A Business Plan€¦ · Web viewYes No Inspections/Tests Asbestos (only older homes with reasons to suspect asbestos) Lead paint (only for houses build prior to 1978 – a must

A Home Purchase Plan For

________________________________Name

To be submitted to:

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Individual Development Account Program

Name

Street

City State ____ Zip

Phone ( )

Date

Connecticut Department of Labor Page 1 5/28/2013

Part One: Home Purchase Plan

1.) How Much Can You Afford?2.) Hidden Costs of Owning a Home3.) Know Your Rights4.) Shop for a Loan5.) Learn About Home Buying Programs6.) Find a Realtor7.) Shop for a Home8.) Evaluating the Home9.) Make an Offer10.) Get a Home Inspection11.) Shop for Homeowners’ Insurance12.) Closing Process

Part Two: Supporting Documentation

Pre-approval package (if applicable) Closing documents (including Truth-in-Lending Form, appraisal, title, and

inspections done, etc.) 1st Time Homebuyer’s Certificate (if the participant has completed an outside

Homebuyer’s course) Receipts for any purchases made from vendors (appraiser, title search company,

inspection company, etc.) “Asset Purchase Request Form” Withdrawal Slip from the participant’s IDA Check from the participant’s IDA Withdrawal slip from the local Reserve Fund Check from the Local Reserve Fund


Part One: Home Purchase Plan

1.) How Much Can You Afford?

The first step in preparing for home purchase is to determine what is affordable for your family. Use the following worksheet to develop a Monthly Budget and Spending Plan.

Expenses

HousingRent $_______________Phone and Internet $_______________Gas $_______________Oil $_______________Electricity $_______________Water $_______________Home Improvements $_______________Cell Phone $_______________Cable $_______________Other $_______________Total Housing Expenses $_______________

FamilyGroceries $_______________Clothes $_______________Medical/Dental(not paid by insurance) $_______________Laundry/Dry Cleaning $_______________Child Care $_______________Hair/Nails $_______________Education Expenses $_______________Vet Expenses $_______________Misc. Personal Items $_______________Child Support/alimony $_______________Other $_______________Total Family Expenses $_______________

TransportationBus or Taxi $_______________Gas and Oil $_______________Maintenance/Repair $_______________Other $_______________Total Transportation Expenses $_______________

GivingCharitable (Tithes) $_______________Other $_______________Total Giving Expenses $_______________


LeisureVacation $_______________Hobbies $_______________Entertainment (eating out,cable, movies, etc.) $_______________Magazines/DVDs/CDs $_______________Gym Membership $_______________Other $_______________Total Leisure Expenses $_______________

Debt PaymentMortgage $_______________Credit Card #1 $_______________Credit Card #2 $_______________Car Payment $_______________Student Loan $_______________Other Debts $_______________Total Debt Payment Expenses $_______________

Insurance PremiumsLife Insurance $_______________Homeowners Insurance $_______________Auto Insurance $_______________Other $_______________Total Insurance Expenses $_______________

SavingsIDA $_______________Savings Account $_______________Christmas/Other Savings Acct. $_______________Other $_______________Total Savings Expenses $_______________

TaxesIncome $_______________Car $_______________Property $_______________Other $_______________Total Taxes $_______________

Income

Employment Income #1 $_______________Employment Income #2 $_______________Food Stamps $_______________Other Assistance $_______________Other Income $_______________Total Income $_______________


After reviewing your budget with your IDA Case Manager, determine how much you can afford to spend to purchase your home and for the other costs associated with buying and maintaining it. What you can afford depends on your income, credit rating, current monthly expenses, down payment on your home, the mortgage interest rate and closing costs.

1.) What is the monthly gross income for your household? (Include all pre-tax income from full- or part-time jobs, self-employment and tips.) $_____________

2.) What is your household’s monthly net income (Take-home pay)? $__________

3.) What is the combined monthly amount of all other household income? (Include child support, alimony, etc.) $______________

4.) What are your fixed monthly expenses? (Expenses that are fairly consistent each month) $ ________________

5.) What are your variable monthly expenses? (Expenses that can vary from month to month) $ _______________

6.) What is your Shortfall or Surplus? (Income minus expenses) $________________

7.) What is your Debt to Income (DTI) Ratio? _______________________________(Go to http://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx to find out more about DTI Ratio and to calculate yours.)

