a home buyer's guide
DEREK ZOKOE Realtor® 616-826-1088 derek.zokoe@c21affiliated.com https://zokoe.sites.c21.homes/
DEREK ZOKOE Realtor ® CENTURY 21 Affiliated 2090 Celebration Dr NE, Grand Rapids, MI 49525 P: 616-826-1088 E: derek.zokoe@c21affiliated.com Social: facebook.com/d8r7z www.zokoe.sites.c21.homes
Born and raised in the Grand Rapids area, I have a good understanding of what West Michigan has to offer. I graduated from Jenison High School, went to Grand Valley State University and got an education degree in mathematics and physics. I taught for 5 years before I decided to leave the education system and got my real estate license in 2019. I joined a small, boutique real estate brokerage where I learned all the ins and outs of real estate. Averaging 25 families served per year, I worked my way up to being a top 10% producer in West Michigan in 2023. By putting my clients first, I have continued to exceed their expectations and help them make smart real estate decisions. I currently live just outside of Standale with my wife Sarah, daughter Lily, and son Braden. We purchased our forever home in 2022. When I’m not showing houses and meeting with sellers, I enjoy working in the garden, smoking delicious meats, and am still active in the water polo community. Now with the power of a global real estate enterprise, I’m looking forward to serving even more families. What can Derek Zokoe and Century 21 Affiliated do for you? Stay tuned to find out.
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about me
Derek arrived for our first meeting with several comps of comparable properties & what they sold for. This helped me see what my property was worth. I spoke with 2 Realtors previously. The first recommended I list my property for $300,000 & the second Realtor $380,000. Derek with his knowledge of real estate sold it within days for $425,000. He was very kind, has a nice personality, a joy to do business with & very professional. I really appreciated his knowledge of real estate since I am a widow & have not made a big decision like this alone before. When he showed me houses I was interested in he was very respectful of the owner’s property. He explained the steps for closing since things had changed since I purchased a house 29 years ago. The whole process went smoothly. I would highly recommend Derek to help you sell your home & purchase another. I definitely would use him again.
Derek was the best (and most patient) Realtor ever! He showed me a ton of houses while I worked out what I wanted to do with purchasing a second home. He had great knowledge of the industry and put my mind at ease with the fluctuating market and looming recession. I ultimately got what I was looking for and he was a big help! Definitely recommended!
Wow! Derek made selling a house such a breeze! This was our first time selling a home and have heard horror stories from friends and family. Luckily, we had the opposite experience. Derek was professional and personal! He never made us feel uncomfortable and helped us every step of the way! Derek explained everything in a way that was easy to understand from data trends, timeline, showings, to working through the closing process. This made it really easy to sell our home in records time! Derek went above and beyond, he even watched our pup so we could do a showing!
Sometimes in life, you meet people who change our perceptions of where we can go. You are one of those people. Thank you!
- Carl & Lisa
- Allison
- Mike & Dawn
- Jackie
testimonials
Elevate Title Agency Preferred Title Insurance Provider P: (616) 649-3084 E: docs@elevatetitleagency.com
Casey Vinton Lake Michigan Credit Union Preferred Mortgage Lender P: (616) 262-1094 E: casey.vinton@lmcu.org NMLS# 436348
Julissa Caldera Century 21 Affiliated: Grand Rapids Office Administrator P: (616) 369-4040 E: jcalderaadmin@c21affiliated.com
Nicole Rinks Century 21 Affiliated: Grand Rapids Broker P: (616) 369-4040 E: nicolerinks@c21affiliated.com
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get pre-qualified
closing
how to buy a home
When you are ready to make an offer, I’ll negotiate on your behalf with your interest and goal as my objective.
Submitting the final offer can be exciting and scary. Working with me will allow you to relieve some of that anxiety
PROPERTY VIEWINGS – VIRTUAL AND IN-PERSON
walk-through
let's make an offer
Once the seller approves your offer you are one step closer to becoming a homeowner.
One last walk-through to ensure the property hasn’t changed since your last viewing and all terms of your contract have been met.
offer accepted
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I am here to help guide you!
Congratulations, you are a homeowner!
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In today’s world, virtual showings are a great way to get the bulk of the viewings done. Working efficiently will help keep you safe.
