Laura Buyers Guide JP

Laura Swearingen
Buyer’s Specialist

817-233-1766

Buyer’s Guide

Solid Service . Solid Results.

WHY YOU NEED A REALTOR?

A LICENSED REAL ESTATE PROFESSIONAL -

Does much more than help you find your ideal home. Realtors are expert negotiators with
other agents, seasoned financial advisors with clients, and superb navigators around the
local neighborhood. They are members of the National Association of Realtors (NAR) and
must abide by a Code of Ethics and Standards of Practice enforced by the NAR.

A professional Realtor is your best resource when buying your home.

LET A REALTOR GUIDE YOU -

A knowledgeable Realtor saves you endless amounts of time, money, and frustration.

A knowledgeable Realtor knows the housing market inside and out and can help you avoid
a "wild goose chase."

A knowledgeable Realtor can help you with any home, even if it is listed elsewhere or if it is
being sold directly by the owner.

A knowledgeable Realtor brings objectivity to the buying transaction, and can point out the
advantages and the disadvantages of a particular property.

A knowledgeable Realtor knows the best lenders in the area and can help you understand
the importance of being pre-qualified for a mortgage. Realtors can also discuss down pay-
ments, closing costs, and monthly payment options that suit you.

A knowledgeable Realtor is an excellent source for both general and specific information
about the community such as schools, churches, shopping, and transportation, plus tips on
home inspections and pricing.

A knowledgeable Realtor is experienced at presenting your offer to the homeowner and can
help you through the process of negotiating the best price.

UNDERSTANDING AGENCIES

Single Agency

SELLER AGENCY BUYER AGENCY

· Agent will represent the best interests · Agent will represent the best interests
of the seller Agent will owe the seller of the buyer.
fiduciary duties.

· Agent must give the buyer all materi- · Agent will owe the buyer fiduciary du-
al facts so that the buyer can make an ties.
educated decision. · Agent must give the seller all material
facts so that the seller can make an edu-
cated decision.

UNDERSTANDING OUR AGENCY

Enlisting the services of a professional buyer's agent is similar to using an accountant to
help you with your taxes, a doctor to help you with your health care, or a mechanic to help
you with your car. Allow The Laura Swearingen Team to help you in their specific areas of
expertise.

YOUR INTERESTS ARE PROFESSIONALLY REPRESENTED - A professional Realtor

will take care of the hassles of everyday real estate transactions for you. You concentrate on
your full-time job, while the realtor does their job. Guiding you through the home-buying pro-
cess and exclusively represents your interests as we help you find a home, present your
contract offer, negotiate, and close on your home.

A PERSONAL SPECIALIST WHO KNOWS YOUR NEEDS - We know your real estate

needs and concerns. This relationship is built through open communication at all times. We
will save you time by providing you all the details about any home before you see it & listen
to your feedback and concerns about each home.

QUICKLY & CONVENIENTLY FIND A GREAT HOME - It is nearly impossible to find a

home that meets your needs, get a contract negotiated & close the transaction without an
experienced agent. No need to spend endless evenings and weekends driving around look-
ing for homes or trying to search the internet by yourself. When you tour homes with us, you
will already know that the homes meet your criteria & are within your price range.

5 REASONS TO SIGN

A BUYER REPRESENTATION AGREEMENT

If you’ve started looking for a home — and a
real estate professional to assist you — your
buyer’s representative may ask you to sign a
Buyer Representation Agreement. What is this
form? Why should you sign it?

Buying A Home

What Your Buyer’s Agent Does for You!

Help arrange financing.

1. Assist in locating sources of mortgage loans.
2. Help you examine how much you can afford and how much you want to spend.
3. Assist in comparing different financing options.
4. Provide information on purchasing incentives that may be available.
5. Educate and discuss the difference between being prequalified and preapproved for a

mortgage.

Assist in finding the right property.

