or closing costs. If your offer is not accepted, then your

earnest money will be returned. However, if after your offer has been accepted, you don’t buy the house, the

seller has the right to keep the money. Agreement: The seller will either accept or reject your offer. When a seller

 rejects the first offer, you may be presented with a counteroffer.

Protecting Yourself

Two things can add to your peace of mind as you enter the final stages of home buying: home inspections and

home warranties. A professional inspection of a home prior to closing can lessen the chance for surprises. Even if

 you’ve arranged to have an inspection, you should still plan to take a “walk-through” of the property immediately

 before the final papers are signed. A home warranty protects buyers against the failure of major home

systems during the warranty period. In most states, GMAC Real Estate offers a Home Protection Plan. This plan will

pay to repair or replace items such as heating and cooling units, plumbing and electrical systems and appliances

for 13 months after the sale. Ask your sales professional for specific information.

Rely on the expertise of your GMAC Realm Estate sales professional during the critical final stages of the

 home buying process. He or she can answer questions, serve as your representative, and attend to the 

 important details that affect your purchase.

With the seller’s acceptance of your offer in hand, now is the time to firm up financing. Even if you pre-qualified for a 

loan, you’ll need to make some decisions about what type of financing to obtain. Fortunately, your GMAC Real Estate

sales professional can help you find a lender, identify the financing method that works for you, and prepare you for

the next steps.

Finding the financing package that best suits your needs can be a complicated process; however, your sales

professional can simplify it for you. Finding an appropriate lender is an important first step. Certain key lenders

will remain your primary sources for mortgage money. They include savings and loan associations, mortgage

bankers, commercial banks and other sources. Some real estate companies

have mortgage relationships in-house, further simplifying the financing process. When you apply for the loan, your

lender will ask a number of questions about your income, assets, debts/liabilities and employment history.

 Assets: Have account numbers or other  identification ready for the lender for checking and savings accounts, stocks,

bonds, life insurance net cash value, automobiles, etc. Liabilities: Provide documentation of loans, account numbers,

 terms of loans and balances for installment loans, including charge accounts, auto loans, alimony, child support,

 maintenance payments, etc. Monthly income: Be ready to answer questions about base pay, commissions,

bonuses, tips, overtime, part-time work, savings interest, dividends, rental from real estate, alimony, child support, etc.

You will also be asked about anticipated monthly housing costs — things such as property taxes, hazard 

insurance, mortgage insurance, utilities, etc. You will need to offer the lender a list of credit references (including

 creditors’ names and addresses and other information) and job histories (including employers’ names

and addresses, types of businesses, positions, dates of employment and monthly income).

Do you offer different types of mortgages such as adjustable-rate loans (ARMs) and fixed-rate loans?

Will mortgage insurance be required for loans other than FHA or VA mortgages?

What reserves, such as those for property taxes or hazard insurance, are required?

What fees will be charged at closing, including such things as points, loan origination, abstracts, attorney’s fees,

appraisals, termite inspection reports or credit reports?

The number and variety of financing options can seem overwhelming at first, but most fit in one of these main

categories: 

Conventional financing: Conventional mortgages are labeled as such to differentiate them from governmentbacked

loans, such as FHA or VA loans. 

ARMs:  The interest rate on an adjustable-rate mortgage changes throughout the term to stay current with

present interest rates. ARMs are most popular when rates are relatively high and appear to be dropping and when

the difference between the ARM and fixed-rate is greater than 2 to 3 percent.

Standard fixed-rate mortgages: This traditional mortgage option is a loan with a constant interest rate and level

and equal payments during a set period of time. These loans are predictable and particularly suited to

people with steady incomes. These mortgages are most competitive against the adjustable-rate mortgage when

their rates are less than 1.5 percentage points apart.

For detailed information on these and other mortgage options, ask your GMAC Real Estate sales professional for a free

 copy of “Ways to Finance Your Next Home.” Farmers Home Administration (FmHA) loans: The government makes

 these loans available to persons of moderate to very low income in rural or nonmetropolitan  areas.

FHA-insured loans:  The Federal Housing Authority will insure a mortgage on a new or existing single-family house

 for up to 97 percent of the property value. Down payments on FHA-mortgages are low, and the loans are assumable.

VA-guaranteed loans: The Veterans Administration guarantees lenders against loss if a property is foreclosed

due to default. These loans are available to eligible veterans and may be used to buy, refinance, construct or

repair a house.

Within three days after you apply for your loan, your lender should issue you a good faith estimate that spells out the

fees to be charged at closing. Among them: 

Fee charges: These charges cover the fee professional with the title/abstract search and recording, as well as

transfer charges.

Loan fees: An origination fee is a percentage of the loan that covers the lender’s administrative costs. The loan

discount (or points) is extra interest paid to the lender to make up the difference between market interest and the interest

of the loan.

Other charges: These may include the costs of a survey, appraisal or inspection, as well as any additional

lender’s charges. Other fees and commissions, such as for document preparation, notary service and others,

are paid at this time.

Take a final walk-through of the property just before closing to see that everything is as it should be. If there are

any problems or unresolved issues, take care of them before closing. Sign the note promising to repay the

loan and mortgage, with the house as your security for the note. Sign the other papers fulfilling

governmental regulations and transaction information. Look carefully over the numbers in the

closing or settlement statement — the last one to appear — before signing.

Considering the quantity and value of your possessions, as well as the type of place you’re moving from and to, you

must decide the best method to move:

Professional movers: First, ask for estimates from several companies, and base your decision on the costs and

reputation of the mover.

Moving yourself: You can probably cut your moving bill in half if you pack your possessions and move them in a

 rented truck, but the amount of work and worry will increase. Plus, you’ll want to review your homeowner’s insurance

 policy to see if it covers your possessions during a move.

Finding a house is one thing, but making it your home is another. Consider these ideas to make your home comfortable,

 welcoming and yours right from the start: Set up one room in your home immediately after moving. Keep all

boxes and clutter out of it; arrange familiar furniture and items. Use this room as a haven as you tackle the

entire house. If you have children, set up their rooms right away to give them a feeling of being home.

If necessary, give walls a fresh coat of paint before unpacking items. Use curtains or throw pillows to adapt your

furnishings to an existing color scheme. Draw up a floor plan to help you decide where to put furniture before

you lug it around. Create a focal point in each room by drawing attention to an architectural

feature — add artwork above the mantel or use an unusual drapery treatment on a window with a view.

The relationship you’ve forged with your GMAC Real Estate sales professional doesn’t end when the sale

is over. Feel free to contact him or her with any questions you might have even after you’re settled. And, don’t

forget to call when you’re ready to make another move.

Our approach is to simplify the process of homeownership and provide you with all the services needed to do it.

• Exclusive real estate services bring you more value and expertise.

• Global relocation services move you to any destination.

• Trusted financial services add one-stop convenience.

For more information call Conroy GMAC Real Estate 816-671-1500