Go to www.chfa.org to find a “Home Affordability Calculator” that will give you an idea of what your monthly payment will be for mortgage, insurance and taxes. The calculator will let you adjust for different home prices, mortgage interest rates, and length of mortgage.

NOTES:_______________________________________________________________

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http://www.chfa.org/

http://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx

Make a Plan to Reduce Your Debt

Use the chart below to record your debts and make a plan to pay them off. This will help increase your credit score and make lending institutions more likely to give you a mortgage at a lower interest rate. If you have credit card debt, pay off the ones with the highest interest rate first.

Loan Type (credit card, student, etc.)

I Want to Have This Loan Paid off by…………

Interest Rate

Action Plan Action Plan Start

Date

Date I Paid off the Loan


It is important to think ahead and plan for down payment, closing costs and escrow. These costs need to be paid when you purchase a home. They can vary depending on the mortgage product. Make an estimate of the amounts you will need to pay at closing.

1.) Estimate your costs based on the house you can afford:

Down payment (0% to 5% of the loan) $_______________

Closing costs (0% to 3% of the loan) $_______________

Escrow for Real Estate TaxesAnd Homeowners Insurance $_______________(You should estimate the escrow costs atup to 1% of the mortgage amount)

Attorney’s Fees $_______________

Other $_______________

TOTAL: $_______________

2.) Fill in the amounts you have available to cover these costs:

Amount from IDA and match $_______________

Personal Savings $_______________

Commitment of cash gifts from family or friends $_______________

Assistance from a homeownership program $_______________

Other $_______________

TOTAL: $_______________


2.) Hidden Costs of Owning a Home

In addition to the down payment, closing costs and escrow, there are other costs that you will likely incur at the time of purchase. As a homeowner, you will face costs that you did not have as a renter. Here are some of the hidden costs of owning a home that you need to be aware of:

Inspection Fees – Before you purchase a home, you need to pay for a home inspection, and perhaps additional inspections for pests or radon. The costs of these inspections are borne by the buyer and are a necessary protection to avoid buying a flawed property or paying too much for your house. (Section 7 of this Home Purchase Plan goes into more detail about home inspections.)

Taxes – As a homeowner, you’ll need to pay property taxes, which are generally part of the escrow you pay into each month as part of your mortgage payment. Remember, even if you have a fixed-rate mortgage, your property taxes could go up and increase your monthly costs.

Insurance – Your lender will require home insurance, the cost of which will vary depending on a variety of factors, including the construction materials of your home and the location. Even if you currently have renter’s insurance, you’ll find that home insurance costs more because you are paying for the ability to rebuild your home, in addition to replacing your personal possessions. Insurance costs can also rise over time, and you may need supplemental insurance if you live in a flood zone. (Section 8 of this Home Purchase Plan goes into more detail about homeowner’s insurance.)

Homeowners’ Association and Condo Fees – If you buy within a homeowners’ association or a condominium association, you’ll be required to pay a monthly or quarterly fee. These fees can rise, or your association may need to charge a special assessment for projects such as repaving the parking lot or repairing a roof.

Moving Costs – You will probably need to pay a moving company or rent a truck to move your belongings to your new home.

Utility Bills – Depending on where you live now, your costs for electricity, gas and water could be higher when you move into your own home. Plus, you may need to make deposits to start your utilities. You may also need to pay for garbage collection.

Furniture and Decorative Items – While this is essentially a discretionary expense, most people who move from a smaller apartment to a larger home need to buy at least some new furniture. You can keep your expenses in this category in check by waiting for a year or two to buy extra things and carefully comparing prices before any big purchases.

Lawn Care – Whether you handle your yard work yourself or hire a professional, you will have to pay something to keep your landscape in check. Lawn equipment can be costly and, if you have a lot of land, you many need items such as a snow blower and leaf blower, in addition to a lawn mower. The less mechanized your equipment


(push mower and snow shovel!) the cheaper it will be….and you will get good exercise! Remember: maintaining your yard helps maintain your home’s value.

Maintenance – Interior home maintenance costs both time and money. While you may be able to change your furnace filters, clean your gutters and keep your appliances running smoothly yourself, you may also need to hire someone to clean and inspect your chimney and to keep your heating and AC system in top shape.

