Aspen Creek Home Buyer Guide

Home Buyer Guide

AspenCreekRealty.com (801) 558-0364

Why is now the right time to buy your new home?

Owning a home is more than just a financial investment. It is an investment in your quality of life and the freedom to make a house truly your home. While there is no “perfect” time to buy a home, the current health crisis has truly re-shaped our lifestyles and needs. Spending extra time where we currently live is enabling many people to re-evaluate what homeownership means and what they find most important in a home.

Why choose Aspen Creek Realty?

When it comes to buying your new home, you will want to be sure that you have a real estate agent that best fits your needs. At Aspen Creek Realty, we understand the intricacies surrounding home ownership and the importance of having the best representation for our buyers. We know that our clients are at the core of our agency and we strive to gain your trust from the beginning and to serve you beyond your expectations every step of the home buying process. We truly appreciate the opportunity to interview for the position of your REALTOR®.

Our mission is to become your real estate resource for a lifetime, not just one transaction.

Our top-notch team has streamlined every detail of the home-buying process to make the entire experience understandable, stress-free and enjoyable for you. With superior marketing and exceptional work, we provide you the ultimate service: helping you find your perfect home at the best price in the shortest amount of time.

We look forward to working with you!

Natalie Southwick, CRS, Principal Broker / Owner Aspen Creek Realty natalie@aspencreekrealty.com (801) 558-0364

Steps to Successful Home Buying 1

How much can you afford?

The best way to start your home buying process is to decide how much you can afford.

Be realistic with what you can afford to put yourself in the best position when buying.

Getting pre-approved from a mortgage lender will also help determine what you can afford.

3

Working with your agent

Work with your real estate agent to search for homes, schedule showings, provide expertise and negotiate on your behalf. Your agent will be able to explain all the steps along the way and manage your paperwork and other tasks.

Always ask questions throughout this process.

2

What do you want in a home?

Now for the fun part of buying a home…deciding what you are looking for! How many bedrooms?

Baths? Are schools an important factor in your location decision? Be open with your wants and needs and share this with your real estate agent.

A checklist is included in this guide to help make this easier.

4

You found your home!

Yay! You have found your ideal home. What’s next? Your real estate agent will guide you through the entire home buying process.

From offer to closing, your real estate agent has you covered.

Pre-Buying Checklist The best way to prepare for home buying is to educate yourself on the process and perform some pre-purchase assessments. The Consumer Financial Protection Bureau (CFPB) has some great tools and resources to help you check your credit, assess your finances, set your home-price budget, and more. Some key points to figure out before looking for your ideal home include: Check Your Credit Make sure your credit report is accurate and correct any errors promptly. Lenders will use your credit scores and information in your credit report to determine if you qualify for a loan and at what interest rate.

Assess Your Spending Creating a budget that reflects your spending habits over the last several months can help determine what you can afford for a mortgage payment and help you spot some ways to save.

Use the What Can You Afford? Worksheet on the next page to assist you with your home budgeting.

Reduce Your Debt In general, lenders look for a total debt load of no more than 36% of your income, including a mortgage (25% of your income). Getting your other debts (auto loan, student loan, credit cards) down will help you be a better candidate for financing a home.

Start Saving Designate a certain amount to put into savings each month for your down payment. With a higher down payment, you can usually get a lower interest rate on your mortgage.

Get Pre-Approved for a Home Loan It’s no fun to find your ideal home to then find out that you cannot afford it. By getting preapproved, you will know exactly how much a lender will loan. We can recommend a top lender for you to contact before our consultation. Use the Loan Application Checklist and the Mortgage Do’s & Don’ts in this guide to help you prepare for financing.

What Can You Afford?

Use this worksheet to help determine how much you home you can afford.

Ideally, your monthly house payment should be no more than 25% of your monthly take-home pay.