This is an important one. If you need help, I can connect you to a mortgage professional.
work with an agent
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Understanding the contracts, disclosures, and other documents is something I will help guide you through.
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LOAN APPLICATION
PRE-QUALIFICATION OR PRE-APPROVAL The application - First step in the loan process Credit pulled Verification of financial strength and other documentation WHY IS IT IMPORTANT? Pre-Approvals set you up for a smooth experience. They let the seller know you are a serious buyer. Having a pre-approval in hand might give you that upper hand when making offers on a home. It also lets you know how much purchasing power you have. DISCLOSURES You will need disclosures that confirm the terms of the loan you've applied for as well as your Good Faith Estimate and Truth in Lending Statement. APPRAISAL An appraisal provides the estimated market value of the property. This is prepared by an independent third party who is licensed and experienced. UNDERWRITING PROCESS Your package will be submitted to the underwriter who is a key decision-maker in your approval. Their job is to ensure you qualify for the loan you have applied for. APPROVAL After you receive your approval and all conditions are cleared you will receive your "Clear to Close" notification as well as your "CD" (Closing documents). Escrow will arrange to have you sign them as well as advising of any additional funds to close. FUNDING Once all documents have been signed and reviewed, your loan will be wired. Once the loan is recorded the transaction is considered closed!
AVOID THESE MISTAKES
WHEN APPLYING FOR A HOME LOAN
DON'T buy things for your new home until after you close DON'T consolidate debt without speaking to your lender first DON'T change bank accounts DON'T apply or co-sign for any new credit DON'T quit or change jobs DON'T move assets around from account to account DON'T run a credit report on yourself
Buying your first home can be exciting. Most of us are already picking out the new couch we want for the living room before we've even closed escrow. Buyers are guided through the process of what to do when buying a home, but many people leave out the equally important list of what NOT to do. Keeping it simple, here is my list:
the value of buyer agency representation
Exclusive Representation of your Interest Explain agency relationships and State-required forms. Inform the buyer of the working relationship based on State law, the REALTORS® Code of Ethics, and the broker’s business policies. Advocate for the buyer throughout the entire process. Ensure all parties have all forms and information needed to close the sale. Support the buyer in any final closing activities. in-depth market insight Explain the local market and how it impacts the buyer. Show statistics on what percentage of list price sellers in the area are currently receiving. Identify current average days on market. Indicate current listing months of market inventory. Share estimated potential out-of-pocket costs to complete the transaction. Inform buyer where to find applicable zoning and building restrictions. Collect and share any other vital information, remembering to follow all fair housing laws at all times. skilled negotiation on your behalf Prepare a buyer market analysis (CMA) in advance of making an offer. Prepare the buyer to have the most attractive offer in the current marketplace. Explain common contract contingencies and include approved protective clauses in the purchase offer. Help create a negotiating strategy. Recommend optional contingencies and explain the pros and cons of using them. Discuss financing alternatives. Utilize hyperlocal expertise and strong communication skills to assist the buyer in being the successful offer. Negotiate repair requests from the home inspection. coordination of the buying process Understand the buyer’s budget and what will be needed financially. Consider having the buyer fill out a homebuyer’s checklist. Match the buyer’s needs with available property. Constantly re-evaluate the buyer’s needs and refocus property showings to fit those needs. Schedule showings and provide access to all listed properties as soon as they become available in their local MLS broker marketplaces. Collaborate with the buyer on properties they may have learned about through their sphere contacts. Research and assist on all unlisted properties the buyer wishes to see. Preview properties prior to showing if needed. Network with other agents to source properties not yet in their local MLS broker marketplaces. Set up an automated email alert system through their local MLS broker marketplaces that immediately notifies the buyer of properties that fit discussed requirements.
step four
make an offer Review property details & market data, discuss & decide on offer terms, complete & sign the offer documents
step two
home search This is where we start searching for your new home! This may go quick, or it may take some time.
closings Final walk-through process. Review & sign closing documents. Transfer of funds and property ownership.
