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					The Buying Journey

          Prepared By:

       Daniel Herron
     Broker Associate/Realtor
 Keller Williams Advantage Realty
        300 Union Blvd #500
       Lakewood, CO 80228
        720-323-9178 - Cell
        720-221-0658 - Fax
               The Home Buying Journey

                        Initial                   Needs And
                      Interview                    Wants

1.   In the Initial interview we will go through this booklet and answer any
     questions you might have. We’ll just get to know each other a little which will
     help me know how to best serve you.
2.   We will begin to figure out your needs and wants in purchasing a home, of
     which some of those might change throughout your journey. But we’ll start
     with a general idea of Price, Size, Bedrooms, Baths, Neighborhood, and

           Finding the Right Home



   Make                         Counter
   Offer                         Offer


                  After Contract Acceptance

  Loan                     Contract to     Credit
Application                 Lender         Report

 Gather                        Title        HOA
Documents                     Search      Documents

  Under-                     Property      Property
  Writing                   Inspection     Survey

  Loan                      Inspection    Property
 Approval                   Resolution    Appraisal

 Prewritten Contingency in the Contract

         Last Steps To Closing

The Walk Through -             Walk
A day or two before           Through
closing we will walk
through the home. The
purpose of this walk
through is for us to get a
final look at the home        Closing
make sure that the home
has been left in the same
condition that we it was
when we originally looked
at the home. If we asked     Possession
for any items to be
repaired from our
inspection we will also
check to make sure those     Welcome
have been done.               Home

       Getting Pre-Approved & Finding a Lender

Pre-approval is as simple as calling a Lender and asking them to pre-approve you for a loan.
You never have to use the lender who gives you pre-approval it is simply to make sure you can
afford to buy. When choosing a lender it is always worthwhile to speak to 2 or 3 and have them
compete for your loan. As you speak to the Lenders make sure that you are comparing “Apples
to Apples”. Almost all lenders will give you a rate over the phone, these rates change daily, and
depending on the lender, this will include some sort of origination fee. Lenders are required by
law to provide you with a GFE (good faith estimate). Many times after you go to one lender and
are provided with a GFE, another lender can look at this document and offer you rates or costs
that will beat the other lender. A 1% origination fee or 1 point is a standard fee on a loan. The
APR (annual percentage rate) is often a good way to compare lenders. There are many options
and ways to go about the mortgage process and we can consider all of these based on your
unique situation.
Here are a few Lenders past clients have been happy with:

1.    TJ - Access Equity                                               (303) 601-5271

2.    Chris Magnatta                                                   (303) 332-9911

           Finding the Right Price For You

The best place to start when trying to figure out a dollar amount to spend on
a home is with a monthly payment. Figure out what you would like to
spend monthly and work up to price from there. Remember that if you are
renting you can afford to pay more on a mortgage because of the tax
benefits of paying interest on your loan.
When figuring monthly payment don’t forget about taxes and hazard
insurance. These will add between $150 - $1,000 per month to your
monthly payment depending on the area, tax rate, and size of your home.
Lastly if you buy a home that is under a Home Owners Association (HOA)
this will add a monthly amount also. When you purchase a town home or
condo the HOA dues are much higher but they include Hazard Insurance so
you will only need basic insurance to cover your personal belongings.
Mortgage - $1,500 per month at 6% rate = price of roughly $210,000
Taxes & Insurance - on $210,000 = roughly $200 per month
HOA - Average on Single family home = $40 per month

        Selecting Neighborhoods & Viewing Homes

Once we figure out the price of home you qualify for and what you want to spend we’ll got
out and start looking at homes. I will search the MLS, which is the system Realtors use to
show homes for sale, to find homes that meet your specific needs. I can pull up properties
by area, zip code, or north/south and east/west locations. I can include your specific
criteria to ensure that we find exactly what you are looking for.

