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Hom e B uyers Guide

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Home Buyers Guide

Table of Contents
CARBUTTI TEAM ............................................................................................................... 3
REALTOR Partners .................................................................................................................................... 3 Operations Team ......................................................................................................................................... 3

BUYING WITH THE CARBUTTI TEAM ........................................................................ 4


Your Exclusive Buyer Agent ............................................................................................................................ 4 What We Can Help You Buy .................................................................................................................... 5 Before We Get Started .................................................................................................................................. 5 So You're Ready to Buy a New Home ........................................................................................................ 6

HOME BUYING PROCESS ................................................................................................ 7


Process Diagram .......................................................................................................................................... 7 Tasks and Time Frames ................................................................................................................................ 8

SERVICE PROVIDERS ..................................................................................................... 11


Services ...................................................................................................................................................... 11 Area Utility Providers ................................................................................................................................................ 12

MLS AREA MAP ............................................................................................................... 13

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Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Jonathan Carbutti

REALTOR Partners
Our REALTOR Partners are by far the best in the business. The team is recognized as one of the most professional and competent residential real estate sales teams in the Greater New Haven Area. Jonathan Carbutti was consecutively awarded the 2011, 2010, 2009 & 2008 Record Journal Reader's Choice Award for "Best Real Estate Agent." Carbutti & Co. Realtors was also voted 1st Place for the 2011 Record Journal's Readers Choice for the "Best Real Estate Agency." What does that mean for you? A lot of experience on your side of the negotiations in your real estate transaction. Experience alone is not enough to be successful. The entire team is dedicated to continuing education through both real estate seminars and regular in-house training. In addition, the team has earned multiple designations by studying the laws and practices of the real estate industry. The Carbutti Team holds designations in accredited buyer representation member of REBAC, CNE Certified Negotiation-Expert Designation and Senior Real Estate Specialist (SRES) . All agents stay on top of the local market by viewing and comparing properties on a daily basis. They also continually study and research industry trends to determine what the market may hold in the future.

Jonathan Carbutti Broker, ABR,Realtor

John Carbone

Jacqui Najjar

Sondra Tamborini

John Bossio

There is simply no better qualified nor better prepared team of residential real Tom Buijnarowski estate specialists in town!

Debra Becroft

Operations Team
With many years of experience in real estate, the team of managers assisting in the sale of property is among the best! Countless details need special attention during a real estate transaction. Realistically, no one person can be effective in all areas of real estate, including market research, negotiating, marketing, graphic design, copywriting, and transaction details. Our team's specialized managers focus solely on each phase of the real estate transaction and strive to be the best in the business at what they do. During the sale or purchase of your home, expect to be in touch with these dedicated professionals as they handle all aspects of the transaction.
Don Warner Chris Candido

Amanda Zorovich

Wayne Claxton

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Jackie St. Peter

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Buying with Carbutti & Co., Realtors LLC

Your Exclusive Buyer Agent


There are three different ways in which you can be represented during the purchase of a new home, and none of them cost you, the buyer, any money. Then why do people often choose the worst form of representation? Usually it is due to a lack of education about the home buying process. Our goal is to be your Exclusive Buyer Agent and to assist you in making well-educated and informed decisions throughout the home buying process. You can be represented in a real estate transaction in the following ways:

THE BROKER/AGENT REPRESENTS THE SELLER (GOOD FOR SELLER, BAD FOR BUYER)
This is the agent who has a written agreement to manage the sale of the seller's home. In addition, if any agent shows you homes without being in a written buyer agent agreement with you, by law they are acting as a subagent to the seller and have fiduciary duties to the seller, not you! In this agreement, the buyer should not tell the agent any information he does not want the seller to know because the agent must disclose to the owner any material information they have.

THE BROKER/AGENT REPRESENTS THE BUYER (GREAT FOR SELLER, GREAT FOR BUYER)
This is how a buyer is represented when they have entered into a written buyer representation agreement with their Exclusive Buyer Agent. The agent must put the interests of the buyer first and foremost and will provide the buyer with any material information they have about the seller.

THE BROKER/AGENT ACTS AS AN INTERMEDIARY (GOOD FOR SELLER, GOOD FOR BUYER)
If the agent obtains written consent from both the buyer and seller in a transaction, they may act as an intermediary to the transaction. The agent must treat each party honestly and fairly and may not disclose any material information about either party to the other. The intermediary agent is in essence the "middle man." The best way for Jonathan Carbutti to represent you in a transaction is as your Exclusive Buyer Agent with a written buyer agency agreement. If we didn't, then we would be unable to represent your best interest.

