Deciding that now is the time to purchase your new home can often feel a bit overwhelming. Getting started in a logical was reduces that feeling! I suggest my clients look at the entire real estate transaction as a series of steps. Taking each step one at a time, I believe you will find the process much easier and I'll be ready to help you every step of the way.
On these pages we will help you find quick links to current information explaining each step, you'll find useful tips on what to expect during each step, and you will learn what information you would like explained for you in more detail by me. Below is a quick overview of each step of the process.
Step 1: Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, downpayment and the interest rate. Online alculators can help, but it is best to visit a lender to find out for sure.
How much home can you afford?
Buying vs. Renting
Step 2: Know your rights - I review these with every client
Fair Housing: Equal Opportunity for All - brochure
Real Estate Settlement Procedures Act (RESPA)
Step 3: Shop for a loan - Mortgage markets are changing daily
Save money by doing your homework. Talk to several lenders, compare costs and interest rates, negotiate to get a better deal. Consider getting pre-approved for a loan.
Looking for the best mortgage: shop, compare, negotiate - brochure
Let FHA help you
Step 4: Learn about homebuying programs
Learn about homebuying programs in Colorado. (I'll be happy to review these with you.)
FHA loan programs may offer lower down payments and are a good option for first-time homebuyers.
Do you qualify for one of HUD's special homebuying programs:
Good Neighbor Next Door Program -
for police officers, teachers, firefighters and emergency medical technicians
Homeownership for public housing residents
Indian Home Loan Guarantee Program (Section 184)
Step 5: Shop for a home
Choose a licensed real estate agent
Create A Wish list - what features do you want?
Home-shopping checklist – take this list with you when comparing homes
Check out the different types of Homes for sale:
Single Family Homes
Short Sale or Foreclosure Sales
"Fixer-uppers" - home purchase and repair programs
Manufactured (mobile or stationary) homes
Build a home
If you choose a home in a neighborhood with a Home Owners Association (HOA), be sure to request a copy of the HOA packet, so you can review before closing.
Step 6: Make an offer
Discuss the process with your real estate agent. A truly professional Realtor® will guide you through the offering and countering process, as well as, the entire negotiation process until both buyer and seller agree to the terms of the sale.
Step 7: Get a home inspection
Make your offer contingent upon a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.
What Is A Home Inspection?
10 Questions to ask a home inspector
Step 8: Shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.
Homeowners insurance checklist
12 ways to lower your homeowners insurance costs
Step 9: Sign papers
You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!
What Are Settlement Costs and other Helpful Information