Buyer’s Guide

GETTING STARTED BUYING A HOME

CONGRATULATIONS


On making the decision to be a home owner! Buying a home is one of the most involved purchase decisions you will ever make. There are many benefits and responsibilities associated with home ownership including tax write-offs, long term investment and pleasure knowing that the roof above your head is your own. I am honored that you have asked me to help you on your journey to buying a home. During this process, I want you to lean on me, use me as your resource, ask questions, and know that I am your advocate. I will be here every step of the process to make sure everything goes as smooth as possible.

The Buying Process

Meet with a lender and get pre-approved. I encourage you to shop around and learn about mortgages. I am available to answer questions about how this process works.

I will set up a custom MLS search with your criteria, and you will start receiving a daily email when new homes hit the market in your search. When you mark a home as a potential property, I will start researching it on my end. When you want to see properties, send me an email, text,
or smoke signal, and I will schedule our showing. Be prepared to look at a lot of properties!

Once you decide you like a property and want to write an offer on it, I will draft it for you. We will go over your offer together the first time so that you are aware of everything it contains. If signed by the seller by the deadline we set this becomes a legal and binding contract.

Once we are under contract, there are six main steps that must be carried out before closing and you may terminate at any of these points.

1. EARNEST MONEY: To make the contract valid, you have to give consideration. Your earnest money is how you tell the seller that you are a serious buyer.

2. TITLE: The seller will provide you with evidence there is a clean title and intent to convey all interest.

3. DISCLOSURES: The seller will also provide any and all documents containing pertinent information about the home for us to review.

4. INSPECTION: We professionally inspect the condition of the property. We can then renegotiate the contract if necessary or you can walk away free and clear.

5. APPRAISAL: Your lender inspects the property’s value to make sure it is worthy of their loan.

6. LOAN CONTINGENCY: Your last chance to terminate by objecting to the loan.

7. CLOSING AND POSSESSION! Welcome home!

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A PLACE TO START

1. What are the costs? Obvious right... Not all lenders are the same, some lenders charge a flat fee while others
charge based on the loan type and amount.

2. Will the lender give you any discount points and/or pay for some of your expenses such as appraisals and
origination fees?

3. Make sure they know what you are comfortable spending as a monthly payment and have them estimate
your loan based on that. Lenders have a tendency to over qualify people for more than they can handle in monthly payment.

4. What kind of in-house programs are they offering that might be beneficial for you?

5. Do they guarantee on-time closings?

6. How fast can they close? This is a big one. Most lenders will tell you 30 days. However, some lenders will fully underwrite your loan before you go under contract on a home. This means that they can close 10-12 days after you go under contract. This is incredibly valuable to sellers. A few of the lenders on this list will do a pre-
underwrite and offer quick closings.

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HAPPY MORTGAGE
SHOPPING!


No two lenders are the same. I recommend you call around and find a lender that will work best with you and your individual situation. When talking to lenders, they will generally guide the conversation because they need to know as much as possible about you and your goals in order to suggest a loan. However, here are a few things that you should ask and bring up in conversation.

What Should I Budget? Initial Costs

Sometimes surprises are fun, but generally not when you are buying a home. If you’re thinking about buying a home you’re probably already thinking about your down payment, but have you considered the out of pocket expenses that you will need to pay for before you can even close?

HOME INSPECTION

HOME INSPECTION

You are going to want a professional home inspector to physically examine the property with you before you purchase it. This includes structural, mechanical, sewer, radon gas etc. Depending on the size of the home and the scope of the inspection, you should plan to spend $400-$700 on your home inspection.

APPRAISAL

APPRAISAL

Your lender is going to require that an appraiser evaluates the value of the property to ensure that the home price justifies the value of your loan. Be prepared to spend about $700-$850 on your appraisal.

LOAN ORIGINATION FEE

LOAN ORIGINATION FEE

You will be borrowing a big chunk of change and unfortunately every lender has fees associated with generating your loan. This fee is usually about 1% of the loan value. For a $350,000 home purchase and a 5% down payment, plan to pay a $3,300 loan origination fee.

HOMEOWNERS INSURANCE

HOMEOWNERS INSURANCE

You will need to pay for a full year of coverage upfront. Typically, this is between $1,200 and $2,500. It just depends on the location and size of your home.

TITLE POLICY

TITLE POLICY

This is the insurance policy that each party of the transaction purchases to ensure clean transfer of title. As a buyer, your title policy is significantly cheaper than the sellers. You should still budget about $600 to $1,200 for your title policy.

CLOSING FEE

CLOSING FEE

Yep, another fee. The title company charges a fee to close your transaction. Usually this fee is only a few hundred dollars and it is split between the buyer and seller. You should budget about $200.

RECORDING FEES

RECORDING FEES

To make the home purchase official, it must be recorded with the county clerk. Generally, this is only about $100.

CELEBRATORY CHAMPAGNE

CELEBRATORY CHAMPAGNE

$10 - $100. You are going to need to celebrate at the end of this whole ordeal. Don’t forget to smile and be flexible through the process.

The Search Starts Here

Work With Edward

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.

Let's Connect
GET IN TOUCH
CONTACT DETAILS

EDWARD JOBES

(505) 730-7945

[email protected]

 

 

5975 S Quebec St STE 100,
Greenwood Village, CO 80111