Buyer Tools

If you are looking to buy a home, here is some information that we have compiled to make the process easier. Of course, our team at Neighborhood Realty will work closely with you through every step of the process to ensure that you find the right property to match your needs and to make it as smooth a process as possible.

Steps to Buying a Home

Buying a home is a major undertaking whether it is your first home or whether you have moved several times. No need to feel uneasy as your Neighborhood Realty Realtor is right there with you through every step of the process. An average home buying process consists of the following:

Prequalifying For Financing

Knowing your ability to finance can save you from the heartache you may suffer if you find a home that is not within your budget. On the other hand, purchasing a home within your budget can be the stepping stone to the home of your dreams.

Pre-Approval

Your home lender can pre-approve the loan amount that you qualify for and provide you with a letter of commitment. This letter can be an extremely important when negotiating the purchase price of your home.

Your Realtor- Neighborhood Realty

Your Neighborhood Realty Realtor can be invaluable in helping you find the right home that meets your specifications and price range in both the Fort Dodge and Webster City markets. With access to any home on the Multiple Listing Services (MLS), Neighborhood Realty

can show you the perfect home to meet your needs.

Shopping For Your Home

Finding the right home that meets your requirements takes time and patience. Neighborhood Realty Realtors are knowledgeable about the homes in the Fort Dodge and Webster City markets and have access to the area MLS which lists the properties available in your market. It is important that you check out the school systems, taxes, cost of utilities and the community services provided by the community your home is located.

Purchase Offer

Your Neighborhood Realty Realtor will assist you in preparing the offer and present it to the seller. They

will also explain the importance of a earnest money deposit. At this point the seller will either accept,

reject or make a counter offer.

Contract Signing

When the buyer and the seller have agreed upon a sale price, the sales contract must be signed. Your contract should include:

1.purchase price,

2.mortgage contingencies,

3.type of title conveyed,

4.date of possession,

5.list of personal property included in the sale, and

6.any inspection contingencies such as building, well and pest.

Loan Approval

If you have not been pre-approved for a loan, you will have a required amount of time as outlined in the sales contract to shop for a home mortgage. Your Neighborhood Realty Realtor is knowledgeable of lenders in the market and can help answer your basic questions regarding the sale. Local lenders are will be able to answer specific financing and qualification questions and will explain the many different types of mortgages that are available. Your lender will help you select a mortgage that fits your needs.

Closing

Your closing agent (typically your lender) will secure the necessary documents required for closing such as the title examination, payoff statements and deed. On the closing day, you will sign all documents. The seller will receive their payment and you will receive the keys to your new home. Congratulations!

*Information compiled from Home Selection Guide distributed by Bankers Media Group, Inc.

Terms / Definitions

Selling a home can be stressful and confusing. Here are some of the more common terms used during the process and their definitions. Whenever you have a question, be sure to call any of the Neighborhood Realty Realtors and let them assist you with getting the answers you need.

Abstract Of Title

A summarized history of the legal title to property. It shows changes of title, records of liens and encumbrances.

Assumable Mortgage

A loan that can be transferred from the existing owner to the new owner.

Closing Costs

Charges paid at settlement to obtain a mortgage loan and transfer a real estate title, usually in addition to the price of the home. The sales contract clearly states who – the buyer or the seller – will pay the closing costs and the amount.

Closing Day

The date on which the title property passes from the seller to the buyer and/or the date on which the borrower signs the mortgage loan agreement.

Earnest Money

An amount paid to a seller by a potential buyer to demonstrate that the buyer is serious. If a contract is executed, the earnest money is returned with deductions for processing charges, paperwork, etc. Terms of the contract should be known upfront.

Easements

The rights of way granted to a person(s) or companies authorizing access to or over the owner’s land.

Equity

The value in excess of indebtedness against the property.

Escrow

A system or document transfer in which a deed, bond or fund is delivered to a third party to hold until all conditions in a contract are fulfilled.

Interest

The cost paid by a borrower for the use of money borrowed to purchase a home.

Mortgage

Pledge of property as security for the payment of a debt.

Mortgage Commitment

A written communication by a lender, agreeing to make a mortgage on a specific property stating that a lender has reviewed your application and intends to give you a loan.

Points

A point is a one-time assessment charge of 1% of the mortgage value. This may be required by the lender to increase the interest yield from the mortgage loan to a position of competitive with the interest yield from other types of investments.

Principal

The amount of money borrowed in mortgage loan excluding interest or other charges.

Sales Contract

A contract between the buyer and the seller. The contract should explain exactly what the purchase includes and who is responsible for providing it. It should include guarantees, when the buyer can move in, what the closing costs are and what “outs” a party has if the contract is not fulfilled or if a mortgage commitment cannot be secured.

Settlement Expense

This is different from closing costs but also involves charges that a buyer or seller must pay in closing a deal on a house. Settlement costs include insurance and tax payments, special assessments for improvements to municipal facilities and sales commissions.

Title Insurance

A contract to make good a property owner’s loss resulting from defects in a title. Title insurance usually calls for the insurer to defend the property owner’s title at no cost if the title is challenged in court.

Title

Evidence (usually a certificate or deed) of a person’s legal right to ownership of a property.

Title Search

A detailed review of title records to assure that the property is bought from the legal owner and to determine if any liens, special assessments, or other claims or outstanding restrictive convenants are on record.

Area Information

We have compiled local area information and displayed it here in an effort to provide you with as much information as possible to simplify your upcoming move. Of course, if you have any questions, we'd love to have you call or stop in and talk to one of our knowledgeable and experienced Neighborhood Realty Realtors. They are committed to working with you to find the right property for whatever your real estate needs - buying, selling, residential, commercial or farm.

Webster City Area Information

City of Webster City

Webster City Area Chamber of Commerce

Van Diest Medical Center

Kendall Young Library

Hamilton County

Schools

Iowa Central Community College

St. Thomas Aquinas School

Webster City Community Schools

Financial Institutions

First State Bank