Buyers Guide

HOME BUYING GUIDE

FROM START TO SOLD ALL THE DETAILS YOU NEED TO SUCCESSFULLY BUY YOUR NEW HOME

BY: EMILY BREAKER

Welcome

LETS FIND YOUR NEW HOME

CONTENTS

BUYERS

RESOURCES

THE HOME BUYING PROCESS 11 steps to owning a home

DENVER MAP Your guide to the neighborhoods

BUYER INSPECTIONS What you need to know

SCHOOL GUIDE Denver Area 18 School Districts

CLOSING TIMELINE Plus Common Buyers Costs

SELLERS MY PROMISE I work for you SELLING YOUR PROPERTY Trust me to tell the story of your home MY SERVICES What I Provide

GlOSSARY Common Terms

THE HOME BUYING PROCESS Everything You Need to Know

Ready to learn about what it takes to become a homeowner? While it may seem like a tough process if you are a first-time home buyer, I am here to help guide you and make the process easy and effortless.

2

3

HOME INTERVIEW

FINANCING & PRE-APPROVAL

6

5

4

NEGOTIATE THE OFFER

SUBMIT THE OFFER

HOME SHOPPING

7

8

9

DUE DILIGENCE

REMOVE CONTINGENCES

LOAN DOCUMENTS

11

10

1

FIND A REALTOR

MOVE IN

BEFORE YOU MOVE IN

Buying a home can be a fun and exciting process, but it can also be very stressful. Understanding the process can really help to make it a smooth and successful transition.

1.

FIND A REALTOR WHO IS RIGHT FOR YOU AND AGREE TO WORK TOGETHER Selecting a great agent to represent you in the purchase of your new home is critical. There are many great realtors out there, but choosing the right one is the most underestimated step in the process. Buying a home is often one of the largest, most important purchases a family can make. You deserve to be represented by someone that is adept at navigating all the intricacies of the identification of the right property, the negotiation, the transaction, as well as the closing. It is my fiduciary responsibility to put your interests - financial and otherwise above everyone else’s including my own. When we agree to work together it requires clear lines of communication both ways. My clients love me because I will talk them out of purchasing a property that is not right for them just as fast as I encourage them to buy the one that is right for them.

2.

THE HOME INTERVIEW Listening is one of my superpowers. This isn't just going to the car lot and picking either a red or blue one. I consider myself a “professional real estate matchmaker” when it comes to fulfilling my client's wants and needs. It's not just about your wants and needs. It’s not just about how many beds and baths you want. I want to find out what is important to you about having a larger backyard and taking the time to discover what “the perfect home” looks like for you.

3.

FINANCING & PRE-APPROVAL Whether you’re paying cash or seeking financing, the conversation about how I am going to get from point A to point B is an important one. If getting a loan, sellers want to see that you are pre-approved by a reputable lender.

They also want to see proof of funds for the stated down payment and closing costs. If paying cash, sellers want to see proof of funds sufficient to complete the transaction.

COMMON PRE-APPROVAL NEEDS LIST:

Most lenders will need these items to get you pre-approved for your home loan. the last 2 years' tax returns copies of your most recent pay stubs permission to run your credit proof of funds (showing down payment, closing costs and possibly reserves)

MONTHLY COSTS OF OWNING A HOME

You can qualify for certain loans with a low credit score of 530. But don't forget, you will be paying higher interest rates and insurance. For example, If the 30-year primary mortgage rate is 3.875%, someone with good credit would pay 4.125% in interest (.25% above the primary rate) and you’ll pay 4.5%.Your monthly payment will be $82.99 more each month and $29,876.40 more over the 30-year life of the loan.

mortgage (principle and interest) property taxes insurance utilities maintenance homeowners association fee (if any) HOW MUCH CAN YOU AFFORD? I Know.. the dreaded B Word, but if you’re crystal clear on what your budget is, this process will be SO MUCH EASIER! Setting a budget for your home purchase is not just a practical step; it's a critical one. It empowers you to make informed decisions, protect your financial future, and enjoy the journey to homeownership with confidence.

