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Relocating Made Easier - An informative &

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Home Buying Process

Select your Realtor® ……….…….

Obtain Mortgage

Pre-Approval

Needs

Counseling

Determine

Time Frame

Home Search

Pre-

Construction

Model

Homes MLS

For Sale

By Owners

TBG

Homes

Preview Properties

Show You The Best Available

Choose Your Dream Home

Negotiate Your Offer & Acceptance

Complete Due Diligence

Physical Inspection

Negotiate & Resolve Contingencies

Obtain Loan Commitment

Home Buyers Warranty Insurance

Final Walk Through

Title Transfer

Celebrate!

Prepare Your Offer

Before We Begin Your Home Search Process, I Will

….meet with you to discuss the process of home buying. Even though you may have

purchased a home before, the process is constantly changing and is practiced differently

from state to state.

….assess and discuss your needs, such as neighborhoods, home styles, accessibility,

schools, shopping, and other issues that are important to you. I know you are busy, and I

want to minimize the time you spend finding the right home.

….explain the standard Colorado Contract Forms and Addendums so we are able to move

quickly when it is time to create a contract proposal on the home you want to buy.

….provide you with information on properties currently for sale, and sold comparables to

help you decide the best offering price.

….explain purchase and closing costs and estimate those costs for your purchase.

….refer you to a reputable lender so you may obtain a mortgage pre-approval. If you

already have a lender you are doing business with, I will counsel with you, as necessary, to

provide you with assurance that you are obtaining the best possible loan with the least

associated costs.

Viewing Homes

Once you’ve evaluated your priorities, it’s time to hit the streets with your search criteria. If

you’ve done the preparation to get to this point, the actual physical search for your home can be

short and sweet. Here’s the process I follow to find the homes that meet your guidelines:

The first thing I will do is put the given specifics into the computer. Within a few minutes with

the aide of MLS (Multiple Listings Service), I will be able to print out a list of the homes that

match your desired profile.

As you walk through the house, feel free to open the cabinets and closets. Most often the sellers

will be absent, but should they be present, they will understand your need to examine

everything carefully. When a house appeals to you, make notes. It is easy to forget details.

Often, there will be a brochure available for you to take which helps you recall notable features,

and, whenever possible, I will have given you a copy of the MLS information on the homes you

are viewing.

Don’t be surprised if the first house you see is the perfect one for you, and don’t be

discouraged if none of those you visit the first day are what you want. I am committed to

finding the one that you will want to call “home” and will work diligently until you find it.

Usually, I will be able to find the house of your dreams rather quickly and will find 3-5 homes

that best fit the desires you expressed.

5 Great Reasons to Be

Pre-Approved

* You will know in advance what your payments will be.

* You won’t waste time considering homes priced above what you want to pay.

* You can select the best loan package without being under pressure. There are many options

to choose from in today’s market.

* Sellers will find your offer to purchase more favorable if they know in advance of your

ability to secure financing. This may make your offer more competitive if other offers, are

being considered.

* Peace of mind. Borrowing money is never an easy or exciting thing. Finding your home

will be easier and more enjoyable if the loan process is behind you.

During the Home Search ...

I will:

* Discuss the benefits and drawbacks of each house in relation to your specific needs.

* Keep you informed on a regular basis.

* Check the MLS data base and with other brokers daily for new listings that meet your

criteria.

* Prepare an itinerary and “tour” map on which homes meeting your criteria have been

located.

* Keep you up to date on changing financial conditions that may affect the housing market.

* Be available to answer your questions or to offer assistance regarding your home purchase.

* Discuss market trends and values relative to properties which may be of interest to you.

* Assist you with homes offered “For Sale By Owner.” Many times a homeowner will

work with an agent representing you, even though the seller is not being represented by an

agent. If you should see a “For Sale By Owner” and want the advantages of our services,

please let me contact the owner and set the appointment.

* Show you new houses as well as pre-owned houses.