6. Identify your needs and wants in a property.
7. Find appropriate available properties.
8. Set up an automated e-mail alert system that immediately notifies you of proper-
ties that

fit your requirements.
9. Sort through inaccurate information about homes in the area
10. Provide ready access to all MLS—listed properties.
11. Network with other agents for properties not yet in the MLS.
12. Preview properties prior to showing.
13. Help select for viewing only those homes that fit your needs.
14. Aid in narrowing your search until you have identified your top choices.
15. Assist in analyzing the pros and cons of each property.
16. Disclose all known latent material defects.
17. Assist you in evaluating properties for suitability.

Educate you on market conditions.

18. Educate you on whether it is a buyer’s market or a seller’s market.
19. Show statistics on what percent of list price the sellers are currently receiving.

What Your Buyer’s Agent Does For You—continued

20. Show trends, current average days on market, current absorption rate, and/or current
months of inventory.

21. Prepare a CMA so that you make an informed decision when offering a price
22. Advise you on what comparable properties are selling for.
23. Explain common contract contingencies.
24. Obtain appropriate seller disclosures.
25. Prioritize your goals.
26. Help create a negotiating strategy to achieve those goals.
27. Ensure that you receive and understand all state and federally required disclosure forms.
28. Handle the completion of the offer to purchase or sales contract.
29. Educate you on the contents of the sales contract.
30. Ensure that all appropriate additional forms are completed.
31.Assist you in getting the best property at the best price with the least amount of inconven-
ience

based on current market conditions.
32. Prepare you for multiple offer situations and develop negotiation strategies specific to

multiple offers.

Get you to closing and serve as your trusted real estate
resource.

33. Recommend inspectors, lenders, attorneys, and other professionals as necessary.
34. Be an advocate and advisor during the closing process.
35. Review and discuss home inspection concerns.
36. Monitor and communicate required contract deadlines to ensure that you meet them.
37. Assist in coordinating communications between the listing agent, lender, attorneys,

title company, appraiser, and other professionals.
38. Accompany you on the walk-through prior to closing to ensure the property is in the

same condition as when you entered into the contract.
39. Remain a life-long trusted advisor regarding real estate questions, needs, or concerns.

THE SWEARINGEN PLEDGE

I pledge to:
Assist in prequalification process

Help shop lenders for good rates and reliable service
Ensure the lender provides you with a Good Faith Estimate

Establish your needs and wants
Explain representation including Intermediary
Give my professional advice throughout the process
Set up a saved search for you on Multiple Listing Service. (MLS)

Show you homes that fit your needs
Schedule all showings through Central Showing Service

Provide you a list of property inspectors
Prepare the offer using TREC promulgated forms

Prepare the necessary contract addenda
Inform you about methods of cost savings, i.e. survey
Prepare a market evaluation on the property of your choice

Negotiate the contract with you and give my advice
Assist you in negotiating repairs

Prepare any contract amendments necessary
Make sure all important timelines are met
Explain contingencies if needed

Communicate with all parties throughout the transaction
Schedule the closing

Review HUD-1 Settlement Statement prior to closing to ensure accuracy
Attend the closing with you

Make a donation in your behalf to Children’s Miracle Network

My goal is to be a competent, reliable, knowledgeable professional sales associate
who looks out for your best interest to assure a smooth, successful transaction.

Laura Swearingen—Broker Ken Swearingen—Marketing Barbara Head—Transactions

- The Laura Swearingen Team

REASONS TO BUY A HOME

1. Quality of Life
2. Tax Deductibility of Mortgage Interest
3. Tax Deductibility of Property Taxes
4. Appreciation Potential
5. Build Equity
6. Pride in Your Home
7. No Landlord
8. Leverage (where else can you buy this size of an investment with s-10% down)
9. The Real Cost of Renting (At $700 per month, with a 6% rental increase per year,

you will pay $110,719 over a 10 year period.)



WHAT EVERY HOME BUYER SHOULD KNOW

1. Property taxes and qualified interest are deductible on an individual's federal
income tax return.

2. Often, a home is the largest asset an individual has and is considered one
of the most valuable investments available.

