Colorado Buyer's Guide T h r i ve R E G . c o m
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T H R I V E R E A L E S TAT E G R O U P To Your Better Life M. 720.696.0606 betterlife@thrivedenver.com
Stats That Matter #1 Brokerage in the Country In the process of moving our clients to their better lives, we’re humbly proud of being rated the #1 Brokerage in the Country for Client Experience on Zillow. We’re also top rated on Yelp and Google.
20 Years Serving the local real estate market
$3 Billion Real estate sold
5,000+
2,300+ Five-Star Reviews & Counting
S C A N Q R CO D E For our raves and reviews
Homes Sold
1,000+ Five-Star Reviews & Counting
1,000+ Five-Star Reviews & Counting
02 | BUYER'S GUIDE
TH RI V E RE G. COM
Our Distinct Process At Thrive, we have a well worn mantra that goes a little something like this... “Tell people what to expect, before it happens, so that when it happens, they are not surprised.” It’s also commonly referred to as “skating ahead of the puck”. Why should you care? Well, there are literally thousands of agents to choose from when you buy a home. But the majority won’t be able to articulate “what you get” if you choose to work with them...mainly because you don’t get much of anything. At Thrive, we’ve taken the time to design a predictable process and a concierge style service that decreases stress and increases the likelihood of locating, negotiating, and celebrating the home you envisioned. It’s represented simply overpage, but when you work with a Thrive Advisor, you can count on a high level of knowledge, advisorship and execution at every step of the way.
In short, nobody does more to guide you to the right home at the right price.
S C A N Q R CO D E Here's how 03 | BUYER'S GUIDE
we do this.
BUYING SIMPLIFIED
01
FINANCING
02
HOME SEARCH
03
N E G O T I AT I O N S
04
DUE DILIGENCE
05
CLOSING
06
HOME OW N E R S H I P
S C A N Q R CO D E You can dig into this buyer process further here.
All about the Money U N L E S S Y O U ’ R E P AY I N G C A S H W H E N YOU BUY YOUR HOME, YOU’LL ALSO N E E D TO B U Y Y O U R L O A N . Speaking about winning strategies, after hiring a Thrive Advisor, your next port-of-call (if you haven’t done it already) is to connect with a professional local lender to get you properly qualified to start shopping.
Pro Tip Get pre-underwritten with the lender you intend to work with before you start touring homes with your Thrive Advisor. This will not only give you a price-point to zone into, but also put you in a stronger position to win if “the one” happens to hit the market.
05 | BUYER'S GUIDE
The Strongest Lending Position If you’re in it to win it, you should seek the strongest financial position. This is what that looks like.
01
1 . P R E - Q U A L I F I C AT I O N Typical of big banks and online brokers. Requires minimal documentation or verification. This is the weakest type of approval. The best lenders will not do them.
2 . P R E - A P P R O VA L Some documentation such as tax returns, W2’s, pay stubs, and
02
account statements are provided and verified by a loan officer or processor. In addition, credit is usually checked. Underwriters, the folks who will make the final decision about your loan, are not involved. This is the most common approval type and is stronger than the pre-qualification.
3. PRE-UNDERWRITING
03
With this level, all documents in the pre-approval level in addition to IRS transcripts, employment verifications as well as more forensic, borrower specific, documents are provided and verified by an underwriter. Most lenders will not take this step, but this is the strongest approval and gives you the most negotiating leverage when making an offer.
S C A N Q R CO D E To find out more about the complete lending process from contract to close head here.
BUYER'S GUIDE | 06
Your Property Goals It’s time to get crystal clear on your property goals. One thing we know for sure is that looking at more homes does not equal more clarity - in fact, it’s often a fast-track to house-hunt burn out. In working with thousands of our clients over many years and across many market cycles, whether they be head or heart led, those with the strongest vision of their property goals have the easier path to them. Use these prompts to establish your north star during the process of seeking out and securing your home.
07 | BUYER'S GUIDE
Pro Tip The 70/20/10 Rule It’s rare to find a house that is 100% perfect - even on a multi-million dollar budget. We’ve found that if you look at any house through the 70/20/10 Rule, you’ll be a lot closer to “the one”.
70%
20%
10%
the amount you
the amount you’d
the amount you
must love about the
be OK to change
must simply be OK
house, as is.
about the house
to live with, as is.
once you move in.
Of course, these ratios may change if you are a die-hard renovator and love “a project”, but 70-20-10 is a good general rule of thumb for most buyers to keep in mind.
TH RI V E RE G. COM
Deal Makers & Breakers When it comes to your new home, what are three things that you cannot live with, and without. These should be kept “top of mind” at all times when looking at homes - both online and in person. Examples of deal makers are things like - must have a yard for Fido, close to xyz location, ensuite in primary bedroom. Deal breakers can be things like - a busy road, an HOA, homes older than 100 years, for example. By getting clear on these, you save a ton of time and emotional energy throughout the process.