* Introduce you to local builders to discuss building your next home. I can work with most

builders and can get all the information you need to make any decision, but I will need to

accompany you to the property on the initial visit. By letting me help you with builders, you get

all the services offered in this presentation and those offered by the builder as well. You’ll get

more, but you won’t pay more for it.

Let Me Help You!

Days or weeks may pass before you find the “right” house; however, don’t become

discouraged. During this time ,your senses will be in tune to all the houses for sale around you.

Remember to always include us in your search. If you want information, call the office and I

will get it for you. What you don’t want to do is inadvertently become obligated to purchase a

house though another broker who has not counseled with you and doesn’t represent your best

interests.

Hear about a

property for sale?

Give me a call, and

I will search out the

details for you!

See a Sign?

I can show you properties

that are listed with us or

any broker in the state. I

can also assist you in “For

Sale By Owner”

transactions!

FOR SALE

Media Search?

I can help you with any

house you read about in

the paper or see on the

internet, no matter what

company or individual is

marketing the home. In

fact, let me know the

address, and I’ll find out

all of the details!

Want to visit an Open House?

If I cannot accompany you, please be

sure to inform the Host/Hostess that

you are working with me. They will

appreciate your up-front consideration

of their time.

Want to tour a New Construction project?

I will need to accompany you to the property on the initial visit. By hiring me to represent you,

you will have the benefit of an advocate, rather than surrendering yourself to the builder’s

representative, who, by law, works/represents the builder only. By letting me help you with

builders, you get all the services offered in this presentation, as well as those offered by the

builder ... without paying more for it!

Purchase Contract

In negotiating the purchase of your new home, the initial step will be to make an offer to

purchase. This offer must be in writing and accompanied by an earnest money check to show

good faith.

The offer will include:

1. The amount you are willing to pay

2. Financing terms

3. Any personal property specifically included

4. Loan commitment date

5. Closing and occupancy date

6. Other contingencies, including inspections

I will write your offer on a standard Colorado Real Estate Commission contact form. If you

choose a new builder home I will advise you during the preparation of the contract. If your

initial offer is not accepted by the seller, I will try to negotiate further to reach terms

agreeable to both you and the seller. When you and the seller agree on terms, then you will

complete your mortgage application and arrange for an inspection.

Earnest Money Deposit

When we write an offer on a property, you will be required to tender a deposit in the form of a

personal check or good funds. The amount deposited will be kept in the trust fund account of

the listing company or title company. This money represents your sincerity in the attempt to

purchase and is fully refundable if the offer is not accepted, if your loan is not approved, or if

some other condition of the contract is not met by the seller. You should anticipate a minimum

of $1,000 for homes under $100,000. In homes over this price range, expect to deposit one to

five percent of the purchase price. The check will be made out to the listing or title company.

The earnest money will be credited to you at closing as part of your down payment and/or

closing costs.

Inspecting Your Home

It’s easy to make sure the house you’ve chosen is a smart buy. By having an inspection, the

house’s vital systems are checked. An inspection allows you to purchase your home with

confidence. I will help you set one up after you have chosen the house you like and the contract

has been accepted. I recommend the following minimum standards when choosing an

inspector:

1. Membership in ASHI (American Society of Home Inspectors) and adherence to its

Standards of Practice and Code of Ethics.

2 Written report at the time of inspection.

What is Title Insurance?

Title insurance is the best way to protect yourself against title defects that have occurred in the

past, which may not appear until after you’ve taken ownership of the property. Before a title

insurance policy is issued, a title report is prepared based on a search of the public records.

This report gives a description of the property, along with any title defects, liens, or

encumbrances discovered in the course of the title search. Title insurance protects you against

title defects that were not discovered in the course of the title search (for example, forged

signatures). If such a defect were discovered later, your title insurance would cover you. Title

insurance is different than casualty insurance (auto, life, health) in that you pay a one-time fee

and it protects against past (as opposed to future) events.

