Kevin’s Buyer’s Guide
THE INFORMED HOME BUYER’S GUIDE
Informed Buyers
As you scroll down through these pages you will see the process of home purchase, and everything Kevin will bring to the table. You will see the steps we will take together, and be introduced to the extended opportunities that will make this home purchase a reality.
I am happy to provide you with systems and professional service.
5 STEPS TO OWN YOUR OWN HOME !!!
Our five step home buying program can get you into a home quickly and easily, sometimes within the next 30 – 60 days. Here are the five steps:
1. Loan Pre-Qualification and Pre-Approval
2. Needs Analysis
3. Viewing Homes
4. Making the Offer
5. Closing the Deal
The 5 STEPS TO OWN YOUR OWN HOME are covered in more detail below. Please review this information and call me with questions. I will also send you information on homes that become available in your favorite area. Just let me know what those areas are. I look forward to working with you.
Take advantage of our Automated Database Matching system. You will receive the latest listings every day via email.
LOAN PRE-QUALIFICATION
The first step and often overlooked step in the home buying processing is to determine loan amount and purchase price or "Pre-Qualification". This starts the process of Pre-Approval.
Pre-Approval means that you have met all the requirements for the new loan . . . you are credit approved. The only thing left is an accepted contract on your new home and the appraisal.
Pre-Approval means
- same as cash to a home seller.
- Negotiation pressure is reduced
- That means you will close with fewer problems, in less time.
- Our team can present your offer in the best of terms.
FIRST MEETING
After determining a price range that you are comfortable with, it is time for us sit down face to face and formulate a game plan.
- I will go over all of your needs,
- Likes and dislikes, etc.,
- Determine all the features you need in your new home.
- Discuss what a buyer’s agent does and how we can best serve you.
BUYER BROKERAGE – WHAT IS IT AND HOW DOES IT WORK?
Buyer Brokerage simply involves an agent representing the exclusive interests of a purchaser.
This is known as Buyer Agency. Typically, a written agreement outlines the obligations of the Realtor and the purchaser. Fees can be paid by Seller or Buyer.
A sample Buyer Agency Agreement is available for your review.
SO, AS A BUYER’S AGENT
- 1. It is my job to find you a home at the best price in the least amount of time and at a minimum amount of inconvenience to you
- 2. I am licensed by the State of Colorado to represent you in the purchase of a home and to put your interests ahead of the interests of all other parties
- 3. I do not receive any compensation until the transaction is closed
- As your Buyer’s Agent I am YOUR representative
You1st Home TEAM Working For You
Acting as your consultant.
Looking for a home has become a team sport. The Internet and the affiliations with various real estate sites and Realtors have made it possible for the home buyer to find a home on the internet without the agent. This is great until it is time to buy the home. The process has become very complicated. Sifting through the changing market prices, proper negotiations, choosing the best mortgage, choosing the best and the worst sites for home search, home mortgage options, and professional services can be overwhelming. A licensed Real Estate Agent is invaluable. A professional agent is much more than a retail agent. A professional is your best advisor at this point.
Your agent should be your partner and consultant
Building a good relationship with a knowledgeable professional as your guide is the most important thing you can do.
I do this every day . . . I understand that helping you make informed decisions is the true mark of a professional consultant.
Did you know???
- 90% of home buyers go to the internet first
- 89% of all homes sold use a real estate agent
I'm a vital part of your team.
When working with you to determine the best home . . .
I'll look at:
- Size- Design- Location- Price range- Neighborhood- Show you available homes- Other broker’s listings
- Listings in the Multiple Listing Service- New homes- For Sale By Owner Homes
I will write your purchase contract and explain the details of your offer
- Price and Terms- Negation’s- Inclusions/Exclusions- Possession- Inspections- Appraisal- Loan Process
I will help you obtain financing
- Refer you to a lender
- Educate you about the loan process & interest rates
- Determine your payment strategy and comfort
- Monitor your loan processing with the lender
- Use your financial strengths to present the best offer possible
I will coordinate extended team professionals involved in your purchase
- Lender- Inspectors- Appraiser- Insurance- Title Company
Things YOU will need to do
- Be a team player with me as your real estate agent when finding homes on the internet
- Work smarter not harder . . . your agent is your partner
- Furnish all information and documents required by the lender
- Be attentive and responsive to the lender when requests are made
- Provide earnest money when your purchase agreement is written
- Arrange for your homeowner’s insurance policy before closing
- Transfer utilities into your name by the possession date
- Bring funds to closing in the form of cashier’s check, certified funds or wire transfer
NEEDS ANALYSIS
Now that we have completed the Pre-Qualification / Pre Approval, we are ready to look at homes. The attached “Home Buyer Checklist” will give you an idea of many of the things that we will be looking at when viewing homes.