  • General Criteria                       • Other Options - these are just a few
           Number of Bedrooms                      School District
           Number of Bathrooms                     Style (ranch, 2 story, etc…)
           Minimum Square Footage                  Garage (# of spaces, etc…)
           Price Range                             Basement
           Area or Neighborhood                    Age of Home

After we have determined homes that meet your criteria that you would like to see, we’ll got
out and start looking. I setup the showings with the listing agent and the give me the
lockbox code. Generally the sellers will be gone for our time block so that we can look at
the home without interruption.

                     What Homes Can We See?
I share a cooperating relationship with all real estate offices and new home builders within our
community. That means I can show you properties that are listed with Coldwell Banker, ALL
OTHER REALTORS, as well as New Homes, or “For Sale By Owner” homes that are offered.

                       If You See:
  •     Any Realtor For Sale Sign or Ad

  •     Any New Home Builder Sign or Ad

  •     Any For Sale By Owner Sign or Ad



                                     Writing The Offer
Once we find the perfect home, I will write a contract and we will review it together. The
contracts are legal and binding documents, written by lawyers and approved by the Colorado
Real Estate Commission. The Colorado contract is written to protect the buyer and gives the
buyer multiple opportunities to decide they do not want the house without losing any money.
This contract needs to be completed with specific names, property information, dates, and other
information. Some of the specific information that we will need to include in the contract is:

         Your Legal Name (or how you want your name on title, usually as on your Drivers Liscense)
         Your desired purchase price.
         The amount of earnest money you are putting down (generally seller asks for minimum amount)
         All Deadlines (Inspection, Appraisal, Acceptance, Survey, CIC, Loan Conditions, and Closing)
         How you legally desire to take title (Joint Tenants, Tenants in Common, etc…)
         Items that will be Included and Excluded from property (eg. Refrigerator, Stove, Washer, etc…)

In addition to the contract, there will be several additional forms to be completed at the same
time. These are disclosures and forms needed from my company as well as listing agents
company. The entire process should take no more than one hour.

We will go over and explain everything before you sign anything!

                                 Costs to Purchase
•   Earnest Money - Good faith money title           — 1% - 5% of purchase price
    company holds until closing where it come back
    to you.

•   Inspection - Price depends on size and           — $150 - $500
    age of the home.

•   Radon Test - A test needed if property
    has a basement. Radon is a poisonous Gas.        — $100 - $200

•   Video of Sewer Line - Recommended
    on every house because of Colorado Soil.         — $99

•   Closing Costs - Closing costs include
    lender, HOA and title fees that can sometimes    — 1% - 3% of purchase price
    be negotiated as seller costs. Down Payment
    varies anywhere from 3% - 20% of which 20%
    will give best rate.

                              Earnest Money
A good understanding of what happens with your earnest money is important, so
that you will not be placed in an uncomfortable position when you purchase a home.
At the time of writing the offer, you will be required by the seller to include a copy of
a personal check, cashiers check, or cash. The contract gives us a deadline to
provide the seller with the actual check or cash. Generally the seller will set a
minimum amount usually around 1% of the purchase price.
The earnest money is deposited by the listing broker or title company upon receipt
and held in escrow until the closing. This amount is credited to the buyer at
closing and will be used as either closing costs or down payment and represents
your intent to purchase the property.
In the event that you do not purchase the home the earnest money will be
returned to you as long as we cancel the contract within our deadlines as
presented in the contract. In that event we must provide the sellers a written
notice that we are canceling the contract and then all parties must sign an earnest
money release, which will then allow the holder of the earnest money to release it
back to the appropriate party.

                              Title Insurance
Title Insurance can be very confusing but it is a very important when purchasing a
home. It is good to think about as protecting you against things that happened in
the past (ie; divorce, foreclosure, illegal sale, etc.).
When a property is sold or refinanced, the lender will require that the property
comes free and clear with a title commitment from the Title company showing
them in the first lien position. Title insurance is required on all property in
Colorado is normally the cost of the Seller’s. The buyer is however required to
furnish the lender with the lender’s policy showing them in first lien position. The
cost of this will be included in your closing costs and paid at closing.
The title company is considered a third party that will prepare all documents,
collect and disperse all money involved, and finalize the closing for all parties.
They will record your new title with the County and make everything official
showing you as the owner of the Home.
It is important to help them with anything they need and I will guide you through
that process!