Step 1

Monthly Income Wages, salaries, business income after expenses Retirement Income (Pensions, Social Security) Investment Income (Interest, Dividends, Rental income) Other income (Alimony, Child Support, etc) Total Monthly Income (Step 1)

Step 2

$ $ $ $ $ $ $ $ $ $ $

Additional Expenses/Liabilities Renters/Homeowners Insurance Auto Insurance Medical Dental/Vision Credit Cards Auto Loans/Leases Student Loans Personal Loans Total Monthly Additional Expenses (Step 3)

Step 4

$

Monthly Lifestyle Expenses Basic Utilities (Gas, Electric, Water, Trash) TV/Internet/Netflix/Etc. Cell Phone Groceries Entertainment/Dining/Travel Child Care Transportation (Gas, taxi, maintenance) Charitable Contributions Club Dues/Hobbies Other Total Monthly Lifestyle Expenses (Step 2)

Step 3

$ $ $ $

$ $ $ $ $ $ $ $ $

Unallocated Income Total monthly Income (Step 1) Minus Total Expenses & Liabilities (Step 2 + Step 3) Total Available Housing Expenses (Step 5)

-

$ $

$

Remember: these figures are just estimates! You will also have to consider other homeowner expenses like property taxes and homeowner’s insurance that will add to your monthly housing payment, homeowners association (HOA) fees and other costs to maintain your new home like maintenance, increased utilities, etc.

Your Path to Home Ownership 1

2

3

4

CONSULTATION

GET LOAN PRE-APPROVAL

VIEW HOMES

SELECT HOME & WRITE OFFER

Meet with us to determine your needs and wants.

We can recommend a top lender.

Your mortgage will be approved, approved with conditions or denied.

6

APPLY FOR MORTGAGE

OFFER ACCEPTED

PRESENT OFFER

Escrow money is deposited, inspections scheduled and contingencies removed.

Seller will accept, counter or reject.

We will negotiate to reach agreement.

Credit report, appraisal and verifications.

9

10

LOAN APPROVAL

TITLE WORK

CLOSING

Title Exam, Title Insurance and Survey will be done.

We will make this as seamless and pleasant as possible.

Your loan was approved!

You found a home you love! We will guide you to make the best offer.

7

8 UNDERWRITING

You narrow down your favorite homes and we tour them together.

11

5

12 YOU’RE A HOMEOWNER Congratulations!

Time to enjoy your new home.

Home Buying Process Buying a house is the biggest purchase most people will make in their lifetime. Just navigating the process of home buying can seem overwhelming. Buying a home usually requires dozens of forms, reports, disclosures, and other technical documents. Aspen Creek Realty will be your expert guide to help you prepare the best deal and avoid delays or costly mistakes. We will work closely together to find the right home for you and make the home buying process less intimidating.

Our Consultation Once you have determined how much you can afford, we will work closely together to find the right home for you. We will go over the basics of buying a home and provide you with the state’s Broker Disclosure Form. Next, we’ll discuss the type, size, style and location of the home you are interested in buying so that we can get a clear picture of your needs, wants and desires. To help you target your search and define your home preferences and priorities, use the Home Buyer Preferences worksheet in this guide. At the end of our consultation, you will be asked to sign a Buyer Agency Agreement, and the search is on!

Finding The Right Home for You Once we know all your particulars, we will extensively research homes that meet your criteria using the Multiple Listing Service (MLS), our Instant Home Finder and other resources. We will always keep you appraised of any new homes that come onto the market.

You decide what method of home searching you prefer: Window Shopping - we provide you with a list of homes that match your criteria so you can research them online and do a drive-by to get a feel for the neighborhood and area before touring the inside. When you find a home you are interested in, we then tour the home together.

Agent Previewing - a more traditional system for house hunting where we review all the homes that are available for you and narrow the selection down to no more than seven of the best properties based on your criteria and our expertise. Then we tour the homes together.

Home Buying Process (cont’d) Purchase Agreement Once we have found your ideal home, we will do the research to help you determine an effective and competitive offer. We will then draft a residential Purchase Agreement for you to review and sign. You will need to provide an “earnest money” deposit of at least 1% of the purchase price. This deposit is not cashed until your offer has been accepted by the seller.