DEAL MAKERS
BUYE R'S GUIDE | 09
DEAL BREAKERS
Property Goals Even better, share these with your Thrive Advisor so they can help clear the path to your home with your better life in clear view.
B E D S / B AT H S ?
S Q U A R E F O O TA G E ?
G A R AG E ?
NEED A FLEX/OFFICE SPACE?
(More importantly, what’s in your garage?)
W H AT ’ S Y O U R I D E A L T I M E F R A M E ?
W H AT ’ S Y O U R M A X B U D G E T ?
W H AT ’ S Y O U R M O N T H L Y P AY M E N T BUDGET?
H O W L O N G D O Y O U P L A N TO L I V E I N THE HOME FOR?
W H AT N E I G H B O R H O O D ( S ) ?
P R O P E R T Y CO N D I T I O N ? (turnkey, cosmetic updates only, fixer is fine)
STYLE OF HOME
YA R D O R N O YA R D ?
(ranch, historic, modern, condo, townhouse)
URBAN, SUBURBAN, RANCH?
A N Y T H I N G E L S E I S H O U L D K N OW ?
BUYER'S GUIDE | 10
The Typical Buying Process in Colorado As a buyer you have many opportunities during the contract process—which is usually 21 to 30 days—to decide whether or not you want to proceed with the purchase of the property. This is what a typical 30-day contract process looks like. Of course your dates and deadlines may differ, but this gives you an idea.
THRIVE / LENDER
BUYER
01
02
03
Congrats! You’re Under Contract!
- Appraisal ordered - Title work ordered - Disclosures & needs list sent to you
Earnest Money Due
Loan App Due
06
07 - Processor submission & intro call
08
04 - Lender reviews signed disclosures & needs list. - Lender orders transcripts, evidence of insurance
09
12
10 - Inspection Obj/Term
New Loan Terms Deadline
- Title Objection
- Title docs due
11
05
- Insurance Deadline
13
14
Inspection Resolution
15 - Conditional underwriting approval
Title Resolution
16
17
18
Processor submission for closing
Processor call with anything needed to clear conditions
Resubmission to Underwriter for clear to close
Appraisal Objection
Appraisal Resolution
21
22
- Final approval or conditional approval - Closing time schedule
26
27
19
20
23
24
25
- If needed, resubmit back to underwriting for final approval -Confirm closing
- Final loan approval - All RE contracts and disclosures are fully executed
Closing Disclosure from lender for final signature
28
29
30
All lender documents signed & sent to title company
Final walk-through with your Thrive Advisor
Closing Day!
Wire sent to Title Company
BUYER'S GUIDE | 11
New Loan Availability Deadline
The Roller Coaster Like any good rollercoaster ride (or 14er hike), the line up to buy a house is full of anticipation, excitement and (sometimes) dread. We get that, and are with you at every turn, peak and valley.
CLOSING
UNDER CO N T R A C T
POST-INSPECTION
POSI TI V E (Confidence, Joy, Hope, Enthusiasm)
EMOTIONS N E G AT I V E (Anxiety, Fear, Worry, Apprehension)
INSPECTION
APPRAISAL
Contracts 101 Colorado has some of the strictest real estate laws of any state—covering disclosure rules, HOA rules and regulations, and much more. This is a good thing and real estate agents in Colorado have a limited license to practice real estate law through these contracts. If the smallest detail is overlooked, it can create a stressful home-buying experience. We’re trained and have rock star Transaction Specialists on your team to cross every “T” and dot every “I”, so you don’t have to.
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Closing & Settlement Costs
In addition to your loan down payment, there are other costs associated with buying a property. Some of these are in the form of fees at closing (such as lender and title fees), some are pre-paid escrow funds, and others are in the form of out of pocket expenses prior to closing to pay for items such as home inspections and your appraisal. Your lender will give you an estimate of what your closing and settlement costs are likely to be within three days of your loan application, but it’s always good to count on around 1-2% of your loan amount for these costs. Here is a table of these fees. Those due at closing will be finalized and provided to you a couple of days prior to closing by the title company via a final Buyer Settlement Statement. The settlement statement will also include your down payment - so essentially everything you owe to make the property yours. Usually you can bring a cashiers check or wire the funds to the title company.
FEE
Did you know?
Most title companies accept closing funds via check or wire, however some have limits on how much you can bring via a check. Prior to closing, please call the title company or ask your Advisor about this in your case.