All rights reserved by Jonathan Carbutti & Co., Realtors LLC

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Buying with Carbutti & Co., Realtors LLC

What We Can Help You Buy


Our team of Exclusive Buyer Agents will evaluate your home buying needs in our first meeting with you and will then be better prepared to assist you in your home buying search. We are highly skilled in locating the ideal home for you, whether it's an existing home, a for sale by owner, or a new builder construction! In all three transactions our commission fees are pre-negotiated so that the seller is responsible for them, not the buyer.

EXISTING HOMES
Once we know your wants and needs based on our initial consultation, we spend a day previewing properties that meet your criteria. We show you homes listed by any brokerage firm in the area and we are able to narrow a list of hundreds of properties because of factors such as neighborhood or home features. We preview the properties first because we are able to look at several homes in the time it would take both of us to view just a couple. Other agents may make you spend your valuable time driving by homes and then telling them which homes you wish to see. Instead, we narrow the list and show you only the most well-kept homes, in the best areas, at the best value-unless you are looking for a fixer-upper, in which case we will adjust our criteria for narrowing the search. The bottom line is to save you time and money!

FOR SALE BY OWNER

We often work with homeowners who wish to sell their home themselves. In fact, many of the listings that our team takes are from people who have tried unsuccessfully to sell their homes themselves. We maintain awareness of all for sale by owner properties in the area and will be happy to arrange a showing for you. In this transaction, you will continue to be represented by us with our buyer's representation agreement. It is the seller who loses, as they complete the transaction with no professional representation.

NEW BUILDER CONSTRUCTION


Many home buyers are not aware that the representatives at new construction sales centers work for the builder, and do not represent the buyer's best interests. Our team has extensive knowledge of area builder reputations, floor plans, and lots, as well as schools, neighborhoods, amenities, and accessibility. As your Exclusive Buyer Agent, we will negotiate the purchase price on your behalf with the builder and assist you in selecting upgrades. We will work behind the scenes throughout the transaction to ensure everything goes smoothly.

Before We Get Started


The single most important thing for you to do before beginning your new home search is to select and meet with a mortgage lender. You can find a list of recommended lenders in the service provider list at the back of this guide. It is important to do this before we begin our search for several reasons: 1. It allows you to determine how much your monthly payment will be. 2. It helps us to determine what price range we should stay within. 3. It gives you an estimate of how much money you will need to have for the down payment and closing costs. 4. Most importantly, it helps us to negotiate from a stronger position with the seller.

All rights reserved by Jonathan Carbutti & Co., Realtors LLC

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Buying with Carbutti & Co., Realtors LLC

So, You're Ready to Buy a New Home!


Whether this is your first home purchase or one in a line of several over the past years, we would like to provide you with some basic information up front to prepare you for your search. Buying a home is an exciting process. It isimportant going into the transaction that you are aware of the costsyou will incur when purchasing your home, as well as what your monthly payments will be once you are in your home.

Your mortgage payment based on a 30 -year fixed -rate mortgage at 8% interest.*


LOAN AMOUNT $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $210,000 $220,000 $230,000 $240,000 $250,000 $260,000 $270,000 $280,000 $290,000 $300,000 $310,000 $320,000 $330,000 $340,000 $350,000 $360,000 $370,000 $380,000 $390,000 $400,000 MONTHLY P AYMENT $ 733 $ 807 $ 880 $ 953 $1,027 $1,100 $1,174 $1,247 $1,320 $1,394 $1,467 $1,540 $1,614 $1,687 $1,761 $1,834 $1,907 $1,981 $2,054 $2,127 $2,201 $2,274 $2,348 $2,421 $2,494 $2,568 $2,641 $2,714 $2,788 $2,861 $2,935

THREE CHECKS PRIOR TO CLOSING


You will need to write four checks prior to closing on your new home. All costs are average and will vary with the price, size, and features of your new home. 1. Refundable deposit minimum (1 % of the sales price of the home): Payable to the listing broker at receipt of the contract. This will be credited toward your closing costs. 2. Inspection ($300-$500): Payable to the inspector at time of the home inspection during the option period. 3. Credit Check and Appraisal ($400): Payable to the lender upon formal mortgage application

YOUR MONTHLY PAYMENT - P ITI


The monthly payment on your new home will include the principal and interes ton the loan you receive from your mortgage company. In addition, you will be responsible for paying annual property taxes and homeowner's insurance. If you choose, you can have your taxes and insurance added to your monthly payment (some loans require this), or you can pay them on an annual basis. The table at the right will give you an idea of the monthly payment you can expect, including your loan principal and interest (P & I) based on a 30-year fixed-rate mortgage at 8% interest. Taxes and insurance will vary greatly depending on the area in which you live and the features of your home. Generally, on a $200,000 to $400,000 home, your taxes will range from $2,000 to $4,000 annually and your homeowner's insurance will range from $750 to $1200 annually.] Once you have found the home you wish to purchase, your lender will complete a Good Faith Estimate for you that will better approximate your closing costs and estimated monthly payment.

