PVG Group Final

HOW TO BUY
A HOME
EXIT PREMIER REALTY
Perrille Veltri Group

CONTENTS
CHAPTER 1 .......................................................................................................................................................... 4
Why Buying a Home is a Smart Financial Investment? ....................................................................................... 4
1. Little To Zero Down Payment ................................................................................................................ 5
2. Buy a Home Now .................................................................................................................................. 5
3. Approved Bank Programs ...................................................................................................................... 6
CHAPTER 2 .......................................................................................................................................................... 7
What is Down Payment Assistance? ................................................................................................................... 7
CHAPTER 3 .......................................................................................................................................................... 9
Is This For Real? ................................................................................................................................................ 9
CHAPTER 4 ........................................................................................................................................................ 11
My Broker Didn't Tell Me about These Programs ............................................................................................. 11
CHAPTER 5 ........................................................................................................................................................ 13
How to Select a Broker or Lender ..................................................................................................................... 13
CHAPTER 6 ........................................................................................................................................................ 17
Overview of Down Payment Assistance Programs ............................................................................................ 17
FHA................................................................................................................................................................. 17
Rhode Island Housing Down Payment Assistance Program ............................................................................... 18
First -time homebuyers Loans ...................................................................................................................... 18
Beyond FirstHomes...................................................................................................................................... 18
Ocean State Grad Grant Program .................................................................................................................. 19
Septic System and Sewer Tie-In Loan Programs ........................................................................................... 19
Homes needing Repairs ................................................................................................................................ 19
CHAPTER 7 ........................................................................................................................................................ 20
How Much Down Payment Do I Need? ............................................................................................................ 20
CHAPTER 8 ........................................................................................................................................................ 21
How Do I Apply for Down Payment Assistance? .............................................................................................. 21
Employment ................................................................................................................................................ 21
Liabilities..................................................................................................................................................... 21
Common Documents Needed ....................................................................................................................... 21
Income Qualifications .................................................................................................................................. 22
Credit History .............................................................................................................................................. 22
Home Price .................................................................................................................................................. 22
CHAPTER 9 ........................................................................................................................................................ 24
What If I Don't Qualify? ................................................................................................................................... 24
2 | H O W T O B U Y A H O M E ?

CHAPTER 10 ...................................................................................................................................................... 26
Buyer Consultation with Realtor ....................................................................................................................... 26
CHAPTER 11 ...................................................................................................................................................... 29
Viewing homes ................................................................................................................................................ 29
CHAPTER 12 ...................................................................................................................................................... 30
Offer Process ................................................................................................................................................... 30
CHAPTER 13 ...................................................................................................................................................... 31
Accepted offer and Purchase and sales Agreement ............................................................................................ 31
CHAPTER 14 ...................................................................................................................................................... 32
Home Inspection .............................................................................................................................................. 32
CHAPTER 15 ...................................................................................................................................................... 34
Financing / Appraisal ....................................................................................................................................... 34
CHAPTER 16 ...................................................................................................................................................... 37
Walk thru Closing Celebration ......................................................................................................................... 37
3 | H O W T O B U Y A H O M E ?

CHAPTER 1
Why Buying a Home is a Smart Financial Investment?
There is a reason why 64% of Americans are homeowners. And with rental prices skyrocketing
across the nation - including an annual increase of 4.9% in Rhode Island - many people feel that
it is a great time to buy.
Let's explore some of the other benefits of home ownership:
• Shelter: This is one of the primary
essentials for life. Being a homeowner
means never having to worry about
being kicked out.
• Security: knowing your children are
safe in your home makes all of the
responsibilities of homeownership worth it.
• Control: No more worrying about the nail holes in the wall, or colors your kids paint
their rooms. A homeowner can decide how the house will look, whether and how to
improve the property, etc.
• Finances: a home is a great investment if you're in it for the long term. If you invest in
your home over a lifetime, and you own it outright, then you have a place to live rent-free
during your retirement years. The importance of this can't be overstated.
• Accrual: If you make improvements to your home,
you reap the benefits in increased property value.
Everything you do to make your house better has
the potential to reward you financially.
• Taxes: for those who are still paying off their
mortgages, get a mortgage interest deduction to
make buying a home a bit easier. Imagine all the
interest you pay on your mortgage being a tax
write-off!
4 | H O W T O B U Y A H O M E ?

• Equity: if you build up equity in your home, then you have stored value you can access
during an emergency, either through a home equity line of credit (HELOC), a cash-out
refinances, or a second mortgage. You should ONLY tap into your homes equity during a
bona fide emergency. During your retirement years, a reverse mortgage can be a great
option to turn your home's equity into a source of income.
• Credit: having a mortgage in a good standing can be great for your credit score. You will
have far fewer credit troubles if you prove yourself to be a responsible home owner.
Homeownership is the greatest source of wealth accumulation for Americans. In fact, nearly one
third of American Wealth is in home equity. This is a benefit anyone can attain if they take the
steps to become homeowners.
Now let's talk a little about the benefits of the little-to-zero down programs.
1. Little To Zero Down Payment
If you are renting, why pay your landlord's mortgage? Why not reap the benefit of
building your own equity? Are you renting because you think you need a substantial
down payment to own your own home? The general perception of many would be
homebuyers and even that of some realtors is that a substantial down payment of 20% is
required in order to purchase a home. This is simply not true. Because of this perception,
many would-be homeowners feel that they have to save for years before they could have
enough money for a down payment that will allow them to enter the housing market. In
the meantime, they are lining someone else's pockets while waiting for a long time before
they are able to start building up their own equity. Well, no with many options ranging
from 5% down, 3.5% down or even a ZERO down program you don't need to save very
long to buy a home.
2. Buy a Home Now
Like we said before almost everyone we talk to thinks they need $10,000+ saved up to
buy a home. You can now do it with little to zero down payments. Stop sitting on the
sidelines and get into the game.
5 | H O W T O B U Y A H O M E ?