A M O U N T ( A p p ro x )
PAID WHEN
Appraisal
$750 - $1000
At Appraisal
Audit & Compliance Fee
$595
At Closing
Real Estate Closing Fee
$450
At Closing
This fee is negotiable in the contract but usually split 50/50 between buyer and seller.
ILC (Improvement Location Certificate)
$500
At Closing
General Inspection Fee
$600
At Inspection
Sewer Scope
$175
At Inspection
Radon Test
$125
At Inspection
Record Deed of Trust Fee
$150
At Closing
If you buy a property with a loan, the following fees may apply (check with your Lender): Title Insurance (Lender Policy)
$600
At Closing
Loan Closing Fee $400
$400
At Closing
Wire Transfer Fee from Bank
$20 - $50
48 hours before Closing
Lender Origination Fee
Varies
At Closing
Loan Interest
Varies
At Closing
Insurance Escrow
Varies
At Closing
Tax Reserve/Escrow
Varies
At Closing
Tax Certificate
Varies
At Closing
Recording Fee
Varies
At Closing
Courier Fees
Varies
At Closing
Transfer Fees
Varies
At Closing
Documentary Fees
Varies
At Closing
If you buy a property in an HOA, you may also be responsible for: Working Capital
Usually three months of pre-paid HOA fees
At Closing
Transfer Fee
$200
At Closing
Status Letter Fee
$200
At Closing
BUYER'S GUIDE | 14
Who We Are At Thrive, our vision has always been clear—to move people to their better lives. Buying a home, whether it’s your first, fifth or fifteenth, can be one of the most exciting and equally daunting experiences. We strive to simplify and clarify the process for every client that we work with. We’re boutique in nature, but pack a big punch when it comes to getting results for our clients.
Our Mission W H AT W E D O We simplify and clarify home buying and selling.
We’ve served over 5,000 buyers and sellers since our inception in 2011.
Our Vision
We steadfastly pursue long-term relationships
WHY WE DO IT
over just chasing the next transaction—this is sacred and reflected and lived out daily through our Mission Vision and Values.
In summary, Thrivers value humility while being extremely good at what they do, and embrace the responsibility of their role.s.
15 | BUYER'S GUIDE
We help people move to their better life.
Our Values H OW W E D O I T We advocate selflessly, execute tightly and live lightly.
Writing Your Story We love what we do and the clients we get to work with. Whether you’re first-time-buying, upsizing, downsizing, moving into the State or just across the street. We’d love to be part of that journey and part of your Better Life Story.
B E C A U S E T H E S E A R E T H E S TO R I E S W O R T H T E L L I N G .
Are You In? Let’s get real from the get-go and set some expectations up front. We love what we do and like to have fun along the way, but we also take our responsibility to our clients seriously. We’ll be great partners on this journey, if you... • Prefer honest, realistic guidance over hype and flashy sales tactics; • Value professional advice and a full service experience over a part-time agent; and • Believe that nothing should be done, unless it’s done properly.
SOU N D LI K E A “ H E CK Y E A H ” TO Y O U ?
You’re In. We’re In. Let’s get you to your Better Life!
Resource Roundup If you need to flip to a FAQ or want to dig deeper into Thrive or the buying process, here are a few extra resources.
A BUYER'S AG E N T ?
FIRST TIME BUYER TIPS
R E A L E S TAT E TERMS
THRIVE GIVES BACK
Whether you work
A great list of tips and
Don’t let the lingo
See how your choice in
with a Thrive Advisor
tricks to prepare you
confuse you. We’ve
working with a Thrive
or not, you should
to buy your first
simplified and clarified
Advisor impacts
know everything a
home.
some of the RE jargon
homelessness on a
in this handy glossary.
global scale through
buyer’s agent should do for you on your
our charity partner,
property journey.
New Story.
H OW S T H E MARKET?
U N D E R S TA N D I N G C R E D I T S CO R E S
T H E M O R T G AG E PROCESS
M O R T G AG E C A L C U L ATO R
Get an up-to-date, non
A simplified overview
A quick and
This online calculator
spammy, micro-niched
of credit scores and
easy-to-follow break
will help you estimate
snapshot of the Denver
how they impact your
down of the key
your monthly
market and how it may
lending and buying
components of the
payments, including
impact your property
powers.
mortgage process.
taxes and mortgage
Remember, you’re
insurance.
purchasing decisions.
buying a loan as well as a house.
BUYE R'S GUIDE | 18
Mission What we do We simplify and clarify home buying and selling.
Vision Why we do it We help people move to their better life.
Values How We Do It A D V O C AT E S E L F L E S S L Y Thrivers choose to pursue relationships over chasing transactions. EXECUTE TIGHTLY Thrivers are vigilant, diligent, and proficient. LIVE LIGHTLY Thrivers take their roles extremely seriously, but do not take themselves too seriously.
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