*Monthly payments listed are principal and interest only. Taxes, insurance, and private mortgage insurance (if applicable) are additional.

All rights reserved by Jonathan Carbutti & Co., Realtors LLC

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

3 3

Home Buying

Process Diagram
Start Phase One Start Phase Two

Initial Consultation Information About Brokerage Services Buyer Representation Agreement Home Buyers Guide

Order Appraisal

Mortgage Company

Send Loan to Underwriting

Loan Approval
Loan Pre -Approval

Application for

Credit Report Order Survey Title Company Title Search

Buyer Agent Previews Properties Buyer to Arrange for Transfer of Utilities

View Available Properties

Make Offer on Property

Negotiate Terms of Offer

Mortgage Company Delivers Final Loan Documents to Title Company

Final Contract

Title Company Prepares HUD 1 Statement

Buyer Brings Cashiers Check to Closing Home Inspection


Inspection Period 7-10 Days

Negotiate Repairs

Amendment

Home Ownership

Option Period Expires

Proceed to Phase Two

All rights reserved by Jonathan Carbutti & Co., Realtors LLC

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Home Buying Process

Tasks and Time Frames


We will go through several steps together while finding and purchasing your home. For many of these we simply inform you that the task has been completed for you; however, others may require some work from you. We inform you about every aspect of the transaction and remind you when there are tasks that you should be working to complete. The chart on the previous page shows the flow of these tasks so you can better understand the home buying process.

TASK: SECURE FINANCING

The first step in buying a home is to obtain loan pre-approval. This provides you with the information you need to determine how much home you can afford and what type of monthly payment you are comfortable with. In addition, many sellers do not consider offers from buyers who are not pre-approved. We work with several lenders who have proven to offer exceptional customer service and competitive rates. A list of recommended lenders can be found in the service provider list at the back of this guide. You may use one of these, or you may choose one of your own. Three elements are crucial to the purchase of a home: the down payment, closing costs, and qualifying for a mortgage. Here is a quick rundown of what you should know:

TIME FRAME: BEFORE WE BEGIN LOOKING

Down Payment

Conventional lenders typically require a 20% down payment, although you may be able to find loans with no down payments. With down payments less than 20%, you will likely have to pay private mortgage insurance, which guarantees the lender will be repaid in case of default. Mortgages insured by the Federal Housing Administration (FHA) and those available to U.S. veterans often require very low down payments. Ask your lender if you can qualify for one of these loans. If you have trouble coming up with the down payment, there are some tips to ease the burden: Start early. Begin saving for a down payment as soon as possible. After a few years, it adds up. Ask for a Flex 97 mortgage, underwritten by Fannie Mae. It only requires 3% down provided that you have good credit. Also, you may be able to borrow that 3% on credit cards. Convert stocks. Consider selling stock for the down payment. The housing market is often a better investment. Sell an asset. If you have "toys" such as a boat, extra car, or other asset, consider selling it for the down payment. Borrow from relatives. Today lenders will allow you to use money from relatives as the down payment if it is provided as a gift. Check with your lender for restrictions.

Closing Costs No matter what home you buy, there will be closing costs. These can include discount points, title insurance, escrow fees, attorney fees, a termite report, recording fees, appraisal fees, document preparation fees, notary fees, and loan underwriting fees. Usually, these are due in cash, but sometimes they can be folded into the mortgage.

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Home Buying Process ROCESS


Loan Qualification Primarily, your income plus the interest rate secured, determines the size of the mortgage for which you qualify. The higher the interest rate, the higher the monthly payment. The higher the monthly payment, the more income you need to qualify for the mortgage. For conventional financing, lenders generally limit the monthly payment to 28% of your gross monthly income. Exceptions can be made depending on individual circumstances. The amount of debt you currently have may also factor in the decision.
Contacting a lender before you make an offer on a house may be a good idea. This head start gives you a chance to resolve any problems that may arise without the pressure of contract deadlines. You can also get pre-approved for a loan, which puts you in a strong position if you make an offer on a house that receives offers from other buyers.

