Capital Realty Group River Region, LLC
Your Preferred Central Alabama Neighbor REALTORS®
Professional Real Estate Serving Montgomery, Maxwell AFB, Gunter AFB, Prattville, Millbrook, Wetumpka,
Tallassee, Deatsville, Hope Hull, Pike Road, Eclectic, and surrounding areas in the River Region
Buying a home can be one of the most exciting times of your life... OR the most stressful!
That's why more and more home buyers in the central and Montgomery Alabama areas are looking to
Capitol Realty Group to find the right real estate agent to meet their needs.
Our agents know the ropes, so you can take advantage of our Montgomery and surrounding areas real estate market knowledge, powerful negotiating skills and objective advice.
Best of all, there is No Cost To You. We will seek to have our commission paid for by the seller.
There's a lot that goes into buying a home, but we pride ourselves on doing everything we can to make the home buying process easier for you.
In the column to your right, are links to various home buying articles and resources for your convenience and use as you gain more information about the home buying process. Helping you to become a well informed home buyer and understanding the home buying process can help relieve some of the stress related to buying a home. We hope that you find our home buying tools useful and please do not hesitate to contact us with any questions you may have, or with any advice you can give to us to make this resource more helpful and useful for you.
Home Buying Process
There's alot that goes into buying a home.
Here is a basic overview of the home buying process:
1. Find a professional, knowledgable and experienced real estate agent who is
duty bound to protect your interests. (We have several to choose from)
2. Pre-qualify with a mortgage comany to find the right mortgage program
for your needs (this saves you time and gives you negotiating power with sellers)
3. Research neighborhoods, schools, or other community features of interest
and locate available homes on the market for sale.
(your real estate agent can help save you alot of time and money with this process)
4. Identify a home and submit an offer to purchase to a seller
5. Once an offer to purchase has become a contract, it is highly recommended to get a professional home inspection done on your behalf.
(There will be costs involved, generally $300 to $400 but well worth the investment)
A mortgage company may also require an appraisal, a pest inspection, a survey and a septic inspection or flood certification if applicable. Check with your real estate agent to make sure any inspections needed are identified and included in the offer to purchase.
6. Closing - This is a final step to execute the finalized contract. All interested parties come together to verify that the conditions of the contract have been met and satisfied and the final transfer of the home and property change possesion from the seller to the buyer.
You can count on Capitol Realty Group to work with you to protect your interests while making the home buying process easy.
You can count on us for:
1. A detailed real estate analysis to help you determine an appropriate purchase price.
2. Help understanding information that may affect your decisions, such as a seller's disclosure, inspection results and other conditions we may discover about your purchase.
3. Professional negotiation that will help you attain the best possible price as well as attractive terms.
4. Recommendations on inspectors, attorneys, mortgage brokers and lenders if needed. We draw from professionals who have earned consistantly high marks from our past real estate customers.
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Annual Percentage Rate (APR)
A helpful tool often used to compare loans among different lenders is the Annual Percentage Rate (APR). The Federal Truth in Lending law requires mortgage companies to disclose the APR in a "Good Faith Estimate" each time they advertise a rate. The APR is designed to standardize the representation of interest rates and convey the true cost of the loan to the borrower, expressed in the form of a yearly rate. The purpose is to prevent lenders from hiding fees and other upfront costs behind low advertised interest rates. One confusing aspect of the APR is that calculation is dependent upon the length of the loan period, and therefore cannot be used to compare loans that have different durations (i.e. 30-year vs. 20-year). For this reason, APRs should only be used to compare similar products, and not loans that have different time-periods associated with their payments. The APR does have many shortcomings, mostly tied to the fact that APR calculations are quite complex and vary among different lenders. This means that two lenders with identical information may still calculate two different APRs. Lenders have some discretion when choosing which fees will be included in the calculation of an APR, so different figures may be produced by different companies. In addition, the APR model is flawed in that when a product is variable and tied to a market index, the index is assumed to never change for the purposes of calculation. This is an erroneous assumption that can produce APR figures that are not comparable between different lending sources. The APR also won't tell you anything about balloon payments, pre-payment penalties, or how long your rate is locked in for. You can use APRs as a general guideline to shop for loans, but you should not depend solely on the APR to choose which loan is best for your needs.
