BUYER GUIDE
CONTENTS
Meet Your Agent About Your Agent
Let's Find Your Dream Home!
The Home Buying Process
Preparing to Buy
But First Get Pre-Approved! Pre-Qualified vs Pre-Approved Which Loan is Right for You? Questions to Ask Lenders
Home Loan Application Checklist Finding Your Dream Home
House Wants & Needs List
House Hunting Tips
Making an Offer Negotiations
Under Contract & In Escrow What Not to Do Final Steps Before Closing
Homeowners Insurance
Title Insurance
Cleared to Close
Closing Day
Success Stories
MEET YOUR REALTOR
Cheryl D. Sabin Broker, Realtor®,CLHMS™,CRS, GRI, ABR, CPRES, Equestrian Property Specialist United Real Estate Louisville
Cell: 502-758-4048 Email: cherylsabin@msn.com Website: homesinlouisvillearea.com Facebook: https://www.facebook.com/kyhomesforsale/
Honesty & Integrity Loyalty & Respect Responsive & Timely Expert Guidance WHAT YOU CAN EXPECT FROM ME
ABOUT ME
With over 13 years of experience as a licensed Realtor, I am deeply passionate about real estate, serving both buyers and sellers in the Louisville area and Southern Indiana. I take great pride in delivering personalized service to my clients, understanding their unique needs, and orchestrating targeted searches for buyers that encompass both listed options and off-market properties aligning with their criteria. Guiding first-time homebuyers through the entire process is one of my strengths. For sellers, I craft specialized marketing plans to ensure we connect with the right audience for their specific property. Beyond real estate, my leisure time is dedicated to my four-legged companions—Dakota and Sasha (horses), Sassy (barn cat), and Smiling Sammy (beautiful lab). Additionally, I contribute to the community as a board member of Oldham County Tourism and own a charming Bed and Breakfast in La Grange, KY.
cher REALTOR®
Let's Connect
502-758-4048
https://cherylsabin.com
cherylsabin@msn.com
101 Bullitt Ln Ste 110, Louisville, KY 40222
YOU CAN ALSO FIND ME ON
LET'S FIND YOUR DREAM HOME!
I am here to guide you through the process, every step of the way.
THE HOME BUYING PROCESS
MEET WITH YOUR AGENT
GET PRE-APPROVED
FIND YOUR HOME
MAKE AN OFFER
ORDER INSPECTION & APPRAISAL
PREPARE FOR CLOSING
GET YOUR KEYS!
PREPARING TO BUY
HOW MUCH YOU CAN SPEND Determine FOR A DOWN PAYMENT Save YOUR CREDIT Check FOR A HOME LOAN Get Pre-Approved
BUT FIRST, GET PRE-APPROVED! House shopping is an exciting time! GET PRE-APPROVED FOR A LOAN FIRST SO YOU CAN BE READY TO MAKE AN OFFER WHEN YOU FIND A HOME THAT YOU LOVE.
PRE-QUALIFIED VS PRE-APPROVED What's the difference... BETWEEN BEING PRE-QUALIFIED AND PRE-APPROVED? PRE-QUALIFIED In order to be pre-qualified, a lender may or may not check your credit score and won't require documentation, only going off what you tell them. This will give you an idea of what you could qualify for, but when you're serious about buying, you'll need to get pre-approved.
PRE-APPROVED
To be pre-approved, the lender will pull your credit and ask you for documentation to verify your finances. Before making an offer on a house, it is best to get pre- approved to show sellers your offer is serious and that a lender has already approved you for enough money to purchase the home.
WHICH LOAN IS RIGHT FOR YOU?
The Conventional loan is the most common type of home loan and is offered through private lenders. CONVENTIONAL LOAN An FHA loan is designed for those with high debt-to-income ratios and low credit scores, and most commonly issued to first-time homebuyers. This loan is offered by FHA-approved lenders only and is backed by the Federal Housing Administration. FHA LOAN The VA loan is designated for veterans, spouses, and reservists. This loan is offered through private lenders and guaranteed by the U.S. Department of Veteran Affairs. VA LOAN The USDA loan is for homebuyers in designated rural areas and is backed by the U.S. Department of Agriculture. USDA LOAN
DOWN PAYMENT
MORTGAGE INSURANCE
MINIMUM CREDIT SCORE
TYPE OF LOAN
TERMS
On down payments under 20%
CONVENTIONAL
3 - 20%
15-30 Years
620
For 11 years or life of the loan
FHA
3.5 - 20%
15-30 Years
500
VA
None
15-30 Years
None
640
USDA
None
15-30 Years
None
640
QUESTIONS TO ASK WHEN CHOOSING A LENDER
Interviewing Lenders...
IS AN IMPORTANT STEP IN DETERMINING WHAT TYPE OF HOME LOAN IS BEST FOR YOU. Not all lenders are the same, and the type of loans available, interest rates, and fees can vary. Here are some questions to consider when interviewing lenders:
Which types of home loans do you offer?
What will my interest and annual percentage rates be?