3. Approved Bank Programs
It is important to know that little-to-zero cash down payment programs are approved
bank, state, and/or county programs. Review these programs with your lender or a realtor
who has specialized knowledge in financing. If you don't have a trusted source, you can
ask to speak with one of your local down payment assistance counselors for free and no
obligation by calling one of them listed below.
Primary Residential Mortgage Inc.
Primary Residential Mortgage Inc.
Nick Viveiros
Jon Joubert
Senior Loan Officer
Loan Officer
NViveiros@primeres.com
JJoubert@primeres.com
401-996-9460 401-490-7112
6 | H O W T O B U Y A H O M E ?

CHAPTER 2
What is Down Payment Assistance?
The big question that we always get is, "What exactly is down
payment assistance?" The answer is pretty simple. Entities
such as the State of Rhode Island and the federal government
offer qualifying individuals financial assistance for down
payments on the purchase of their homes.
The federal government, for example, offers several programs
that allow buyers to get home loans with much lower down
payment amounts than a conventional loan. The other great
thing is that these programs are designed to help people with
less-than-perfect credit and limited income. The FHA
program allows buyers to purchase a home with as little as
3.5% down, depending on the credit. The USDA program doesn't require any down payment at
all, but is only available in designated "rural" areas (though this is a loose term) and for
individuals under a certain income maximum, which varies by county. Finally, the VA also
offers zero down payment eligibility for veterans and active military service members.
The State of Rhode Island has several down payment assistance programs that can be used in
conjunction with the federal programs mentioned above. We'll go into greater detail on how to
do this later, but these can be a smart way to minimize the amount of upfront cash you'll need to
buy a home. One of the most popular programs with
Rhode Island Housing 100% financing and Down
Payments.
FirstHomes100, combined with our down payment
assistance allows you to finance 100% of the purchase
price of your home.
Each of these programs comes with a variety of
7 | H O W T O B U Y A H O M E ?

qualification requirements, variation in interest rates, and other factors that will influence your
decision in how to best finance your home. You really want to talk to a specialist who has
worked with these agencies multiple times to look at each special niche product so you can fully
understand them. We'll go into more detail in Chapter 6 and you can always call one of our down
payment assistance counselors for more help. You need
to find out what each program will really end up costing
you, even after the down payment. Interest rates vary
depending on the program, as does your obligation to
pay mortgage insurance each month until you sell or
refinance. Talking to a professional down payment
assistance counselor helps you create strategy to finance
your house in the best way for your personal situation.
So, why isn't everyone using these down payment assistance programs? Well, it's quite simple.
Most people don't know about them. The main goal of this book is to educate people on these
programs and lead them on the path to home ownership. Because these programs are so niche,
not all loan officers have experience with them. Don't let that hold you back from taking
advantage of them. If you lender tells you that they are not equipped to handle any of these
programs, then find a new one. Conventional and FHA Loans are not your only options, and
even if you decide to choose one of them, many of the states down payment assistance programs
can be used in addition to federal loan programs. Work with an expert to maximize your benefits.
These programs have some quirks so you need to make sure you have the right captain sailing
your ship.
8 | H O W T O B U Y A H O M E ?

CHAPTER 3
Is This For Real?
Of course this is for real! Both the state and
federal governments want housing to take place -
it's good for the economy. They want people to
buy houses so they can make more money
through property taxes. It also helps banks make
more money, all of which leads to job creation
and a health economy.
It's no secret that the housing market took a huge hit during the last recession, as did people's
employment and income. So in order to inject some life back into the real estate market and help
people get into permanent homes, the government began several incentives programs to help
people do just that; own their homes again. In
fact, just last year the FHA endorsed over
786,000 loans. And in 2015, my office alone
helped Rhode Islanders receive over $6
Million in down payment assistance. The key
to successfully taking advantage of these
programs is to find a trustworthy expert like
my team to guide you through the process.
FEDERAL HOUSING ADMINISTRATION (FHA) LOANS
U.S Department of Housing and Urban Development
451 7th Street SW
Washington, DC 20410
(202) 922-5432
RHODE ISLAND HOUSING HOME LOANS
44 Washington Street
Providence, RI 02903
(800) 427-5560
9 | H O W T O B U Y A H O M E ?

VETERANS AFFAIRS (VA) HOME LOANS
U.S. Department of Veterans Affairs
810 Vermont Avenue, NW
Washington DC 20420
(800) 827-100
USDA HOME LOANS
US Department of Agriculture
Rural Housing Service
1400 Independence Ave, SW
Rm. 5014, STOP 0701
Washington DC 20250-0701
(800) 414-1226
10 | H O W T O B U Y A H O M E ?