NOTE: Builder contracts are not approved by the Real Estate

Commission and are written to protect the builder, not you. I will

review the builders contract before you sign!

Purchase Contract (cont.)

Home Warranty Insurance

If the seller does not provide a home warranty policy, then you may purchase one

at the time the contract is accepted:

I can facilitate your purchase of a warranty of your choice.

Why a warranty is so important to your peace of mind:

When buying a house, your expenses only begin at closing. Most people have lots of

renovations to make, furniture to buy, and so on. The last thing you want is to have to spend

additional money for repairs due to unexpected mechanical failures. With so much that could go

wrong, the odds are against you.

Benefits when you’re the buyer:

Your home is one of the biggest investments of your life. Why take chances? Be covered

against the expense of an unexpected repair or replacement for a full year after closing, less a

standard deductible. Think about it. No matter how closely you inspect a home before you buy,

you just can’t predict certain things, like breakdowns from normal wear and tear, or the

possibility of mechanical failure during the first year of ownership. Things like internal

plumbing, electrical wiring, or vital parts of the air conditioning and heating systems, working

components such as the washer, dryer, oven, refrigerator, and other items will be covered by a

good home warranty program.

Toll-free, 24-hour claim service:

What could be easier when something goes wrong than making a single,

toll-free phone call? Well, when your home is protected by a Home Warranty, that’s how easy

it is—24 hours a day, seven days a week. As soon as the warranty company receives your call,

the claim is entered into their computer system. They’ll notify a contractor in your area who

contacts you for an appointment. When the contractor arrives at your house, he/she will verify

the claim, prepare a repair or replacement estimate and call their claims department. He/she is

then authorized to complete the necessary repairs or replacement on covered items.

Prior to Closing I Will: Be in constant contact with you, keeping you informed on the progress of your transaction.

Be in contact with the selling agent.

Make sure all dates are adhered to.

Be in regular contact with both lender and title company.

Order a buyer’s warranty if requested.

Review title commitment and requirements.

Be present for the inspection.

Negotiate any inspection issues.

Assist in the event a physical survey has to be done.

Assist you with any questions you have regarding the process.

Confirm the lender has ordered an appraisal.

Confirm with lender the house has appraised for or over the purchase price.

Coordinate with selling agent the closing time and location.

Review and explain in detail the settlement statements from the title company.

Review deed and all real estate closing documents to determine accuracy and completeness.

Counsel you on remembering to bring a cashier’s check, drivers license and any other legal

documents that might be needed at the closing.

Make sure that all keys and garage door openers are present at the closing.

Make sure selling agent has removed lock boxes and signs from property.

Be available after the closing to answer questions or assist you in any way I can!

Your Credit Report

A very basic—and yet extremely important factor in your ability to get a mortgage—is your

credit rating. It is not a secret that the best interest rates, as well as the most flexible loan terms,

are available only to those with the strongest credit scores. Your credit history is one of the

principal measures used by a lender to determine your interest rate. Not only will your monthly

mortgage payment depend on your interest rate, but the amount you qualify to borrow will be

affected by it as well. A higher interest rate translates into a higher payment and may reduce

the loan amount for which you can qualify.

Check Your Credit Rating

Even if you're sure you have excellent credit, it's wise to double check at the outset.

Straightening out any errors or disputed items now will avoid troublesome holdups down the

road when you’re waiting for mortgage approval. You may see disputed items, in addition to

errors caused by a faulty social security number, a name similar to yours, or a court ordered

judgment you paid off that hasn't been cleared from the public records. If such items appear,

write a letter to the appropriate credit bureau. Credit bureaus are required to help you straighten

things out in a reasonable time (usually 30 days).