step one
coordination of the buying process cont. Encourage the buyer to fully investigate their options in terms of a home inspector, title company, appraiser, mortgage lender, and other services. Review and discuss home inspection concerns. Guide the buyer on meeting all contract deadlines. Advise the buyer to review the settlement statement. Inform clients that they need to transfer utilities to the new residence. Accompany the buyer on the final walkthrough. Confirm clear-to-close with the lender. Ensure all parties have all forms and information needed to close the sale. Confirm the closing date and time, and notify parties if there are changes. Confirm the status of the loan funding. Check addendums and alterations for agreed terms. Receive and carefully review title insurance commitment with the buyer. Receive and carefully review closing figures to ensure accuracy. insider advice on property potentials and pitfalls Compare each property shown to the buyer’s wants and needs list and remind them of what they were looking for. Learn the buyer’s wants and non-negotiable needs. Explain wire fraud risks and remind clients to verify all wiring instructions before transferring funds. Advise the buyer on post-closing steps and responsibilities.
step five
inspections & appraisal Explain the purpose and scope of a home inspection. Describe the appraisal process. Outline the potential outcomes & next steps.
timeline & milestones
step three
welcome meeting Meet for your Buyer Consultation, Set expectations, Connect with local lender, and personalize a plan.
CLOSING
You are almost there! Closing is drawing near and soon you’ll be chanting “Home Sweet Home!”. To ensure a smooth closing, it’s imperative that you follow the previous guidelines we covered. As your agent, I will work with you and the necessary parties involved to make sure we tie up all loose ends. We can’t predict the future, so of course, unexpected challenges may come up before you close. However, we will take the necessary steps to eliminate these obstacles sooner rather than later. It’s crucial that we have full transparency between us so that I can use my knowledge and experience to guide you to a stress-free closing.
ADDENDUM If a buyer or seller want to change an existing contract, they might add an addendum outlining the specific part of the contract they'd like to adjust and the parameters of that change. The rest of the contract stays the same, regardless of the addendum. APPRAISAL An appraisal on your home is an unbiased estimate of how much a home is worth. When buying a home, the lender requires an appraisal by a third party (the appraiser) to make sure the loan amount requested is accurate. If the home's appraised value is below what the buyer has offered, the lender may request the buyer pay the difference in cost. ASSESSED VALUE An assessment is used to determine how much in taxes the owner of a property will pay. An assessor calculates the assessment of a home's value by looking at comparable homes in your area and reviewing an inspection of the home in question. ASSIGNMENT An assignment is when the seller of a property signs over rights and obligations to that property to the buyer before the official closing. CLEAR TITLE Also known as a "just title," "good title," or a "free and clear title"- a clear title doesn't have any kind of lien or levy from creditors. It means there's no question of legal ownership of the property such as building code violations or bad surveys. CLOSING Closing is the final stage of the real estate transaction. The date is agreed upon when both the buyer and seller go under contract on the home. On the closing date, the property is legally transferred from seller to buyer. CLOSING COSTS Closing costs are usually comprised of between 2-5% of the total purchase price of the home. According to a recent survey by Zillow, the average homebuyer pays approximately $3,700 in closing costs. These fees are paid on or by the closing date. CO-BORROWER If a buyer is having trouble getting approved for a loan, they can elicit the help of a co-borrower. This person is usually a family member or friend who's added to the mortgage and guarantees the loan. They're listed on the title, have ownership interest, sign loan documents, and are obligated to pay monthly mortgage payments if the buyer is unable to. COMPARABLE SALES Comparable sales are used by an appraiser to establish how much a home is worth based on what other similar homes in the area have sold for recently. Only homes that have legally closed count as a comp - and most lenders and insurance providers require appraisers to use at least three closed sales. CONTINGENCY If a property is contingent, or the contract contains a contingency, certain events must transpire or the contract can be considered null. A contingency might be that the home must past an appraisal or receive a clean inspection. The sale of a home could also be contingent on the buyer selling their home by a specified date. If either the buyer or seller fail to meet the expectations of the contingency, either party can exit the contract. CONTINGENT VS. PENDING When a property is contingent, it means the owner has accepted an offer - but certain contractual expectations must be met or the offer will be void. If all contingencies are met, the property changes status to "pending." While contingent offers are still considered