BUYING YOUR HOME There are many things to consider when you decide to buy your home and in today's market, it is critical to be represented by a seasoned expert who can help make your home buying experience a smooth and successful one. As your Buyer's Agent, what Vicki and her team at Lake & Company Real Estate offers is unique. She does not just facilitate your transaction, but provides you with personalized service. We have put together some common key topics to help prepare you.

SERVICES PROVIDED TO BUYERS Every Lake & Company agent follows these guidelines when working with you as a buyer. * Careful review of your needs and wants regarding the property you want to purchase. * Complete financial information including: > The loan amount you can expect to qualify for with local lenders. > General information on types of loans, payments, and closing costs. > Names and phone numbers of lenders with whom I've had a long standing professional relationship. These mortgage brokers and bankers have demonstrated their willingness to go the extra mile in solving problems and getting the loan closed. * Using these sources you can have access to every property listed with the Northwest Multiple Listing Association: > Daily computer updates on appropriate new listings. > I will provide you with complete information (including addresses) on any house you see advertised, regardless of the listing office. > If you see a house with a "For Sale" or "Exclusively" sign on it, write down the address, company and telephone number and I will make an appointment to show you the property and/or give you complete listing information. > You are encouraged to visit open houses. Be sure to tell the agent at the open house that you are working with me and call me if you see a house you are interested in. Do not sign any offer without our advice. * I will organize appointments and get you into all properties that approximate what you are looking for. I will not waste your time showing properties that are not reasonable for you (if you want 3 bedrooms, I will not show you 2 bedroom houses.) * We will write the offer (you will receive a copy of the contract used so you can study it before you get to this point) and I will present your offer to the Seller(s). * After you and the Seller(s) have come to an agreement regarding the price and terms of your purchase (I will act as the intermediary handling these negotiations) you will make a loan application. I will carefully track the financing through to closing, keeping you informed on the progress of your transaction. You can depend on me to help troubleshoot any problems that may occur. * You will be provided with a folder of information at your first appointment which includes the following information: > A copy of a Purchase and Sale contract so you can familiarize yourself with the verbiage before starting the process. > A list of local pre-sale inspectors previous clients have used and like (these are just suggestions; you can, of course, use anyone you want). > Financial information which includes an explanation of different financial programs, rates, closing costs, lender, etc. > Market information. In closing, I feel that it is my responsibility to prepare you to make the best possible decisions based on complete information and a confident perception of what buying a house is all about. I'm also committed to having a good time through this whole process.

EXPLANATION OF DISCOUNT POINTS One of the most misunderstood aspects of the mortgage banking industry is that of discount points. Being referred to by many different names worsens the confusion. "Point", "Discount Points", "Discount"," Investor Fee", and "Marketing Fee" are just a few of the names referring to the same thing. Whatever the name, the definition is the same. The primary purpose of "points" is to increase the yield to the investor of the loan. By collecting "points" the investor is able to provide below market interest rates to the borrower. An example would be: An investor wished to invest $50,000. He has the choice of investing in money market certificates which yield 13.5% or a mortgage loan at 12%. The investor would, of course, prefer the higher yielding money market investment. However, if we add discount points to the picture and offer the investor a mortgage loan at 12% with 6 discount points (6% of the mortgage amount) up front, the investor is offered a far more attractive investment. Keep these facts in mind: * Points enable the lender to offer lower interest rate FHA, VA, and conventional loans to their borrowers. * Points help enable the seller to sell, the buyer to buy, the builder to more easily sell his product and the Realtor to provide buying clients with an easily accessible means of home financing. * Points fluctuate because the "cost" of borrowing money goes up and down, depending on supply and demand. To sell properties today, we not only need ready, willing, and able buyers and sellers - we also need to obtain financing. We can obtain financing because of POINTS. Through the use of this tool, lenders are able to invest their money in mortgage loans and realize a rate of return comparable to other investment opportunities. Thus, it can be said that: Points are the magic ingredient behind the majority of activity in Real Estate.

Lake & Company Real Estate 7801 Green Lake Drive North ~ Seattle, Washington 98103 © 2005 Vicki Stewart. Seattle, WA, USA. All Rights Reserved. This website has been prepared by Vicki Stewart and Lake & Company Real Estate. The purpose of this website is to introduce you to our services and to serve as a resource for real estate information. While we make every effort to maintain the accuracy of the information contained in this website, the information is provided as a courtesy and is not a guarantee. All information should be independently verified to your satisfaction. Properties subject to prior sale or rental.