John and Suellen Rennie, Realtors
Prudential California Realty

Two Ritz Carlton Drive, Monarch Beach, California
949-215-5000
BUYING TIPS


Buying a home is probably the biggest financial commitment you'll ever make.
Buying a home is not just a dollars-and-cents investment; it's an investment in your life.
It will create a sense of stability and identity for you and your family. Regardless of how times
change, owning a home remains the cornerstone of the American dream.
To assist you in the process, John and Suellen Rennie, Realtors and
Prudential California Realty has everything you need,
from a basic step-by-step overview to a property comparison checklist.
So whether you're a first-time buyer or need a brief buying refresher,
let us help you through it all.


Rent or Buy?
The advantages of buying a home verses renting.

Financial independence, security and satisfaction...
with all these home ownership advantages, who needs rent?

With every rent check you write, you're helping to build equity in your landlord's property.
That money could be going toward building equity in a home of your own.
Today's rates are low enough that your house payment could be lower than your rent payment!
There are many advantages to owning a home, including:

Security
A feeling of security that comes from owning a home and the knowledge that your
home is a safeguard against inflation.

Investment
Payments on your mortgage loan mean you are acquiring a major possession;
instead of rent, you own more and more. The garden you plant, the permanent improvements
you make - all enhance your way of living as well as the value of your home.

Tax Advantage
Your real estate taxes and the interest on your mortgage are deductible
from your income tax.

Financial Independence
Most people start on the road to financial independence
through home ownership. Your principal and interest payments remain the same for the
full term of your mortgage while your rent usually goes up as the cost of living increases.

Environment
Your children grow up in the neighborhood of your choice.

Cash Equity
Better than a savings account, your home can appreciate to keep pace
with inflation.

Satisfaction
Home ownership offers special advantages that make life more enjoyable -
backyard barbecues, large family gatherings during holidays, a home workshop, a chance
to enjoy your family's companionship in the privacy of your own home.


How Much Can I Afford?

A quick look at your finances and what you can afford, the benefits of equity,
what tax advantages you have as a home owner, and getting pre-qualified and approved.
Another thing to consider is your down payment amount.
Think you can't buy a house without a 10% or 20% down payment?
Thanks to more lenient government guidelines and new mortgage products,
many people can now get into a house for as little as 3% down-or less.
There are even some special programs for first-time buyers that help with closing costs.

The Benefits of Equity
Equity is the principal part of your monthly payment that you can use as a down payment on a
new home, or collateral for a home equity loan. You can use a home equity loan to finance
home improvements, a child's college tuition, or a new car.

Real estate is also a great way to keep a hedge against inflation. While some homes do
appreciate in value more quickly than others, real estate usually keeps pace with inflation.
In fact, homes in general have been appreciating at a steady 3% a year.
(John and Suellen Rennie can provide you with the housing appreciation rates in the
areas in which you're interested in buying.)


That Wonderful Thing Called A Tax Break
As a homeowner, when filing your taxes you can deduct the interest portion of your
monthly payment-and that can mean big savings. You can deduct your property taxes, too.

So look at what your monthly mortgage payment will actually be, taking your tax breaks into consideration. You may find out it's about the same as-or sometimes even less-than a
rent payment!

With a 5% down payment, a $100,000 30-year mortgage loan at 8% interest
(8.15% APR) requires a monthly principal and interest payment of $733.76. Assuming a
28% tax bracket and $150 for monthly property taxes, the after-tax monthly payment
would be about $615! (This is only an example. Please consult with a tax advisor
regarding your own tax situation and current tax laws.)


Pre-Qualification vs. Pre-Approval
Pre-qualification is just a guesstimate of how much you could afford. But with a
pre-approval, it's just that: getting your mortgage approved prior to going out and
looking for a new home.

Your loan officer will show you which items you should bring to apply so neither of
you will need to wait for various written income, asset and liability information.
So you could get a loan decision in just days. And when you apply online ,
you can get your approval quickly!


Working With A REALTOR
Why working with a real estate agent makes sense,
and how to choose one who's right for you.