Remember, your budget isn't a restriction; it's a tool to help you achieve your homeownership dreams responsibly. I will consult with you and walk you through the process of deciding which financing options are best for you and recommend excellent Mortgage Brokers to help you with this important step in the process.

4.

LETS GO SHOPPING (THE FUN PART) Now the fun part begins. We get to go shopping! Based on your criteria, we’ll be on the hunt for homes which we think might be a good match. I will send you properties to consider and you can send me properties that catch your eye as well. I am constantly networking with other top agents in the area to find coming soon and pocket listings. If your ideal home isn’t on the market, we’ll go find it.

First you’ll want to meet with a lender to determine the numbers. Lenders typically use a debt-to-income (DTI) ratio to determine how much of a borrower's income can be allocated to housing expenses. A common guideline is that your mortgage payment, including principal, interest, property taxes, and insurance (often referred to as PITI), should not exceed 28-36% of your gross monthly income.

5 SUBMIT THE OFFER

Depending on the market, there are many different strategies on how to approach writing the offer. I am an expert in helping you craft the best offer to have the greatest chance of getting it accepted. In a multiple-offer situation, there are many things we can do to structure a more attractive offer for the seller. These races are often won by inches, not by miles. In a slower market, we can be more aggressive with our approach. Typically, most offers are written so the buyers have to put an initial deposit (called earnest money) a small percentage of the purchase price in escrow.

This shows the seller that you have skin in the game.

I will give you a sample purchase agreement to read ahead of time so you can ask me any questions you might have. This saves time when it is go time.

6

NEGOTIATE THE OFFER

Whenever possible, I will present your offer in person to the seller or the listing agent. Unless I am told otherwise, my goal is always to get your offer accepted at the lowest possible price and the most favorable terms. The seller can accept, reject, counter, or ignore the offer. Usually, we can accept a counter.

LIST OF NEGOTIONABLE TERMS Price Seller Concessions Value of Home Warrenty Buyers Closing Costs Transfer Fees Home Repairs Amount of Inspections

7 DUE DILIGENCE

Most offers will be written with an investigation contingency, This due diligence period is the time when you can perform inspections on the property and get comfortable with exactly what it is you are buying. I strongly recommend you attend the inspections. The average inspection takes about 3 hours. This is your opportunity to put the property under a microscope and discover if anything is wrong with it. After the inspection is complete, you will get a full report on the home and any faulty findings. You will also receive disclosures from the seller to learn about the history of the property. With a condo or townhome, there will also likely be homeowners association documents and CC&RS (covenants, conditions, and restrictions) to read through and approve.

If there are any unforeseen health and safety issues with the property that were not apparent when we submitted the offer, we can prepare an Inspection Objection where you ask the seller to fix the issue, back out of the contract, or decide to fix them after you move in. The seller is under no obligation to address these concerns, but it is essentially a 2nd round of negotiations. I will walk you through the process, have detailed conversations, and provide advice about how I think you should proceed.

HOME INSPECTION CHECKLIST Basement & Garage

Porches and balconies

Walls, ceilings, and floorsDoors and windows

Walkways and driveways

Foundation, Roof, Attic Space

Plumbing fixtures, faucets, and water heater

Exterior paint/brick/siding

Appliances

Electrical panel, Light Switches, Power Outlets

Walls, Ceilings, And Floors.

Doors And Windows

Thermostats and heating, cooling, and ventilation (HVAC) system

Stairs, steps, and railings

8 REMOVE CONTINGENCES

Contingencies are essentially conditions or the purchaser's way of terminating the contract without losing any of the earnest money deposit. If you are comfortable with the condition of the property and the appraisal and loan are approved, then it's time to remove all contingencies. Contingences can be removed one at a time or all at once. This is VERY IMPORTANT! If you remove all of your remaining contingencies and, for whatever reason, don't proceed with the transaction, you are putting your earnest money deposit (usually 3% of the purchase price) at risk. Most buyers elect to do a final walk-through before loan docs go to the title company and for you to come in for signing. This is done to verify the condition of the property and to make sure that any repair items agreed to were performed to your satisfaction.