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- 35% - Previous credit performance (specific to your payment history)
- 30% - Current level of indebtedness (current balance compared to high credit)
- 15% - Time credit has been in use (opening date)
- 15% - Types of credit available (installment loans, revolving and debit accounts)
- 5% - Pursuit of new credit (number of inquiries)
The most important factor for a good credit score is paying your bills on time. Even if the debt you owe is a small amount, it is crucial that you make payments on time. In addition, you may want to keep balances low on credit cards and other "revolving credit;" apply for and open new credit accounts only as needed; and pay off debt rather than moving it around. Also don't close unused cards as a short term strategy to raise your score. Owing the same amount but having fewer open accounts may lower your score.
Recent changes minimize the negative effects that rate shopping can have on a mortgage applicant. If there is a consumer originated inquiry within the past 365 days from mortgage or auto related industries, these inquiries are ignored for scoring purposes for the first 30 calendar days; then, multiple inquiries within the next 14 days are counted as one. Each inquiry will still appear on the credit report.
Every score is accompanied by a maximum of four reason codes. Reason codes identify the most significant reason that you did not score higher. The reason codes can help a lender describe the reasons for higher than expected rates or loan denial. Scores are not part of the credit profile and are not covered by the Fair Credit Reporting Act.
Your credit report must contain at least one account which has been open for six months or greater, and at least one account that has been updated in the past six months for you to get a credit score. This ensures that there is enough information in your report to generate an accurate score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.
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10 Ways to Prepare for Homeownership
1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop your home wish list. Then, prioritize the features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
7. Get pre-approved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.
We look forward to working with you.
Remember, at Capitol Realty Group River Region, when it comes to us, it’s all about YOU!
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Take the Stress Out of Home buying
Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.
3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.
4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.
9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.
We look forward to working with you.
Remember, at Capitol Realty Group River Region, when it comes to us, it’s all about YOU!
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Moving Checklist
Provide the post office with your forwarding address two to four weeks ahead of the move.
Notify your credit card companies, magazine subscriptions, and bank of your change of address.
Create a list of friends, relatives, and business colleagues who need to be notified about your move.
Arrange to disconnect utilities and have them connected at your new home.
Cancel the newspaper, or change the address so it will arrive at your new home.
Check insurance coverage for the items you’re moving. Usually movers only cover what they pack.
Clean out appliances and prepare them for moving, if applicable.
Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.
Check with your condo or co-op about any restrictions on using the elevator or particular exits for moving.
Have a “first open” box with the things you’ll need most, such as toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.
Plus, if you’re moving out of town, be sure to:
Get copies of medical and dental records and prescriptions for your family and your pets.
Get copies of children’s school records for transfer.
Ask friends for introductions to anyone they know in your new neighborhood.
Consider special car needs for pets when traveling.
Let a friend or relative know your route.
Empty your safety deposit box.
Put plants in boxes with holes for air circulation if you’re moving in cold weather.
We look forward to working with you. FIRST-TIME HOMEBUYER TAX CREDIT As Modified in the American Recovery and Reinvestment Act
Remember, at Capitol Realty Group River Region, when it comes to us, it’s all about YOU!
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Major Modifications Italicized
|
February 2009 FEATURE |
CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 |
REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
|
Amount of Credit |
Lesser of 10 percent of cost of home or $7500 |
Maximum credit amount increased to $8000 |
|
Eligible Property |
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. |
No change All principal residences eligible. |
|
Refundable |
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. |
No change Purchasers will continue to receive refund for unused amount when tax return is filed. |
|
Income Limit |
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). |
No change Same income limits continue to apply. |
|
First-time Homebuyer Only |
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. |
No change Still available for first-time purchasers only. Three-year rule continues to apply. |
|
Revenue Bond Financing |
No credit allowed if home financed with state/local bond funding. |
Purchasers who utilize revenue bond financing can use credit. |
|
Repayment |
Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. |
No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
|
Recapture |
If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. |
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
|
Termination |
July 1, 2009 (But note program changes for 2009) |
December 1, 2009 |
|
Effective Date |
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. |
All revisions are effective as of January 1, 2009 |
Capitol Realty Group River Region L.L.C.
6739 Taylor Circle
Montgomery, Alabama 36117
Office (334) 356-8045
Fax (334) 356-8047
The Preferred Choice!
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