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The Matthias Group is dedicated to serving all your Real Estate Needs. Below is a full outline of the Home Buying Process. **Watch Our Buyers Video** Dedicated to providing our clients with the best customer service to meet or exceed your Real Estate needs.
About Prestige Realty Group 1. Agent Owned Company – Prestige Real Estate Group, LLC is an agent and employee owned company. Customers are our number one priority. “Together We Can” is our team vision. This unique concept was started by 26 owners in 1999. Today, Prestige has 91 owners, 250 brokers and 7 offices servicing the entire Metro Denver area. Start Initial Interview Lender Interview & Loan Prequalification View Properties Make an offer Contract Inspection Mortgage Company Underwriter Loan Approval Title Assemble papers Closing
Seller's Agent: Buyer's Agent: Transaction-Broker: The definitions of Real Estate Brokerage Relationships on this page have been approved by the Colorado Real Estate Commission. (CREC) (DD25-9-99)
There are many different loan programs available that your loan officer will discuss with you. Here are a few highlights I would like to touch on: Fixed Rate - With a fixed rate mortgage your monthly payment will always be the same for the life of the loan. The benefit is that you always know what your principal and interest costs are. Adjustable Rate Mortgage - In comparison, an adjustable rate mortgage (ARM) is a loan that will fluctuate your payment and interest rate during the life of the loan. Most ARMs start off with a set interest rate and principal payment for the first year and then adjust annually. The interest rate on your loan is set to reflect changes in the index interest rate. As the index interest rate changes, your payment will be adjusted annually to reflect those changes. Both types of loans have their pros and cons. For example, a fixed rate mortgage is appealing because you always know what your payment will be. On the other hand, when interest rates are high, choosing the adjustable rate mortgage is favored because it is probable that the interest rate will drop in the future, resulting in smaller monthly payments. However, with an adjustable rate mortgage you run the risk of ending up with a higher payment should the interest rate soar during the life of the loan. Adjustable rate mortgages can be advantageous because they generally offer a lower initial interest rate than a fixed rate loan, but an increase in the interest rate will result in a higher monthly payment, unlike the fixed rate loan. There are several types of adjustable rate and fixed rate mortgage loans. Here are some of the more common loans: 30-Year Fixed Rate Mortgate This is a conventional mortgage which provides for a fixed interest rate and level payments for the 30-year life of the loan. 15-Year Fixed Rate Mortgage The 15-year loan is a conventional mortage in which the borrower will pay fixed monthly payments for the life of the loan. With a 15-year loan, payments are higher than a 30-year loan, but the loan is paid off much faster. 1, 3, 5, 7, 10 Adjustable Rate Mortgages These types of mortgage programs allow you to carry a fixed interest rate for a specified amount of time. Once that time is up, you will assume an adjustable rate for remaining life of the loan. For example, if you choose a 3 year adjustable rate mortgage, you would have a fixed interest rate for the first three years of the loan and an adjustable rate for the remaining years. 10/1, 7/1, 5/1, 3/1 Treasury ARMs 3-Year, 1-Year, 6-Month Treasury ARMs Jumbo Loan Programs Conventional Loan Programs Which Mortgage is Best?