CHAPTER 4
My Broker Didn't Tell Me about These Programs
So your broker didn't tell you about down
payment assistance? What a shocker. Most
brokers and lenders don't tell their clients about
down payment assistance because it doesn't fit
into their box. It is something different and is
something new, and they don't want to deal
with change.
Most brokers tell buyers that they need at least
3.5% down for an FHA Loan, or even 5% to 20% for a conventional loan, and that's it. Why?
Because it's easy. But that doesn't help you or anyone else in our community.
Here's an example of a typical reaction from a loan officer when asked about down payment
assistance.
This particular loan officer was new to Rhode Island. While chatting with some of the other loan
officers in the mortgage office, she mentioned to me that she had recently moved from another
area. I asked her what she knew about down payment assistance.
Her response? "Oh, I don't deal with that." I
asked her what she meant. She replied that
she'd never heard anything real or positive
about the programs, so she simply does not
help buyers if they can't come up with 5% to
20% for their down payment. She felt
people with less than that were not serious
buyers and, consequently, not worth her
time.
11 | H O W T O B U Y A H O M E ?

For those for you familiar with Rhode Island, you know that 5% to 20% down payment on a
home here equates to about $20,000 to $40,000. How long would it take most families to save up
that much money? Too long.
We can only shake my head in disbelief when we hear this type of response from loan officers
and brokers. And unfortunately, we hear it often. Most just don't know the ins and outs of
purchasing or of helping a customer utilize down payment assistance. It's not the same old school
way of helping people buy houses. But just because the process is different doesn't mean you
don't deserve to take advantage of these programs. Don't worry if your current lender doesn't
want to help you - we'll show you how to find a new one in the next chapter.
12 | H O W T O B U Y A H O M E ?

CHAPTER 5
How to Select a Broker or Lender
Before diving into the details of how to choose the best broker or lender, let's first discuss the
differences between these two professions. A broker does not lend money directly; instead, he or
she serves as an intermediary between you (the borrower) and lenders. They can shop around
different banks on your behalf to help you find the best deal. They can also review your loan
application and documentation prior to submitting to the lender to make sure everything is in
order. However, they generally charge a fee ranging from 1 to 2.5, which needs to be paid by
either you or the lender.
Financing your home directly through a bank lender, on the other hand, gives you direct access
to the people in charge of your application. You'll likely be assigned to the people in charge of
your application, and will work directly with that person in communicating all necessary
paperwork.
Now that you understand the difference between a
broker and lender, we'll talk about how to choose
the best one. Start off by calling one of our
experienced down payment assistance counselors.
That we have recommended. We offer advice and
resources for professionals in the business who not
only have years of expertise with down payment
assistance, but actually like helping people rather
than just making a quick buck.
Always remember that you are the client and it's the broker's or loan officer's job to earn your
business. Yes, you are applying for a loan but they don't earn money unless your application is
approved. Compile a list of questions to include as part of the initial interview, and talk to
several professionals to compare answers. It's always best to talk to someone in person. Why?
Because you can tell more about their opinion from their body language and facial reactions,
13 | H O W T O B U Y A H O M E ?

than from the words coming out of their mouth. To help get the conversation started, I strongly
recommend asking the following five questions during your first meeting.
1) Is down payment assistance a scam or smoke and mirrors?
We bet you can guess what their answer to this question should be. If you're sitting in
front of someone and they say, "Yes, it's a scam," or, "Yes, it's not realistic for people. It
doesn't really get done," run away as fast as you possibly can. Find someone who loves to
help others. Down payment assistance is not a scam. It is real. That's why we suggest
meeting potential lenders in person. For us, we are personally passionate about these
programs. Why? Because they make a difference in people's lives. And you can tell that
about us from the moment we meet. So if you're considering a lender who automatically
dismisses down payment assistance programs, then you know they don't have your best
interests at heart. Move on.
2) Have you ever helped someone with down payment assistance?
One of the very first things that we show people who come into our office is a list of
names, addresses, and phone numbers of past clients who have purchased a home with
down payment assistance. WE also show people pictures of people standing in front of
their homes. They gladly give up their contract information so others will call and ask
them questions like, "Did you do this? Did The Perrille Veltri group actually help you
with that?"
Always tell your lender or broker, "I want to see your results. Show me some references."
If you're not asking this question, then what are you doing? You're just taking their word
for it. You need to ask not only if they've done it, but for past client references. Because
the proof is in the pudding.
3) How much money do I need to make to qualify for down payment assistance programs?
This is a great question to test someone's knowledge of the different programs available.
If the lender you're talking to don't have this information readily available, then there's a
14 | H O W T O B U Y A H O M E ?

ig problem. Yes, qualifications change all the time. In fact, just recently Rhode Island
Housing changed their income qualifications. But it raises a red flag when the person
you're talking to doesn't have this information readily available or don't know where to go
to find out. If they can't give you the basic qualifications of the most common programs,
than you know that they really aren't working with down payment assistance programs.
And always remember that these programs don't have minimum income qualifications,
they have income caps, meaning you can't earn over a certain amount. This question
helps you discern between the real deal and someone trying to say anything to get your
business.
4) What if I don't have enough cash for a down payment?
Get a gift. Go to your rich uncle or friends or whomever will loan you the money to use
as a down payment on your home. If your broker or loan officer doesn't know that you
can get a gift for your down payment, there's a problem. We had a past client actually
come and say, "We'd love to buy a house. We have the income, but part of the problem is
that we have a lot of bills every month right now because some circumstances came up.
But we want to give our children a home that they can call their own. We want our
children to live in a house where they can paint the bedroom walls whatever color it is
that they want. We want to be able to throw parties at our house and have our friends
over and enjoy life, but we just don't have the money right now."
If your lender simply says, "You need to save up and wait," and they don't give you the
option of going and getting the money gifted to you, go find another person to help you.
Go find people who are there to figure out ways to help you.
5) What if I already own a home? Can I still qualify for down payment assistance?
Owning a home is going to be a problem. If the broker or lender says they need to check
or they don't see what that would be problem, and then they don't understand down
payment assistance programs. These programs are designed to help people move into
home ownership who do not already own a home.
15 | H O W T O B U Y A H O M E ?

