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 Buying Your First Home Presentation Transcript

    • B UYING Y OUR F IRST H OME T AKE THE PLUNGE , WITHOUT GETTING   ALL WET !
    • 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.
    • 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
    • C HANGE IN PAYMENT W HEN R ATES I NCREASE
    • A SK H OMEOWNERS H OW T HEY F EEL
    • 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
    • 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
    • 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.
    • 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
    • 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.
    • 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
    • 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.
    • 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?
    • 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.
    •  
    • 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.
    • 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.
    • 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?
    • 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!
    • 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".
    • 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
    • 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.
    • 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.
    • 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