Your Guide to homeownership
My mission & goal
is to connect people to people, people to businesses and help cultivate new relationships while promoting the highest ethical and professional standards of integrity consistently.
Introduction
What to expect
Buying a home is one of the most significant financial decisions you'll make. It can be an exciting, yet complex journey. This guide is designed to help you navigate each step of the process, from initial preparation to finally receiving the keys to your new home.
I can't wait to help you along the way!
NOTES
Jaqua has partnered with Summit Home Mortgage to provide our clients with convenient, trustworthy and knowledgeable financial advisors. Summit offers a full line of mortgage products provided by experienced, highly skilled home mortgage consultants who are located directly in our offices. When Summit is the lender, you and your agent can be confident every aspect of the financing process is receiving expert attention. 24/7 - 365
Summit Offers a Full Complement of Mortgage Products
• FHA Loans
• VA Loans
• Jumbo Loans
• Refinancing
• Zero Down Options
• Rural Development
• Conventional Loans
• New Construction Financing
• Down Payment Assistance
www.summithomemtg.com/find-a-mortgage-pro
Meet Your Advisor
Rochelle Birmann brings with her thirty-plus years in the real estate community. She has an extensive title background that accelerated her career change to loan origination where she has ranked nationally.
I believe integrity is the cornerstone of my business. I believe a mortgage should be about building relationships and helping people achieve their home financing goals…it’s not just a transaction. I pride myself in outstanding customer service and am committed to the entire process. I have the ability to think outside the box to ensure every buyer attains the dream of home ownership.
As an MLO I take a consultive approach to the home loan process by communicating and customizing each loan. Giving solutions to my buyers. My mission is not to just get you a loan it is to get you the right loan. Simply put I love what I do.
Rochelle Birmann, JV President 269-615-0129 | Rochelle.Birmann@summithomemtg.com | NMLS #1395521
summithomemtg.com/loan-officers/rochelle-birmann/
YOU CAN NOT TAKE A RENTER’S MENTALITY INTO HOME OWNERSHIP
Preparing for Homeownership
Before you start looking at homes, it’s essential to assess your needs and establish a budget. Consider factors such as location, size, amenities, and your long-term plans. Are you looking for a starter home, or do you plan to stay in this house for the long haul? What are your must-haves, and what are your nice-to-haves?
Once you've identified your needs, the next step is to establish your budget. Take into account your income, savings, monthly expenses, and any existing debt. Don't forget to factor in additional costs like closing fees, property taxes, and ongoing maintenance. Planning with a full picture in mind will help you move forward with confidence.
The
Commitment
Most home mortgage terms are at least 15-30 years. While you don’t have to stay in the home that long, it's crucial to be 100% sure that you’re ready for homeownership before taking on a mortgage. Ask yourself:
• Do you have a stable income?
• Do you have an emergency fund that can cover 3-6 months of expenses?
Finances: Save, Save, Save!
Understanding and managing your finances is paramount.
• Know where your money is going! Create a budget to track your income and expenses.
• Start saving for your down payment. The bigger the initial payment against principal, the less interest you will pay over the life of the loan, potentially saving you thousands of dollars. A larger down payment also results in smaller monthly payments because you owe less on the house, which could positively influence future borrowing power.
• Don’t open any new lines of credit. This includes furniture, cars, jewelry, or big vacation trips. New credit can negatively impact your credit score and debt-to-income ratio.
• Make all your payments on time. Late payments can significantly lower your credit score.
Mastering Your Money
Creating a Zero-Balance Budget
There's a big difference between knowing where your money is going and telling your money where to go. That's the power of a zero-balance budget: every dollar has a name, a job, and a purpose before the month even begins.
Tracking your finances on a monthly basis isn't just helpful-it's crucial to building financial discipline and preparing for homeownership. One of the most user-friendly and effective tools out there is Dave Ramsey's EveryDollar Budget App. It's free, easy to use, and lets you track your spending in real time, so you always know where you stand.
Whether you're just starting or refining your process, a zero-balance budget is your foundation for financial peace and progress. Let's take control of your money—on purpose.
This next section will guide you through essential budgeting principles. While much of this information-and more—can be found in the EveryDollar app, it's important to understand the basics: Every dollar you earn should have a purpose. A budget helps you take control by showing exactly where your money is going and highlighting areas where you may be overspending. It's not just about tracking—it's about being intentional.
Monthly Cash Flow Plan
Cash flows in and out each month. Make sure you tell it where to go!
Yes, this budget form has a lot of lines and blanks. But that’s okay. We do that so we can list practically every expense imaginable on this form to prevent you from forgetting something. Don’t expect to put something on every line. Just use the ones that are relevant to your specific situation.
Step 1
Enter your monthly take-home pay in the box at the top right (a). This is the amount you have for the month to budget. So far so good, huh?