Don't get us wrong. Yes, there are some programs available if you currently own a home, FHA,
USDA, and VA loans, for example, all apply to current homeowners. You should definitely talk
to a down payment assistance counselor to see what programs you're eligible for. But for most
people, if you currently own a home and live in that home, the odds are that you're not going to
qualify for down payment assistance programs offering free grant money. If the broker does not
understand these basic eligibility guidelines, it's time to find someone else.
We can't stress enough how important it is to find someone who can give you the right guidance.
Trying to get a loan with a lender or broker who has limited experience in their dealings with low
down payment programs is simply setting you up for failure.
Set yourself up for success: don't reinvent the wheel. Find an expert with plenty of experience
and a process in place to quickly approve your loan with as little hassle as possible. That is a
winning combination and the secret to each of our client's success.
16 | H O W T O B U Y A H O M E ?

CHAPTER 6
Overview of Down Payment Assistance Programs
Now, keep in mind that you are about to read a
condensed version of down payment assistance
programs. The last time we counted, we had over 100
programs available that could assist with down
payments. Most of these programs are specific to
certain niche professions or circumstances. Below we
mention the most common program through which we assist 90% of future homeowners. For
more information on more specific programs, call an assistance counselor.
FHA
Federal Housing Administration (FHA) loans allow home buyers with lower incomes and credit
scores to qualify for a mortgage with a smaller down payment. You can get a loan with a down
payment as low at 3.5% of the home's sales price with a minimum credit score of 580. If you
credit score is 500 to 579, you'll need at least 10% for your payment. You can combine an FHA
Loan with state and county programs to decrease your down payment even more. Those
programs are outlined below, but first we'll go into some more detail on the FHA program.
The federal government doesn't make the actual loan, it just insures the loan. Shop around for
FHA - approved lenders to find the best interest rate available. Another thing to note about the
FHA program is that borrowers are required to pay two mortgage insurance premiums. The first
is one-time payment of 1.75% of your loan amount. You can save your cash by adding the
premium to your loan total.
After that, you'll pay an annual fee, which is tacked onto your monthly mortgage payment. The
percentage you pay varies based on whether you take out a 15- or 30-year mortgage and how
much of a down payment you put down. Annual mortgage premiums range from 0.45% to
0.85%. Talk to your lender to see how that monthly amount varies based on your down payment.
17 | H O W T O B U Y A H O M E ?

Once you reach a certain amount of equity in your home, you can refinance your loan to drop the
monthly mortgage payment, so it's not necessarily a permanent charge.
Rhode Island Housing Down Payment Assistance Program
First -time homebuyers Loans
Rhode Island Housing First Time Home buyer loans help many
first time home buyers realize the dream of home ownership.
First Homes 100 loans offer 100% financing, no down payment
is required. Down payment assistance is available along with
closing cost assistance. Also, no mortgage insurance is required
for qualified borrowers resulting in lower monthly payments.
Many first time home buyers may also be eligible for our First
Homes Tax Credit. A federal tax credit that could save you as
much as $2,000 a year for the life of your mortgage and also offers extra tax savings for eligible
borrowers. This First Homes100 Loan allows you to finance 100% of your purchase price of
your home. We also offer assistance to help qualified customers pay for their closing costs,
including low interest loans that can be paid back in up to 15 years.
Take Rhode Island Housing First Time Home buyer Education class to learn everything there is
to know about buying a home. It is the perfect resource to help First Time Home Buyers.
Beyond FirstHomes
Rhode Island Housing Beyond First Home Loans is for those looking to move into a new home
or refinance their existing mortgage. This loan provides Rhode Island residents the opportunity
to take the next step in their home ownership journey. These loan options can help you move into
a new home or refinance. If it is not your first time buying a home, we have our New Home loan
which offers as little as 3% down and removes mortgage insurance requirements for qualified
buyers. For those looking to refinance their existing mortgage, this loan option offers up to 97%
financing on the appraised value of your home and removes mortgage insurance requirements for
qualified buyers. Refinance applies only on loans used to acquire property.
18 | H O W T O B U Y A H O M E ?

Ocean State Grad Grant Program
Graduate to your first home! The Ocean State Grad Grant is now available for new mortgage
applicants. If you are purchasing your home in Rhode Island, you could receive up to $7,000
towards your down payment. The Ocean State Grad Grant is helping college graduates make
Rhode Island home buy ordering a special first-time home buying grant. This grant is available
to qualified buyers who have graduated within the last 36 months from an accredited academic
institution. You can earn up to $7,000 in down payment assistance and it can be combined with
our closing cost assistance program. To qualify you must be a new mortgage applicant, a first
time home buyer purchasing a 1-4 family home or condominium. The applicant must also meet
income and purchase price limits and must obtain a mortgage through a Rhode Island Housing
Participating Lender or Rhode Island Housing.
Septic System and Sewer Tie-In Loan Programs
The Septic System and Sewer Tie-In Loan program allows communities without wastewater
treatment facilities to access low-interest loans and assist property owners with the cost of
repairing or replacing failing or substandard septic systems, including the replacement of a
cesspool with a septic system. These programs are important to help protect our environment
while providing homeowners with access to low interest loans.
Homes needing Repairs
FirstHomes100 loans help many first time home buyers buy and fix a home in need of repairs.
Our FirstHomes100 mortgage is a flexible, dependable loan that will help you buy, renovate, and
keep the home that is right for you and your family.
* Please note all programs and loan or income limits can change at any time.
19 | H O W T O B U Y A H O M E ?

