Home Buyer
GUIDE
Lindsay Jackson
CNE, CMRS, REALTOR® Member of LBAR, NAR, CAR, WCR 970-631-3458 nocoishome@gmail.com www.NOCOISHOME.com Certified Negotiation Expert® | Certified Military Residential Specialist™ 2020/2021 Womens Council of Realtors Northern Colorado Board of Directors 2022/2023 and 2024/2025 LBAR Board of Directors
Thank you for taking the time to explore my Home Buyer Guide. I am here to guide you every step of the way. If you have any questions or are ready to embark on this exciting adventure, please don’t hesitate to reach out. I am here to make your homeownership goals a seamless and joyful experience!
REAL ESTATE TERMINOLOGY Appraisal: The assessment of a property’s value, conducted by a licensed appraiser. Closing Costs: The fees and expenses associated with the finalization of a real estate transaction, including legal fees, taxes, and title insurance. MLS (Multiple Listing Service): A database used by real estate agents to share property listings and facilitate the buying and selling of properties. Escrow: A neutral third party that holds funds and documents during a real estate transaction until all conditions are met. Title Insurance: Insurance that protects the buyer and lender against any defects in the title or ownership of a property. Down Payment: The initial payment made by the buyer as a percentage of the total purchase price. Amortization: The gradual repayment of a mortgage loan through regular monthly payments that include both principal and interest. Homeowners Association (HOA): An organization that sets and enforces rules for a community and collects fees from residents for maintenance and amenities. Pre-Approval: The process by which a lender evaluates a borrower’s creditworthiness and provides a commitment to lend a specified amount. PMI (Private Mortgage Insurance): Insurance required by lenders when a borrower’s down payment is less than 20% of the home’s purchase price. Fixed-Rate Mortgage: A mortgage with a constant interest rate that does not change over the life of the loan.
Adjustable-Rate Mortgage (ARM): A mortgage with an interest rate that may change periodically based on changes in a corresponding financial index. Closing Disclosure: A document that provides final details about the mortgage loan, including the loan terms, projected monthly payments, and closing costs. Earnest Money: A deposit made by the buyer to demonstrate their commitment to purchasing the property. Metro Tax District: Metropolitan and Special Districts are authorized by Article-1 of Title-32 of the Colorado state statutes. A special district provides public improvements and services to its property owners and residents. A metropolitan district is a special district that provides two or more types of improvements and services. For more information concerning what a prospective buyer should know about metro districts, the Department of Local Affairs (DOLA) published Special Districts: A Brief Guide for Prospective Homeowners in 2009. Access the guide here. To confirm a property’s Metro District status, contact the county assessor’s office. Title Deed: A legal document that establishes ownership of a property. Underwriting: The process by which a lender evaluates a borrower’s creditworthiness and the risk associated with lending money for a particular property. Survey: A map or drawing showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features. This list is by no means exhaustive, but it covers a range of essential terms in the real estate industry.
DEFINITIONS OF WORKING RELATIONSHIPS
Seller’s Agent: A seller’s agent ( or listing agent) works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The seller’s agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller. Buyer’s Agent: A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer. Transaction-Broker: A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required. Customer: A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.
SUCCESSFUL BUYER TIPS We offer the following tips to buyers to aid in a successful real estate transaction. If you have any other questions, or would like additional advice and information, please feel free to contact us. 1. Become a pre-approved buyer. As a pre-approved buyer, you have better leverage when it comes to negotiating with the seller. The pre-approval process is simple and will help show sellers that you are a serious buyer. 2. Beat your competition to the best listings. Staying on top of market trends is vital when you’re looking for a home. Like any other home buyer, you want the best home at the best price possible. Of course, these are the homes that never stick around for too long so you’ll need to make every effort to keep yourself aware of the latest and best listings. Seeking the assistance of a professional Buyer Specialist will help you stay wellinformed and updated on a regular basis. 3. Research market trends in your area of interest. Familiarizing yourself with the area that you are interested in will help you get a better idea of what homes are selling for as well as how long they are typically on the market. Be sure to investigate price ranges for the type of home you want. Having the help of a Buyer Specialist is a serious advantage when it comes time to make an offer. 4. Prove that you are a serious buyer. There are many different ways to prove to the seller that you are sincerely interested in buying their home. One way is by getting pre-approved which will later give you the edge in an offer situation. An even better way to accomplish this is to put down a larger payment to catch the attention of the seller. 5. Don’t settle too fast. Buying a home might be one of the largest investments of your lifetime. Because of this, your primary goal should be to make sure that you get the best deal possible for the home you are interested in. A Buyer Specialist can help you make a sound decision when it comes to making an offer. 6. Keep your offer simple. The purchase contract should be kept simple and without any unnecessary conditions, especially repairs. A seller will be more interested in an offer that is not going to be slowed down or delayed by things that do not severely affect the value of the home. 7. Don’t do it alone. With an ever changing market, today’s home buyers will find it very difficult to go through the buying process on their own. Having an experienced Buyer Specialist who can keep your best interests in mind makes a significant impact when buying a home and maximizing your investments.