                   Inspections, Warranties, & Tests
Home Inspection
A home inspection is always highly recommended regardless of whether you are purchasing new construction
or an older home. This type of inspection is a general home inspection which deals with the mechanical
aspects of the home. These include; appliances, plumbing, electrical, heating, cooling, bath fixtures, kitchen
fixtures, crawl spaces, basements, garages, roofs, attics, and general maintenance of the home. This
inspection is primarily concerned with health and safety issues. There are several companies to choose from
and I will recommend several to you.

Structural/Engineer Inspection
You may also want to consider having a structural and/or engineer’s inspection. This inspection will determine
the condition of the structure and foundation and any defects that may need to be corrected. The cost of this
service generally runs from $350 to $500, depending on the size of the home. The need of this can be
determined by the home inspector but is always on option if you would like.

Radon Testing
Radon is a radio active gas, which occurs in nature. You cannot see, smell, or taste it. Exposure to radon
increases the risk of developing lung cancer. Special equipment is needed to detect radon and normally runs
an additional $100 or so, if done with an inspection. I always recommend this inspection when the home has a
finished basement.

Main Sewer Line Scope
Repairing sewer lines can be extremely costly. In Colorado our clay soils create lots of shifting and sewer lines
often crack or break even in new construction. This relatively cheap inspection is always recommended.

                       Inspectors & Engineers

Here is a list of Inspectors etc. that past clients have been pleased with:

1.    Inspect Pro - Doug - (303) 346-2250 -

2.    US Inspect - Andy Gould - (888) 874-6773

3.    KLP Consulting Engineers - (303) 741-1300

4.    $99 Rooter - Joe - (720) 422-6789

          Home Owners or Hazard Insurance

You will need to provide your lender with an Insurance Company that
you will use to insure your home. If you are buying a condo, town home,
or patio home this coverage will most likely be provided by the Home
Owners Association.

A good place to start could be with your
current auto insurance provider. Many
times they will offer discounts for
covering both.

If you need a recommendation please
ask I will be happy to help with that.

 Closing on Your Home & Taking Possession

The actual “Closing” on your home will take place on the day specified in the contract.
However, the place and exact time are set up by the listing agent and are usually setup a
week or so before the closing date.
Typically, the day before closing we will receive the “Final Figures” from the title company.
You will need to bring this amount to closing in the the form of a Cashier’s Check. You
should make the check out to yourself. This safeguards you so that if anything should
happen at closing and the property does not close, you can re-deposit your money into
your account without any hassle.
Along with you check, please be sure to bring a photo ID (Driver’s License works great).
Since your signature will be notarized several times during the closing by the title closer,
they need to verify that you are who you say you are.
You will be able to move into the property as designated by the possession deadline in
the contract. There are times when this may not be immediately after closing so that the
sellers may finish their move. It is customary for the sellers to bring a set of keys to
closing to give to you. Final possession details will be worked out at this time.

Welcome Home!

                            Your Real Estate Resource
    My website is a great place to start your search. You will find useful information in articles I have written
                           or others have contributed. Here are some of the features.

-      Free search of the entire Denver MLS.
-      Mortgage Calculator.
-      Daily Interest Rate Updates.
-      Ability to save your searches and have homes                                         QuickTime™ and a
                                                                                      are neede d to see this picture.
       that fit your criteria emailed to you daily.
-      Request a showing.
-      Request a market analysis of your current home.
-      A Referral network to cover your needs from
       Moving Companies to Renovations.

       My Mission Statement and Guarantee

•   To provide each and every client with the best service possible.

•   To listen to and find out the needs and wants of every client and how best to meet
    those needs.

•   To be honest and open with every client even if that means I may lose clients from
    time to time.

•   To educate my clients on every option when purchasing a home including mortgage,
    title, inspection, negotiation, schools, and last but not least, value.

•   To always treat all parties honestly and fairly and to offer my services without regard to
    race, color, creed, religion, sex, ancestry, national origin, handicap, or familial status.

•   To always strive for excellence and forego a portion of my life in exchange for
    continued education so that I may better serve my clients.


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