2016 trg home buyer guide

Download 2016 TRG Home Buyer Guide

Post on 18-Feb-2017



Real Estate

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  • Prepared By: Jeff Rubenstein

    970-214-1560 Jeff@realestateruby.com



    Keller Williams - Northern Colorado 3720 S. College Ave Suite A Fort Collins CO 80526

  • MICHAEL COPELAND michael@mbcopeland.com www.mbcopeland.com 425.213.8124

    Buying a home is one of the biggest investments and financial decisions you can make. While it is a major commitment and responsibility, it is also a very exciting time in your life. I'm proud that I will get to play a part in it and am excited about soon having the privilege of handing you the keys to your new home! . With that said, it's important to keep in mind that home buying is a complicated process. I will be working hard to make sure that everything is as rewarding as possible, guiding you at every step and making sure that your needs and desires are met. . This guide was designed to inform you about all steps of the home buying process so that you can feel confident, make informed decisions and act as an educated buyer. It will also help both me and you understand the things that you're looking for in a home so that our search can be made as easy as possible. . Please take some time to review carefully all of the information presented here. If you have any question about the topics discussed, I will be glad to go over them with you in detail. Since every real estate transaction is unique, you will most likely have questions or concerns not presented here. That's what I'm for - to assist you at each step, to answer your questions, and to help you find the home you desire!

    Overview of the Home Buying Process

    Keller Williams - Northern Colorado 3720 S. College Ave Suite A Fort Collins CO 80526 970-214-1560

  • Step 1: Determine Your Financial Comfort Zone - Write down your combined monthly income and expenses, and determine the maximum monthly mortgage payment that you would be comfortable with. This amount may vary from the amount shown on your pre-approval. You want to make sure to stay within your comfort zone even if your lender approves you for more. Step 2: Getting Pre-Approved - - Getting pre-approved by a lender should be done before we begin looking at homes together. Once you're pre-approved you will have a better sense of what you can afford. Having a letter of pre-approval in hand is crucial for the outcome of any offer you'll make on a property. Step 3: Outline Your Location & Housing Requirements - What neighborhoods would you like to live in and what are your criteria for choosing a home? Create a list that outlines all your housing requirements and the locations you'd like to live in, and then prioritize the items on your list. There are some things that are mandatory and some that are ideal. Remember to be realistic. You might not get 100% of the items you want but it should be close. Step 4: Let the Search Begin - After you have completed the first three steps we're ready to begin. I will search for and preview active listings that meet your criteria. Ill then show you the most promising listings at your earliest convenience. Together, we can alter location and housing requirements as you become more familiar with the market and your budget. Step 5: Writing, Presenting & Negotiating an Offer - Once you find a home that you wish to purchase, I will prepare a comparable market analysis to advise you in making an appropriate offer in both price and terms. Ill guide you through the purchase & sale agreement and all other forms and addenda, and advise you on how to make your offer strong. I will present your offer to the seller and the listing agent and negotiate your terms. Step 6: Getting to the Finish Line - When the parties agree to all terms of the contract it is called Mutual Acceptance. Once we have mutual acceptance, the closing process begins. From this point forward I will manage your contingencies and coordinate your transaction with the assistance of your lender, the title company, closing agent, and any other parties that may become involved. I will oversee all the players in this process to make sure that everything closes on time!

    Keller Williams - Northern Colorado 3720 S. College Ave Suite A Fort Collins CO 80526 970-214-1560

    Overview of the Home Buying Process

  • Definition of Terms: Mutual acceptance - This occurs when both parties have agreed, in writing, to the terms and conditions of the contract. All contractual timelines follow from the day after this date. The contract is now legally binding. Inspection - It is very important that you are present for this. The cost is dependent upon the size/type of the property, typically ranging between $350-$500 and is due at the time of the inspection. Please bring a check with you to the inspection. Inspections usually take about 2-3 hours, depending on the size of the home. The inspector will generate a report after the inspection and email copies to both of us, typically the next day. Appraisal - The appraisal is the lender-ordered valuation of the property. It is typically performed after the Inspection Contingency is satisfied. You will not be present for this. However, the lender is required to provide you with a copy of the report when complete. I am available to the Appraiser to provide any valuable market information he or she might need in determining the fair market value of the property. Escrow - Escrow is the neutral third party that assembles and processes all the components of the real estate transaction (including legal documents), records the transaction, and ultimately disburses and distributes funds according to the buyers and sellers instructions. This is where you will go to sign loan documents. Upon Mutual Acceptance, I will open Escrow and deliver your Earnest money per the contract. The Escrow Agent will contact you with your instructions for signing the closing documents, which will be signed at the Title Company. Signing - Usually occurs the day of closing. The escrow agent will schedule your signing appointment and instruct you on what you need to bring to the table (money, if any) to close on your new home. You will need to bring your photo ID to closing. Closing - Two events must occur for your transaction to close:

    Funds from the purchase need to be made available to the Seller.

    Title to the home needs to be transferred into your name and recorded with the countys recording office. Recording numbers are registered with the county. On the day of closing.

    Possession - You are given keys and have the legal right to take possession of your new home. This typically occurs at closing.

    Keller Williams - Northern Colorado 3720 S. College Ave Suite A Fort Collins CO 80526 970-214-1560

    Overview of the Home Buying Process

  • Did You Know? Most homebuyers find that they need to finance at least part of their home purchase. Therefore, the first stage in finding the right home is to review your personal financial situation and make an informed estimate of your true purchasing power. Your purchasing power will depend on: Your Income Your Credit Rating Other Monthly Expenses Your Down Payment Available Interest Rates How Much Home Can You Buy? The next four steps discussed will help you review home financing and get you prepared to speak in detail with a lender. A more thorough overview of the financing process is covered later in this guide. Step 1: Make a rough estimate of how much home you can afford based on your income. Here is a method that will give you an approximate starting point for how much home you can afford: A house payment should be no more than 30% of your gross monthly income (before taxes and deductions).

    Keep in mind that these are guidelines. There are many other factors that determine how much home you can afford.

    Annual Salary Gross Monthly Income Maximum House Payment

    $50,000 $4,167 $1,250

    $60,000 $5,000 $1,500

    $70,000 $5,833 $1,750

    $80,000 $6,667 $2,000

    $90,000 $7,500 $2,250

    $100,000 $8,333 $2,500

    $110,000 $9,167 $2,750

    $120,000 $10,000 $3,000

    $130,000 $10,833 $3,250

    $140,000 $11,667 $3,500

    $150,000 $12,500 $3,750

    $160,000 $13,333 $4,000

    Determine Your Financial Comfort

    Keller Williams - Northern Colorado 3720 S. College Ave Suite A Fort Collins CO 80526 970-214-1560

  • Step 2: Take a close look at your credit report. Your Credit History is one of the principal measures used by a lender to determine your interest rate. The better your credit, the better lending terms your bank or lending institution will be able to offer you. A higher interest rate translates into a higher monthly mortgage payment, and so your credit score will directly affect how much money you can borrow and at which homes you should be looking. . You should be aware of what information is on your credit report by obtaining and reviewing copies of your credit report from the three main credit report agencies.

    Equifax TransUnion Experian www.equifax.com www.transunion.com www.experian.com

    1.888.766.0008 1.800.888.4213 1.888.397.3742 Remember that there are several factors that affect your credit report including your payment history, your current ratio of debt to income and signs of responsibility and stability. And since not all creditors report to all three agencies, it's best to order a report from all three institutions. Your goal in ordering all three credit reports is to make sure that all of the information stated on each report is accurate and correct. If there are any discrepancies on your credit report, it's important that you co