Information for Buyers 

JONES GROUP REALTORS^® buyers come from all over the globe; or they may be your friends with growing families that need a larger home, or your neighbors who would like to down-size.They may be relocating to the area due to employment.

JONES GROUP REALTORS^® buyers move across the county, state and country to relocate to the beautiful Pioneer Valley. Buyers purchase more homes here because of employment changes, city and cultural attractions, family, or just to fulfill their dreams of returning to the place they once called home.

JONES GROUP REALTORS^® agents are trained professionals and know how to assist you with each and every move. We pride ourselves on quality client service, first-hand industry education and more SOLD homes than the local competition.

Let's begin the home buying process so that you may understand how easy and hassle-free JONES GROUP REALTORS^® agents make it for you, our valued client.

Choose a link from the list below, or follow them step-by step to learn more:

• Getting Ready to Buy
• Important Consumer Information
• Finding a Realtor
• Starting the Loan Process
• Starting Your Search
• Finding Your New Home
• Making an Offer on a Home
• Insurance
• Closing Procedures
• Settling In

#1 Getting Ready To Buy

Are you ready to live the "American Dream?" Preparing to buy a home can be both exciting and daunting at the same time. Fortunately, a JONES GROUP REALTORS^® agent may lead you toward the home of your dreams. You first may want to ask yourself these questions:

• What am I looking for in a new home?
• Do I have enough money to purchase a new home?
• How does my credit look?

You may want to make a list or brainstorm about the features and amenities that you find most appealing in a new home.

 #2 Important Consumer Information

Escrow Payments:  Earnest Money and Second Deposit

It is customary for a purchaser to put down a cash deposit in the form of a check when making an offer to purchase real estate. This deposit commonly referred to as "earnest money" is given to the listing broker. Upon acceptance of the offer, the check is deposited in a trust, or escrow account held by that broker until the closing. A bank check second deposit becomes due at the time the Buyer signs a Purchase and Sale Agreement. In an effort to streamline the process of depositing the escrow money in a timely fashion, Jones Group REALTORS® has the ability to transfer funds electronically if the deposits are to be held by Jones Group REALTORS® and are from conventional bank accounts.

When you provide a check as payment, you authorize Jones Group REALTORS® to use information from your check to make a one-time electronic fund transfer from your account. Funds may be withdrawn from your account as soon as the same day you make your payment by check and you will not receive your cancelled check back from your financial institution.

Wiring Funds

NEVER wire funds based on an email conversation.

If you receive an e-mail from anyone at Jones Group REALTORS® requesting that you wire or otherwise transfer funds, do not respond.  Please notify your agent immediately.  Instructions will only be given by a manager from Jones Group REALTORS®.  You will be required to call the manager and the manager will then call you back to give necessary information. Unfortunately, we must take these precautions to protect you from internet hackers.

TRID

On October 3, 2015, the Federal Consumer Financial Protection Bureau instituted new lending requirements.  In an effort to protect buyers from predatory lenders, full disclosure of closing costs must be disclosed at application and three days prior to closing.  If there are changes:

1. to the annual percentage rate of the buyer’s loan of more than one-eighth of one percent for a fixed rate loan or changes by more than one quarter of a percent for an adjustable rate loan from the rate that was previously disclosed to the buyer or,
2. the loan program is changed or,
3. a prepayment penalty becomes applicable to the mortgage loan,

it will become necessary for the closing to be delayed until at least three business days after the buyer receives a revised Closing Disclosure.

You will be asked to sign an Integrated Disclosure Addendum with the Purchase and Sales Agreement if financing is required for the sale of the property.  Click here for the TRID form from the Massachusetts Association of REALTORS®.

Flood Insurance Notice

Some properties are located in a flood plain.  A mortgage lender for a buyer/owner may require that the buyer purchase flood insurance.  Some buyers who purchase without mortgage financing may also wish to purchase flood insurance.