Do I qualify for any special programs or discounts? What estimated closing costs can I expect to pay? What is your average loan processing time?
HOME LOAN APPLICATION DOCUMENTS CHECKLIST
To determine loan eligibility...
LENDERS TYPICALLY REQUIRE THE FOLLOWING TYPES OF DOCUMENTS FROM EACH APPLICANT
INCOME
Federal tax returns: last 2 years
W-2s: last 2 years Pay stubs: last 2 months
Any additional income documentation: pension, retirement, child support, Social Security/disability income award letters, etc
ASSETS
Bank statements: 2 most recent checking and savings account statements
401(k) or retirement account statement and summary
Other assets: statements and summaries of IRAs, stocks, bonds, etc.
OTHER
Copy of driver's license or ID and Social Security card
Addresses for the past 2-5 years and landlord's contact info if applicable Student loan statements: showing current and future payment amounts Documents relating to any of the following if applicable: divorce, bankruptcy, collections, judgements or pending lawsuits
FINDING YOUR DREAM HOME
Create a list of what you want... IN YOUR NEW HOME AND INCLUDE MUST-HAVES AS WELL AS WHAT YOU WOULD LIKE TO HAVE BUT AREN'T NECESSARILY DEAL BREAKERS.
HOUSE WANTS & NEEDS LIST
Determine the Features...
YOU ARE LOOKING FOR IN YOUR IDEAL HOME AND PRIORITIZE WHICH ITEMS ARE MOST IMPORTANT TO YOU.
No house is perfect, but this will help us find the best match for you.
TYPE OF HOME:
Single Family Home
Townhouse
Condo
CONDITION OF HOME:
Move-In Ready
Some Work Needed is OK
Fixer Upper
DESIRED FEATURES:
(Circle)
Small or Large Yard
____ Bedrooms
____ Bathrooms ____ Car Garage
Ideal Square Footage: Desired Location/Neighborhood/School District:
MUST HAVE
WOULD LIKE TO HAVE
HOUSE HUNTING TIPS
INVESTIGATE THE AREA When looking for a home...
Drive around neighborhoods that interest you to get a feel of the area, how the homes are cared for, what traffic is like, etc.
ASK AROUND
Talk to family, friends and co-workers to see if anyone might know of a house for sale in an area you're interested in. One of them may even know of someone that's thinking about selling but hasn't put the house on the market yet.
Finding your dream home isn't always an easy task! Have a priorities list but keep an open mind when viewing houses. KEEP AN OPEN MIND
TAKE PICTURES & NOTES
When you visit multiple houses it gets difficult to remember specific details about each one. Take photos and notes while touring houses so that you can reference them later when comparing the properties that you've seen.
BE READY TO MAKE AN OFFER
When you find a home you want to buy, keep in mind there may be others interested in it as well. Be ready to make a solid offer quickly in order to have the best chance at getting that home.
MAKING AN OFFER
When we have found a home...
THAT YOU'RE INTERESTED IN BUYING, WE WILL QUICKLY AND STRATEGICALLY PLACE AN OFFER.
There are several factors to consider that can make your offer more enticing than other offers:
Current market conditions Comparable properties recently sold in the area PUT IN A COMPETITIVE OFFER We will decide on a reasonable offer price based on:
The property value of the house The current condition of the house
PUT DOWN A LARGER DEPOSIT An offer that includes a larger earnest money deposit presents a more serious and competitive offer. PAY IN CASH VS. LOAN Paying in cash versus taking out a loan offers a faster closing timeline and less chances of issues arising, making it more appealing to sellers.
OFFER A SHORTER CLOSING TIMELINE
An offer with a shorter timeframe for closing is generally more attractive to sellers over one with an extended time period with a house sale contingency. A typical closing timeframe is 30-45 days.
NEGOTIATIONS
YOUR OFFER, OR COME BACK WITH A COUNTER OFFER. A seller can accept or decline... If they send you a counter offer, be prepared to negotiate to come up with reasonable terms for both parties. This process can go back and forth until an agreement is made.
UNDER CONTRACT & IN ESCROW
Once you and the seller...
have agreed on terms, a sales agreement is signed and the house is officially under contract and in escrow. Here are the steps that follow:
SCHEDULE A HOME INSPECTION Home inspections are optional but highly recommended to make sure that the home is in the condition for which it appears. Inspections are typically completed within 10-14 days after signing the sales agreement. the money for the duration of the escrow period. They will manage all the funds and documents required for closing, and your deposit will go towards your down payment which is paid at closing. PUT YOUR DEPOSIT INTO AN ESCROW ACCOUNT Your earnest money deposit will be put into an escrow account that is managed by a neutral third party (typically a title company or bank) who holds
RENEGOTIATE IF NECESSARY
The home inspection will tell you if there are any dangerous or costly defects in the home that need to be addressed. You can then choose to either back out of the deal completely, ask for the seller to make repairs, or negotiate a lower price and handle the repairs yourself.