3. A portion of each amortized mortgage payment goes to principal which is an
investment.

4. A home is one of the few investments that you can enjoy by living in it.
5. A Realtor can usually show you any home whether it is listed with a company,

a builder, or even a For Sale by Owner home.
6. Working through a Realtor to purchase a For Sale by Owner home can be

very advantageous be- cause someone is looking out for your best interest.
7. Your Real Estate professional can provide you with a list of items you will need

to complete your loan application so you'll be prepared.
8. A homeowner can also exclude capital gain tax if married and filing jointly or if

single or filing separately. The home must have been the taxpayer's principal
residence for the previous two years.
9. Beginning with May 07, 1997, there is no longer a requirement to purchase
another home more ex-pensive than the one sold. Homeowners are free to
buy up or down with no tax consequences assuming their gain is less than the
allowable amounts.
10. Ask your Real Estate professional whom he/she is representing in the trans-
action.
11. Ask your Real Estate professional what he/she will do to keep you informed.
12. Your Real Estate professional should provide you with the highest level of
service and advice.

LOAN APPLICATION CHECKLIST

Past two (2) years W-2 statements

Pay Stubs covering the last (30) thirty days
Three most recent monthly bank statements
Most recent transaction summary of 401K, IRA, or Mutual Fund Accounts
Photocopies of any stocks or certificates of deposits
Copy of the purchase and sale agreement
If you are currently renting, either 12 months canceled rent checks or the name
and address of your current landlord
If divorced, a fully executed divorce decree
A letter of explanation for any known credit problems
For a refinance, a copy of the deed and most recent tax bill

WHAT NOT TO DO

When applying for a Real Estate Loan

1. Do not change jobs, become self-employed or quit your job.
2. Do not buy a car, truck or van (or you may be living in it)!
3. Do not use charge cards excessively or let your accounts fall behind.
4. Do not spend money you have set aside for closing.
5. Do not omit debts or liabilities from your loan application.
6. Do not buy furniture.
7. Do not originate any inquiries into your credit.
8. Do not make large deposits without first checking with your loan officer.
9. Do not change bank accounts.
10. Do not co-sign a loan for anyone .

WORKING WITH HOME BUILDERS

GET YOUR AGENT FIRST!

WHY USE AN AGENT TO PURCHASE A NEW HOME?

The advantages of having an agent help you purchase a new home are the same as those for
purchasing a resale home.
 Knowledge of the market
 Help in finding the perfect home quickly
 Expertise in contract writing/negotiation
 Closing assistance
The builder has a professional representative watching out for his/her needs, and you need the
same expert representation.
Buying a new home is a little more difficult and time-consuming than buying a resale. A Buyers
Agent can professionally guide you through this process.
It is very important that your interests be professionally represented when you are entering into
a con- tract for a semi-custom or build-to-suit home. These transactions are complex and the
contract details must be exact in order to protect you and to ensure you get exactly the home
you want!

GET YOUR AGENT FIRST!
Remember - the builder requires that your Agent accompany you on your first visit

to the builder's sales office, or they will NOT PAY your representative’s fee!

HOME INSPECTION

When purchasing a resale property, we highly recommend that you have a
professional home inspection. An inspection will include the following:
Appliances
Plumbing
Electrical
Air conditioning and heating
Ventilation
Roof and Attic
Foundation
General Structure

Keep In Mind

The inspection is not designed to criticize every minor problem or defect in the home. It is in-
tended to report on major damage or serious problems that require repair. Should serious

problems be indicated, the inspector will recommend that a structural engineer or some other
professional inspect it as well.

Your home cannot pass or fail an inspection, and your inspector will not tell you whether he/
she thinks the home is worth the money you are offering. The inspector's job is to make you

aware of repairs that are recommended or necessary.

The seller may be willing to negotiate completion of repairs or a credit for completion of re-
pairs, or you may decide that the home will take too much work and money. A professional
inspection will help you make a clear-headed decision. In addition to the overall inspection,
you may wish to have separate tests conducted for termites or the presence of radon gas.