Here's a list of the documents most commonly needed in order to apply for a mortgage loan. You may need additional documents depending upon the type of loan you're applying for, so be sure to check with the lender. •Application Fee (cost of appraisal and credit report) •Legible sales contract signed by Buyers and Sellers. •Social Security number of all applicants. •Complete address for the past 2 years (including complete name and address of landlords for past 24 months). •Name, address, and all income earned from all employers for past 24 months. •Copies of previous two years W-2 forms. •Copy of most recent year-to-date pay stub. •Name, address, account number, monthly payment and current balance for: installment loans, revolving charge accounts, student loans, mortgage loans, and auto loans. •Name, address, account number, and balance of all deposit accounts, including: checking accounts, savings accounts, stocks, bonds, etc. • Three months most recent statements for deposit accounts, stocks, bonds, etc. •If you choose to include income from Child Support/Alimony bring copies of court records of cancelled checks showing receipt of payment. Please understand that your FICO score is what lenders will be looking at to qualify you for a loan. To receive a copy of your credit report here is how to contact the credit reporting agencies: Equifax Information Service Center P.O. Box 740241, Atlanta, GA 30374-0241 1-800-997-2493 www.equifax.com Experian National Consumer Assistance Center P.O. Box 2104, Allen, TX 75013-2104 1-888-397-3742 www.experian.com Trans Union Corporation, Consumer Disclosure Center P.O. Box 390, Springfield, PA 19064-0390 1-800-888-4213 www.transunion.com
1. If the mortgage retailer you're interested in is unfamiliar to you, take the time to check them out. Not all states even require licensing of mortgage brokers. Check with the state banking department where your loan will be originated (and the state the retailer is headquartered in, if it's different). Call a local Better Business Bureau . See if they're members of local, state or national trade associations . 2. If it sounds too good to be true, it probably is. Be wary of deals which are way below the other offerings in your market, or promises of service quality which can't possibly be met ("we close in 24 hours!") Don't be surprised if the advertised deals don't apply to your situation; they may be available only to the absolute best, top-shelf borrowers. The law only requires that the deal listed be available -- not that it's available to you . 3. Research, research, research. It's your job to know what is normal for your loan circumstance. Call lots of outlets. Get rates, points, fees and commitment periods for offers that are as similar as possible. Some of the lowest rates offered have no lock-in available, or can be obtained only if you close ASAP, so make sure that the quotes you get have the same terms, if possible. That way, you'll soon be able to judge a good, bad or just average deals. 4. Ask questions, get answers. People in the business will sometimes talk a blue streak and expect that you understand. If you don't get it, say so. Make them explain -- to your satisfaction -- or take your business to someone who will. 5. Get it in writing, on company letterhead, and signed. This pertains to everything you negotiate in your deal, but especially any lock-in agreement (or execution) you conduct. More misunderstandings and disputes are related to lock-ins than any other item. Under the law, verbal agreements aren't worth the paper they're not printed on. 6. Sign nothing you don't understand -- and understand everything you sign, even if you need to get outside help to do so. If legalese or contract language is difficult for you, hire a lawyer to help manage your transaction. The few hundred dollars can be very inexpensive insurance. 7. Ask how much experience they have in dealing with mortgage situations similar to yours. How long has the company been in business? How long has your salesman/broker and loan processor been in the business? More experience can mean a smoother transaction, especially if the market gets rough -- and it can help to know your loan processor. 8. If you're coming in "blind", with no referrals from friends or relatives, ask for a few references you can contact -- and follow up on them. Of course, they'll probably be the most satisfied clients the firm has worked for, but it is a place to start. 9. Make sure your "no points" loan is really "no points." You might not know that there are actually two kinds of points: Discount Points (which lower the interest rate) and percentage-based Origination Fees which cover some of the cost of getting you the mortgage, including commissions. A true no-points loan has neither -- and if your "no points" loan has a one-percent Origination Fee, it's actually a one-point loan. Compare it against other one-point loans for accuracy. 10. Ask about "Prepayment Penalties" or "Early Termination Fees." Some of the lowest rates in the market, especially for ARMs, are available only on loans which carry hefty fees if the loan is refinanced in the early (the first three to five) years. If you don't ask whether any apply to your loan, you could find a costly 'zinger' down the road.