Make notes here for future reference and discussion with your real estate consultant.
HOME CRITERIA
Price Range: _________________________________
Type:___ Single Family___ Townhome
Style:___ Ranch ___ 4 Level/Tri-level/Split-level ___ 2 Story ___ Bi-level
Amenities: Bedrooms: ______________________ Baths: _________________________
Square footage: __________________ Car Storage: ____________________
Yard: __________________________ Basement: ______________________
View: __________________________ Neighborhood: __________________
Type of heating: _________________ Air Conditioning: _________________ Evaporative Cooler: ______________
Attic Fan: ______________________
Zoning Requirements: ____________
School District: __________________
Public Transportation: ____________
Shopping: ______________________
Special Concerns: ________________________________________________
________________________________________________________________
MAKING THE OFFER
Once we have found the RIGHT home, it’s time to make an offer.
First, we will determine a fair price by doing a Comparative Market Analysis (CMA) to see what similar type properties have sold for in this area to see what the property is worth in the current market.
Then
- Prepare a purchase agreement
- Outlining the terms and condition of the purchase
- Covering financing of the purchase
- Stating dates and deadlines
- Inspection
- Title work
- Loan completion
- Closing
A copy of the Residential Contract to Buy and Sell Real Estate is available for your review.
Submit the offer to the listing agent
- This is when we roll up our sleeves and GET BUSY
- Submit an offer
- Negotiations begin
- Inspection
- Title work
- Loan processing
- Appraisal
- As soon as the contract is accepted,
we will bring together a competent team
of affiliates and we will proceed to
close the deal.
CLOSING THE DEAL
Now, it is time to get to the closing table!
We will work with
- The appraiser
- Inspector
- Title company
- Closer
- Lender
- I will make sure everything goes smoothly and on schedule.
- I will negotiate and facilitate any changes to contract or process
- I will help you through the inspection report
- Home warranty options
- Title commitment
- Anything else that comes up.
Real estate deals are complicated. . . we are prepared !!!
- I will attend the closing with you to make sure your interests are protected.
Buyer Information
This section covers information needed to start the process.
1. Where do you live now?
2. Do you own your home?
3. Do you need to sell in order to buy? The proceeds from this sale are extremely important.
4. Are you self-employed?
5. How long have you been in your career field?
(2 years or ________)
6. How much money do you earn? (Gross Household Monthly Income)
7. Have you talked with a lender?
8. How much money have you set aside to purchase a home?
9. Do you have any other cash available?
10. What’s the maximum monthly payment you are comfortable making?
11. Is there anyone else that needs to approve the home before you can make a decision?
12. What is your time frame and when would you like to get started?
Pre-qualification of Borrowers
Borrower:
Co-Borrower
Name _________________________________________________________
Street _________________________________________________________
City, State, Zip __________________________________________________
Years at this address ______________________________________________
Home Phone ____________________________________________________
Work Phone _____________________________________________________
Mobile _________________________________________________________
Fax ____________________________________________________________
SSN ___________________________________________________________
Employer _______________________________________________________
Years at this work ________________________________________________
Years in similar work ______________________________________________
Gross Annual Income ______________________________________________
Gross Monthly Income _____________________________________________
Total Income _____________________________________________________
Financing Objective _______________________________________________
Liabilities: Min/mo Balance Current Loan:
Car Loan ___________________________ Principal Balance ______________
Credit Cards ___________________________ Interest Rate _______________
___________________________ Term ______________
___________________________ Payment ______________
___________________________ Principal ______________
Personal Loans ___________________________ Interest ______________
Alimony/Child Support ___________________________ Taxes ______________
Other ___________________________ Insurance ______________
Total Liabilities (Debt) ___________________________ Mortgage Insurance ______________
Who is Kevin Calkins, REALTOR®
I have over 10 years in the business. I am your professional consultant and partner during the home buying and selling process. Real estate is changing and it is important to choose a real estate professional based on an understanding of fiduciary commitment to clients. There are over 170 different duties to perform in a real estate transaction. All are on your behalf. The proper representation of your needs and protection of your interests is of utmost importance. I am convinced that all successful relationships are built on a high level of integrity, honesty, and open communication. A sample of my belief system and approach to business is expressed below.
