As your REALTOR, I'm here to make sure:
1. you fully understand what it takes to purchase a home
2. you work with a reputable mortgage lender who won't take
advantage of you
3. you are utilizing every available first-time buyer
resource you're entitled to
4. write an purchase offer that protects you before & after
the sale
5. that all of your questions are answered in a timely,
professional manner
6. you don't get overwhelmed with the process - I'm here for
you!
Steps for
First-time homebuyers
Preliminary Footwork
In his 1990 book Washington Homes, author and real estate
broker Jim Stacey claims that there are three stages for the
first-time home buyer: contemplation, comparison, and commitment.
He urges prospective buyers to get through the first stage on their own,
with the help of friends and family members. The road between
contemplation and being ready to commit to buying a house is arduous and
emotional, and Stacey has learned that the best use of a broker's time and
skills is to enter the fray after buyers have done some preliminary
footwork.
STEP 1.
Figuring Out What You Want
No matter how well you can picture your dream house and
communicate your idea to me, the house you finally fall in love with may
have little resemblance to the image you started out with. But you
have to begin somewhere, and a detailed wish list is a great head start.
Let's say your wish list looks like this, in order of priority:
- Two bedrooms, two baths
- Safe, quiet neighborhood
- Garden
- Ability to add on
- No major repairs needed
- Near close friends or
family members
- Close to downtown
- Craftsman-style detached
home
- Lots of natural daylight
- Parking
- Good investment with
excellent resale potential
- Affordable property
taxes
- Enclosed laundry area
- Walk-in closet in master
bedroom
- Storage space for
lawn/garden and sports equipment
- Gas hookup for stove
- Back deck or patio
- Close to work, schools,
church, shopping
- Finished basement for
office or guest room
- No threat of commercial
encroachment
- Hardwood floors
- French doors leading to
backyard
- Close to public
transportation
Now, how would the list change
if you had to settle for only 10 of your wishes in your price range?
If you had to narrow it to five, would your top priorities be different?
When you start looking at houses, this information will be invaluable to a
Realtor as he or she matches your requirements to available houses.
STEP
2.
What Can You Afford?
Every market is different, but the first step to answering this
question is finding out what you can pay on a monthly basis after you've
made your down payment...3.5%, 5%, 10%, or 20% of the purchase price of
the house.
Speak to a mortgage
loan officer. The best way to learn what you can afford is to get
pre-qualified for a loan. I have excellent resources to local
mortgage lenders
who will ensure that you get the best loan rates and terms.
Pre-qualifying won't cost you anything and you'll walk away with a good
idea of how your income, assets, and liabilities translate into what you
can afford, and it can also help your chances of beating out the
competition in a sellers market (where there are more buyers than houses
on the market).
MORTGAGE
LOANS & MORTGAGE REFINANCING
Do the math. You can
also do a simple calculation on your own. Broker wisdom says that monthly
payments should be 25 to 33 percent of your monthly gross income. Use my
simple loan
calculator to get a rough idea.
Take heart in knowing that
most first-time buyers are simply getting into the market. Your
dream house may be two or three houses into the future, so don't feel like
you have to spend every penny you can afford if it means trading off some
cherished freedom.
STEP 3.
Starting the House Hunt
Now that you have an idea of what you can afford, you can focus
on whether you're in the market for a condominium, loft, townhouse,
single-family detached home. Call me at 303-520-3179 and I
will help educate you about what to look for and avoid, provide reliable
references for other experts you'll need along the line - such as lenders
and inspectors - and represent you in negotiations and at closing.
Now you're ready for the fun
stuff: pounding the pavement. Go to as many open houses as you can
stand, even at times when I'm not available, and then go to another -
(just be sure to sign in under my name). In the
neighborhoods you're considering, include some homes you know you can't
afford and some priced below your means. Think of it as leveling out
your learning curve.
Talk to friends and family
about their buying experiences. People are often surprisingly open
about what they've learned about financing, construction - and even
themselves - in the course of buying their first house.
If there are
times when you just can't bear to see another overpriced house with
kelly-green shag carpet, take a day off - and remind yourself that someday
you'll know it was all worthwhile. Enjoy the article on "Nine
Steps to Buying Real Estate & Homes in Denver Colorado" or take a look
at my Colorado Community Resource
Directory featuring links to schools, city government agencies,
shopping, dining, entertainment and more!
Valuable
Housing Assistance Programs
Finally, do
you realize that the seller pays the commission to the agent who brings a
buyer for their home? That's right, it doesn't cost you anything
to be represented by a Buyer's Agent who is
advocating and negotiating on YOUR BEHALF! Being familiar with the
different ways a real estate agent can represent you, plus all the
different financing options and programs available to assist you and
knowing the ins and outs of where to find a good deal which can
save you
thousands of dollars!* In fact,
if I don't help you
save at least $2,500 on the purchase of your first new home, I will
personally write you a check at closing for the difference that you can use towards new furniture, appliances or whatever you want. There is no reason why you shouldn't have a
Realtor on your side when
buying your first home - call "Ants" today!
*= Price reductions,
seller-paid concessions, closing costs, lender pre-paids, builder
incentives, etc. Foreclosed, lender-owned & short-sale properties
sold as-is or with no concessions may not be eligible.
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If you're thinking of buying, selling or relocating to the
Denver Metro area,
call Denver Realtor Anthony Rael at (303) 520-3179