Presentation of Offer We will present your offer to the Seller and Seller’s Agent and the Seller then has three options: accept your offer, counter your offer or reject your offer. This is where we will expertly negotiate on your behalf to reach a final agreement.

Open Escrow When the Purchase Agreement is accepted and signed by all parties, we will open escrow with a neutral third party for you and your earnest money will be deposited at this time. This escrow account will receive, hold and disburse all funds associated with the sale. Now that the paperwork is signed, you’ll complete a formal loan application if you haven’t already done so.

Closing Your closing and possession dates are determined when you write the offer to purchase and are agreed upon by both the buyer and seller. We work hard to keep you informed during closing and make it a seamless, pleasant process. We will coordinate your inspectors, appraisers, and lenders; identify problems; and find solutions. Now is also the time to prepare for your move.

You’re a Homeowner In most cases, your possession date will be a few days after closing and you will get the keys to your new home. Welcome home!

HOME BUYER PREFERENCES Buyer’s Name(s): Price Range: MIN $ Desired Neighborhoods/School Districts: Bedrooms: House Style: Ranch

Bathrooms: Cape Cod Split-Level

FEATURES Cul-de-Sac Street Garage Pool Deck and/or Patio Trees/Landscaping/Garden Front Porch Hardwood Floors Open Concept Finished Basement Spa Bath Master Bathroom Eat-in Kitchen Pantry Granite Countertops Kitchen Island Kitchen Appliances Included Formal Dining Room Fireplace Central A/C Washer/Dryer Included Walk-In Closet Laundry Room Home Office Other:

- MAX $

Square Footage:

Colonial Farmhouse Log Cabin Tudor Victorian Other: DESIRED

HIGHLY DESIRED

Multi-level

to fill this form out online!

MUST-HAVES

The Do’s & Don’ts of Financing DO call your mortgage consultant. If you are unsure if something will impact your loan or if there is something you do not understand, call your mortgage consultant.

DO keep all of your personal documents handy. Keep originals of all paystubs, bank statements, proof of earnest money deposit and other financial documents requested by your lender.

DO pay your bills on time. Late payments on current accounts like mortgage, car payment, credit cards, etc. will impact your credit score. Just one 30-day late payment can negate your mortgage qualification.

DO pay off any current debt. Having less debt puts you in a better financial position for mortgage approval.

DON’T apply for new credit or increase any credit limits. Avoid making major purchases such as cars, lines of credit for furniture, appliances, computers, etc. Any credit inquiry can affect your credit score.

DON’T run up credit cards or close any accounts. Running up credit card debt is one of the fastest ways to bring your credit score down. You want to keep active good credit history on your record, so do not close any accounts right now.

DON’T co-sign on any loans. New debt, even as a co-signer will affect your credit score.

DON’T change jobs. Your pre-approval is based off of your current job history and income, so making any changes can impact your ability to qualify for your new home.

For more great buyer tips, check out our blog!

LOAN APPLICATION CHECKLIST To expedite and make your loan process smoother have all documents organized and ready for when you apply. Here is a checklist of documents and materials your lender will request:

Purchase contract and property information Copy of the sales contract Property mailing address and description Contact information for access to the property Plans and specifications (new construction) Personal Information Full name Social Security number Age Marital status Addresses for past two years Landlord or mortgage holder for past two years Phone number Name and age of dependents Employment History & Income Two years employment history with complete details for each job Recent pay stubs and any overtime or bonuses Complete W2’s and tax returns for last two years Explanation for employment gaps Details for other regular income (retirement, Social Security, etc.)

Alimony/child support (copy of Divorce Decree); can omit if you choose Records for dividends and interest income

Assets Complete information for all bank and money accounts (savings, checking, money market) Bank statements for last 3 months Details for real estate you own Current value of all stocks, mutual funds and other investments Cash value of life insurance Current information on automobiles (amounts still owed) Value of any other personal property Liabilities Itemized list of all current debts (mortgage, auto loans, personal loans, credit cards, etc) Alimony/child support Outstanding judgments Miscellaneous debt Bankruptcy and discharge of bankruptcy Explanation of past credit problems

Importance of Home Appraisals & Inspections Why Get an Appraisal?

