Buying Your First Home
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Buying Your First Home

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A short tutorial on how to go about purchasing a home. The process includes choosing the right buyer's agent to represent you to closing costs, inspections and closing.

A short tutorial on how to go about purchasing a home. The process includes choosing the right buyer's agent to represent you to closing costs, inspections and closing.

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Buying Your First Home Presentation Transcript

  • 1. B UYING Y OUR F IRST H OME T AKE THE PLUNGE , WITHOUT GETTING   ALL WET !
  • 2. T HERE HAS NEVER BEEN A BETTER TIME TO BUY A H OME
    • Why?
      • Interest rates a low
      • Seller motivation is high
      • First time buyers can purchase cheaper than renting
    • Wise investors purchase when the market is low.
    • Now has been called the "perfect storm" for
    • home buyers.  All conditions are right for 
    • obtaining an excellent investment.
  • 3. S AME P RICE , M AJOR D IFFERENCE IN C OST *Freddie Mac 30 Year Rate ** Principal and Interest Month Price Rate* P&I** 2003 $200,000 5.84% 1,178.61 TODAY $200,000 4.01% $955.98 Monthly  Savings $222.63
  • 4. C HANGE IN PAYMENT W HEN R ATES I NCREASE
  • 5. A SK H OMEOWNERS H OW T HEY F EEL
  • 6. I NTEREST RATES AREN ' T GOING TO STAY LOW
    • At some point interest rates will once again climb
    • The higher they go, the less buying power you have
    • The longer you wait, the more risk you take in losing that buying power
  • 7. D ENVER V ACANCY R ATES AT A LL T IME L OW
    • 2.3% for Detached Houses
    • 3.7% for Condos
    • 1.2% Duplexes
    • (the lower the number the more difficult it is to find a rental)
    • Average rent in Denver is $1,063 up 3.5% from previous quarter
    Source: Denver Post http://www.denverpost.com/business/ci_18760953
  • 8. S UMMARY
    • Buying now will mean more value for less money
    • Waiting to buy will mean a higher interest rate and higher prices resulting in a cheaper, smaller house.
  • 9. H OW TO GET STARTED
      • Find an experienced REALTOR* 
      • Set an appointment for a consultation
      • Discuss your wants & needs
      • Determine your financial ability to get a loan
      • Explore "first-time buyer assistance programs"
      • Look at homes that meet your criteria
    * Visit Denver Real Estate & Relocation
  • 10. N OTE THE SEQUENCE
      • Find REALTOR® 
      • Needs Assessment
      • Find Lender/Get Approved
      • Look For House
    • Any other order will put you and your goals at risk.
  • 11. A REALTOR® CAN HELP YOU :
    • By guiding you through the process
      • Needs Evaluation
      • Financials
      • Recommend a trustworthy lender
      • Finding a good properties to compare and analyze
      • Decide on the home and area that best suits you
      • Negotiate the transaction
      • Write & Present Contract
      • Inspection issues
      • Renegotiate inspection findings
      • Coordinate the Transaction
      • Close to the Contract
  • 12. B UYER ' S B ROKER     VS .   T RANSACTION B ROKER
    • Represents you, as your advocate promoting your interests with utmost good faith, loyalty and fidelity, seeking a price acceptable to you and counseling you are to any material defects/risks of transaction that are actually known by broker.
    • Shows properties, write offer, negotiates and facilitates  the transaction.
    Ask for representation from a Buyer's Broker, it doesn't cost more for a higher level of service.
  • 13. D O YOU HAVE WHAT IT TAKES TO PURCHASE ?
      • Steady income?
      • Good credit, pay bills on time, no judgments?
      • Are your debts low?
      • Have you saved money for a down-payment & closing costs?
      • Do you have additional cash on reserve after closing on a home?
      • Do you plan to stay in the area for 3-years or more?
  • 14. L OAN Q UALIFICATION - RULES OF THUMB
      • Housing cost should be less than 29% -36% of gross monthly income.
      • Housing costs include mortgage payment, taxes, homeowners insurance, condo fees, other association fees
      • Housing combined with long term debt must not exceed 40% to 50% of gross monthly income
    • Long term debt would be: car payment, credit cards, student loans, and other loan payments.
  • 15.  
  • 16. G OOD F AITH E STIMATE - GFE
    • Upon applying for a loan, the loan office is required by law to provide you with a GFE
    • The GFE will list your expenses and interest rate, so you can know what these expenses are before you close on your new home.
    • If the expenses increase by more than a certain % the lender must revise your GFE so you can  review them and agree to taking the loan.
    • The decision is yours to make.
  • 17. G ET A PPROVED  
    • Get your loan approved before you begin to look for a home, doing so puts  you in the driver's seat at negotiation!
    • Seller's prefer to deal with SERIOUS buyers.
    • Just do it.
  • 18. T YPES OF LOANS
    • There are many types of loan programs.
    • Working with an experienced professional, you will be given several options.
    • Pros and cons will be explained in detail to you, so you can choose.
    • Education is a good thing.  
    • The choice is yours, what would you like to do?
  • 19. T HE H OME S EARCH
    • We will look at homes & neighborhoods that meet your criteria.
    • You will learn the pros and cons of different home styles, construction techniques, and property values.
    • You will discover what you can afford and what is available to you.
    • Sometimes you don't know what you want until you know what you can have!
  • 20. T HE PROCESS - S TEP O NE
    • If you decide to work with me, here's our process:
      • Consultation - we meet to discuss Your Needs
      • Provide you with our Buyer Orientation Book - At The Berkshire Group, REALTORS® we believe informed customers are happy customers.  We created a book that answers the questions of "How to Purchase a Home in Colorado".
  • 21. T HE PROCESS - S TEP T WO
    • Home Search
      • We view homes that fit your needs in various areas
      • Narrow down search based on the areas you like
      • Compare homes you like until 1 or 2 stand out
      • You decide which one
    • Negotiation
      • Once we have The Home targeted, I provide you with a list of real estate activity in the area (active listings/solds/sold prices)
      • Together we review market values and create a negotiation strategy
      • I write the offer, you sign electronically
  • 22. T HE P ROCESS - S TEP T HREE
    • Offer acceptance
      • Inspections begin immediately
      • You have the right to inspect all aspects of the home
      • You must meet the deadline as stated in the contract to either accept property, reject property or request seller fix/repair unsatisfactory items. (more negotiations)
      • You will receive Title Commitment, HOA docs to review.
      • The appraisal will be ordered
      • Closing will be coordinated with seller  & agents.
  • 23. T HE P ROCESS - C LOSING
    • The Closing
      • In Colorado we close on the date specified in the Contract
      • Prior to closing you will receive a HUD Closing statement - we will review all the amounts on it.
      • At closing you will meet the sellers, if you and they are in town.  We sit at a closing table and sign documents to transfer the property to you.
  • 24. I G UIDE YOU THROUGH THE PROCESS
    • From initial consultation, home search, negotiation and closing, I am there to answer questions and offer advice from my years of experience in selling Colorado Real Estate.
    • Put my experience to work for you.
    • Call Kristal Kraft   720-279-4599
    Visit Denver Real Estate & Relocation