Repairs – White maintenance tasks can be predictable, the most costly part of homeownership typically comes with unexpected repairs such as replacing or repairing the roof, fixing loose tiles in the shower, removing an overgrown or dead tree, or paying for mild mitigation in a damp basement. The list of possibilities is endless, so the best thing that homeowners can do is to set aside savings for an emergency. Some financial experts suggest budgeting for 1% or 2% of your mortgage balance as a yearly maintenance and repair fund, but the amount you need to save depends on the age, condition and size of your home.

THE BOTTOM LINE – While buying a home may cost a little more than you think, the investment can still be worthwhile as long as you buy what you can afford, budget for expected and unexpected expenses and hold onto your home for at least 7 to 10 years.


What is your best estimate of how much it will cost on a yearly basis to operate, maintain and repair the home you are considering purchasing? Make a realistic estimate and be sure you will have enough money in your budget to cover the costs.

Taxes: $_______________

Insurance: $_______________

Home Owners’ Association or Condo Fees: $_______________

Utility Bills (oil, gas, electric, water, wood, etc.): $_______________

Furniture and Decorative Items: $_______________

Lawn Care: $_______________

Maintenance: $_______________

Repairs: $_______________

Other: $_______________

TOTAL: $_______________

NOTES:

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3.) Know Your Rights

As a mortgage borrower, you have certain rights that are guaranteed by the U.S. Government.

Go to:http:// www.firsthomeadvisor.com/index.php/first-time-home-buyer-education-counseling- credit/your-rights/ and then write down the rights that are guaranteed to you:

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http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing?rmra/res/resborwr

4.) Shop for a Loan

List three banks, credit unions or other financial institutions where you are considering getting a mortgage:

# Lender Name Address Contact Person

Phone Number

1

2

3

Important: Be sure that you do not make any large purchases (appliances, autos, family entertainment systems, etc.) from the time you make your mortgage application until AFTER the closing. Lenders usually do a last minute credit check before a closing, and if your credit history changes, they might withdraw the mortgage.

NOTES: ________________________________________________________________

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Use the following table to compare mortgage products:

Questions Lender 1 Lender 2 Lender 3

Do they have any special first-time buyer financing?What is the interest rate I qualify for?

What is the total mortgage loan I qualify for?Mortgage term in years?

Type of mortgage: fixed, variable, etc.?

Amount I need to pay for points up front versus if they are rolled into the mortgage?Amount of other fees and charges I need to pay?What, if any, prepayment penalties apply?What happens if I am late on a mortgage payment?Do they plan to sell my mortgage to another entity after your loan closes?Will I get a complete copy of all my mortgage documents to review before closing?What if I have trouble keeping up with my mortgage payments? Who do I call and will they work with me to correct the problem?


Avoid Predatory Lenders

Go to the following website to learn about predatory lending. http://www.infoline.org/informationlibrary/Documents/Predatory_Lending_Practices.asp Then write down 5 examples of predatory lending practices:

1. _____________________________________________________________

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2. ______________________________________________________________

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3. ______________________________________________________________

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4. ______________________________________________________________

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5. ______________________________________________________________

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http://www.infoline.org/informationlibrary/Documents/Predatory_Lending_Practices.asp

5.) Learn About Home Buying Programs

Go to the following website for information about home buying programs and other resources in Connecticut. List three programs that you want to research further: http://www.hud.gov/local/index.cfm?state=ct&topic=homeownership

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2. _____________________________________________________________

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3. _____________________________________________________________

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http://www.hud.gov/local/index.cfm?state=ct&topic=homeownership

6.) Find a Realtor

When looking for a home to purchase, you will probably work with a realtor or real estate agent. This person might be a Buyer’s Agent, a Seller’s Agent or a Dual Agent. Here are the definitions of these terms:

Real Estate Agent: Real Estate Agents are licensed by the state to allow them to advise people on real estate issues. They will help facilitate the purchase of your home.

Realtor: Realtors are Real Estate Agents; that is, they are licensed by the state. In addition, they are members of the National Association of Realtors. In order to use the title of “Realtor,” a Real Estate Agent must take extra course work in Ethics and adhere to a stringent set of guidelines for doing business.