9

LOAN DOCUMENTS

You’re almost home. Now that you know you’re moving forward with the transaction the remaining steps are for your lender to prepare the loan docs for review. You will be expected to deliver you down payment when you come to the closing,

10

BEFORE YOU MOVE IN UTILITIES

MAIL FORWARDING

Don’t forget to change the utilities to your name starting the day of possession. This includes your phone, cable, internet, power, and gas services. Also, remember to cancel the utilities at your previous residence. Water is the only utility transferred at closing by the title company.

Gather all your bills, statements, tax information, healthcare information, and anything you make automatic payments on. Sit down and make a list of these things early on because you don’t want to forget any. It’s time to start giving out your new mailing address. You might also want to have your mail forwarded through the post office.

MOVERS If you are using professional movers, book early. They are often booked several weeks out (I have some good referrals, just ask!)

CLEANING Most people want to move into a freshly clean home. Now is the time to schedule a cleaning crew to give the property a good, deep cleaning before moving in.

11

MOVING DAY!!!!!

Finally, the day we have all been waiting for! Once you have received the keys and possession is officially transferred, you are free to move in and enjoy your new home.

HOME APPRAISAL A home appraisal is needed if you are financing your home. It is required by the bank to estimate the home value.

Just because you and the seller agreed to a price, doesn't mean that the bank will.

After all, the home is their collateral in case you can't make your mortgage payment. The bank can then foreclose on you and resell the home.

If the home is appraised over the contract price, the seller will need to either come down in price, or you will have the choice to make up the difference with cash, or you may back out of the deal.

An appraisal is a good thing for a buyer overall. It will keep you from falling into a bad deal and overpaying.

BUYER INSPECTIONS BUYER INSPECTIONS

It’s critical to take advantage of the opportunity to perform routine inspections on a property you are considering purchasing. Inspectors are experienced, trained professionals hired to put the house under a microscope and find common problems, malfunctions and/or defects in the property. Below is a list of some of the inspections buyers may choose to do: PHYSICAL INSPECTION RADON INSPECTION SEWER LINE SCOPING ROOF INSPECTION STRUCTURAL OR GEOLOGICAL INSPECTION HVAC INSPECTION

REQUEST FOR REPAIRS The next step is to review the reports and decide whether or not there are any unforeseen health and safety items we’d like to ask the seller to correct. Although this is often the 2nd round of negotiation between buyers and sellers, it’s also a time when deals come to a stalemate. At this stage, I recommend keeping the big picture in mind.

Why My Buyers Choose To Work With Me Emily was hands down the best realtor I’ve ever worked with. Not only did she listen and find me the perfect house, but she was diligent in protecting me during the negotiations and she supported all my requests. She answered my questions immediatley and was just a great person. She made this easy!

-Anne

Working with Emily was great, her professionalism, integrity, and genuine care for her clients in every interaction. I would recommend Emily to anyone in need of a topnotch real estate agent. She deserves every bit of my five-star review and more!

-Valdimir

Emily has help me with multiple transactions.

She has great communication, is a great negotiator, has strong real estate knowledge, and always makes her self available to help.

Highly recommended!

-Nick

I had such a great experience working with Emily. The sale of my house was unconventional and required a lot of attention and focus. I don’t think I would have been able to do it without her!