Step 2
Within each main category, such as Food, there are subcategories, like Groceries. Start at the top and work your way down, filling out the Budgeted column (b) first. Add up each subcategory and put that number in the Total box (c).
Also, pay attention to Dave’s recommended percentages (d). This will help you keep from budgeting too much for a category.
Step 3
Finally, enter your take-home pay in the top box at the end of the page (e), then add up all categories and place that total in the Category Totals box (F). Then subtract your Category Totals amount from your Take-Home Pay. You should have a zero balance (g). Doesn’t that feel great?
Step 4
When the month ends, put what you actually spent in the Spent column (h). That will help you make any necessary adjustments to the next month’s budget.
Pay
Monthly Cash Flow Plan
Education/tuition
Books/Supplies
Child Support
Alimony
Subscriptions organization Dues
Gifts (inc. Christmas)
Replace Furniture
Pocket Money (His)
FoodTransportationCharityPersonalInsuranceDebtEnvelope
FoodTransportationCharityPersonalInsuranceDebtEnvelope
HousingMedicalRecreationSavingsClothingUtilitiesEnvelope
HousingMedicalRecreationSavingsClothingUtilitiesEnvelope
FoodTransportationCharityPersonalInsuranceDebtEnvelope
FoodTransportationCharityPersonalInsuranceDebtEnvelope
HousingMedicalRecreationSavingsClothingUtilitiesEnvelope
FoodTransportationCharityPersonalInsuranceDebtEnvelope
HousingMedicalRecreationSavingsClothingUtilitiesEnvelope
HousingMedicalRecreationSavingsClothingUtilitiesEnvelope
FoodTransportationCharityPersonalInsuranceDebtEnvelope
HousingMedicalRecreationSavingsClothingUtilitiesEnvelope
Breakdown of Savings
This form will save you some headaches down the road. Plan ahead here.
These items are also called sinking funds. These are the safety nets in your plan.
After fully funding your emergency fund, start saving for other items, like furniture, cars, home maintenance or a vacation. This sheet will remind you that every dollar in your savings account is already committed to something.
Amount you have in each sinking fund
Your target balance for each sinking fund
iteMs balance target
Emergency Fund (1) $1,000
Emergency Fund (2) 3–6 Months
Retirement Fund
College Fund
Real Estate taxes
Homeowner’s Insurance
Repairs/Maintenance Fee
Replace Furniture
Car Insurance
Car Replacement
Disability Insurance
Health Insurance
Doctor
Dentist
optometrist
Life Insurance
School tuition/Supplies
Gifts (Including Christmas)
Vacation
Computer Replacement
tires
Baby
other
Credit Card History
We all have our histories. It’s okay! List yours here.
Every lineup has the usual suspects. And these usual suspects are thieves. Use this form to list every single credit card you have, including store cards. If you have no outstanding balance, close the account completely. If you still owe a balance, cut up the cards and pay them off using the Debt Snowball form!
Creditor’s mailing address and phone number
Date you called to close the account
Confirmation number showing the account was closed
Before You Start
Key "DOs"
• Save, Save, Save!
• Know your credit score.
• Find a trusted lender with a good reputation.
• Read your contract; ask questions.
• Be on time when submitting your documents.
• Work with me and I will make you a priority.
Key "DON'Ts"
• Start looking before you are pre-approved.
• Open any new lines of credit.
• Quit or start a new job right before closing.
• Forget about closing costs (save, save, save!).
• Forget to be patient with the process.
Checklist Home Buyer
Name: Email: Phone#
Spouse Name: Email: Phone#
Children: Yes No #
Pets: Yes No #
Style Home: Cape Cod Contemporary Ranch Condo Craftsman Ranch Craftsman Split-Level Colonial Farmhouse Victorian
Desired Location:
School District:
Property Address: Price:
Bedrooms: # Upper Lower Main
Primary Location:
Bathrooms: # Upper Lower Main
Laundry Location: Upper Lower Main
Garage: Attached Detached # of Stalls
Basement: Crawl Space Slab
Windows: Original Replacement: Yes No
Amenities: Pool: Inground Above Fireplace: Wood Burning Electric
Water Access: Yes No
Floor: Wood Carpet Ceramic Vinyl Other
Heat Source: Forced Air Radiate Heat AC: Central Air Wall Unit Window
Hot Water Heater: Standard Tankless Electrical Water Softner
Flood Zone: Yes No
Exterior: Brick Wood Vinyl Aluminum Combination
Driveway: Gravel Paved
Roof: Metal Shingles Asphalt Visible Condition
Gutter Condition:
Deck: Wood Composit Wrap Around
THE HOME BUYING PROCESS
Consultation & Pre-Approval
Consultation: Sit down with your Loan Officer to discuss the mortgage process and your budget for the monthly payment and down payment.