In choosing a home inspector, consider one that has been certified as a qualified and experi-
enced member by a trade association.

We recommend being present at the inspection. This is to your advantage. You will be able to
clearly understand the inspection report, and know exactly which areas need attention. Plus,

you can get answers to many questions, tips for maintenance, and a lot of general infor-
mation that will help you once you move into your new home. Most important, you will see the

home through the eyes of an objective third party.

MOVING CHECKLIST

2 MONTHS OUT

Declutter:
Sort belongings, then have a garage sale or make donations.
Moving Yourself or Hire Professional:
Make reservations for movers or rental truck.
Get Supplies:
Boxes, tape, markers, scissors and other packing materials.
Make Travel Plans:
Moving far?: Arrange airfare, car rental, hotel, pet care, plan travel route, etc.
Save Moving Receipts:
Some moving expenses are tax deductible. Check current tax code.
Gather, Back-up & Store:
Legal, medical, finance, insurance records & computer files in accessible location.

1 MONTH OUT

Send to Cleaners:
Clothes, beddings, rugs, etc.
Car Tune-up:
If you’re driving long distances
Start Packing:
Items that aren't regularly used ( off-season clothes, decorations, etc.)

2 WEEKS OUT

Contact Utilities, Banks, Post Office & Other Services:
Inform of upcoming move, address change & sign up for services.

Travel Reservations:
Call and confirm everything is set to go.
Call Family & Friends:
Recruit help for moving day.

MOVING CHECKLIST

1 WEEK OUT

Pick Up Items:
From the cleaners, repair shops or friends.
Pack Survival Kit:
Clothes, medicines, special foods, etc. to carry you through the day while you un-
pack
Finish Packing:
All items, minus what you will need for your final days.

THE DAY BEFORE

Gather Last Minute Items :
Moving truck, dolly, other materials (tape, knife, rope) & prepare home.
Unplug Refrigerator
Defrost, empty, clean & dry.
Car Check:
Make sure you’re good on oil, gas and tire pressure.
Flight Check:
If you are flying, make sure you have tickets, charge cards & other essentials
Grab Some Cash:
For the movers and other unexpected surprises.

MOVING CHECKLIST

MOVING DAY

CARRY WITH YOU:
The keys to your new home.
A map of your new town and directions to your home.
The telephone number of the moving company.
Cash or traveler's checks.
Documentation related to the sale of your home.
Your insurance policies and agent's phone number.
Your current address book or personal planner.
Prescription and non-prescription medicines
Enough clothing to get by if the movers are late.
Any items of great personal value to you that are virtually irreplaceable.
Back-up copies of important computer files.
Sheets, towels and personal hygiene items for the first night in your new home.

ARRIVAL DAY

Show movers where to place furniture and boxes.
Check inventory to ensure that everything was delivered before signing

Unpack any valuable items, such as silver, art, and jewelry, upon arrival.
Inform your local post office of your move.

LET’S HEAR FROM OUR CUSTOMERS

Laura was an absolute pleasure to work with. She gave us great advice, was
extremely professional, and went above and beyond to not only ensure that we
got a good deal, but also to ensure that she negotiated well with the buyer's
agent so that we were not taken advantage of. Laura recommended profession-
al contractors for us when we needed to repair a few things on the house prior to
closing, and we even continue to use one of these contractors today at out new
house. Laura was an excellent communicator and always responded almost im-
mediately whenever I contacted her. I could not be more pleased with her level
of professionalism and I would definitely be thrilled to utilize her services again
and to recommend her to family and friends.