CHAPTER 7
How Much Down Payment Do I Need?
So how much of down payment do you really need? For
an FHA Loan, that question depends on where you want to
purchase your home. Each and every county has a
different loan limit for an FHA loan. Now, we do want to
point one thing out.
If you're getting a conventional loan with down payment
assistance, this section of loan limits doesn't necessarily
apply to you. But the majority of people who read this book with be getting an FHA loan first, so
this does apply.
Your down payment amount is based on what county you are looking to purchase a home. For
example, if you are looking to buy a home in Providence, Rhode Island, your FHA loan limit is
$407,195, meaning you cannot obtain an FHA first loan for more than that amount.
Doing some really quick math, you can see that if you obtained a FirstHome loan in Rhode
Island, you are not required to put a down payment down and they will cover 100% of the
purchase price.
Remember, you can always get the down payment gifted to you from a family member or a
friend, as long as you discuss it first with your down payment assistance counselor. This needs
to be known from the get go and it cannot be in cash. All gifts need a clear paper trail showing
where they are coming from. So for all of those of you reading this, and thinking to yourself,
"Man, I would love to do that and buy a home but I just don't have the money to put down, even
with down payment assistance." Well, just go out and start asking your family members for their
assistance. It's as simple as that.
If you don't have anyone willing to gift you or lend you the money, think of a few nonnecessities
you can remove from your budget for a few months, or pick up a temporary side job.
If you can save just over $300 a month for six months, you'll quickly have enough for a down
payment.
20 | H O W T O B U Y A H O M E ?

CHAPTER 8
How Do I Apply for Down Payment Assistance?
Employment
You will be required to show proof of employment for the past two years. If
you have any gaps in employment, you must provide a letter of reasonable
explanation.
Liabilities
You will be required to disclose all current
liabilities you have in order to determine how
much additional debt you can carry with your
home mortgage. This includes car loans, credit
card debt, student loans and other personal debt.
Lenders use this to determine your debt-to-income ratio which affects the amount you may
borrow and your interest rate. A borrower who carries a lot of debt compared to the amount of
money they make is considered riskier than someone with a lower debt-to-income ratio, so the
lender may charge a higher interest rate to compensate.
Common Documents Needed
Here is a list of common documents needed to determine if you qualify for any of the programs:
1. Months of Paystubs
2. Months of all bank statements
3. Years of tax returns
4. Previous year's W2
5. Current driver's license
6. Any and all supporting documentation or retirement, investments, stocks, etc.
21 | H O W T O B U Y A H O M E ?

Income Qualifications
Lenders conduct a review of your total household income to determine a maximum income level
based on the number of people living in your home.
Credit History
A credit report will be pulled to review your history of monthly payments on your liabilities.
You may be asked to provide an explanation of any recent late payments or collections. Consider
getting copies of your credit reports through the federal government. You can request this service
for free once a year from the three reporting agencies to verify that your credit history is
accurate. There are also plenty of websites available for a free credit score to give you an idea of
your range and how to potentially improve your score before applying for a mortgage loan. We
recommend Privacy Guard because it' s owned by Transunion and is a credit monitoring system
in addition to receiving a monthly copy of your credit report.
Home Price
For the programs requiring little to no down payment, Providence County’s current maximum
purchase price is $407,195.00. Keep in mind that it is based on individual qualification, so you
may qualify for less based on income and liabilities.
Now is the time to start to put your documentation together. There is no need to wait for the
formal request from your loan officer. Speed things up by starting to pulling together your bank
statements, your paystubs, and the rest of the documentation outlined above.
Remember that buying a home with down payment assistance is a process, not an event. That
means you're going to come in and need to get some guidance. You're not going to come in, fill
out an application, and hear that day whether or not you've been approved.
Only about 20% of the people we meet come in and are ready to be approved within 72 hours.
Eighty percent need some TLC, whether their credit is too low or their taxes need to be reviewed
by an under writer. Whatever the issue may be, it takes some time. But that's the great thing:
even if you don't have a perfect credit score or robust income history, we still help you meet the
qualifications of these specific programs to get you on the path of homeownership. So if you're
wondering if you could get approved for a home loan, call one of our counselors. We'll help you
get started!
22 | H O W T O B U Y A H O M E ?

Once you fill out a loan application and give your lender your documentation, you'll be asked a
series of questions. This usually takes about an hour. Then they'll figure out which bucket of
down payment assistance programs you fall into.
Most likely, you'll qualify for one or more of the common programs we discussed earlier.
However, you could easily fall into one of the very special niche programs that are available
through the state. Remember, there are hundreds of specialty programs, which is why you want
to be as descriptive as possible in your application, particularly when it comes to your
employment, why you want to buy a house, and why you want down payment assistance.
23 | H O W T O B U Y A H O M E ?