When your offer is finalized, your lender will order a professional appraisal of the home to ensure that the home’s value is in line with the agreed upon sale price. This is a necessary step in securing your financing, and it protects you and the lender.

Why Do You Need a Home Inspection?

The home you love looked pristine when you and your agent toured it, so why bother getting a home inspection before buying? As one of the biggest investments you'll ever make, getting a professional evaluation of the home’s condition and value prior to closing is critical. A qualified home inspector can detect any underlying issues, avoid the potential of costly items later on and give you peace of mind before you spend your hardearned money.

What Goes Into a Home Inspection?

A home inspector will give you an in-depth, unbiased and detailed report to help you make a wise decision. They will evaluate the physical condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors; identify items that impact the habitability of the home that will need to be repaired or replaced; and estimate the remaining useful life of major systems, equipment, structure, and finishes.

Be an Informed Buyer The best way to be a responsible buyer is by being informed. Be sure that what you buy is satisfactory in every aspect. You have the right to carefully examine your potential new home with the home inspector. It is highly recommended that you make the home purchase contingent upon the appraisal and inspection so that if any major issues are found, you have the ability to renegotiate the sales price, require the seller to make the repairs or back out of the purchase. This contingency can be written into the Purchase Agreement.

Basic Terms to Know ADJUSTABLE-RATE MORTGAGE (ARM) A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.

Your monthly payment may change frequently during the life of the loan.

APPRAISAL

An estimate of the value of a home prepared by a licensed appraiser and based on data from comparable homes and the appraiser’s walk-through.

CLOSING

Closing is where all documents for home ownership are reviewed and signed and you officially become a homeowner.

CLOSING COSTS

Fees associated with buying a house that are due at the end of the sale. Typically 1% - 3% of the selling price of the home.

CONTINGENT

A status in which a house has accepted an offer but relies on meeting certain criteria for the final sale, such as passing a home inspection or appraisal.

COMMISSION

A percentage of the sale that is paid to the real estate agent, usually by the seller.

DOWN PAYMENT

The amount of your home’s purchase price you pay up front.

EARNEST MONEY

A deposit made by the potential home buyer to show that he/she is serious about buying the house.

ESCROW

Process in which a third, neutral party collects the required funds and documents involved in the closing process, including the initial earnest money check, the loan documents, and the signed deed.

EQUITY

Equity is the overall value of your home once you subtract what you owe in loans.

FIXED-RATE MORTGAGE

A type of loan in which the interest rate is the same during the life of the loan.

HOME INSPECTION

The home is inspected by a professional inspector to determine the current condition of the home and its systems so that a buyer is aware of any potential or existing problems.

HOMEOWNER’S INSURANCE

Homeowners insurance is a form of property insurance that covers losses and damages to an individual's house and assets in the home.

A one-year premium is due in advance at time of closing.

MLS

The MLS is a database that includes all available homes for sale in a particular area.

PRE-APPROVAL

An assessment by a lender that determines if you qualify for a loan and, if so, the maximum amount the lender would be willing to lend. This is usually requested before putting an offer in on a house.

PRE-PAYABLES

Adjustments to escrow accounts from the date of closing to the date of the first payment. Interest is paid through the end of the month of closing. Taxes are paid through the end of the month of closing plus the following month. Two months of PMI (Principal Mortgage and Interest) are collected. Two months of homeowner’s insurance must be provided along with a receipt showing that the first year’s premium is paid.

TITLE

Written evidence of right to or ownership of property. Similar to a title deed for a vehicle.

Aspen Creek Realty is proud to announce that Natalie Southwick is one of Dave Ramsey’s Endorsed Local Providers!

What are our clients saying?

Scan below to find out why you should choose Aspen Creek Realty!

Ready to buy?

To see the most current listings on the market, like us on Facebook.

Aspen Creek Realty

At Aspen Creek Realty, our goal is to make every step of the home buying process an enjoyable one for you. So enjoyable, that you will confidently refer us to your family and friends.