Buyer’s Agent: A Buyer’s agent represents the interests of the buyer in a real estate transaction. The Buyer’s agent’s responsibilities to the buyer are: undivided loyalty, obedience, diligence, disclosure, confidentiality, accounting, and reasonable skill and care. Go to the website of the Connecticut Department of Consumer Protection at: http://www.ct.gov/dcp/cwp/view.asp?a=1622&q=423310 to get information on choosing a Buyer’s Agent.

Seller’s Agent: A Seller’s agent or "listing agent" is a person who represents the interests of the seller in a real estate transaction. The property owner -- or seller -- is the client.

Dual Agent: If a real estate agent working on the sale of a particular home also represents a client who might be interested in buying that home, by law, the agent must provide both the seller and the potential buyer with a "Dual Agency Consent Agreement" form to sign.

A sales agent is supposed to work only for the seller, but by signing the Dual Agency Consent Agreement, the seller waives that right and agrees that the agent is free to represent both buyer and seller in the deal. Neither seller nor buyers should agree to Dual Agency if they feel it's not in their best interest. For more information on Dual Agents go to: http://www.ct.gov/dcp/cwp/view.asp?a=1629&q=502402.


http://www.ct.gov/dcp/cwp/view.asp?a=1629&q=502402


Use the following table to compare realtors:

Realtor Questions Realtor #1 Realtor #2 Realtor #3

Are you a Buyer’s Agent, Seller’s Agent or Dual Agent?How long have you been a realtor?

What cities/towns/neighborhoods have you helped clients purchase homes in lately?How many buyers have you helped to purchase a home in the past 12 months?How will you decide which homes to show me?

Can I look through the MLS listings to select homes to view?What affects the percent of commission that I pay, if any?When are you available to show me homes?

Other:

Other

Other:


7.) Shop for a Home

Finding the right home – The location of your new home is one of the most important decisions you will make. Now is the time to find a good fit for your family’s long-term needs.

1. List the cities/towns where you are considering living:________________________________________________________________

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2. How many people will be living in your new home? _____________________

3. Bedrooms: Number Wanted__________ Number Needed__________

4. Bathrooms: Number Wanted__________ Number Needed__________

5. Age of house: Under 5 yrs___ Under 20 yrs___ Under 50 yrs___ Historic ___

6. What type of home are you considering (check all that apply)?

Single family___ 2-Family___ Townhouse___ Condo___

Use the following table to determine whether each of the following are needs or wants for your family to see what locations will meet your needs:

Want Need Item Want Need ItemTown water/sewer Family neighborhoodClose to work Low crime ratesClose to family Close to healthcarePublic transportation Close to storesGood schools Close to entertainmentWalk to schools CityClose to childcare SuburbsClose to outdoor recreation

Small town/rural

Other: Other:


Check what you want and what you need to have in your new home:

Want Need Item Want Need ItemHandicap accessible AtticOne-story living space Attached garageTwo-story living space One-car garageBathroom on first floor Two-car garageEat-in kitchen Energy efficient windowsLiving room Painted sidingFormal dining room Vinyl sidingFamily/multi-purpose room

Fenced yard

Entryway/mud room WorkshopOffice Oil heat/hot waterWasher/dryer hookups Gas heat/hot waterLaundry on first floor Electric hear/hot waterLaundry on second floor Wood of pellet heatWall-to-wall carpet Energy efficient

appliancesTile flooring Air conditioningWood flooring Space for gardenUnfinished basement Wooded lotFinished basement In-law apartmentWalkout basement PrivacyFireplace Move-in readyDeck/patio Fixer-upperPorch/balcony Other:Extra storage Other:

Are there any other special features or needs that you must consider when you’re looking for a home?

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What features would you be willing to give up to find a home in your price range?

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8.) Evaluating the Home

Here are some questions to ask about the home you are considering purchasing:

Questions to Ask Before You Buy Where to Find the Answers

What have other homes in this neighborhood of the same size and with similar features sold for (not what they were listed for) and how long were they on the market before they sold?

Your realtor Registry of deeds for the city www.zillow.com

What is the property tax rate and what are the property taxes for the home?

The property listing City/town tax assessor’s office The seller

What are the known environmental risk factors, such as flooding, soil contamination, ground water contamination, radon, formaldehyde, etc.?

City/town/state building department or environmental protection agency

Is it a safe neighborhood? Local Police Department Neighborhood watch groups and

neighborsWhat previous claims have been filed against the homeowner’s insurance?

