What type of home do you want?

You'll want to define your needs, tastes and preferences for your new home. This is easier than it sounds when you use our Home Buyer's Analysis, an integral part of the Home Buying System. It helps you quickly prioritize your requirements.

By discussing this now, you'll save plenty of time during the house-hunting process. Your Landis Company sales professional will show you only the houses that fit these requirements.

• Describe the style of house you like, whether it be two-story, contemporary, ranch or some other style.
• List your priorities in home features, such as a one or two-car garage, gourmet kitchen, a family room or a formal dining room.
• Think about your lifestyle. If you don't like yard work, ask your sales professional to show you condominiums, townhouses or garden homes with smaller yards.
  A neighborhood and area that caters to your needs is also a very important factor when choosing a home.
• Consider the identity of the neighborhood. The overall impression given by an area is key to its value.
• Drive through and around the neighborhood. Value is enhanced by other well-maintained properties. Conversely, be cautious of areas with unkept yards and homes, and businesses mixed in with residences -- unless a home/office combination is a priority.
• Ask your sales professional about the property tax assessment in the area, including any special assessments or any pending bond issues.
• Pay attention to neighborhood zoning. Many residential communities are zoned to keep out commercial and industrial users. Ask about other regulations in the neighborhood, such as on-street parking. Find out if the area is governed by any covenants.
• List which community services are important to you. Do you need to be close to shopping, a school or a mass transit stop?
• Bring in a professional building inspector to make sure the house is in sound condition. Use his or her report to make informed decisions. Funk Home Inspection Services, is now an approved provider with The Landis Company.
• Ask your sales professional if the Home Protection Plan offered is available in your area. This warranty protects you in case of major mechanical system failure and problems with some appliances.
• Decide which imperfections you can live with and repairs you may be able to make yourself. You may also be able to finance some repairs in your mortgage.

How much home can you afford?

Most people have a general idea of how much they feel comfortable spending. It's equally important to know how much your lender calculates you can afford. With assistance provided by your Landis Company sales professional, you'll be able to better prepare the many details required during the financing application process.

• Evaluate your financial situation as the lenders do. Typically, your total monthly housing costs should not exceed 28 percent of your gross monthly income. Or, housing costs plus any outstanding monthly long- term debt (car loans, credit card balances, etc.) should not exceed 36 percent of gross monthly income.
• Ask how your lender determines the total monthly housing cost figure. It usually includes your mortgage principal and interest payments, property taxes and hazard insurance.
• Determine how much your financial institution is willing to lend you by completing a Mortgage Calculator or calling your Landis Company sales professional for help during the pre-qualification process.
• Know how much you can afford in monthly payments. Lenders factor in sales price and down payment, but place more importance on how much you can handle your monthly expenses.
• Become a pre-approved buyer. Pre-approval gives you more buying strength since the lender makes a credit decision and pre-approves you for a certain mortgage amount. You'll know what price range your lender will approve -- and you'll be in a position to make an offer as soon as you find the right home.

Back to the top

Conventional Financing Options

All mortgages are called conventional unless they are government-backed loans. Conventional mortgages are made by private lenders.

Conventional fixed-rate mortgages:
This traditional, "tried and true" mortgage option is a loan with a constant interest rate and level, equal payments during a set period of time -- most commonly, 30 years. The biggest selling point of fixed-rate loans is predictability, and they are particularly suited to people with steady incomes.

If lower rates dictate the time is right to refinance, it's a good idea to compare the costs of incurring a new mortgage

• such as prepayment penalties and loan origination costs. Be sure to compare the costs of incurring a new mortgage
• such as loan origination costs and points. It's also a good idea to ask about prepayment penalties. You may want to refinance your loan or pay it off early to eliminate thousands of dollars in interest.

Adjustable-rate mortgages (ARMs):
As the name implies, the interest rate on an adjustable-rate mortgage changes throughout the term to stay current with the present interest rates. ARMs are most popular when rates are relatively high and appear to be dropping and when the difference between the ARM and the fixed-rate is greater than 2 to 3 percent. Different lenders offer variations in the front end of their ARM plans, such as the points you pay or discounted initial rates.

To make a useful comparison of an ARM rate, consider the index upon which the rate is based, the margin or spread between that index and the rate paid, and the intervals at which the rate and payments are adjusted.

Note: Always look at the index plus the margin when comparing ARMs. The larger the margin, the less likely the rate you pay will go down, even if the interest rates drop.

Back to the top

Alternative Financing

Lease/purchase agreements:
Borrowers can lock in the price of a house today and postpone financing for 12 to 18 months with these agreements. The borrower gives the seller a deposit which is applied to the purchase and makes monthly rental payments. Lease/purchase agreements are used by sellers who want to keep a home occupied and receive rental money after they've moved out, and by buyers who are not in a position to commit to a property at a particular time.

Installment contract:
Buyers and sellers work out a contract which states a down payment, interest rate and term. Some contracts have long terms; others are short-term with balloon payments. Regulations about title transfer in a contract sale vary from state to state.

First mortgages from relatives or others:
Sometimes relatives or private investors will purchase a home outright then offer a borrower a first mortgage. The terms are worked out to the mutual satisfaction of both parties.
Note: The Internal Revenue Service will impute higher rates on the lender for loans arranged below market rates.

Second mortgages:
These are used when a borrower needs additional financing to buy a home. This mortgage may be financed by the seller, another lender, relative or investor, and terms are negotiated between buyer and lender. Often, second mortgages are used when a borrower assumes a guaranteed first mortgage with a lower interest rate and needs to make up the difference between the loan and the sale price.

Equity financing:
An equity plan allows buyers to buy new homes by borrowing against a portion of the equity in their present home. A six-month "bridge" is secured on which no monthly payments are required and that money is used to purchase the new home. When the present home sells, the loan is paid off with the proceeds of the sale. If the home doesn't sell within six months, the owner may renew the loan or choose from other "back-up" options.

Back to the top

Marketing Your Home

When you are a homeowner looking to buy, one of your first considerations naturally is the sale of your own home. The last thing you want is to find the perfect home and have to wait on your previous house to sell. Therefore, it's vital to attract potential buyers.

Statistics show that real estate agents are the best single source for bringing buyers to a home. More often than yard signs, newspaper ads or any other type of advertising effort, it's agents who will let buyers know about your home. The same is true of buyers from out of town. Nationally, more than one-third of all buyers come from out of town, so it's vitally important for you to work with a real estate professional who can access all the out-of-town prospects. At The Landis Company, we mobilize the real estate community to work for you.

Our Marketing Upgrade System is a comprehensive marketing approach and the key to bringing buyers to your home. It will give your home maximum exposure and reach your home's target audience -- prospective buyers and the real estate community that controls those buyers. The sooner you can sell your old home, the easier the transition to the new one.

In addition to mobilizing the real estate community and creating maximum exposure for your home, we will also work closely with prospective buyers. For instance, we know that a qualified buyer is better able to make an offer, purchase a home and complete the sale. Consequently, we'll only begin with those prospects that qualify -- the ones with the motivation, authority and financial resources to buy your home.

Though each agent has his or her own style, all of our sales professionals possess one thing in common: They are backed by the extensive resources and support only The Landis Company can bring to bear in the marketing of your home.

Back to the top