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

cheryl@DenverRealty.comy y

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) 373-0654cheryl@DenverRealty.comwww.DenverRealty.com

QUESTIONS?QUESTIONS?