CHAPTER 9
What If I Don't Qualify?
What if you don't qualify today for a down
payment assistance home mortgage? The answer is
short and sweet: get some help. And the best way
to do that is to work with a down payment
assistance counselor to create a mortgage roadmap.
The concept of a mortgage roadmap is actually
quite simple. It's a step by step action plan of what
you need to do to qualify for a down payment assistance home mortgage. If you're speaking to
someone who doesn't do a mortgage roadmap, then you're not speaking to the right person.
Secondly, if they're charging you to help you with this portion of it, run away. Go to someone
who is there to help get you into a home, rather than charging you $500 or $1,000 in upfront fees
just to put a mortgage roadmap together. If you're having trouble finding someone you trust,
never hesitate to call our office at 401-288-3600.
As we mentioned earlier, 80% of the people we meet are not yet qualified for a down payment
assistance home loan. Only about 20% are ready to rock and roll from the get-go. The 80% who
are not yet qualified normally have bad credit. Their credit scores are low, whether it's because of
delinquent payments, repossession, or even a bankruptcy. Because of these issues, they don't yet
qualify. If you fall into this category, we always recommend that you speak to someone who
specializes in personal finance. Of course, we have a trustworthy referral for you. What we love
about this outside firm is that they don't charge for their counseling. Don't fall prey to someone
trying to charge you several hundred dollars to help fix your credit problems.
Why do they want to help you with your credit? Because they're getting paid monthly and it's a
business. Just like we told you before about selecting a down payment assistance counselor, a
loan officer, or a real estate agent, you need to get a direct referral from someone you trust in this
industry.
24 | H O W T O B U Y A H O M E ?

Then once again, ask for references from clients they have successfully helped. If you want some
guidance or a referral or someone who can give you credit counseling, call our office at 401-288-
3600 for more information. It's always better to speak with a professional rather than trying to
navigate the waters on your own. Depending on what your credit history entails, there are a
number of rules and regulations regarding what can be removed from your credit report and
when. A seasoned expert knows the best way to fix your solution in the quickest timeframe
possible.
Don't be alarmed if you feel your history might keep you from ever buying your own home. The
odds are, it won't. Instead, what you have is a credit challenge and it's about getting direction on
how to fix it. However, keep in mind that you need to stay committed to the process. You need to
be in it to win it. Your credit counselor and down payment assistance counselor will both help
guide you to ensure your mortgage roadmap leads you to success.
25 | H O W T O B U Y A H O M E ?

CHAPTER 10
Buyer Consultation with Realtor
With over 30 years of combined full time Real Estate service we have the
experience to assist you in purchasing your next home.
We have built our reputation with hard work and knowledge of the
current Real Estate Market.
We are committed to help you with the home buying process and to find
the home of your dreams. When using our services expect us to guide
you every step of the way.
We understand that purchasing a home can be the one of the biggest
decisions of your life and we take this very seriously.
We have built our reputation with our clients in mind. When you hire us
you will have access to state of the art technology along with our
personalized knowledge of the local Real Estate Market.
We have helped many buyers fulfill their dreams of home ownership and
pride ourselves on our expertise to commitment and service.
Let us assist you in your home buying experience.
The first step is setting up a buyer consultation to
go over the whole buying process and what to
expect along the way.
The buyer meeting is
typically set up at our office at a convenient time
for you.
exclusively throughout the transaction.
As a buyer’s agent we represent you the buyer
During this meeting we will discuss what you can expect from us.
26 | H O W T O B U Y A H O M E ?

We like to start by discussing the different types of sales that you may encounter during our
search. Short Sales, Bank Owned Properties and Fair Market Sales. We will go into detail
about each type of sale and what to expect from the sellers and the selling process.
We will also talk about the inspection process and how important it is to use qualified
professionals. What the inspection period is and what to expect from your home inspection and
what are the seller’s responsibilities prior to the home inspection.
Being in the business for over 15 years we like to base a lot of what is said on our real life
experiences. All transactions are different but with the help of a knowledgeable professional we
are able to work thru most any problems that may come up. We always let the buyers know that
with any transaction you can expect some level of stress. This is most likely the biggest
transaction of your life and there is no such thing as a stress free transaction. Our job is to make
the process as stress free as possible.
A big part of this meeting is to discuss the type of financing you are planning to buy with.
Depending on the type of financing you use there may be different types of guidelines that we
need to adhere to. Your loan counselor will need to examine your current financial situation and
project how much you can afford.
We will go over closing costs what they are and how they are paid. Closing costs are the fees
associated with the transaction and can amount to between 3-6% of the amount financed. These
can be paid out of pocket at the closing or can be financed in with the loan as a seller credit.
When we are done talking about financing we jump right into what your needs and wants are in a
home. It is important to have realistic expectations based on your financing qualifications. We
will look at some different homes online to start and see what homes are available that meet your
expectations.
We set you up on an auto-update search so as soon as a home that meets your criteria is listed
you will have it emailed to you. With this exclusive service you will receive property alerts as
soon as a listing hits the market we will also input you in to our database for upcoming listings
so you will be alerted once a property meets your specific search criteria and we can schedule to
make sure you are the first to view the property when it comes on the market. As one of our
27 | H O W T O B U Y A H O M E ?

uyers you will also have access to all the HUD foreclosed homes we have all the keys for these
properties and we are an approved brokerage for HUD homes.
We will also send you the Home Search app download to download to your mobile device to
make the search easier for you. We will also discuss your schedule and the best times for you
and your family to view homes.
Using our exclusive website you can message us when you see a home that you may be
interested in. You can message us letting us know if you want to view it or have questions on it.
Once you alert us you would like to view a home we will schedule the showing and accompany
you on the showings to view the homes with you. We will research all the homes you request
information on and view due to unfortunately sometimes the MLS data is not correct. We will
advise you of any discrepancies in the information. There may be a deciding factor that has been
overlooked such as the property being a short sale or having a cesspool. That is one of the
reasons it is always recommended that as a buyer you have a Realtor representing you for your
home purchase. MLS data is not always 100% accurate and it will be our job to verify that
information for you.
We will give you copy of an offer form and purchase and sales and briefly review it with you so
you know what to expect once you find a home.
Let our experienced team help you to find your new home.
28 | H O W T O B U Y A H O M E ?