GETTING A MORTGAGE When it comes to the loan process, there are several steps that one must go through. By making yourself familiar with it, you will better understand what is required of you and how you need to prepare. After all, the more knowledgeable you become the more comfortable and in control you will feel. 1. Organize Your Documents. In order to obtain a mortgage, your lender will require certain documentation from you to make sure that you will have the ability to repay the loan you take out. Such documentation includes proof of employment, credit history, tax returns, pay stubs, bank statements, divorce and child support statements if applicable, and any other information that the lending company feels might be necessary. 2. Qualification. Before you apply for a loan, getting qualified will help you establish how much you can borrow. When purchasing a home, there are two options one may choose from to qualify for a loan. The first option, pre-qualification, is a quick process that usually happens in a matter of minutes. While pre-qualification is helpful, your other option—preapproval—is more beneficial and gives you better leverage when negotiating with the seller. Getting pre-approved also lets you focus on homes within your price range instead of wasting time looking at homes that you won’t be able to afford. Finally, when it comes time to close, the process will go rather quickly since your loan has already been approved. 3. Find the Right Loan Program. While searching for the right loan program, there are many things to take into consideration. For example, you might want to think about how long you plan on keeping the loan. The length of your residence will determine the type of loan you want to get (i.e. adjustable or fixed). To figure out which loan program is the best, one will need to compare different programs and everything that each one involves such as rates, fees, and points. The whole process can be tedious and difficult at times, which is why a qualified loan officer can help you make the right decision. 4. Obtain Loan Approval. The process of obtaining loan approval involves the following steps: • Review of loan application (be sure to fill it out completely). • Verification of credit history, employment history, assets such as bank accounts and mutual funds,property value and any additional information that the lender might require There are also a few things that you can do to improve your chances of getting the loan approved: • For any requests of additional documents and information, respond promptly. • Do not make any major purchases such as a car or new furniture until the loan is closed. Increasing your debt can have the opposite effect on your application. • Make sure you will be in town for the closing date. If you cannot be there for the closing of the loan, you can carry out a power of attorney to authorize someone to sign on your behalf. 5. Close the Loan. Once the loan is approved, your next step will be to sign the final loan documents, which usually takes place in the presence of a notary public. Be sure to verify the information within the document, especially the interest rate and loan terms. Also check to see if your name and address are correct. Finally, don’t forget to bring a cashier’s check for your down payment and closing costs.
RECOMMENDED LENDERS
Clara Pilcher Mortgage Loan Originator NMLS ID 1105212 Collegiate Peaks Bank | Division of Glacier Bank
970-266-0223 direct | 970-402-3663 cell 2002 Caribou Dr., Ste.102-A Fort Collins, CO 80525
Bobbi Manzo First Western Trust Mortgage 303-591-0253 cell Bobbi.Manzo@myfw.com https://myfw.mymortgage-online.com/ BobbiManzo.html
Mark Fowler Edge Home Finance 970-966-4488 cell Mark@MarkSFowler.com Edge Home Finance www.marksfowler.com
Tonja Jenkins Home Team Lending 970-336-1185 cell tj1@hometeam-lending.com hometeam-lending.com
Samantha Carlson Guild Mortgage 970-568-2553 cell sam.carlson@guildmortgage.net www.guildmortgage.com
Patrick Enders Ent Credit Union 970-817-0989 cell PEnders@Ent.com
www.ent.com/mortgage-loan-officers/pat-enders/
The decision of the specific professionals you use is yours to make, you are not limited to these names, you may hire any professional of your choice. We cannot guarantee the outcome or level of service provided. We have not performed any investigation or confirmation of the competency or expertise of these providers. You need to be comfortable with the service provider you select.
