A 3-Step Guide to Buying Your First Home A 3-Step Guide to Buying Your First Home Buying Your First Home Buying Your First Home
A 3-Step Guide to Buying Your First Home
A 3-Step Guide to Buying Your First HomeBuying Your First HomeBuying Your First Home
Cheryl Garlock, CRS, ABR, SRESABOUT ME
y , , ,Colorado Front Range Properties
Direct: (720) 373-0654
www.DenverRealty.com
Cheryl Garlock is a teacher by degree, and a residential real estate broker by profession with a passion for sharing essential knowledge, experiences,
d i f i b d h i h id i l land information based on her 30+ years in the residential real estate business. Cheryl provides real estate services to home buyers, sellers, and investors throughout the Denver area. She is a graduate of the University of Colorado, with a BS in Education and holds the prestigious CRS (Council of Residential Specialists) designation of which only 4% of realtors nationally possess Her credentials also include ABR (Accredited Buyersnationally possess. Her credentials also include ABR (Accredited Buyers Representative) and SRES (Senior Real Estate Specialist). She is the host of the Denver Radio Real Estate show educating consumers about all things real estate. Visit www.DenverRadioRealEstate.com to hear replays of past shows.
What’s the difference between
ABOUT ME
What s the difference between a REALTOR® and a real estate agent?A REALTOR® is a member of the National Association of REALTORS®, which indicates that they’ve pledged to uphold the standards of the association and its code of ethics.
Wh t i CRS?What is a CRS?A Certified Residential Specialist is a REALTOR® who has earned certification from the Council of Residential Specialists by completing a rigorous course of advanced training and byby completing a rigorous course of advanced training and by meeting significant experience requirements.
Let’s take this excitinggjourney together.
Find a great REALTOR® (CHECK!)
Figure out the best financing for you
11
22
3-Step Guide
Figure out the best financing for you
Find the right home
22
333-Step Guide to Buying Your First HomeFirst Home
How do you feel about buying your first home?
AN EMOTIONAL START
How do you feel about buying your first home?Excited? Nervous? Optimistic? Happy?
Overwhelmed? Confused? Ready? y
Find a great REALTOR®Find a great REALTOR®
STEP ONE
Find a great REALTOR®Find a great REALTOR®
Ask your friends and family Ask your friends and family
Do some research
S i Set up a meeting
Trust your gut!
Before you meet withWELCOME HOME TIP
Before you meet with your agent for the first time, make a wish list.,
Figure out the best financing options
STEP TWO
g g pYour Realtor can help you with this
GETTING MORTGAGE PRE-APPROVAL
• Get mortgage approval ASAP• Mortgage pre-approval makes you a
GETTING MORTGAGE PRE APPROVAL
• Mortgage pre-approval makes you a desirable buyer and is beneficial overall.
Wh t fi i i il bl t ?
FINANCING A HOME
What financing is available to you?• 15-, 20-, 30-year fixed rate• Adjustable Rate Mortgage (ARM)• Adjustable Rate Mortgage (ARM)• FHA (federally insured)• VA • In-house financing
WELCOME HOME TIP
Private Mortgage Insurance (PMI) allows some home buyers, who can't provide a 20 percent down paymentprovide a 20 percent down payment,
to purchase the property with a lesser down payment . . . as low as “0” to
$1500 down!$1500 down!
STEP 3: FIND THE RIGHT HOME
GETTING READY
Let’s do our homework: Keep your wish list in mindKeep your wish list in mind
Go online to research neighborhoods and types of homes in your price range p g
Topics to research include: price negotiation, mortgage loans, PMI (Private Mortgage Insurance), escrow, closing costs, insurance, home inspections and homeowner association fees/bylaws
START YOUR SEARCH
Get your f t tfeet wet by attending open houses.
WELCOME HOME TIP
When looking at listings, be sure to review all the photos, virtual tours and
video, if any. Carefully assess room sizes, school district, type of
heating/cooling system, annual taxes.
HOUSE-HUNTING BEGINS
Be realistic. Be flexible.
HOUSE-HUNTING BEGINS
The First-Time Homebuyer’s Pledge:y gI will keep an open mind.
I will respect the home seller. p
I will ask tons of questions.
I will enjoy the beginning of j y g gthis exciting new chapter.
HOUSE-HUNTING BEGINS
Really look closely beyond the surface.
Typical first-time homebuyers fi d h i hi 60 d A
WELCOME HOME TIP
find a house within 60 days. As a rule of thumb, start looking 3-4
months before you’d like to move in.
T Fi Q ti t A k
MAKING THE OFFER
Top Five Questions to Ask When You’ve Found a House You Like:
What’s the asking price?What s the asking price?
What’s the owner’s reason for selling?
How soon does the seller wish to close?
How long have the owners lived here? g
What repairs have been done to the place?
(Source: MSN Real Estate, Negotiation Boot Camp)
MAKING THE OFFER
Still interested? S
When making an offer, WELCOME HOME TIP
20% down will make you a very attractive buyer If you don’t have 20%buyer. If you don t have 20% down, there are other ways to
make your offer attractive.
MAKING THE OFFER
A typical offer will specify:• A deposit (usually around $1,000) must be submittedp ( y $ ,000)
• Approximate closing date
• Title warrantyy
• What’s included? (drapes, appliances, shelves, swing set)
• Contingenciesg
• Any cost adjustments that will be made at closing
WELCOME HOME TIPWELCOME HOME TIP
“Escrow”Escrowopens when the buyer and seller
sign a sales contract. The contract, along with any additionalalong with any additional
instructions, serves as instructions for the escrow officer. Escrow
assures that the lender releases theassures that the lender releases the home purchase funds at or about the same time that the deed is recorded
to reflect new ownershipto reflect new ownership.
CONGRATULATIONS!CONGRATULATIONS!
BEFORE CLOSING…
Get an appraisal ($400-$450)
Schedule a survey of the property ($200-$300)y p p y ($ $ )
Get a home inspection (Typically around $350)
P h h ’ i Purchase homeowner’s insurance
BEFORE CLOSING…
Make sure funds (typically a certified bank check) are ready for closing costs, if they aren’t rolled into loan
Conduct final walk-through of home (24 hours prior to Conduct final walk-through of home (24 hours prior to closing to verify no damage or changes have occurred)
Begin planning your move!
HOORAY!It’s Closing Day!
CONCLUSION
“Unless you move
CONCLUSION
Unless you move, the place you are is the place you willthe place you will always be.”—Ashleigh Brilliant
WHYWHYshould you work with awork with a
REALTOR®?REALTOR®?
CONCLUSION
• Having a great agent in place from the
get-go is really smart
• Your agent is a wealth of knowledge
and resources and can talk you off the
ledge when you start to panic
• Don’t hesitate to ask for references Cheryl Garlock
• Schedule a no-obligation consultation
yDirect: (720) [email protected]
QUESTIONS?QUESTIONS?