CHAPTER 11
Viewing homes
Once you see a home that you would like to view it is
always a good idea to either do a drive by or do an
aerial view or even a good street view on the home to
make sure you like the area or street.
Once we have a confirmed appointment we will alert
you of the appointment date and time and will meet
you there to view the home with you.
It is very important when viewing open houses if asked you tell the agent at the open house you
are represented by us. If you would like us to attend an open house with you please let us know
and we can or we can alert the other agent that you will be viewing the home during the open
house.
We will typically see a number of homes on any given day and it is not uncommon to schedule
multiple homes to see in one day. Showings can be anywhere between 15-45 minutes depending
on the size and location of the home. It is important that you let us know your schedule and best
times to schedule the showing.
When viewing a home you will typically receive a MLS
printout and RI law requires seller disclosures to be
given to buyers. You will receive a seller’s disclosure,
lead disclosure and sometimes mold disclosure. The
mold disclosure is not a required form but sometimes it
is included for buyers review. It is a good idea to write
on the MLS sheets features about the property you like
and dislike. When viewing a lot of homes it can become
very overwhelming and you might forget certain things.
Especially if the appliances are included in the sale.
29 | H O W T O B U Y A H O M E ?

CHAPTER 12
Offer Process
and be able to make an educated offer.
When you find a home that you would like to
purchase we will meet back at our office and study
the values of the surrounding homes. We will pull
up comparable homes with similar features as the
subject property and will search the MLS for
homes that fit the criteria. By doing this you will be
able to have an accurate idea of what the values are
We will review all the sellers’ disclosures of the property, tax field cards and prior sales if any of
the property.
The initial offer is typically put on a simple one page offer form unless otherwise specified. It is
then sent to the listing agent along with any disclosures for the property and the pre-approval.
We like to call this a starting point. The seller can accept, counter or decline your offer.
Typically first offers are not accepted and you will most likely receive a counter offer be
prepared for the most your will to pay for a property. Multiple offer situations can happen at any
time and can be very frustrating however being quick to offer and make a response can help
eliminate multiple offer situations sometimes.
30 | H O W T O B U Y A H O M E ?

CHAPTER 13
Accepted offer and Purchase and sales Agreement
Once the offer or counter offer has been accepted we
meet back at our office to sign and review the
Purchase & Sales agreement. This is 5 pages and in
some cases can have additional addendums added.
You will also need to have the earnest money deposit
as well for us to give to the seller. This amount
depends on the price of the home, the type of
financing and also what is negotiated on the original offer and terms of acceptance. This is
required to request the seller to remove the property from MLS and put the property into a
pending status.
This deposit money goes towards the down payment
money needed unless the buyer is using 100% financing.
Then most or all of the money is returned to the buyer once
the property has been successfully closed.
We will go over all of the sections to the purchase and
sales agreement along with all the dates and what they
mean and what to expect.
One of our preferred attorneys will also review and discuss the contract with you this is a service
we offer to our buyers to eliminate any confusion or questions.
The purchase and sales contract is a legal and binding
agreement. It is always recommended to consult with an
attorney before signing it.
Once we receive a fully executed contract back our Home
inspection period will start along with the financing period.
31 | H O W T O B U Y A H O M E ?

CHAPTER 14
Home Inspection
Once the contract has been fully executed by
both parties the buyer has 10 Business days to
complete any inspections and to request the seller
to repair any deficiencies.
We do like to give the buyer some pointers on
what to expect from the home inspection. Just
like all trades you have good inspectors and bad
ones. It is important to know that there is no
such thing as a perfect home. Home inspectors get paid to tell you all of the issues no matter
how small. It is important to try and focus on the issues that adversely affect the health and
safety of the occupant of the home. Mainly the electrical, plumbing and structural issues.
A home inspection is around 2-3 hours long and will typically cost between $350 -$1000
depending on the type of inspections. It is recommended that you review the inspector’s
qualifications and reviews online. Don't consider the cost as the only factor when selecting an
inspector. It is important that anyone purchasing the home be present for the entire inspection.
A good inspector will not only point out deficiencies with the home but will also teach you about
some of the mechanics with the property along with yearly maintenance. We encourage you to
follow the home inspector around as he or she inspects the property.
All homes are different and because of this some homes require different types of inspections. If
the home is on a septic or cesspool you
will need to get this inspected. Some
homes are serviced by wells, if this is the
case you will want to test the water
quality along with the flow to ensure the
well is producing enough water.
32 | H O W T O B U Y A H O M E ?

If the home has a basement that is finished or you plan on finishing it a Radon inspection might
be a good idea.
RI has one of the oldest housing stocks and some buyers opt to perform a Lead inspection please
refer to the EPA booklet and sellers disclosures about lead.
At the end of the inspection the inspector will give you a copy of the home inspection and will
typically release with your permission a PDF copy to your Realtor. Radon and Water Quality
testing typically take 2-5 business days to receive back.
Once the inspection is complete and we have all the reports back we will meet to prepare a
response on what you would like the seller to address along with any concerns you have. We
will request all work to be performed by registered and insured contractors and qualified
professionals. We will also request that the seller forward the receipts of the work that has been
done to us for your review. Once we receive notice that they repairs have been completed we
will schedule the proper inspections to make sure they have been done and will discuss the
options with you.
Please understand the seller is not required to fix everything or agree to your terms and we might
be forced to negotiate or ask to be released from contract and have your deposit returned if both
you and the seller can't agree on the required repairs.
33 | H O W T O B U Y A H O M E ?