RECOMMENDED HOME INSPECTORS
Robert White
Scott Home Inspection info@scotthomeinspection.com 970-532-2424 phone
Front Porch Inspections
Jed@frontporchinspections.com 970-305-6503 phone
ABR Inspections, LLC www.coinspections.com robert@coinspections.com 970-646-1818 phone
Catalyst Inspections Randy Isaac randy@catalystinfrared.com www.catalystinfrared.com 970-599-1871 phone
Alex Choe
Tim Dyer
Home/Commercial Inspections Inspecting NoCo since 1997! ProCheckInspect.com info@procheckinspect.com 970-227-6898 phone
Accurate Property Inspection accuratepropertyinspecdtion@yahoo.com Certified Commercial Inspector EDI stucco Inspector # CO-118 Certified Mold Inspector ASHI member #205776 www.accurate1.com 970-667-6973 phone
The decision of the specific professionals you use is yours to make, you are not limited to these names, you may hire any professional of your choice. We cannot guarantee the outcome or level of service provided. We have not performed any investigation or confirmation of the competency or expertise of these providers. You need to be comfortable with the service provider you select.
RECOMMENDED INSURANCE PROVIDERS & MOVING COMPANIES
Jacob Fellure
Summit Insurance
Jacob Fellure Agency jfellure@amfam.com www.JacobFellure.com 970-622-0090 office 970-797-1320 fax 970-310-0201 cell 800-692-6326 access anytime 118 S Taft Avenue Loveland, CO 80537
https://agents.allstate.com/summitinsurance-loveland-co.html 970-667-9133 office 283 E. 29th Street Loveland, CO 80538
Barry G Gustafson
Jason Percha
970-669-1263 cell 970-669-1309 fax 1405 W 29th Street Loveland, CO 80538
Advantage Insurance 970-669-9390 office 4308 N Garfield Ave. Loveland, CO 80538
www.exodusmoving.com 1-800-549-1488 office
www.watsonmovingandstorage.com 970-669-8001 office
www.johnstorage.com 1-800-BUY-MOVE
The decision of the specific professionals you use is yours to make, you are not limited to these names, you may hire any professional of your choice. We cannot guarantee the outcome or level of service provided. We have not performed any investigation or confirmation of the competency or expertise of these providers. You need to be comfortable with the service provider you select.
WHAT MY CLIENTS ARE SAYING “Lindsay was wonderful to work with and we would not have found our home without her experience. She has excellent communication skills and promptly answered our many questions throughout the process. She has strong initiative to understand what her clients are looking for and to get it done. We would highly recommend Lindsay!” - Phil and Ellen “Lindsay was an absolute pleasure to work with! She was incredible and really paid attention to our needs as first-time homeowners. Lindsay was highly professional and communicated with us clearly and regularly. She really made this whole experience wonderful and found us an amazing home that we are just in love with!” - Aryn “Lindsay was a wonderful agent. She helped us purchase our new home and we couldn’t have been happier with her. She is knowledgeable and on top of everything! I highly recommend Lindsay for any of your home buying and selling needs!! - Jeff and Kathy “Lindsay was great to work with, professional and personal at the same time, and she found us a great house! We would recommend her to anyone. Thanks, Lindsay!” - Karyn S “Lindsay was extremely professional. She was helpful in assisting us with all of our deadlines.” - Paula C “I bought my third home with the help of Lindsay! She was knowledgeable, helpful, friendly and understanding of my wants and desires. I wish I would have had her with my other homes!” - Kym T “We can't speak highly enough of our experience with Lindsay. We were first-time homebuyers with little knowledge about how to find the right place. We knew she genuinely cared about us, getting the house that fit the needs and wants of our family. She helped us feel very comfortable with everything and was always available for any questions we had! Our expectations were definitely EXCEEDED!! I have and will continue to recommend Lindsay and C3 Real Estate Solutions to everyone I know!” - Dora O “Lindsay was great helping us find the right house. After multiple attempts on different properties, we were able to find the perfect house at the right price with her help. She was always willing to show us properties at any time of day and any day of the week. She also guided us with insight on how to get a contract, as well as be on the lookout from properties that good at first glance, but had underlying issues.” - Jason O “Lindsay was the most responsive and helpful agent I have ever worked with. All home showings were set up as soon as possible. She always answered my phone calls and emails promptly. She was very professional and knowledgeable. I would recommend her to any of my friends or family.” - Beth J “Lindsay was very professional and fun to look at houses with. We told her we were in a bit of a time crunch so she went out of her way to coordinate showings as quickly as possible for us. I would definitely recommend Lindsay to anyone and will be calling her for our next move if we chose to upgrade in the future!” - Cydnie D “We had a heck of a time with processing the loan and Lindsay was very helpful through the whole situation. Would highly recommend Lindsay to anybody that wants somebody who is genuine throughout the whole process.” - AJ S