COMPLETE YOUR MORTGAGE APPLICATION
Once you've come to an agreement on the final offer, it's time to finalize your loan application and lock in your interest rate if you haven't done so already. You may need to provide additional documentation to your lender upon request. YOUR LOAN OFFICER ORDERS AN APPRAISAL An appraisal will be required by your lender to confirm that the home is indeed worth the loan amount. The appraisal takes into account factors such as similar property values, the home's age, location, size and condition to determine the current value of the property.
WHAT NOT TO DO
DURING THE HOME BUYING PROCESS
It's Extremely Important...
NOT TO DO ANY OF THE FOLLOWING UNTIL AFTER THE HOME BUYING PROCESS IS COMPLETE:
BUY OR LEASE A CAR CHANGE JOBS
MISS A BILL PAYMENT OPEN A LINE OF CREDIT MOVE MONEY AROUND MAKE A MAJOR PURCHASE
Any of these types of changes could jeopardize your loan approval. It's standard procedure for lenders to also do a final credit check before closing.
FINAL STEPS BEFORE CLOSING
INSURANCE REQUIREMENTS Most lenders require both homeowner's insurance and title insurance. See following pages for more detailed information on each of these. CLOSING DISCLOSURE At least 3 days before closing, lenders are required to provide you with a Closing Disclosure with your final loan terms and closing costs for you to review. Closing costs for the buyer typically range from 2-5% of the purchase price, which can include lender fees, lender's title insurance, and HOA dues if applicable. Within 24 hours of closing we will do a final walk through of the home before signing the final paperwork. This last step is to verify that no damage has been done to the property since the inspection, that any agreed upon repairs have been completed, and that nothing from the purchase agreement has been removed from the home. FINAL WALK THROUGH Next Step - Closing!
HOMEOWNERS INSURANCE
Homeowners insurance protects your home and possessions against damage and theft and is required by lenders before finalizing your loan. Policies vary and are completely customizable, so it's recommended to get quotes from multiple companies to compare price, coverage and limits. WHY DO YOU NEED HOMEOWNERS INSURANCE? Homeowners insurance typically covers destruction and damage to the interior and exterior of a home due to things like fire, hurricanes, lightning, or vandalism. It also covers loss or theft of possessions, and personal liability for harm to others. WHAT DOES THIS INSURANCE COVER?
Most policies do not cover flood or earthquake damage, and you may need to purchase an additional policy for this type of coverage. WHAT DOESN'T IT COVER?
Many insurance companies offer discounts to seniors, and also to customers who have multiple policies with them, like auto or health insurance. Having a security system, smoke alarms and carbon monoxide detectors can also lower annual premium rates. When getting quotes, be sure to ask each company about their discounts and cost savings options. HOW CAN YOU QUALIFY FOR DISCOUNTS? Rates are mostly determined by the insurer's risk that you will file a claim. The risk is based on your personal history of claims, frequency and severity of claims, past history of claims on the home, as well as the neighborhood statistics and the home's condition. WHAT ARE POLICY RATES BASED ON?
TITLE INSURANCE
WHAT IS TITLE INSURANCE?
Title insurance protects the lender and/or homeowner from financial loss against claims regarding the legal ownership of a home.
While most lenders require a title search, the title insurance ensures that if anything is missed during the search, those insured will be protected if any legal issues arise. IS A TITLE SEARCH SUFFICIENT? There are two types of title insurance: one for lenders and another for homeowners. Lender's title insurance is required by lenders but it does not cover you. A separate homeowners policy is needed to protect yourself from a claim on your home, and from being held financially responsible for possible unpaid property taxes from previous owners. HOW DOES TITLE INSURANCE COVERAGE WORK? Title insurance is a one-time fee that is paid at closing, which costs between $500-$3,500 depending on the state, insurance provider and the purchase price of the home. Some companies will offer a discount if you bundle the lender's and owner's policies, but typically the buyer purchases the lender's policy and the seller pays for the owner's policy. HOW MUCH DOES TITLE INSURANCE COST?
CLEARED TO CLOSE
Closing is the final step... of the buying process. On the day of closing, both parties sign documents, funds are dispersed, and property ownership is formally transferred from the seller to the buyer.
CLOSING DAY
On the day of closing you'll be going over and signing the final paperwork, and submitting a cashier's check (or previously arranged wire transfer) to pay the remaining down payment and closing costs. Congratulations, You Made it to Closing!
ITEMS TO BRING TO CLOSING: Government Issued Photo ID
Homeowner's Insurance Certificate Certified Funds or Cashier's Check Final Purchase Agreement
Enjoy Your New Home!
SUCCESS STORIES
“Cheryl Sabin took her time and helped us pick the perfect house. We had many last minute appointments to look at houses that Cheryl made work with her schedule. If you want a realtor who is NOT pushy and all about the money, Who wants you to have the perfect home contact Cheryl Sabin for your Real estate needs. “ - Deanna Hornback
“Never met a better agent. She truly cares about what her clients needs are. Her vast corporate experience and equestrian lifestyle makes her the perfect choice for finding your dream home or horse property!” - Carol Block
“Thorough and dedicated!”
- Sue and Ron Machin
Buy with Confidence
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