Pre-Approval: Provide income and asset documentation to receive a pre-approval letter with a conditional approval for a specific loan amount. This letter is vital; it gives you negotiating power and signals to sellers that your financing is certain.
House Hunting Time – Let the Fun Begin!
Work with your real estate agent to find a home. Consider what's important to you:
• What area or school district do you want to be in?
• Do you love to entertain? Is your home the meeting place for holidays and events?
• Do you have little ones (human or furry) and need
Make an Offer
Now that you have found the perfect place, it’s time to put in an offer.
• This can be done digitally or with traditional hard copies. Let your agent know how you want to fill out the forms and your preferred communication method.
• Your agent will help you decide how much to offer on the home by looking at the current market and searching comparables in the same area and style home.
• Your offer includes more than just the purchase price. You also want to include terms, such as how soon you need to be in the house, or any contingencies, such as whether you need to sell an existing house first.
Earnest Money
The earnest money deposit is typically 1-3% of the purchase price. This money is put in escrow and demonstrates your serious interest in the property. It stays there until your offer is accepted and is then applied to your down payment and closing costs.
Home Inspection
After your offer is accepted, the clock begins. You will have 10 days to get a home inspection done. This is crucial because you can't see what's happening behind the walls, under the house, or on the roof, or if major systems like your furnace and water heater are in good working order.
• You may also want to consider specialty inspections such as pest, radon, and mold.
• Once the inspection is complete, you will review the report and decide if you would like to move forward with the purchase or walk away. If you walk away due to inspection findings, you will receive your earnest money deposit back.
Apply for Your Loan
Gather all required documents and upload them securely via email, an online portal, or a mobile app. Then you’ll receive the Loan Estimate, in which you’ll need to communicate your "Intent to Proceed."
Review the Disclosure Package
It’s highly recommended to review all aspects of the disclosure package, including payments, loan program, and closing costs. Your Loan Officer will review this with you and ensure you’re prepared for closing.
Appraisal & Title Search
A preliminary title search will be ordered to ensure there are no liens or other claims on the property. An appraisal will also be conducted on the home to determine its market value.
Underwriting Review
While your loan is being reviewed by an underwriter, you may be asked to provide additional documents. Try to respond promptly to inquiries and maintain your financial status quo.
The Closing Disclosure
This five-page document contains the locked-in costs of your loan. You’ll review, sign, and return the Closing Disclosure to your Loan Officer within 3 days of receipt.
Closing Day!
Closing is the final stage where the property is legally transferred from seller to buyer. You’ll sign all the necessary documents and receive the keys to your new home!
Hooray!
UNDERSTANDING CLOSING COSTS
Closing costs are fees paid at the close of a real estate transaction, typically ranging from 2-5% of the total purchase price. Here's a breakdown of common closing costs:
Commissions
Usually around 6 - 7%, split equally between the buyer's and seller's agents. Typically handled by the seller, but can be split.
Loan Origination Fee
Also called a “point,” this fee is usually 1% of the total loan amount, paid to the lender for processing your loan. Usually handled by the buyer, though sometimes split.
Loan Discount (Points)
Fees paid directly to the lender at closing in exchange for a reduced interest rate, which can lower monthly mortgage payments. Paying more points can save money over the life of the loan. Usually handled by the buyer.
Appraisal Fee
Paid to the third-party appraiser to determine a fair value for the property. Usually paid by the buyer.
Credit Report Fee
Required by the lender to verify your creditworthiness.
Lender’s Inspection Fee
Associated with new construction, pays an independent inspector to verify the home's habitability and construction quality. Paid by the buyer.
Hazard Insurance Premium
Coverage that protects a property owner against various types of damage.
Flood Insurance Premium
Required for homes in traditional flooding zones.
Homeowners Insurance
One year premium for homeowner's insurance is required to be paid at closing, with an additional two months of premiums collected for a reserve account when applicable.
Annual Assessments
Special assessments included on property tax bills will be included in loan payments.
Advance Loan Fees
Fees collected prior to closing including appraisal fee, credit report fee, and extended lock fee.
Prepaid Interest
Most mortgage companies require interest that will accrue on the loan before the first payment be handled in advance. Usually paid by the buyer.
Reserve Account Funds
It is common for a special escrow account to be set up with funds collected at closing and then every month as part of the loan payment, for things like taxes and insurance.
City & County Property Taxes
All property taxes are collected based on when they next become due, plus an additional two months for a reserve account when applicable. Prorations will be applied between buyer and seller based on the tax year. 12
IMPORTANT BUYER ALERTS!