Ask seller to provide you with a Comprehensive Loss Underwriting Exchange (C.L.U.E.) Report


http://www.zillow.com/

9.) Make an Offer

Before you make an offer and enter into a Contract:

1. What is the maximum amount you can afford to offer on a home (look back at Section 1: How Much Can You Afford?) ______________________________

2. Based on your budget, how much deposit can you put down to hold the home for you? __________________________________________________________

3. How much time will you need to close, including giving notice to your landlord and getting final bank approval? ____________________________________

What property do you want to ask the owner to leave with the home or be certain to remove?

Leave Take Item Leave Take ItemRefrigerator Removable ScreensStove Air conditionersAbove-stove microwave

Carpet that is not wall-to-wall

Dishwasher DehumidifierWashing Machine Sump pumpClothes Dryer Firewood/Fuel in tanksHanding Lamps Swing setDraperies/Window TreatmentsDrapery Hangers/Curtain Rods

Storage shed without foundation

Blinds Above-ground poolOther Other:


What contingencies do you want to put in the Purchase and Sales Agreement?

Yes No ContingencyApproval of financing for the homeAppraisal of home showing it is worth at least the amount you are payingA satisfactory general home inspection report indicating no major problemsSatisfactory radon testSatisfactory lead paint test if children 6 or younger will be living in homeSatisfactory well and water tests if not on city/town waterSatisfactory septic and leach field inspection if not on city/town sewerSpecific repairs or improvements to be completed prior to closingTime for you to end your rental leaseOther:

Other:

NOTES:

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10.) Get a Home Inspection

What is a Home Inspection? First of all: Appraisals are not home inspections. Appraisals are for lenders; home inspections are for buyers.

Why Does a Buyer Need a Home Inspection? A home inspection gives the buyer more detailed information than an appraisal--information you need tomake a wise decision. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to: evaluate the physical condition: structure, construction, and mechanical systems identify items that need to be repaired or replaced estimate the remaining useful life of the major systems, equipment, structure,

and finishes

It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You may arrangeto do so before signing your contract, or may do so after signing the contract as long as your contract states that the sale of the home depends on the inspection.

What Goes into a Home Inspection? – A home inspection gives the buyer an impartial, physical evaluation of the overall condition of the home and items that need to be repaired or replaced. The inspection gives a detailed report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors.

List three inspectors you are considering using. Then use the table on the next 2 pages to compare them and the services they offer. Be sure to ask for references.

# Company Name Address Inspector Phone Number

1

2

3


QuestionsInspector #1 Inspector #2 Inspector #3

How long have you been practicing in the home inspection profession and how many inspections have you completed? Is this your primary, full-time job?

Are you experienced in residential inspections?

What professional association(s) do you belong to?

Can you schedule the inspection when I will be there?

Where do you get most of your referrals?

Do you carry errors and omissions insurance?

Do you provide a detailed written report or just a checklist report?

Is an inspection for wood-destroying insects included?

Do you evaluate the interior of the fireplace and chimney?


QuestionsInspector #1 Inspector #2 Inspector #3

Will you inspect the roof from the ground or ladder?What is your fee?

Questions to ask references:Reference #1

Reference #2 Reference #3

Was the inspector prompt in sending the report?

Was the report comprehensive and clear?

Was the inspector helpful in answering questions?

Would they use the same inspector again?


In addition to a general building inspection, what other tests or inspections would you like to have done?

Yes No Inspections/TestsAsbestos (only older homes with reasons to suspect asbestos)Lead paint (only for houses build prior to 1978 – a must if children under 6 will live there)Toxic moldPests other than wood-destroying insects (cockroaches, fleas, bed bugs, ants, mice, rats)Radon gasSeptic system inspection by expertSafe drinking water (wells only)Water flow test (wells only)Other:Other:

NOTES:

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11.) Shop for Homeowner’s Insurance

Understanding Homeowner’s Insurance – In general, homeowner’s policies cover partial or total damages caused by fire, hurricane, hail, lightening or any other hazard listed in your policy. Homeowner’s insurance cover bodily injury to you or someone else; the cost of building(s); personal property if it is stolen or destroyed by an insured hazard; and for the cost of defending you in court and any court awards for lawsuits for bodily injury or property damage caused by you, your family, and/or your pets for covered hazards up to the limit of your policy.