STRUCTURE 1. Secure and examine Seller's Property ENVIRONMENTAL ISSUES 1. High power lines Disclosure NEIGHBORHOOD 1. Schools--statistics, busing, test scores, MISCELLANEOUS 1. Utility bills - Public Service future plans. Check with the local school
It is a good idea to have your home inspected before you purchase it. A thorough inspection of the home by a professional from top to bottom reveals if there are any structural problems or if you will have to repair or maintain anything in the house as it now exists. In addition, a home inspection can help insure a good buy – if you have it inspected BEFORE you sign the contract or you make certain your contract is contingent upon the inspection report's findings, then if a serious problem is discovered, you are not locked into a bad risk. Instead, you can negotiate for a reduced sale price or you can ask the seller to repair the defect at his own expense or even back out of the purchase completely. As a matter of fact, if a seller refuses to include a clause which allows you to cancel your contract and receive your deposit back in the event a major defect is uncovered, then refuse the deal because it was not worth your while in the first place. For instance, chronic seepage in the septic system, termite damage, sagging in the foundation, rotting of the roof, or other minor defects may cost you more than about $3,000 to repair. Here is a guide to having a prospective home inspected. A good measure of an inspector's competence is if he is a member of the American Society of Home Inspectors or ASHI, which certifies inspectors who can pass various professional and educational requirements. ASHI members have either engineering, architectural, or technical degrees or extensive experience in the field of construction. Sometimes you can get an inspection on 24 hours notice, but allow about five days at best. The inspection fee for a typical one-family home is between $200 and $350 and the inspection takes several hours, depending on the size of the house. The following are some rules to guide you on the inspection: 1. The inspection should be done during the day. A reputable service won't schedule an inspection in the evening. 2. If possible, go with the inspector just to make sure he goes through the whole house. Also, you will receive valuable advice on how various appliances function and should be kept up. 3. Every house has problems, so be sure you understand whether a defect is a major or minor one. While you do not want to underestimate the cost or difficulty of making a repair, you also do not want to be scared away from the sale by a flaw that is easy and fairly inexpensive to repair. Just be cautious of inspectors who over dramatize defects because they are usually praised by purchasers when they find problems. Some become over-sensitive to defects and begin blowing them out of proportion. A good inspector does not gloss over weakness nor does he forget to point out a home's positive aspects either. He aims to give a solid, clear overview of the pros and cons of the property. 4. Obtain a detailed, written report within two or three days of the on-site inspection.
Appraisal Fee: Approximately $300-400 depending on the type of mortgage and the amount of the loan. This is generally due when you apply for the loan. Assuming an Existing Loan: Buyer would pay at closing any interest due for the remainder of the month of closing, based on the daily interest charges. Brokers Fee: The commission charged by the Broker, usually paid at closing. Certificate of Taxes Due: $5.00 charged to either the Buyer or Seller, depending on the type of mortgage applied for – due at closing. Closing Fee: Charges from the title company for closing the loan package for the lender. Generally $75-125 and is usually paid by the buyer and is due at closing. Condo Escrow Fee: Usually two months Homeowners Association dues or monthly maintenance fees are paid in advance to keep the reserves at a high balance in case of needed repairs. Charged to buyer at closing. Credit Report: Usually $65-75 per person. A report on the buyers credit to determine their ability to repay a loan – ordered by the lender and generally due at time report is ordered. Discount Fee or Points: Negotiated item between Buyer and Seller and is used to buy down the interest rate on the loan to lower the monthly payments. One point is generally equal to 1% of the loan amount. This is due at closing. With VA loans, points must be paid by someone other than the Buyer, so the Seller typically pays points on this type of financing. With FHA and Conventional loans, points can be negotiated between the Buyer and Seller. Document Preparation Fee: Usually $100-200 and can be on all types of loans – due at closing. Documentary Fee: This is one cent per hundred dollars of the purchase price and is due at closing. Down Payment: This usually depends on the type of loan applied for and is due at closing. Any earnest monies are deducted from the amount due at closing. Earnest Monies: A pledge of interest in the property given to the Seller as a partial down payment and is given along with the contract to purchase. It is generally equal to 2-10% of the purchase price. Funding Fees: Usually applies to VA loans only and is equal to 1% of the loan amount, due at closing. Hazard Insurance: One year is due in advance and charged at closing. Contact your insurance agent for rates specific to your new home. Hazard Insurance Escrow: Two months required in advance at closing. This is escrowed in your account with the lender. Inspection Fee: Done by an engineer or Home Inspection Service and is usually $200-300 depending on the house size, construction, location and purchase price. This is due at closing. Interest Proration: A daily charge on the interest portion of the monthly mortgage payment multiplied by the number of days of ownership during the month of closing. Loan Service Fee or Origination Fee: Usually 1% of the loan amount charged for