ADVICE FOR HOMEBUYERS

Don't be overwhelmed by the real estate advice provided below. This is simply a general overview of the home buying process and is provided for your convenience. Remember, I am here to personally assist you every step of the way to handle the little details that will make the process exciting and worry-free.

How Much Can I Afford?
Don'ts for the Home Buyer
Tips for First Time Home Buyers
Common Closing Costs
Do I Really Need to Use a Real Estate Agent?
Services I Can Provide
Steps to Selecting the Right Property

How Much Can I Afford?

Use my simple calculator to get a rough idea.

Don'ts for the Home Buyer

Don't wait for the perfect house. Compromising & prioritizing are essential elements of the buying process. Don't buy before comparison shopping - especially if you-re new to the area. Don't write an unrealistic offer or you will simply be helping someone else's offer look good (too low of a price many contingencies). Don't feel a need to negotiate if a property is new to the market, priced right and popular. the good ones often go quickly and at full or close to full price. Don't think all real estate agents and companies are created equal. Find a Realtor (like me) who is passionate about what they do and works to ensure your best interest in the deal - not theirs. Don't be afraid to write an offer above or below the asking price. Offer what it is worth to you. Remember...everything is negotiable. Don't work with more than one agent. Find one you like and stick with them (like me). Don't wait for the perfect time to buy. The best time to buy is when you have found the right home - and you'll know when the time comes. Don't get too many people involved in your buying decision. Many transactions are lost while you're busy soliciting other people for their opinions. Act quickly to get the property you desire. Don't wait until you find a home to start looking into mortgage loans. Being prepared with a mortgage will give you the upper hand to submit a solid offer by letting sellers know you are very serious.

Tips for First Time Home Buyers:

Be pre-qualified by a lender. Obtain a mortgage pre-approval. Have the necessary funds available to write an initial earnest money check. If you are receiving a "gift letter" for a portion of your down payment, be sure to have the money transferred into your savings account. Have the remaining money for your down payment easily accessible. Pay balances on revolving credit cards. Never make a big purchase (such as a car or new furniture) prior to getting loan approval and closing on your new home. Have a credit report run by a mortgage lender or credit agency so that you can clear up any potential problems. Find an attorney to review an offer to purchase agreement.

Common Closing Costs:

Down payment. Loan Origination fee and points. Appraisal fee. Credit report. Flood letter. Private Mortgage Insurance (PMI) premium. Home Owners Insurance premium. Mortgage Insurance escrow. Property taxes escrow. Closing fees. Recording fees. Mortgage Title policy. Mortgage interest adjustment. Survey. Owner's Title policy. Termite inspection and building inspection fee. Tax servicing fee. Lender inspection fee. Federal Express / Courier fees (if needed).

Do I Really Need to Use a Real Estate Agent or REALTOR®

Do you have time to research the residential housing market? Do you have the knowledge to integrate and understand the information available to you? Can you integrate the information available on the real estate Internet sites into useful data that can help you accomplish your goal? Do you have the expertise to negotiate on your own behalf? Do you have the ability to find a qualified home inspector? Do you have the time to research the home loan programs available in the market? Do you have the time to interview mortgage loan officers? Do you have the time and expertise to target market, if necessary, for the type of property you are looking for? Do you know the zoning regulations and building codes pertaining to residential real estate in the area you are interested in?

Services I Can Provide:

Work with you to find properties that meet your specific requirements such as location, price and amenities. Arrange for appointments and show you the properties you select. Provide you with information regarding the price and value of properties. Provide knowledge of the current real estate market and how it relates to your purchase. Prepare an offer to purchase. Arrange for appointments and show you the properties you select. Provide you with information regarding the price and value of properties. Assist in the negotiation of your selected property. Refer you to professional service providers, such as: home inspectors, legal services, mortgage services, title services, etc. ...and many other things that no other realtor is willing to do.

Steps to Selecting the Right Property

Approach the home buying process objectively - there is no perfect home; the good ones sell quickly; Don't second guess yourself. After viewing each property, ask yourself: what did you like about it?; what, if anything would you want/need to change? Could you see yourself owning the property if the price was right? Use your judgment, the Market Analysis prepared by your agent and the option of an Appraisal to your advantage.

HOW MUCH HOME CAN YOU AFFORD?
CURRENT MORTGAGE INTEREST RATES

Freddie Mac's Primary Mortgage Market Survey has evolved into the foremost reliable, representative source of regional and national mortgage rate trends and is relied upon by the mortgage industry and the public in gauging market conditions and evaluating mortgage loan options. All of Freddie Mac's five regions are represented, as well as a national average. The average contract rate and average number of points is reported for each of the four loan products as well as average margin for one-year Treasury-indexed ARMS.*

Interested in the Monthly Average Commitment Rate & Points
on 30-Year Fixed-Rate Mortgages Since 1971?
Check out FreddieMac's historical chart

While I strongly encourage clients to shopping for a mortgage loan with at least two companies before signing anything, it's absolutely essential that you do more than simply compare "rates" because predatory lending is at an all-time high and you don't want to find yourself falling for a "bait-and-switch" loan program because it will cost you big-time down the road!

If you don't know who to trust, call me at 303-520-3179 and I will put you in touch with a local & reputable mortgage loan officer who will make sure you get the best loan package possible without all the gimmicks or high-pressure.

Get Pre-Qualified for a Home Loan Today!
Preferred Mortgage Lenders for Anthony Rael, RE/MAX Alliance - Denver Realtor

* Caliber Home Loans - Tiffany Swisher - 303.884.4137
* CMG Home Loans - Mike Wilcox @ 303.525.3568 or Deana Hollstein @ (303) 300-8910
* Peak Lending Team - Tenby Dahman @ 303.478.9126
 

How Do I get "Pre-Qualified" for a Loan?
Getting pre-approved for a home loan is an essential part of the home buying process.  It helps prevent you from looking at and falling in love with properties that you simply can't afford.  Once you decide to apply for a home loan, this is the information you will need to get together for your loan application:

1. W-2's for the past 2 years
2. Most recent paycheck stubs covering the last 30 days
3. Residence addresses for the past 2 years
4. Names & addresses of each employer for the past 2 years
5. Last 2 months bank statements for all checking/savings accounts
6. Names, addresses, account #'s & monthly payments on all open loans
7. Addresses of any other real estate owned
8. Loan information on all real estate owned
9. Money for credit report and appraisal
10. Landlord names and addresses - past 2 years
11. FHA loans: Photo ID and Social Security card
 

What is the difference between pre-qualifying and pre-approval?
CLICK HERE TO LEARN MORE ABOUT PRE-QUALIFYING & PRE-APPROVALS

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