TIP: Hold off on making any major credit card or car purchases while

you're waiting to apply for a mortgage. Monthly payments that you are

obligated to pay will be counted against you, and reduce the amount of

the mortgage loan that you will be offered. Even if you've been

pre-approved for a mortgage, that approval is subject to a last-minute

evaluation of your financial situation, and a spending spree for

appliances, furniture and other goodies intended for your new home

may wreck your chances for buying it.

Credit Reporting Agencies

There are three major credit-reporting agencies: Equifax, Experian (formerly TRW), and Trans

Union.

Rather than contacting only one of them, I strongly suggest that you request a credit report from

all three. Since not all creditors report to all three agencies, it’s not uncommon to find

different information reported on each one. However, 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.

You can request your credit report from these companies for a nominal fee. An annual report is

free upon request for residents of Colorado, Georgia, Massachusetts, Maryland, New Jersey and

Vermont. Additionally, you may obtain a free personal credit report if you have been denied

credit within the past 60 days.

Here is how to contact the credit reporting agencies:

Equifax Information Service Center

P.O. Box 740241

Atlanta, GA 30374-0241

1-800-997-2493 * www.equifax.com

Experian National Consumer Assistance Center

P.O. Box 2104

Allen, TX 75013-2104

1-888-397-3742 * www.experian.com

Trans Union Corporation, Consumer Disclosure Center

P.O. Box 390

Springfield, PA 19064-0390

1-800-888-4213 * www.transunion.com

Items to bring for a Loan Application

Employment

*Addresses for two full years

*Gross monthly income

*W-2’s, if available

*Proof of pensions, retirement, disability or Social Security

*Proof of income from rentals, investment, etc.

*Year-to-date pay stub

*If self-employed:

Two years of 1040 Tax Returns

Current year profit and loss statement

Creditors

*Each creditor’s name, address and type of account

*Account numbers

*Monthly payments and approximate balances

Banking

*Names and addresses of saving institutions

*Account numbers for all accounts

*Type of accounts and present balances

Miscellaneous

*List of assets in stocks, bonds, land

*Life insurance cash value (if used as cash down payment)

*If selling a home, a copy of sales contracts

*Social Security numbers of all parties

*Veterans-Certificate of Eligibility & DD-214

*Cash or check to pay for application fee

Real Estate

*Copy of signed Contract and Addendums

*Instructions on how to contact your Realtor®

Purchasing a New Builder Home

Unlike many areas in the United States and other countries, in the Denver Metropolitan area most builders will compensate Realtors® that represent a new home buyer. This is because most builders and Realtors® are members of the Builder Realtor Council (BRC). The Coun-cil’s purpose is to foster excellent working relationships between builders and Realtors® to en-hance the consumer’s buying experience. The BRC has promulgated guidelines and practices to clearly define working relationships, and protect the interests of all involved. If you wish to purchase a new home from a builder, there are differences in the process you should be aware of:

* The onsite sales person is a representative of the builder, and must work in the best interests of the builder. They will try to sell their product and provide you with factual answers to your questions, but your interests are not represented. * Builders generally make use of their own contract forms, which vary from builder to

builder and are not approved by the Colorado Real Estate Commission. These contracts always favor the builder.

* Builders may not undermine your agent by offering a lower price if you agree to not use your agent. By doing so this would be in violation of their agreement with the Builder Realtor Council.

* Because builders compensate your agent, the added value of experienced representation does not increase your cost of homeownership.

In order to protect your interests;

* Your agent should accompany you on your first visit to a builder community. At this visit you will be registered as a prospective buyer who has buyer representation.

* Your agent will show you homes built by many different builders and assist you in comparing the advantages and disadvantages of each home, location and builder. * Your agent will assist you in negotiating the best price and terms possible. * Your agent will attend your design center meetings to assist you in selecting the best

value options and upgrades that make your house a wonderful home and ensure the best resale value.

* Your agent will attend your independent inspection of the home after completion to as-sist you in assuring the builder properly completes all “punch list” items.

* Your agent will review your closing documents and attend your closing with you.