Saving Money on Your Homeowner’s Insurance – You may be able to save hundreds of dollars a year on homeowners' insurance by shopping around. You can also save money with these tips:

Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.

Insure your house NOT the land under it. After a disaster, the land is still there. If you don't subtract the value of the land when deciding how much homeowner's insurance to buy, you will pay more than you should.

Don't wait till you have a loss to find out if you have the right type and amount of insurance.

Make certain you purchase enough coverage to replace what is insured. "Replacement" coverage gives you the money to rebuild your home and replace its contents.

Ask about special coverage you might need. You may have to pay extra for computers, cameras, jewelry, art, antiques, musical instruments, stamp collections, etc.

Remember that flood and earthquake damage are not covered by a standard homeowners policy. The cost of a separate earthquake policy will depend on the likelihood of earthquakes in your area. Homeowners who live in areas prone to flooding should take advantage of the National Flood Insurance Program (http://www.floodsmart.gov/floodsmart/pages/index.jsp).


http://www.floodsmart.gov/floodsmart/pages/index.jsp

The following can impact the cost of insurance and your ability to find or keep insurance. Check all that may apply to your new home:

_____Location of fire hydrants _____Low credit score

_____Guns _____Fireplaces

_____Trampoline and/or pool _____Your neighborhood

The following discounts may be available:

_____Non-smoking _____Bundling (home/car)

_____Smoke detectors _____Fire extinguishers

_____Fire alarms _____Security system

_____Over 55

List three insurance agents or companies that you will contact for homeowner’s insurance. Then use the table on the next 2 pages to compare insurance agents and products.

# Company Name Address Contact Person Phone Number

1

2

3


QuestionsInsurer #1 Insurer #2 Insurer #3

Are you licensed with the CT Department of Insurance?

What does the property insurance cover?

What does the property insurance exclude?

How much property insurance do I need?

What living expense coverage is included?

What does the liability insurance cover?

What does the liability insurance exclude?

How much liability insurance do I need?

Will I need a separate flood, hurricane and/or other additional insurance policies?


QuestionsInsurer #1 Insurer #2 Insurer #3

What discounts do I qualify for?

What factors affect insurance rates?

Does the insurance cover the replacement cost of my home in case of a total loss?

Is the personal property coverage based on replacement value or case value?

What documentation of personal property is required when filing a claim?

Is the cost of hiring a private appraiser to estimate damages included?

What is the monthly cost of the homeowner’s insurance?

What are the differences in monthly costs with various deductibles?

What other out-of-pocket costs are you aware of that often come up when making claims?

Other:


12.) The Closing Process

What does the word “closing” mean? Closing is a term used for the point in time at which the title to the property is transferred to the buyer and a mortgage is given by the buyer/borrower to the lender.

Once the seller accepts your offer, the countdown to closing begins. Timing is essential to make sure all the ingredients for a successful closing are in place.

You will need to choose an attorney to represent you at the closing. You can shop around for an attorney, or get a recommendation from a friend, your realtor or your lender. Once you have an attorney, he or she will handle the closing process from there.

Some things that will happen before and at the Closing:

1. If you have given the seller a deposit (binder) the attorney will see that it is promptly deposited into an escrow account where the funds are held until the time of closing.

2. The attorney will arrange for the title search. He or she will hire a title professional who will search and examine the public records for information related to your home’s title. The title search will uncover any issues that must be dealt with before the property can change hands. For instance, the previous owner might have failed to pay property taxes; or there may be an outstanding mortgage or judgment on the property.

3. If the sellers need to pay off a previous mortgage, the attorney will contact the existing lender and find out what the payoff figure is.

4. The attorney prepares the HUD-1 Settlement Statement (another word for “Closing” is “Settlement”). This document outlines all of the costs for both the buyer and seller associated with the closing. You can download a copy of the HUD-1 Settlement Statement at:

https://portal.hud.gov/hudportal/documents/huddoc?id=1.pdf

5. The attorney will tell you how much money you will need to pay at the Closing.

6. The attorney will schedule a Closing date. The Closing can take place in your attorney’s office, the seller’s attorney’s office or at the financial institution that is lending you the funds to purchase your home.