Laura and her team are great! They all were on the same page when it came to
helping me locate and secure a home. I work full time and having her or some-
one on her team being available to show a house when it was convenient for me
was key. They were all very knowledgeable on the area and quickly knew of
other houses in the area that were for sale or would be coming up for sale that I
would like. Laura seems to be able to perform her job with ease; through her ca-
reer she has been able to team with the best in the business to help make the
entire process seamless, I can't remember a time during the process from locat-
ing a house to closing to even after closing when something didn't go smoothly
or faster than expected. Laura's best attributes are her attentiveness, honesty,
and keen eye for detail in pointing out things within a house that I would not like
or may have be justifying in my head that at the end of the day I would not be
happy with. If you are looking for someone who is attentive, honest and easy to
work with it; you will be hard pressed to find someone better than Laura and her
team.

The home buying process with Laura and her team was a breeze! She spent the time
to help us find our dream house and even went the extra mile to communicate with
the necessary people from the sale of our previous home to make sure everything
went smoothly. Our transition across country was easy & effortless thanks to Laura &
her team. I can't recommend her enough!!! If you're looking for the team to help you
with your next home, The Swearingen Team is it!!!

LET’S HEAR FROM OUR CUSTOMERS

We have been looking for our next home for well over a year - close to two years, in
fact! Laura helped us develop a list of what was important to us in our next home, and
then kept an eye out for homes that weren't even listed yet as potential matches for
our search criteria. We were the first to know about homes that owners were consid-
ering selling, and often were able to view those homes even before the sign was in
the front yard, alerting others that the home might be for sale soon. Laura was ex-
tremely knowledgeable and professional, and responsive at all times, even when out
of town and on weekends. She's the best!

You simply will not find anyone to better handle the sell or purchase of your home. If it
wasn't for Laura, I know we wouldn't had had a shot at getting our dream home, but
she made it a reality. Her experience and professionalism are unprecedented, but
above all else she is someone who cares, works at the highest of ethics and has your
best interests at heart. Expect Laura to go to bat for you when you need her, and
someone who will give you the candid guidance to ensure you are making the best
decisions for you and your family. Couldn't imagine selling/buying a home with any-
one else!!

TO READ MORE REVIEWS
PLEASE VISIT

http://bit.ly/swearingenteamreviews

GLOSSARY

ACCEPTANCE: The date when both parties, seller and buyer, have agreed to and complet-
ed signing and/or initialing the contract.
ADJUSTABLE RATE MORTGAGE: A mortgage that permits the lender to adjust the mort-
gage's interest rate periodically on the basis of changes in a specified index. Interest rates
may move up or down as market conditions change.
AMORTIZED LOAN: A loan which is paid in equal installments during its term.
A.P.R. (ANNUAL PERCENTAGE RATE): A term used in the Truth in Lending Act. It repre-
sents the relationship of the total finance charge (interest, discount points, origination fees,
loan broker, com- mission, etc.) to the amount of the loan.
APPRAISAL: An estimate of real estate value, usually issued to standards of FHA, VA, and
FHMA. Recent comparable sales in the neighborhood are the most important factor in deter-
mining value. This should be contrasted against the home inspection.
APPRECIATION: An increase in the value of a property due to changes in market conditions
or other causes. The opposite of depreciation.
ASSUMABLE MORTGAGE: Purchaser takes ownership to real estate encumbered by an
existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the
mortgage.
BILL OF SALE: Document used to transfer title (ownership) of PERSONAL Property.
CLOSING STATEMENT (HUD l): A financial statement rendered to the buyer and seller at
the time of transfer of ownership, giving an account of all funds received or expended.
CLOUD ON TITLE: Any condition that affects the clear title to real property.
COMPARABLE SALES(COMPS): Sales that have similar characteristics as the subject
property and are used for analysis in the appraisal process.
CONTRACT: An agreement to do or not to do a certain thing.
CONSIDERATION: Anything of value to induce another to enter into a contract, i.e., money,
services, a promise.

DEED: Written instrument, which when properly executed and delivered, conveys title to real
property.
DISCOUNT POINTS: A loan fee charged by a lender of FHA, VA or conventional loans to
increase the yield on the investment. One point = 1% of the loan amount.
EASEMENT: The right to use the land of another.
ENCUMBRANCE: Anything that burdens (limits) the fee title to property, such as a lien,
easement or restriction of any kind.