making the loan available and for the work involved in processing the loan – due at closing. Loan Transfer Fee: Only applies if you are assuming an existing loan and is due at closing. Usually $500 for FHA or VA assumed loans and can be up to 3% of the existing loan balance on a Conventional loan. Mortgagees Title Policy: Usually a $70 fee to insure the lender under a deed of trust against loss caused by an invalid title in the purchaser or loss of priority in recording the mortgage. Due at closing. Additional coverage could be added to the mortgagees policy depending on the mortgage and the lender. Check with your lender for charges – can be $20-50 for a fixed rate mortgage of $40-200 for other types of mortgages. Mortgage Insurance Premium (MIP) or Private Mortgage Insurance (PMI): This is a percentage amount of the loan charged up front and added back into the loan amount or can be paid at closing. There is an additional percentage charged and added to the monthly payments –FHA amounts are generally ½ of 1% divided by 12 and added to the monthly payment. Check with your lender for percentages applicable to your loan. MIP is usually applicable to all loan (excluding VA) when less than 20% is put down. Mortgage Insurance Escrow: Usually two months of the portion of your monthly MIP, paid in advance and due at closing. Recording Fees: $5 per page, due at closing. Deed used for transferring ownership only is usually one page. Deed of trust for a fixed rate loan is usually 4-7 pages and for an adjustable loan is usually 6-20 pages. Rents: Are prorated based on the agreement between the Buyer and Seller and due at closing or prior to occupancy. Special Taxes: Any special assessment charges attached to the property. Generally prorated to closing and due at closing. Improvement Location Certificate or Survey: Usually $200-400 depending on the type of home and type of survey requested. An Improvement Location Certificate is usually $80-100 and are diagrams showing the lot measurement, boundaries, building location and any easements. Due at closing. Tax Reserve or Tax Escrowed: Two months worth of taxes escrowed in advance by the lender to pay for the Real Estate Taxes. Lenders may vary on the reserve requirement from 2 to 12 months depending on the time of year of the closing. Due at closing. Tax Service Fee: Can be charged to either party depending on the type of loan obtained by the Buyer. Usually $35-70. This verifies that the taxes are being paid annually, for the lenders protection and is due at closing. Title Insurance Fee: Charged to the Seller to give the Buyer protection in his interest in the real property. Due at closing. VA Funding Fee: Usually 3% of the loan amount added to the VA loan and financed into the loan payments.
Please Don't Forget To Call Your Homeowner's Insurance Agent For New Homeowner's Insurance! Your Lender Will Need This Information Prior To Closing! Gas and Electric Service: Telephone Service: Cable Television: Trash Collection: Newspaper Subscription:
1. Buyer Counseling Session: We will conduct a buyer counseling session to discuss your needs & goals, and to plan the search for your property. 2. Buyer Agency Alternatives: We will discuss agency alternatives for you. 3. Buyer Representation Agreement: We will present and explain to you the agency agreement and the special services and benefits it offers. 4. Financing Pre-Qualification: We will offer to arrange a pre-qualification or pre-approval appointment with a reputable lender to identify your range of affordability and to increase your negotiating strength. 5. Property Search: Our goal is to present you, when possible, with properties as they debut or before they appear on the open market. 6. Property Showing: We will show you properties that meet the criteria you have selected. 7. Property Evaluation: We will discuss the positive and negative features of a property that may affect its value and future resale. 8. Offer Preparation: We will prepare a written offer on the property you choose to purchase; with terms approved by you. 9. Negotiation Strategy: We will prepare a negotiation strategy for the property you have selected, including a Market Analysis and advice on the initial price and terms to offer. 10. Offer Presentation: We will immediately present your purchase offer directly to the listing agent. 11. Review of Written Seller Disclosure: We will thoroughly review with you to Seller's written disclosure statement to enable you to accept or specify the remedy for each fault disclosed. 12. Property Disclosure: We will review with you all inspection reports and other documents pertaining to the condition of the property and disclose all physical defects of the property that are known to us. 13. Home Warranty: We will explain to you the option of a home warranty plan to reduce your risk of repair when purchasing a property. 14. Estimate of Funds Required: Your lender will provide you with a preliminary estimate of closing costs and down payment requirement anticipated in the transaction. 15. Building & Radon Inspection: We will recommend that you obtain professional building and radon inspections. We will request the seller to remedy the items you specify after your review of the building and radon inspection specifics . 16. Walk-Through: We will accompany you on a walk-through of the property prior to closing, and we will assist you in dealing with any problems discovered during the walk-through. 17. Closing The Sale: We will monitor and inform you of the progress of the purchase agreement, including the satisfaction of all contingencies and conditions, during the entire transaction. 18. After-Sale Service: We will contact you after the closing to follow-up on remaining details or services needed. 19. Service Satisfaction Survey: We will provide you with a confidential opportunity to give an evaluation of our services. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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