The National Flood Insurance Program (NFIP) provides for the availability of flood insurance, but also sets flood insurance policy premiums based on the risk of flooding in the area where a property is located. Due to amendments to federal law governing the NFIP and changes in flood maps, the premium may have increased over the premium previously charged for flood insurance for a particular property. As a result, a buyer should not rely on the premium paid previously for flood insurance. Not all properties located in a flood plain require insurance. There are gradations of risk.

When considering a purchase, the Buyer should consult with one or more carriers of flood insurance for information about flood insurance availability and terms, the premium that is likely to be charged for such insurance and information about how those premiums may increase in the future. For maps of areas affected visit https://msc.fema.gov.  Provided by the Massachusetts Association of REALTORS®

Required Federal Lead Warning Statement

Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 must be notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property built prior to 1978 is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. Talk to your agent about lead paint and Lead Paint Notification.

Right to Farm

Many communities recognize the importance of preservation of farmland and have adopted "Right to Farm" bylaws.

It is the policy of many communities to conserve, protect, and encourage the maintenance and improvement of agricultural land for the production of food and other agricultural products and also for its natural and ecological value. This disclosure notification is to inform Buyers that the property they are about to acquire may lie within a town that permits farming activities. Such farming activities may include, but are not limited to, activities that cause noise, dust and odors. Purchasing and henceforth occupying land within any of the "Right to Farm" communities means that the Buyer should expect and accept farming conditions as a normal and necessary aspect of living in this community.

The list of towns is growing and it is not possible to accurately list them here. Please visit www.mass.gov for more information and a current list of towns. If the community you are considering isn't currently a "Right to Farm" town or city, it is very possible it will be in the future.

#3 Finding a REALTOR®

Before you choose a real estate agent, it is important to do your homework on the real estate companies in your area. If you are choosing to live in the Pioneer Valley, select a JONES GROUP REALTOR^®. Our Team of Professionals will provide you with a complete Guide to the Home Buying Process.

1. Search the internet for local real estate information.
2. Review local publications.
3. Contact your real estate company and inquire about professional fees, marketing campaigns and yearly sales volume.
4. Talk to your friends and neighbors. Nine times out of ten, someone you know has sold or purchased a home and may provide a credible recommendation.

When choosing a REALTOR^® feel free to ask the following questions: 

• What is your selling experience in my community?
• What professional certifications do you hold?
• What services will you provide for me as my agent?
• How will you represent me as a buyer?
• Can you provide all the information that I need about homes in the area that fit into my price range?
• Is there a fee for your services?
• Can you provide all of the different scenarios with the sale of a property I may purchase? 
• Can you explain the various forms that I will need to sign?
• What is my contracted timeframe for using you as my agent?

Once you have chosen a JONES agent, it is important to establish specific goals that you would like to meet. It is very important to communicate with your real estate agent and, in turn, that your real estate agent communicates with you.

#4 Starting the Loan Process/Financing

It is important as a buyer that you establish some kind of financing before you make any serious home offer. The "pre-approval" process allows lenders to take a look at your finances and credit history in order to make a general assumption about your loan amount.  Receiving a loan requires completion of a loan application and specific financial documents including pay stubs, rental checks and/or tax returns. You can receive a loan from a number of different financial institutions, namely: commercial banks, credit unions, mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks and insurance companies.

The pre-approval process is when a lender looks at all of your finances and determines the amount of money you could afford for a mortgage.

Doing your homework about loans will save you both time and money. There are thousands of loans out there to choose from, but it is important to keep in mind several key factors that will help you along the way:

• How much money should I put down?
• How is my credit?
• Is this my first home?

In order to get pre-approved for a loan, you need to contact a lender. Your JONES GROUP REALTORS^® agent may assist you in locating a lender that you feel comfortable with, and that offers programs best-suited to your needs.