TASK: INSPECTION

Upon acceptance of your offer, you will arrange for an inspection of the property. This needs to be completed during the inspection contigency period so that if something is discovered during the inspection (that you cannot live with and the seller is not willing to fix), you may cancel the contract and have your earnest money deposit returned immediately. The enclosed service provider list offers a directory of licensed home inspectors. The inspection will take two to four hours and expect to be present for the entire inspection so the inspector can review the findings with you. All homes will likely have a long list of minor repairs. However, we are mainly looking for major mechanical or structural defects to the property. The cost of the inspection varies based on the size and features of the home and will range from $300 to $500. This payment is due at the time of the inspection.

TIME FRAME: AT ACCEPTANCE OF OFFER

TASK: PREPARE AMENDMENT

TIME FRAME: IMMEDIATELY FOLLOWING INSPECTION

After the Inspection, we will complete an amendment to the contract. This amendment will include any items that were discovered during the inspection that you would like the seller to repair for you. We will negotiate on your behalf with the seller for the repairs you want completed. Once an agreement on repairs to be completed has been reached, you will forfeit your right to rescind the agreement..

TASK: OBTAIN HOMEOWNER'S INSURANCE

TIME FRAME: AFTER MORTGAGE COMMITMENT

In order to close on your new home, you need to arrange for Homeowner's Hazard Insurance. You will need to notify your lender of the insurance company you choose, a contact name, and a phone number. The enclosed service provider list provides names of insurance agents that our clients have used in the past and have been very satisfied with. You may receive a discount by having your car insurance and homeowner's insurance with the same company, so check with your current insurance agent as well. We recommend that you obtain at least two estimates from different agents and then make a decision.

TASK: TRANSFER UTILITIES AND SCHEDULE SERVICES TIME FRAME: Two WEEKS PRIOR TO CLOSING
You will need to transfer the utilities to your name before moving into your new home. In order to save money on hook-up fees, call ahead and ask the utility companies to transfer the billing to your name upon cancellation by the seller. In the enclosed service provider list you will find utility information for area municipalities. If you need further information, please call us; we are here to help you.

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Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Home Buying Process


TASK: FUNDS AVAILABLE IN THE BANK AND ENSURE LOAN QUALITY TIME FRAME: 72 HOURS PRIOR TO CLOSING
Obtaining pre-approval for a home loan is just the first step in funding your loan at closing. Many times buyers plan to use monies from stocks or 401 (k) retirement plans as down payment on their new home. If you plan to liquidate stocks or 401 (k) to supplement your down payment, the money from the sale of these funds must be available in the form of cash in your bank account at least 72 hours prior to closing. Because a withdrawal from a 401 (k) can be a complicated and timeconsuming process, we advise you to begin the withdrawal of these funds immediately. On average, one out of five home mortgage loans goes through a quality control check. The lender does this to ensure that the borrower's financial status has had no change since the approval of the loan was granted. No matter how good your financial situation, lenders strongly advise against changing your financial status from the date of your loan approval. This includes, but is not limited to, applying for new credit, gaining new credit, purchasing appliances, furniture, cars, changing jobs or quitting your job. An appropriate time to make any of the above financial changes would be after the closing and funding of your new home. If you have any questions about your purchase decisions while you are waiting to close on your new home, please consult your mortgage lender for advice.

TASK: HUD 1

TIME FRAME: ONE DAY PRIOR TO CLOSING

One day prior to closing, or sometimes just hours prior to closing, the title company will complete the HUD 1 settlement statement. This is the document that tells us how much money you will need to bring to closing. We will call you with this amount and to tell you the location of the closing. You will then have a cashier's check made out to the title company in the correct amount according to the HUD 1. Bring this check along with your driver's license to closing.

TASK: CLOSING TIME FRAME: DAY OF CLOSING


You will receive keys to your new home from the seller when the loan funds. You may be able to begin moving in immediately following closing, although some sellers may require that funding go through before you may take possession. Funding usually happens by the end of the business day. The closing will take approximately one hour.

All rights reserved by Jonathan Carbutti & Co., Realtors LLC

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Service Providers

Services
MORTGAGE COMPANIES
Ascend Financial Network Jason Garbus 203-787-9892 office 203-785-0124 fax info@ascendfinancialnetwork.com www.ascendfinancialnetwork.com Allied Funding Group Paul Martin 203-914-5626 office 203-294-4334 fax Mortgage Masters Inc. Dave Beckman 203-641-8287 office 203-548-9152 fax

CONTRACTORS
Empire Construction David Vumback, Jr., Owner 203-269-3559 office 203-537-0360 cell 203-269-7107 fax owner@empireconstructionllc.com K.C. Construction Chris Holcomb, Owner 203-537-2774 cell