Trigger Leads
Beware! When you fill out a loan application, national credit bureaus (Experian, TransUnion, Equifax) take note of the inquiry. They then take that information (a "trigger lead") and sell it to competing lenders within 24 hours. You will then start receiving calls and emails with unsolicited offers from other companies — and it’s completely legal!
This could open the door for many issues, including but not limited to:
• Identity theft
• Unreliable lenders
• Confusion of the mortgage process
• Irritating phone calls
Do Not Call Registry
Complete prior to applications! The National Do Not Call Registry lets you limit unsolicited calls. STOP unwanted calls by registering your phone number:
• DoNotCall.gov
• 1-888-382-1222 or 1-866-290-4236
If you register online, you will receive an email to complete your request. You must click on the link in that email within 72 hours for your registration to take effect. If you ignore these calls, they will generally stop after about 48 hours.
Real Estate Terms & Definitions
This section provides definitions for common real estate terms you may encounter during your home buying journey.
Addendum
If a buyer or seller wants 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.
Appraisal
An unbiased estimate of how much a home is worth, typically required by lenders to ensure the loan amount is accurate. If the home’s appraised value is below what the buyer has offered, the lender may require the buyer to pay the difference.
Buydown
A mortgage-financing technique that lowers the buyer’s interest rate for a period (e.g., a few years) or the lifetime of the loan. Often, the seller or contractor makes payments to the mortgage lender to achieve this.
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.
Closing
The final stage of the real estate transaction where the property is legally transferred from seller to buyer.
Closing Costs
Fees paid at the close of a real estate transaction, typically between 2-5% of the total purchase price.
Comparable Sales (Comps)
Used by an appraiser to establish a home's worth based on what other similar homes in the area have sold for recently.
Contingency
A condition in a contract that must be met for the contract to remain valid. Examples include the home passing an appraisal or inspection, or the buyer selling their existing home.
Conventional Mortgage
A loan not guaranteed or insured by the federal government. These often require larger down payments (at least 20%) and typically don't require mortgage insurance.
Default
When a homeowner has not paid the sum they agreed to, typically meaning a mortgage payment hasn't been made in 90 days or more.
Deed
The legal document transferring a title from the seller to the buyer. Discount Points: Fees homebuyers pay directly to the lender at the time of closing in exchange for reduced interest rates, which can lower monthly mortgage payments. (See also Loan Discount)
Down Payment
The amount of cash a homebuyer pays at the time of closing. Typical home loans may require 20%, but some conforming loans accept 5%, and FHA loans accept as low as 3.5%.
Earnest Money Deposit
A deposit (usually 1-3% of the home’s total purchase price) made by a homebuyer when entering a contract with a seller, demonstrating interest in the property. It is usually deducted from the total down payment and closing costs.
Escrow
Part of the homebuying process where a third party holds something of value (most often, the buyer’s earnest money check) during the transaction. The funds are released to the seller once the transaction is complete.
FHA Mortgage
Federal Housing Administration (FHA) loans, meant to help first-time homebuyers. The FHA insures the loan, making it easier for lenders to offer a better deal, including a lower down payment (as low as 3.5%), low closing costs, and easier credit qualifying.
Home Inspection
Carried out by an objective third party to evaluate the condition of a property during a real estate transaction, identifying major issues that might affect the home's value and the investment.
Lender
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.
Mortgage
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 within an agreed-upon timeline.
VA Loan
A low or zero-down payment mortgage option offered to eligible veterans and active duty service members and their families. VA loans are partially backed by the Department of Veterans Affairs (VA) and issued by private lenders.
SERVICE PROVIDERS
Home Inspections:
1st Choice Inspections
Paul Gagneur
pjgagneur@1stchoiceinspectionservice.net
269-207-9309
Timberland Home Inspections
Tim Williams
tim@timberlandhomeinspections.com
269-501-0287
Pest Inspections:
Exact Pest Control Solutions
Jeremy Johns
269- 552-8561
Home Staging & Decluttering:
Distinguished Homes
Johanna Jaeck, Design Consultant, ASP ® , IAHSP
jjaeck@jaquarealtors.com
269-743-4007
Peg Dorgan
peg@mydistinguishedhome.com
269-370-0822
Home Mortga ge:
Summit Home Mortgage
Rochelle Birmann, President
Rochelle.Birmann@summithomemtg.com
269-615-0129
Rental/Property Management: Jaqua Property Management
328 W. Milham Ave, Portage, MI
269-226-2996
Title/Closing Services:
Southwest Michigan Title Agency
221 S. Drake Rd., Kalamazoo, MI
269-341-4734
Insurance Services: Arcadia Insurance Agency Michelle Hostutler
269-488-0324 mhostutler@nulty.com
Moving Coordination:
Southwest Michigan Community Resources 269-226-2994 | 269-381-7653
moving@jaquarealtors.com 414 W. Milham Ave. Portage, MI