She went above and beyond for me, from staging to checking in even during times where we didn’t have urgent updates. I will, without a doubt work with her when I purchase my next home -Megan

I recently had the pleasure of working with Emily, a top-notch local realtor in Golden, CO. If you're looking for a local realtor in Golden who knows the area like the back of their hand, Emily is your best bet as she is a native to Golden. I couldn't be happier with my home purchase experience, and I owe it all to her. Emily made the entire experience of finding my dream home seamless (and fun!). Her knowledge of the Golden area truly sets her apart from the rest and she was able to showcase properties while providing valuable insights (such as special fencing to protect my dogs from the rattlesnakes on North Table Mountain) She was patient, always willing to answer my questions, and a joy to be around. I highly recommend Emily Breaker to anyone in need of a dedicated Golden Realtor.

-Kevin

READ MORE AT WWW.EBHOMESCO.COM

Wants & Needs List Ready to start home shopping? Fill out the form below so I can set you up to start receiving homes that meet your requirements.

PRICE

# BEDROOMS

# BATHROOMS

SQUARE FEET

LOT SIZE

YEAR BUILT

OTHER NEEDS/WANTS:

New Construction

YES

NO

Garage

YES

NO

Needs Renovations

YES

NO

HOA Community

YES

NO

brainstorming..

HOME TYPES

(SINGLE FAMILY, TOWNHOME, CONDO)

MUST HAVES

ARCHITECTURAL STYLES (MID MOD, CRAFTSMAN, ETC)

FINISHES (I.E FIXER UPPER, BRAND NEW)

ASPIRATION HOMES

LAYOUT (I.E. MAIN FLOOR MASTER)

ROOM NEEDS (OFFICE, NURSERY, GYM)

5 YEAR PLAN (RENOVATE, RENT, SELL)

SHOWING AVAILABILTY M T W T F S S

Rio Chacon 303-895-1655 rioc@s1l.com

Lender

Austin B 303-552 eger -48 abeger@ spirefin 84 ancial.co m

Recommendations

Shannon Dahman 970-485-5555 shannon@peaklendingco.com

Polary Leng 303-309-6000 polary@houzmortgage.com

Contact several different lenders — it's helpful to get to know a few different loan officers.

Different lenders also offer different kinds of loans. You want to explore your options in greater detail. Ask questions to help you get a better sense for what kind of loan might be the best choice for you.

LETS DO THIS

LOOKING FORWARD TO HEARING FROM YOU!

303-818-4970 emily.breaker@westandmain.com emily.ebhomesco.com www.ebhomesco.com emilybreaker_realtor

HOME BUYING & FINANCING GLOSSARY HOME BUYING GLOSSARY APPRAISAL.

HOME INSURANCE

An appraisal is a written estimate of the value of something. In real estate, it is a professional opinion on behalf of the bank of the market value of property. 99% of the time appraisals come in at the same value as the purchase price.

Insurance coverage that provides compensation to the insured in case of property loss or damage.

Your home insurance will be paid with your monthly mortgage payment.

ASSESSMENT An assessment is a value assigned to real property (your house and land) that is used to determine real property taxes. Assessment can also refer to the process of reaching an assessed value of real property.

HOME INSPECTION A close physical examination of a home to evaluate its plumbing, electrical, and heating and cooling systems, as well as its appliances, roof, foundation, and structural stability. The inspection should be completed within 7 days of your offer being accepted and your offer contract should state that purchase would be contingent on the home inspection results.

CLOSING In real estate, closing is the delivery of a deed, financial adjustments, the signing of a note, and the disbursement of the funds necessary to consummate, or close, the sale or loan transaction. “Settlement” is another term for closing.

DEED This document shows that an owner of a piece of real property has title to that property. Once a deed is filed and recorded by your local government, the deed becomes a public record.

EARNEST MONEY Earnest money is a deposit you pay to the seller of real property to show your good faith and intentions of getting a mortgage to buy the property. It is refundable until loan termination if you decide not to complete the purchase.