Sure, you can do your home search by yourself. But why?
With John and Suellen Rennie and Prudential California Realty at your side, finding the
perfect home is easier, faster and a lot more fun. John and Suellen Rennie
can show you more suitable properties, offer valuable advice, and coach
you through the entire home buying process. And you'll save time. Yet many buyers
still spend endless hours pouring through classified ads, driving all over town,
and viewing dozens of unsuitable properties - simply because they haven't
connected with John and Suellen Rennie. Some people think that if they have several
agents looking for homes on their behalf, they'll find a house more quickly.
Like most relationships, the buyer-agent relationship thrives on
communication, loyalty and trust. By working exclusively with John and Suellen Rennie,
you'll improve both the process and the results.

Finding The Right REALTOR For You

Chemistry is important. So are credentials. Above all, you'll want an
experienced agent who has the resources of a leading real estate firm behind
him or her - a firm such as Prudential California Realty.

Some helpful hints on finding and working with a Realtor®:

Ask friends, family members, neighbors or co-workers for referrals.
Trust your intuition. Share with John and Suellen Rennie as much as possible about
your lifestyle, tastes, needs and dreams for your home.
Focus your search on a few geographic areas.

Plus ask John and Suellen Rennie some of the following questions:

How well do you know the area(s) that interest me?
A REALTOR who knows the area or neighborhood you are
interested in is extremely beneficial to you.

Will you handle all aspects of my transaction or will you
delegate some tasks to an Administrative Assistant?

If you choose to work with a busy agent, a knowledgeable assistant
can be very helpful when you have questions or need immediate attention.

And finally,
Ask John and Suellen Rennie for testimonials from satisfied customers.



Making An Offer

You want to make the right offer to get the home that you want…so what do you do?
Time for nervous anticipation. You've found the home you want, and
John and Suellen Rennie of Prudential California Realty say you will need to act fast.
Yet you want to be as calm and objective as possible. The expertise
John and Suellen Rennie of Prudential California Realty can give you at negotiating time is
priceless. Be prepared for counter offers. Don't let the pressure get to you.
Remain patient, and let your John and Suellen Rennie of Prudential California Realty act as
your liaison with the seller or the seller's agent. You may need to be flexible on price,
closing date, appliances and repairs.

Contingencies
Beware of putting contingencies in your purchase agreement. They weaken your offer.
However, if you currently own a home, your offer may need to be contingent on it selling.
Or, if you're uncertain about the structural integrity of the home,
you may want to have a home inspection contingency.
Just be aware any contingency could take you out of the
running if a non-contingent offer is presented.

Negotiating The Buy
The expertise a John and Suellen Rennie of Prudential California Realty can give you at
negotiating time is priceless.

Be prepared for counter offers. Don't let the pressure get to you. Remain patient,
and let your Prudential California Realty Sales Professional act as your liaison with
the seller or the seller's agent. You may need to be flexible on price, closing date,
appliances and repairs.

Beware of putting contingencies in your purchase agreement. They weaken your offer.
However, if you currently own a home, your offer may need to be contingent on it selling.
Or, if you're uncertain about the structural integrity of the home, you may want to have
the contingency of a home inspection. Just be aware any contingency could take you
out of the running if a non-contingent offer is presented.

Earnest Money
Once your offer is accepted, be prepared to seal the deal with earnest money.
Earnest money is usually a percentage of the home's purchase price that indicates
you're serious about the purchase and indicates your good faith. It's generally applied
to the purchase price when you complete the purchase, but may be forfeited to the
seller if you fail to complete the purchase. Contact John and Suellen Rennie of
Prudential California Realty to determine the amount of earnest money you
should be prepared to pay based on your target
home price.

Many first-time buyers are taken by surprise when it comes to earnest money, especially
if they have to make a fast offer. Be sure to discuss with
John and Suellen Rennie of Prudential California Realty the appropriate
amount of earnest money you should be prepared to pay based on the price range of
properties you're looking at. You should have this amount available in your checking
account so you can write out an earnest money check on the day you sign your
purchase agreement.

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