7. On Closing day, the property will be transferred from the seller to you. You will sign a number of documents which will be explained to you by your attorney.

8. Once the signing is done, the house is yours! Congratulations!! You will receive the deed to the property. Your attorney will record the deed with the Town Clerk in the town where you live.


https://portal.hud.gov/hudportal/documents/huddoc?id=1.pdf

My Home Purchase Contacts

Property Address

Seller: ____________________________ E-Mail: ______________________

Phone: ___________________________ Cell Phone: __________________

Address: ________________________________________________________

Banker/Loan Officer

Name: ____________________________ E-mail: ______________________

Office Phone: _______________________ Cell Phone: __________________

Address: ________________________________________________________

Realtor

Name: ____________________________ E-Mail: ______________________

Office Phone: ______________________ Cell Phone: __________________

Address: ________________________________________________________

Home Inspector

Name: ____________________________ E-Mail: _____________________

Office Phone: _______________________ Cell Phone: __________________

Address: ________________________________________________________

Appraiser

Name: ____________________________ E-Mail: _____________________

Office Phone: ______________________ Cell Phone: __________________

Address: ________________________________________________________


Attorney

Name: ___________________________ E-Mail: ______________________

Office Phone: _____________________ Cell Phone: ___________________

Address: ________________________________________________________

Insurance Company

Name: ___________________________ E-Mail: ______________________


Address: ________________________________________________________

Title Company

Name: ___________________________ E-Mail: ______________________


Address: ________________________________________________________

Other

Name: ___________________________ E-mail: ______________________

Phone: ___________________________ Cell Phone: __________________

Address: ________________________________________________________

Other

Name: ___________________________ E-mail: ______________________

Phone: ___________________________ Cell Phone: __________________

Address: ________________________________________________________


Helpful Links

Section 1: How Much Can You Afford?

www.chfa.org – “Home Affordability Calculator”

Section 3: Know Your Rights

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing?rmra/res/resborwr -- Your Rights as a Mortgage Borrower

Section 4: Shop for a Loan

http://www.infoline.org/informationlibrary/Documents/Predatory_Lending_Practices.asp -- Learn About Predatory Lending

Section 5: Learn About Home Buying Programs

http://www.hud.gov/local/index.cfm?state=ct&topic=homeownership – Home Buyer Programs in Connecticut

Section 6: Find a Realtor

http://www.ct.gov/dcp/cwp/view.asp?a=1622&q=423310 – The CT Department of Consumer Protection website; information on choosing a Buyer’s Agent

http://www/ct/gov/dcp/cwp/view.asp?a=1629&q=502402 – The CT Department of Consumer Protection website; information on Dual Agents

Section 8: Evaluating the Home

www.zillow.com – Information on the sales of other homes in the neighborhood you are considering

Section 11: Shop for Homeowner’s Insurance

http://www.floodsmart.gov/floodsmart/pages/index.jsp -- National Flood Insurance Program

Section 12: The Closing Processhttp://portal.hud.gov/hudportal/documents/huddoc?id=1.pdf HUD-1 Settlement Statement


http://portal.hud.gov/hudportal/documents/huddoc?id=1.pdf%20

http://www.floodsmart.gov/floodsmart/pages/index.jsp

http://www.zillow.com/

http://www/ct/gov/dcp/cwp/view.asp?a=1629&q=502402


http://www.hud.gov/local/index.cfm?state=ct&topic=homeownership

http://www.infoline.org/informationlibrary/Documents/Predatory_Lending_Practices.asp

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing?rmra/res/resborwr

http://www.chfa.org/

Part Two: Supporting Documents

Attach copies of the following documents:

Pre-approval package (if applicable) Closing documents (including Truth-in-Lending Form, appraisal, title, and

inspections done, etc.) 1st Time Homebuyer’s Certificate (if the participant has completed an outside

Homebuyer’s course) Receipts for any purchases made from vendors (appraiser, title search company,

inspection company, etc.) “Asset Purchase Request Form” Withdrawal Slip from the participant’s IDA Check from the participant’s IDA Withdrawal slip from the local Reserve Fund Check from the Local Reserve Fund

The development of this Home Purchase Plan benefitted from information received from the U.S. Department of Housing and Urban Development and New Hampshire Housing. The Connecticut Department of Labor gratefully acknowledges their contributions to this document.