#5 Starting Your Search

Now it is time to start the exciting search for homes! You may want to narrow down your search by asking yourself the following questions:

• Where do I want to live?
• What is the neighborhood like?
• What is the crime rate?
• Would I be moving into a good school district?
• Are there any zoning restrictions?
• How far is this home from my employment?
• What is my price range?
• How many bedrooms and bathrooms do I want?
• What style of house am I attracted to?
• What amenities do I desire (ex. pool, fenced-in yard, etc.)?
• Does this home have potential to increase in value?
• Is there room to expand if I would like to build an addition?

Searching for a home is becoming easier than years ago. We now have the Internet as a powerful "home finding tool," as well as the MLS (Multiple Listing Service) and print advertising.

#6 Finding Your New Home

Beginning the search for your new home can be a great feeling. It is important that you directly communicate your desires in a home to your real estate agent.

You may want to first begin by making a list of the features and benefits that are most important in your pursuit of finding a home. These could be:

• Location
• Affordability
• Size
• Style
• Design
• Amenities

Looking for a home in an area where you feel comfortable is key. If appropriate, instruct your JONES GROUP REALTORS^® agent to look for homes in the specific areas you have designated.

#7 Making an Offer on a Home

Selecting a home should be relatively easy once a home falls somewhere in your criteria and the property is desirable for purchase.

You will want to inform your JONES GROUP REALTORS agent what you like about the house, or make a list of your likes and dislikes with the property. Though you will most likely have done this already in a general sense, it is important to do it again for specific homes you have an interest in.

There are three steps in selecting a home:

1. Accept the seller's asking price and have your agent prepare the contract
2. Reject the seller's asking price and have your agent make a different offer, or
3. Agree to different terms and have your agent prepare an offer

This is all a part of the negotiation process.

Communicating about the house and how it makes you feel is important when making this decision. It is also important to be realistic when it comes to how much you can afford when selecting "your" home.

#8 Insurance

Insuring your home is like making an investment in your future. You work hard to have a home; homeowners insurance protects you and your family from someone or something taking it all away.

There are many different forms of insurance:

• Title Insurance  - protects you in the event that the title on your property has a lien, unpaid taxes, or other legalities that would make it invalid.
• Homeowners' Insurance - protects your home from fire, theft and other liable coverage.
• Flood Insurance - protects your home from flood damage.
• Home Warranty - offers buyers and sellers the peace of mind that should anything unexpected happen (due to normal, everyday wear and tear) of the home's appliances, heating, air conditioning, plumbing, and electrical systems, it will be repaired (or replaced in some cases) for you without costly fees.

#9 Closing Procedures

The closing process is always changing. It is even referred to as "settlement" or "escrow" in different parts of the country. With increased technology, most closings are completely automated and both parties do not have to be present at the same time to sign.

Closings usually take about 30 days to complete. This mainly depends on the buyer's financing availability, successful home inspection completion, and various lender conditions (ex. title search, title insurance, termite inspections, surveys and appraisals.)

The closing process is the transfer of the title of the property from the seller to the buyer. The buyer will receive the keys to the home or the deed to the land, while the seller receives payment for the property. The amount the seller receives is based upon the amount that is still owed on the mortgage, any outstanding fees or taxes, and any additional closing costs. All legal papers are filed with the local record office.

It is this step where the buyers and sellers do very little. It is important for the buyer to take a final walk through of the property to make sure the property's condition has not changed. It is equally important for both the buyer and seller to make sure the paperwork they are signing reflects the agreement of the original sale.

#10 Settling In

You have unpacked your boxes, arranged your furniture, and feel complete with your moving task. What's next? There is always an adjustment period when you move. It is important to understand that what you, your spouse and/or children may be feeling is completely normal.

Here is a list of a few things that may help:

• Urge everyone to talk about how they are feeling.
• Get outside and tour the neighborhood or take a drive and visit some new places around the community.
• E-mail old friends and neighbors to let them know about your new home and community.
• Start a list about what you like about:
  • Home
  • School
  • Neighborhood
  • Community
  • Church
  • Friends
  • Teachers