You are about to embark on one of the most important and exciting decisions in you lifetime, the selection and purchase of a home. It is a decision that will bring you years of comfort and joy. Yet, the idea of spending your free time evaluating homes and neighborhoods, figuring your down payment and monthly costs, applying for a loan, and finalizing the purchase can be an overwhelming process. For some buyers, the process is tedious and confusing. This is why consulting a professional realtor is a smart decision.

A licensed real estate agent can help you find a house, efficiently and quickly. Discuss with you agent the type of home you believe will be right for your needs. Is your family growing? Do you entertain a lot? Barbecue? Garden? Work from home? Are you a chef? This is a useful tool because it provides the most current comparative information available for more informed shopping.

Your realtor's expertise and experience will be crucial in helping you find the right home of your dreams. He/she has access to the Multiple Listing Services (MLS), which provides information on virtually every home for sale in the market. This is a useful tool because it provides the most current comparative information available for more informed shopping.

In addition your agent will show you homes that you can comfortably afford. He/she will have the resources to help you understand how much a lender will let you borrow and on what basis it is calculated. Once you have calculated a price range, your realtor will work with you to establish criteria that will lead you to the right home.

When you are ready to make an offer, your realtor can assist you. He/she cannot suggest a lower price than what is listed but he/she can tell you what comparable homes are selling for in the same neighborhood. Your realtor will act as the intermediary between you and the seller who is likely to also be represented by an agent. If there are negotiations over price, closing dates, contingencies, and items - such as appliances to be left or taken, your realtor will be your representative.

Once your offer is accepted, you will have a lot to do in a short period of time. Your realtor will direct you to a lender, and inspection and insurance professionals and Atlas Financial Services, Inc. for you escrow and title needs. He/she will keep you on track and organized.

Shop smarter. Not Harder
Fine tune those dreams of you next home by working on the answers to two questions:

How Much House Can You Afford?
Though you may be willing to spend until it hurts, the name of the game is how much a lender calculates you can afford. Your realtor will put you in touch with a lender that he/she trusts to help you through the financial process of pre-qualifying (targeting the amount that a financial institution will lend you?

In general, lenders allow your total monthly housing costs to go as high as but not more than 30 percent of your gross monthly income. The second requirement is that not more than 36 percent of your gross monthly income can be tied up in total monthly house payment and payments on outstanding long term debt.

Lenders use slightly different formulas for arriving at "total monthly house payment". These costs generally include your mortgage principal and interest payment, property taxes as a monthly figure, and hazard insurance as a monthly figure. These four items are referred to as PITI (principal, interest, taxes & insurance). If you're required to pay private mortgage insurance (PMI) because your down payment is less than 20%, those premium payments will also be included. If you decide to buy a condominium or town house, the monthly homeowner's association fees will be included. Keep in mind, these formulas aren't cut and dry and things change from lender to lender so your best is to consult.

What Type Of House Do You Want?
Perhaps you know exactly what you want. 2,400 square foot ranch style home on a wooded lot. If so, your realtor can look immediately for only that type of house. On the other hand, if you don't know what you want, but "you'll know when you se it", you need to complete the Home Shopping- Needs and Wants checklist at the back of this section. It will help you define what you really have to have and really want to have in a house and neighborhood. This will help your realtor considerably when searching for the right homes to show you. When you look at homes, bring your checklist with you and pick up flyers at each home, so you'll remember which home offered what.

Get Your Financing In Order
You can get together with a lender to get your loan application completed and the financing process started. Be prepared to provide the lender with copies of any important and necessary information.

Making Your Purchase
Once you have found the perfect house, your realtor will take you through the purchasing process:
Submit your offer to buy the house. The seller may accept your first offer, or you may go through one or several counter-offers before you and the seller agree on the terms of the sale. Once you both agree, you have a contract of sale which spells out the detils and responsibilities of all parties involved in the transaction.

Making Decisions About Your Purchase
Below are some items you'll need to consider and how the purchase process works:

• How Much Should You Offer To Pay?

Should you offer to pay the seller's asking price or a lower one? Consider such factors as: How long has the house been on the market? Is its price reasonable? Your realtor can show you comparable home sales (comps) for similar properties in the neighborhood to help you. How competitive is the area's home buying market? If the seller is offering an assumable mortgage or financing, how much is it worth to you?


• What Happens To The Earnest Money?

A "deposit" is made, in part, to show the seller your seriousness about buying. Your realtor will inform you of the amount that is usually given in your area. The seller doesn't actually receive the earnest money. A third party, Atlas Financial Services, Inc. holds the amount in a special trust - or escrow account until the sale is closed or the contract is broken.


• How Does The Seller Prove The "Title" Is Clear?

A "title" spells out who has the right to ownership of a property. It is said to be "clear" if there are no substantial claims or liens (such as a mortgage) against it. A standard contract asks you, in essence, how you want the seller to show you that he or she owns the property and that the "title" has no claims against it that would prevent transfer to you.

A "title search" is done by Atlas Financial Services, Inc. and an Owner's Policy of Title Insurance is issued. In order to issue this insurance policy, which protects you against losses that come from claims against the title, Atlas Financial Services, Inc. first searches the title. Because you are insured (usually for the sales price), the owner's insurance provides the most protection.

An Abstract of Title (Title Report) is prepared showing a brief history of the ownership and any legal documents that affect its title.


• What Conditions Do You Want To Place On Your Buying the House?

When you commit to buy the house through your offer, you make that commitment contingent upon certain things happening, such as you securing financing for the home. In a similar vein, you may make the purchase contingent upon the sale of your present home by a certain time and under certain terms.

You will also want to make sure the house is in good shape. You may make the contract subject to you being satisfied with a building inspector's report and/or an inspection for termites. The purchase should also be subject to your being satisfied with you own inspection of the house jus prior to closing.