PRE-APPROVAL A written agreement from a mortgage lender to grant a loan for a home purchase. The prequalification is based on the lender’s careful investigation and evaluation of the potential homebuyer’s income, credit history, employment history, personal assets, and debts. Pre-approval assures the seller that a buyer’s offer is valid. It also speeds the process of being able to make an offer.

TITLE Written evidence of the right to or ownership in property. In the case of real estate, the documentary evidence of ownership is the title deed that specifies in whom the legal estate is vested and the history of ownership and transfers.

Title may be acquired through purchase, inheritance, devise, gift, or through foreclosure of a mortgage.

ESCROW

TITLE INSURANCE POLICY

Escrow is money placed with a third party (title company) for “safekeeping.” During a real estate purchase, the buyer is typically required to place a portion of their down payment aka Earnest Money in an escrow account where it is held until the closing. After the home is purchased, a portion of each mortgage payment is typically held in an “escrow” account to pay for the property’s taxes and insurance.

A contract by which the insurer agrees to pay the insured a specific amount for any loss caused by defects of title to real estate wherein the insured has an interest. Homebuyers usually must purchase lender’s title insurance to protect the lender’s interest and sellers traditionally purchase buyer’s title insurance and choose the title company.

HOME BUYING & FINANCING GLOSSARY

ADJUSTABLE-RATE MORTGAGE (ARM)

FIRST MORTGAGE

An ARM will have interest rates and payments that change from time-to-time over the life of the loan. Depending on the type of ARM you have, your interest rate may increase gradually every few years until it reaches a preset ceiling.

A first mortgage gives the lender a security right over all other mortgages on the mortgaged property.

AMORTIZATION

A fixed interest rate is one that never changes over the life of a loan. For example, if you have a fixed rate, 30-year mortgage, you will pay the same interest rate for the entire 30-year repayment schedule.

Amortization is the process of paying off a loan through a series of periodic payments to a lender.

The payments include two items: interest, which is what it costs you to borrow the money, and principal, which is the amount of money you borrowed.

ANNUAL PERCENTAGE RATE (APR) The APR, shown on your mortgage papers, is a standardized way of showing you the total cost of borrowing money. The APR is a combination of the interest rate charged by the creditor along with any fees they might charge.

CONVENTIONAL LOAN A loan that is not guaranteed or insured by a government agency.

CREDIT LIMIT Your credit limit is the maximum amount of money that can be loaned to you or the maximum amount of credit you can use in an open-ended credit account.

DISCOUNT POINT A discount point is an amount of money a borrower pays to a lender, or seller pays to a lender, to increase the lender’s effective yield. One point is equal to one percent of the loan.

FIXED INTEREST RATE

INTEREST RATE An interest rate is the percentage of the outstanding balance of a loan that you are charged for borrowing money, usually expressed as an annual percentage rate.

LOAN ORIGINATION FEE. This is a fee charged by lenders to prepare documents, make credit checks, inspect, and sometimes appraise property. It is usually stated as a percentage of the face value of the loan.

PITI. PITI is an acronym for principal, interest, taxes, and insurance. Most monthly residential mortgage payments include these items:

POINT. A point is one percent of the dollar amount of the mortgage loan. For example, if your loan amount is $150,000, a point is $1,500. By paying points, you can generally lower the loan’s interest rate.

PRINCIPAL EQUITY Equity is net ownership. In other words, it’s the difference between how much your property is worth and how much you still owe on your mortgage (Market value – Mortgage balance = Equity). Equity is also sometimes called owner’s interest.

FHA-INSURED LOANS Home mortgage loans insured by the Federal Housing Administration are referred to as “FHA or FHA-Insured Loans.”

1) Principal is the original amount of a loan, excluding interest. Interest is charged based on the unpaid principal of a loan or credit account. 2) The remaining balance of a loan, excluding interest.

PRIVATE MORTGAGE INSURANCE (PMI) Insurance written by a private company protecting the mortgage lender against financial loss occasioned by a borrower defaulting on the mortgage. Typically only applicable with a down payment less less 20%.