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The Home Buying Process
Check Your Credit Report & Score
Before getting a mortgage or any kind of loan, it is important to take a look a your credit score. According to the law, you're allowed to receive one free copy of your credit report per year. You can do this by visiting Annualcreditreport.com. Scores range from approximately 300 to 850; generally, the higher your score, the better loan terms you can land. Your interest rate and downpayment are mainly dictated by your credit score. Don't forget to check your report for errors. If there are any, dispute them. It may help your credit score. You can also check your credit score for free at www.creditkarma.com.
Figure Out How Much You Can Afford
You can calculate how much you can afford by starting online or by consulting with a professional, a realtor can give you brief consultation, but will ultimately send you to lender for precise numbers. There are several online mortgage calculators that will help you calculate an affordable monthly mortgage payment. There are other factors that come into play such as reserves, appraisal costs, inspection costs, etc. Remember that you can buy a home with as little as 3% down. There are loans available with little to no down payment, there are also grants for first-time homebuyers where you can get assisted with the down payment. An experienced home loan expert can help you understand all your loan options, grant options and closing costs. Expect closing cost to be around 1% to 2% of purchase price.
Find the Right Lender & Real Estate Agent
To find the right mortgage lender it’s important to shop around, try your bank and also a private lender. Get recommendations from your friends and family, you need to trust the people you're working with. Ask them lots of questions and make sure they have answers, you have to understand what terms you can possibly be getting into.
Once you have the right mortgage lender, make sure you at least get a pre-approval before seriously considering any Colorado listings. Qualifications are only a guess based on what you tell the lender and are no guarantee, whereas a pre-approval will be more precise. The lender will actually pull your credit and get more information about you and confirm income and employment status.
Look for the Right Home
Create a list of the must have's. Do you need a backyard? A garage? write it all down. Your Realtor will do their best to source you the perfect home. In this current Denver market it is tough to land a home with all your needs and wants so take into consideration what you can and cant live without. It will make the process smoother and have you home much sooner.
Once you've made a list of your must-have's, don't forget to think about the kind of neighborhood you want, whether you want to live in an association. Take into consideration the commute time between your home and job. Make sure you are okay with the schools in the area as well.
Another key to successfully buying a house in Denver is to have easy access to every home on the market. A good realtor will always have a team to quickly show the home.
Make an Offer on a Home
Now that you've found the home you want, and you’re ready to buy a house in Denver, you have to make an offer. Most sellers price their homes a bit high, expect that they will be looking for the highest and best loan terms. A decent place to start is at the asking price, assuming the home is priced accordingly. Ask your realtor to complete a comparative market analysis to make sure the home is not over priced or under priced. Once you've made your offer, don't think it's final. The seller may make a counter-offer to which you can also counter-offer, this pretty much means that the sellers like your offer but want to change the terms. Once the seller accepts your offer or you accept the counter then you are under contract. From there you must deposit earnest money into escrow to show the seller you are in good faith and would like to continue with the transaction.
Get the Right loan product
There are many different types of mortgage programs out there, but as a first-time home buyer, you should be aware of the two basics: adjustable rate, fixed rate.
Adjustable rate mortgages also know as "ARMS" are loans that are subject to change after 1-7 years, these mortgages are usually for people who intend not living in the home for too long, these rates are usually very low. Fixed rate mortgage is when the rate is locked in throughout the life time of the mortgage unless refinanced. These loans are typically 30 years and are ideal if you'd like to keep the same monthly payment and plan to live in the home for a while or forever. If you are using down payment assistance or getting a first time home buyer grant it is important to understand the terms of these first-time homebuyer programs. They can be beneficial to you depending on your situation, so make sure you talk to your lender about these amazing programs.
Close on Your Home
Make sure you get a home inspection before you close. You don't want to bite off more than you could chew, it can be catastrophic buying a home with major repairs already being needed.
Setting the closing date that is convenient to both parties may be tricky, but can certainly be done. Remember that you may have to wait until your rental agreement runs out and the seller may have to wait until they close on their new house.
Be sure you talk to your mortgage banker to understand all the costs that will be involved with the closing so there are no surprises. Closing costs will likely include (but are not limited to) your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.
Move into your Home!
You've got your mortgage, closed the deal and now it's time to move in! Whether you use a mover or not is up to you, depending on your financial situation and how much stuff you have to move; perhaps also, whether you have a lot of friends willing to help you move. Either way, you're done with the home buying process! Just start unpacking and start enjoying your first home! Buying a home in Denver doesn't have to be a hassle if you're prepared and you know what to do and when to do it. Choose an experienced home loan lender and a friendly, knowledgeable real estate agent in Denver - they are the key to helping you have a smooth home buying experience!
Benefits of Buying With Us
FREE HOME INSPECTION
Free home inspection when you are under contract even if the home doesn't close.
Raul takes pride in understanding this market. His great negotiation skills and knowledge will have you home in no time.
Raul or one his team members are always just a call or text away, we will always set down what we are doing.
He Worked Hard To Make The Deal Happen