Buyer TIPS We prefer smooth and worry-free to overwhelming and chaotic when it comes to the buying process. The more prepared you are at the outset, the more successful the buying process will be. We’ve prepared the following tips to assist you as you begin the journey. 1. GET PRE-APPROVED. As a pre-approved buyer you have better leverage when it comes to negotiating with the seller. The preapproval process is simple and shows sellers that you are a serious buyer. 2. PREPARE, LIST AND SELL YOUR CURRENT HOME. If you already own a home and need the proceeds to qualify for your new home, you’ll want to get it on the market ASAP. A home that is already listed will make your offer more appealing. Better yet, if your current home is under contract a seller is more likely to consider your offer. And of course, best case is to have your home sold already so that securing your loan is much easier and sellers are more likely to work with you without taking on the risk of you having to sell first. 3. RESEARCH THE MARKET. Having your Sold By Simmons Team Realtor who knows the market well will give you a serious advantage when it comes time to make an offer. 4. BE PREPARED TO SUBMIT AN OFFER. The purchase contract should be simple and without any unnecessary conditions, especially repairs. A seller will be more interested in an offer that is not going to be delayed by things that do not severely affect the value of the home. If you have additional questions regarding “Buyer Tips” and would like more information, please feel free to contact your REALTOR®. 5. FIND AN AGENT YOU TRUST (& STICK WITH THEM!) By now you know how complicated buying a home can be. Having your experienced Sold By Simmons Team agent by your side along the way, who is keeping your best interests in mind, will have a significant impact on your buying process. There is a lot of information out there online… Stick with your chosen agent and let them go to work for you. Your agent doesn’t make a penny until you close, so all of the hours of research, showings & negotiations are on good faith that you’ll stick with them. Remember, as a buyer, you’re not responsible for paying any commissions!
Getting a MORTGAGE Once you’ve found the right loan, you can find the right home. Understanding what steps are required and what you need to prepare will make you more confident with the loan process. 1. ORGANIZE YOUR DOCUMENTS. In order to obtain a mortgage, your lender will require certain documentation to make sure you’ll be able to repay the loan you’re applying for. You should gather: proof of employment, credit history, tax returns, pay stubs, divorce and child support statements (if applicable), and any other information the lending company might request. 2. QUALIFICATION. When purchasing a home, there are two options one can choose from to qualify for a loan. You may have already pre-qualified for your loan when you started looking for your home. While pre-qualified is helpful, your other option, pre-approval, is more beneficial and gives you more bargaining power when it comes to negotiating with a seller. Getting pre-approved lets you focus on homes within your price range instead of wasting time looking at homes that you won’t be able to afford. When it comes time to close, the process will go faster since your loan has already been approved. 3. FIND THE RIGHT LOAN & LOCAL LENDER. When searching for the right loan program, you should consider how long you plan to stay in the home and how long you want to keep the loan. Consider adjustable and fixed rate mortgages, 30 year and 15 year loans, and don’t forget to calculate the rates, fees and points. It’s a complicated, tedious process; a qualified local lender can not only help you make the right decisions, but can also be the difference between your offer being accepted or not. Using a local lender that is easily accessible, that knows the Denver market well and uses local appraisers will likely result in a much smoother process. Seller’s like to see approvals from local lenders as well. Don’t be fooled by “teaser” rates that you see online – if comparing lenders, if it sounds too good to be true, it probably is. Be sure you’re comparing “apples to apples.” 4. OBTAIN LOAN APPROVAL. The process of obtaining loan approval involves several steps. • Review of your loan application (be sure it’s completely filled out to avoid delays). • Verification of your credit history, employment, history, assets (such as bank accounts and mutual funds), property value and any additional information the lender might require. There are also a few things that you can do to improve the chances of approval: • Respond promptly to requests for additional documentation or information. • Keep major purchases to a minimum until the loan is closed. Increasing your debt after approval can jeopardize your loan. • Make sure you’ll be in town for the closing date. If you can’t be there for the closing, you can carry out a power of attorney to authorize someone to sign on your behalf. 5. CLOSE THE LOAN. Once the loan is approved, you’ll need to sign the final documents, which usually takes place in the presence of a notary public. Take the time to read every word and verify the interest rate and loan terms. Also, check to see if your name and address are correct. Finally, don’t forget to bring a cashier’s check (not a personal check) for your down payment and closing costs.