active listings. pending offers are taken off the market and other offers will not be entertained. DEED A housing deed is the legal document transferring a title from the seller to the buyer. It must be a written document and is sometimes referred to as the vehicle of the property interest transfer. DOWN PAYMENT The down payment is the amount of cash a homebuyer pays at the time of closing. Typical home loans require a 20% down payment. Some conforming loans will accept a 5% down payment, and FHA loans will accept a 3.5% down payment. EARNEST MONEY DEPOSIT Earnest money is a deposit (usually 1-2% of the home's total purchase price) made by a homebuyer at the time they enter into a contract with a seller. Earnest money demonstrates the buyer's interest in the property and is generally deducted from your total down payment and closing costs. ESCROW Escrow is part of the homebuying process. It happens when a third party holds something of value during the transaction. Most often, the "value" the third party holds onto is the buyer's earnest money check. When the transaction is complete (usually at closing), the third party will release those funds to the seller. FAIR CREDIT REPORTING ACT The Fair Credit Reporting Act (FCRA) was enacted in 1970 and ensures fairness, accuracy, and privacy of personal information contained in files maintained by credit reporting agencies. The goal of this act is to protect consumers from having misinformation used against them. FAIR MARKET VALUE A property's fair market value is its accurate valuation in a free and open market under the condition that buyers and sellers are knowledgeable about the asset, acting in their best interests. and free of undue pressure to complete the transaction. HOME INSPECTION A home inspection is carried out by an objective third party to establish the condition of a property during a real estate transaction. An inspector will report on such things as a home's heating system, the stability of the foundation, and the condition of the roof. The inspection is meant to identify major issues that might affect the value of the home and the stability of your and your lender's investment and return. HOMEOWNER'S ASSOCIATION A homeowner's association (HOA) is usually found when you purchase a condominium, townhome, or other development property. To purchase the home, you must also join the HOA and pay monthly or yearly HOA fees. These fees can cover common area maintenance, repairs, and general upkeep. The more amenities your building offers, the higher the HOA fees typically are. HOMEOWNER'S INSURANCE When you purchase a home, it's also necessary to purchase homeowner's insurance to cover any losses or damages you might incur, such as natural disaster, theft, or damage. It also protects the homeowner from liability against any accidents in the home or on the property. Insurance payments are usually included in your monthly mortgage payments. LENDER In real estate, the lender refers to the individual, financial institution, or private group lending money to a buyer to purchase property with the expectation the loan will be repaid with interest, in agreed upon increments, by a certain date. MORTGAGE A mortgage is the agreement between a borrower and a lender giving the lender the right to the borrower's property if the borrower is unable to make loan payments (with interest) within an agreed upon timeline. PENDING A sales is considered "pending" if all contingencies have been met and the buyer and seller are moving toward closing. At this point, it's unlikely the sale will fall through, and the buyer or seller risk losing the earnest money if they walk out on the deal at this point. PER DIEM Per diem or "per day" fees are charged if a loan isn't approved by the date the loan was scheduled to be completed. These charges are payable to the lender during closing. PRE-APPROVAL Before submitting an offer on a home (or even engaging with a real estate agent) you'll likely be required to get pre-approved. This means a lender has checked your credit, verified your information, and approved you for up to a specific loan amount for a period of up to 90 days. PRINCIPAL The principal of a loan is the amount of money owed on that loan. As you make monthly mortgage payments, your principal - in theory - goes down. The amount of interest you pay on a monthly loan will affect how much of your monthly mortgage payment goes to paying down the principal. A high interest rate means you'll pay less on the principal, meaning you'll pay more on your loan over time. PURCHASE AGREEMENT A purchase agreement demonstrates a buyer's intent to purchase a piece of property and a seller's intent to sell that property. The document outlines the terms and conditions of a sale and holds each party legally accountable to meeting their agreement. TITLE A home's title represents the rights to the property. Those rights are transferred from the seller to the buyer during a real estate transaction and give the buyer legal rights to the property upon closing. TRANSFER OF OWNERSHIP In real estate, transfer of ownership refers to transfer of a property's deed and title from the seller to the buyer at closing. UNDER CONTRACT A home is "under contract" when a seller has accepted an offer from a buyer but the transaction has not yet closed.
TERMS TO KNOW
DEREK ZOKOE Realtor® {{user.cellPhone}} derek.zokoe@c21affiliated.com