LANDSCAPE
Lawncare, Etc. LLC Kevin Cyr, Manager 203-497-9023 office 860-662-1404 cell www.lcetc.com Ahlgren Landscaping LLC Chris Ahlgren, Manager 860-748-0780 Office http://www.ahlgrenlandscaping.com/ QRiver Land & Lawn Care Justin Royea, Owner 203-774-4188 cell www.qriverlandandlawncare.com

CARPET CLEANING
Steves Carpet Care Plus Steve Kokoszka, Onwer 203-530-4798 cell 203-235-6576 fax

ATTORNEYS
Carbutti Law Firm, LLC Mark Carbutti 203-269-8222 office 203-269-9777 fax www.lawcp.com mcarbuttii@lawcp.com

PLUMBING
Affordable Plumbing (CT. Licensed) Phil, Owner 203-915-4243 cell

HARDWOOR FLOORS / CARPETING


Artistic Hardwood Floors & Design, LLC Cliff Hollenbeck, Owner 203-284-8900 office Good Guys Carpeting & Flooring Christian 203-988-9509

RUBBISH REMOVAL / CLEAN OUTS


A-1 Cleaning Scott, Owner 203-630-9848 cell Got Junk 1-800 Got-Junk(468 -5865) Zoes Clean out 781-307-6774

PROFESSIONAL HOME & BUILDING INSPECTOINS


Chimino Home Inspections, LLC Paul R. Chimino, Jr ., Owner,/Inspector 800-990-3892 toll free 800-663-0499 direct Tiger Home & Building Inspections 800-328-4677 toll free 203-245-2065 fax Www.tigerinspect.com Schaefer Inspection Service, Inc 800-345-2776 toll free 203-387-4185 fax www.mhschaefer.com

INSURANCE

MARKETING / GRAPHIC & WEB DESIGN


Impact Branding & Design LLC Bob Rufflo 203-265-4377 office 203-631-7477 cell rruffolo@impactbnd.com www.impactbnd.com

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Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

Buying with Carbutti & Co., Realtors LLC ROCESS

Area Utility Providers


C ITY OF WALLINGFORD
Electric Wallingford Electric Division 203 294- 2020 Water/Sanitation Wallingford Water/Sewer Division 203- 949-2672 Gas Yankee Gas 800- 989- 0900 www.yankeegas.com Telephone AT& T www.att.com Cable TV Comcast 866- 886- 6838 www.comcast.com (Cheshire contd) Cox Cable Www.cox.com 800- 286- 2000 Www.cl-p.com Water/Sanitation South Central CT Regional Water Authority 203-562-4020 www.rwater.com Gas Yankee Gas 800- 989- 0900 www.yankeegas.com Telephone AT&T www.att.com Cable TV Comcast 866- 886- 6838 www.comcast.com Cox Cable Www.cox.com

C ITY OF NORTH HAVEN


Electric United Illuminating Company 800- 676-7052 www.uinet.com Water/Sanitation South Central CT Regional Water Authority 203-562-4020 www.rwater.com Gas Southern CT Gas 800- 659- 8299 www.soconngas.com Telephone AT&T www.att.com Cable TV Comcast 866 -886 -6838 www.comcast.com

C ITY OF C HESHIRE
Electric CT Light & Power 800- 286- 2000 Www.cl-p.com Water/Sanitation South Central CT Regional Water Authority 203-562- 4020 www.rwater.com Gas Yankee Gas 800- 989- 0900 www.yankeegas.com Telephone AT& T www.att.com Cable TV Comcast 866- 886 - 6838 www.comcast.com

C ITY OF DURHAM
Electric CT Light & Power 800- 286- 2000 Www.cl-p.com Telephone AT&T www.att.com Cable TV Comcast 866 -886 -6838 www.comcast.com

C ITY OF B RANFORD Electric United Illuminating Company 800 676- 7052 www.uinet.com
Water/Sanitation South Central CT Regional Water Authority 203-562-4020 www.rwater.com Gas Southern CT Gas 800- 659-8299 www.soconngas.com Telephone AT&T www.att.com Cable TV Comcast 866- 886- 6838 www.comcast.com

C ITY OF HAMDEN
Electric CT Light & Power

All rights reserved by Jonathan Carbutti & Co., Realtors LLC

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492

MLS Area Map ROCESS

Jonathan Carbutti Carbutti & Co., Realtors 43 Hall Avenue, 2nd floor Wallingford, CT 06492 (203) 269-4910 x12 www.carbutti.com

All rights reserved by Jonathan Carbutti & Co., Realtors LLC

Carbutti & Co., Realtors LLC 4 3 H a l l Av e n u e , 2 n d F l o o r | Wa l l i n g f o r d C T, 06492