As a professional full-time Realtor® in Colorado, my goal is to help you find the home of your dreams at the best possible price for you and your family. I guarantee extraordinary service during every step of the home-buying process.
I make it less complicated !!!
Organize your documents
If you are buying or refinancing a home
1. If you are salaried: provide two years’ W-2 and one month of paystubs OR if you are self-employed: provide two years’ tax returns and a YTD profit and loss statement.
2. If you own rental property, please provide rental agreements and two years’ tax returns.
3. If you wish to speed up the approval process, please also provide three months’ bank statements for each bank, stock, and mutual fund account.
4. Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.
5. If you are requesting a cash-out refinance please provide a letter explaining what you plan to do with the proceeds.
6. Provide a copy of the divorce decree if applicable.
7. If you are NOT a US citizen, provide us with a copy of your green card (front & back), or if you are NOT a permanent resident provide us with your H-1 or L-1 visa.
If you are applying for a home equity loan
1. If you are salaried: provide two years’ W-2 and one month of paystubs OR if you are self-employed: provide two years’ tax returns and a YTD profit and loss statement.
2. If you own rental property, please provide rental agreements and two years tax returns.
3. Please provide a copy of the note on your first mortgage. This will normally be found in your closing loan documents.
4. Please provide a signed letter explaining what you plan to do with the proceeds.
5. Provide a copy of divorce decree if applicable.
6. If you are NOT a US citizen, provide us with a copy of your green card (front & back), or if you are NOT a permanent resident provide us with your H-1 or L-1 visa.
Get Qualified
Getting qualified before you apply for a loan can help you understand how much you can borrow.
When buying a house, you may get pre-qualified or pre-approved. You can typically get pre-qualified over the phone or on the Internet in a few minutes. A pre-qualification is not as beneficial as a pre-approval where you have to go through a more rigorous process which includes verification of your credit, income, assets, and liabilities. It is highly recommended that you get pre-approved before you start looking for a house. This will help you:
1. Find out the maximum house you can buy, so you don't waste time looking for properties you can not afford.
2. Puts you in a stronger position when you are negotiating with the seller, because the seller knows that your loan is already approved.
3. Helps you close quickly, since your loan is already approved.
Shop loan programs and rates
To shop for a loan you will need to:
1. Think about how long you plan to keep the loan. If you plan to sell the house in a few years you may want to consider an adjustable or balloon loan. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed loans.
2. Understand the relationship between rates and points. Points are considered to be prepaid interest and are tax-deductible. Each point is equal to one percent of the loan. So for example, 1 point on a $150,000 loan is $1,500. The more points you pay, the lower the rate you will get.
3. Compare different programs. Shopping for a loan can be difficult. With so many programs to choose from, each of which has different rates, points, and fees, it's hard to figure out which program is best for you. That's where an experienced loan officer can help you make a decision that's best for you.
Obtain Loan Approval
Once your loan application has been received we will start the loan approval process immediately. This involves verifying your:
1. Credit history
2. Employment history
3. Assets including your bank accounts, stocks, mutual fund and retirement accounts
4. Property value
Based on your specific situation, additional documents or verifications may be required. To improve your chances of getting a loan approval:
· Fill out the loan application completely.
· Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
· Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed. Anything that causes your debts to increase might have an adverse affect on your current application.
· Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
· Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
Close the Loan
After your loan is approved, you will be required to sign the final loan documents. This will normally take place in front of a notary public. Be prepared to:
· Bring a cashier’s check for your down payment and closing costs if required. Personal checks are normally not accepted.
· Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate.
· Sign the loan documents.
Your loan will normally close shortly after you have signed the loan documents. On refinance and home equity loan transactions federal law requires that you have 3 days to review the documents before your loan transaction can close.
Copies of real estate forms…
When we meet I can share the typical forms that you will be required to sign to consummate a real estate transaction. Please call with any further questions you may have regarding this process. I look forward to hearing from you!