CHAPTER 15
Financing / Appraisal
In regards to financing the biggest concerns are remember once you have been preapproved and
in contract with a house.
DO NOT:
• APPLY FOR CREDIT FOR ANYTHING
EVEN PROMOTIONAL OFFERS
• DON'T CHANGE JOBS OR QUIT 2ND
JOBS
• DON'T BUY A NEW CAR OR FURNITURE
• DON'T DO ANYTHING THAT WILL APPEAR ON YOUR CREDIT
REPORT
• IF YOU RATE SHOP YOU MORTGAGE KNOW THAT EVERY
CREDIT PULL WILL DECREASE YOUR CREDIT SCORE
• DON'T MAKE LARGE DEPOSITS IN YOUR ACCOUNTS UNLESS
YOU CAN PROVIDE A PAPER TRAIL FOR THEM
ALL THE ABOVE COULD JEOPARDIZE YOUR APPROVAL!
Once we are past the inspection period and all terms or repairs have been agreed to we will
follow up with the Mortgage Broker and give them the OK to order the appraisal. Many brokers
will want to do this the same time as the inspection – We do not recommend this. Our focus is
to protect you and your investment and we don't want an appraisal ordered until we have agreed
34 | H O W T O B U Y A H O M E ?

on all the terms from a home inspection. If an appraisal is ordered and you need to be released
from the contract the appraisal fee is not refundable. A typical appraisal will cost between
$300-$800 depending on the size of the home and is an out of pocket expense just like the home
inspection. The main purpose of an appraisal is to make sure the home you are purchasing has a
value of at least the purchase price or more. Although the appraiser is not an inspector they will
note any deficient conditions with the home. This report will be reviewed by the lender and
they may require any deficient conditions to be rectified. Some examples are chipping paint,
broken windows and missing roof shingles.
You have a right to request a copy of your appraisal and we suggest you do from your mortgage
professional and keep a copy for your records.
Once the appraisal is complete and has been signed off on by the lender the title is ordered on the
property and the lender will also prepare a mortgage commitment for us to present to the seller.
The mortgage commitment is a guarantee that the lender will loan you the money to purchase the
property. A typical commitment will have conditions on it that will need to be cleared prior to
closing typically they will include pulling credit again to make sure the buyers debt to income
ratios didn't change by obtaining new credit cards or buying a car etc... They will also verify
employment and might ask for recent paystubs and bank statements. We review the mortgage
commitment with your lender and you before submitting this to the seller. Once the mortgage
commitment is sent to the seller you loan is no longer a contingency on you purchasing the home
unless one of the conditioned items can't be obtained. Sending a mortgage commitment to the
seller that is full of conditions and with no appraisal back yet could default your deposit so that is
why we will review this prior to submitting it to the seller.
The closing attorney will conduct a title search to make sure there are no liens attached to the
property. Once the title search is back and clear they will forward it to the lender. If there are
concerns they will need to be address prior to closing and might delay the closing.
Once all conditions have been cleared, clear title has been received and your loan is approved the
lender will give you file the clear to close.
35 | H O W T O B U Y A H O M E ?

At this point we will schedule the closing. You should receive specific instructions from either
the closing attorney or mortgage broker on exactly how much money you will need to bring to
closing. This money should be certified funds.
36 | H O W T O B U Y A H O M E ?

CHAPTER 16
Walk thru Closing Celebration
These are a few important things to remember just before closing.
• Make sure you change all utilities in your name, these will
usually be gas and electric.
• You will want to make arrangements with any cable and
phone companies prior to closing. They are usually a few
weeks behind.
• If the house is heated with oil you will need to pay for the
remaining oil in the tank since this is considered personal
property.
• If the house is heated or there are propane tanks there for cooking gas you will need to
call the provider and set up a rental agreement and delivery schedule. The tanks are
typically not owned and might be removed prior to closing. You can also just transfer the
service and they will bill you for the propane in the tanks.
• If the home has an alarm or invisible fence decide if you want to activate those items
• Have your mail forwarded to your new address – this can be done online.
Prior to closing the loan officer and closing
attorney will be in contact with all parties to
schedule the closing and to confirm the dates,
times and if you will need to bring any money to
closing.
Remember it must be certified funds
made payable to the attorney’s office.
On the day of the closing it is customary to do a
Final walk through just prior to going to the attorney’s office for the closing. We do this for a
number of reasons.
• To make sure the home is in the same condition or condition agreed upon.
• The sellers has removed all personal belongings
37 | H O W T O B U Y A H O M E ?

• Any and all appliances or any other agreed upon items that were going to remain are still
there.
From here we will usually go directly to the closing attorney. You as the buyer can expect to be
here for at least an hour and do a lot of signing.
Once all the signing has been finished the attorney will go to
the town hall and record the sale at this point it is now 100%
YOUR HOME CONGRATULATIONS!
Thank you for reading through our book. We hope it has
been helpful to you and the home buying process. We are
here for any questions you may have and can't wait to open
the door to your new home!
Melissa Perrille
Broker/Owner
EXIT Premier Realty
Perrille Veltri Group
Michael Veltri
Associate Broker
EXIT Premier Realty
Perrille Veltri Group
401-288-3600
www.pvgsold.com
38 | H O W T O B U Y A H O M E ?

39 | H O W T O B U Y A H O M E ?