GLOSSARY

EQUITY: The value of real estate over and above the liens against it. It is obtained by sub-
tracting the total liens from the value.
ESCROW PAYMENT: That portion of a mortgagor's monthly payment held in trust by the
lender to pay for taxes, hazard insurance, mortgage insurance, lease payments and other
items as they become due.
FANNIE MAE: Nickname for Federal National Mortgage Corporation (FNMA), a tax-paying
corporation created by congress to support the secondary mortgages insured by FHA or
guaranteed by VA, as well as conventional home mortgages.
FEDERAL HOUSING ADMINISTRATION (FHA): An agency of the U.S. Department of
Housing and Urban Development (HUD). Its main activity is the insuring of residential mort-
gage loans made by private lenders. The FHA sets standards for construction and underwrit-
ing but does not lend money or plan or construct housing.
FHA INSURED MORTGAGE: A mortgage under which the Federal Housing Administration
insures loans made, according to its regulations
FIXED RATE MORTGAGE: A loan that fixes the interest rate at a prescribed rate for the du-
ration of the loan.
FORECLOSURE: Procedure whereby property pledges as security for a debt is sold to pay
the debt in the event of default.
FREDDIE MAC: Nickname for Federal Home Loan Mortgage Corporation (FHLMC), a feder-
ally controlled and operated corporation to support the secondary mortgage market. It pur-
chases and sells residential conventional home mortgages.
GRADUATED PAYMENT MORTGAGE: Any loan where the borrower pays a portion of the
interest due each month during the first few years of the loan. The payment increases gradu-
ally during the first few years to the amount necessary to fully amortize the loan during its
life.
INVESTOR: The holder of a mortgage or the permanent lender for whom the mortgage
banker services the loan. Any person or institution that invests in mortgages.
LEASE PURCHASE AGREEMENT: Buyer makes a deposit for future purchases of a prop-
erty with the right to lease the property for the interim.
LOAN TO VALUE RATIO (LTV): The ratio of the mortgage loan principal (amount borrowed)
to the property's appraised value (selling price). Example - on a $100,000 home, with a mort-
gage loan principal of $80,000 the loan to value ratio is 80%.
MORTGAGE: A legal document that pledges a property to the lender as security for pay-
ment of a debt.
MORTGAGE INSURANCE PREMIUM (MIP): The amount paid by a mortgagor for mortgage
insurance. This insurance protects the investor from possible loss in the event of a bor-
rower’s default on a loan.
MORTGAGOR: The borrower of money or the giver of the mortgage document.

GLOSSARY

OTE: A written promise to pay a certain amount of money.
ORIGINATION FEE: A fee paid to the mortgagee for paying the mortgage before it becomes
due. Also known as prepayment fee or reinvestment fee.
PRIVATE MORTGAGE INSURANCE (PMI): See Mortgage Insurance Premium.
PROMISSORY NOTE: A written contract containing a promise to pay a definite amount of
money at a definite future time.
REALTOR: A member of local and state real estate boards, which are affiliated with the Na-
tional Association of Realtors (NAR).
RENT WITH OPTION: A contract which gives one the right to lease property at a certain
sum with the option to purchase at a future date.
SECOND MORTGAGE/SECOND DEED OF TRUST/JUNIOR MORTGAGE OR JUNIOR
LIEN: An additional loan imposed on a property with a first mortgage. Generally, a higher in-
terest rate and shorter term than a "first" mortgage.
SEVERALTY OWNERSHIP: Ownership by one person only. Sole ownership.
SURVEY: The process by which a parcel of land is measured and its area ascertained.
TENANCY IN COMMON: Ownership by two or more persons who hold an undivided interest
with- out right of survivorship. (In event of the death of one owner, his/her share will pass to
his/her heirs.)
TITLE INSURANCE: An insurance policy which protects the insured (purchaser or lender
against loss arising from defects in the title.)