Buyers Guide

Congratulations, You Have Taken the First Steps and Decided to Buy a Home!

My Realtor®

The Michelle Garrigan Team Keller Williams Freedom

Phone

+1 719 600 6436

Address

6346 S. US HWY 85/87 Suite A

Fountain, CO 80817

STEP 1

Get Pre-Approved For A Loan

Contacting a lender first will give you an idea on your purchase power and show a seller that you are already serious about purchasing their home. (Make sure to provide all documents required in a timely manner)


STEP 2

Work With a Realtor® to start the search for a home

Using the MLS is the most efficient way to find homes listed for sale.  Homes meeting your criteria will be emailed to you as soon as they hit the market.


STEP 3 & 4

Write an Offer & Have Earnest Money Ready

Your agent will help you prepare a strong offer. Earnest Money will be expected, if your offer is accepted, as a form of good faith money.  This money will be shown as a credit to you at closing. 


STEP 5

Hire Necessary Home Inspector(s)

All homes should have a private home inspection. The inspector will point out items of concern as well as home owner maintenance items.

Additional inspections that may be needed are Radon, Sewer Inspections, Lead Based Paint, and Structural. 


STEP 6

Start Shopping for Homeowners Insurance

Once you select a policy, provide the documentation to your lender so that can ensure it meets the loan requirements and add the policy to the loan file.


STEP 7

Assigning an Appraiser

The lender will assign an appraiser.  The appraiser works for the bank to protect the bank from over lending on a home. In most cases, if the home does not appraise, the contract is then renegotiated.  If a deal cannot be made, the seller would have to refund the Earnest Money and allow the buyer out of the contract.


STEP 8

Utility & Trash Companies

Call Utility/Trash Companies and schedule service to be transferred to your name.  This should be set for the day of closing but call in 3-5 days prior to closing.


STEP 9

Final Walk-Through

Perform final walk-through of the home to verify all repairs have been completed and the home is ready for closing. 


STEP 10

Closing Day

On closing day, you will sign all the final paperwork and receive keys to your new home.


Glossary

Adjustable Rate Mortgage (ARM)

A mortgage that provides for periodic changes in the interest rate, based on changing market conditions. 

Amortize

To liquidate or extinguish (a mortgage, debt, or other obligation), especially by periodic payments to the creditor or to a sinking fund, to write off a cost of (an asset) gradually. 

Annual Percentage Rate (APR)

The annual rate of interest: the total interest to be paid in a year divided by the balance due. AppraisalThe act of estimating or judging the nature or value of something or someone.  An estimate of value, as for sale, assessment, or taxation; valuation. 

Closing

The final step in property purchase where the title is transferred from the seller to the buyer. At closing the seller receives payment for the property.  Also known as settlement. 

Closing Costs

Fees charged to a purchaser by a bank, lawyer, etc.  For services related to a sale, a title search, an appraisal, etc.  Any expenses over the purchase price of the house, land, etc., that is paid by the purchaser or seller at the completion of the sale. 

Closing Disclosure

A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected.  It will be sent prior to closing and the initial document must be signed 72 business hours before closing. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). 

Contingency

A clause in a purchase contract outlining conditions that much be fulfilled before the contract, but both parties must accept the contingency. 

Conventional Loan

A private sector loan, one that is not guaranteed or insured by the U.S. Government. 

Deed

A writing or document executed under seal and delivered to affect a conveyance, especially of real estate. 

Disclosures

The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems.  “Full disclosure” usually refers to the responsibility of the seller to voluntarily provide all know information about the property.  A seller found to have knowingly lied about a defect may face legal penalties. 

Earnest Money

Money given by a buyer to a seller to bind a contract. 

Easement

A right held by one property owner to make use of the land of another for a limited purpose, as rite of passage. 

Escrow

A contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promise on the fulfillment of some condition. 

Fannie Mae (FNMA)

A federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential home buyers. 

Federal Housing Administration

(FHA)Provides mortgage insurance on loans made by FHA – approved lenders throughout the United States and its territories.  FHA insures mortgages on single family and multifamily homes, including manufactures homes and hospital. 

Fixed-Rate Mortgage

A home mortgage for which equal monthly payments of interest and principal are paid over the life of the loan, usually for a term of 30 years. 

Freddie Mac

Federal Home Loan Mortgage Corporation (FHLM); a federally charted corporation that purchases residential mortgages, secures them, and sells them to investors; this provides lenders with funds for new home buyers. 

Lien

The legal claim of one person upon the property of another person

to secure the payment of a debt or the satisfaction of an obligation. 

Origination Fee

A fee charged by a lender for evaluating and processing a loan application, usually a percentage of the face value of the loan. 

PITI

Principal, Interest, Taxes, and Insurance. 

Promissory Note

A written promise to pay a specified sum of money to a designated person or to his or her order, or to the bearer of the note, at a fixed time or on demand.

Rate Lock

A commitment by a lender to a borrower guaranteeing a specific interest rate over a period of time at a set cost. 

Title

In property law, a title is a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document, such as a deed, that serves as evidence of ownership. 

Title Insurance

Insurance protecting the owner or mortgagee of real estate from lawsuits or claims arising from a defective title. UnderwritingThe process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower’s credit history and a judgment of the property value. 

Definitions provided by dictionary.com

  • Suite A
    Fountain CO 80817

  • 719-600-3340

  • michellegarrigan@kw.com

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