Steps of the Home Buying Process
PRE-APPROVE FOR A HOME LOAN
SEARCH & TOUR HOMES WITH YOUR AGENT
WRITE AN OFFER ON YOUR DREAM HOME
NEGOTIATE THE BEST POSSIBLE PRICE
INSPECTION OF THE HOME
APPRAISAL OF THE HOME BY LENDER
CLOSE ON PROPERTY
CONGRATULATIONS! MOVE IN!
How Much Will it Cost Me to Buy a Home?
HOME INSPECTIONS: $400 + up depending upon the square footage of the house.
SEWER SCOPE: Approximately $125
RADON TEST: Ranges from $60-$90
APPRAISALS: Approximately $500 to $800
MOVING COSTS: Actual cost will vary due to the moving distance.
CLOSING FEES: Lender, Title Company, and/or Administrative Fees average 2% of the loan amount.
PLEASE KEEP IN MIND THAT IF YOU DECIDE TO PURCHASE A NEW HOME, ADDITIONAL COSTS MAY ARISE:
» Most new builds do not have completed landscaping; it is important to factor the cost of landscaping into your budget when purchasing a brand new home.
» Blinds and/or window coverings are also an additional cost to new construction.
*NOT PAYING IN CASH? IF YOU ARE PLANNING ONOBTAINING A LOAN TO PURCHASE YOUR NEW HOME, IT IS IMPORTANT TO CONSULT YOUR MORTGAGE LENDERON WHAT TO EXPECT FOR YOUR DOWN PAYMENT COST.ON AVERAGE:
» FHA loans require a minimum down payment of at least 3.5%. Because an FHA mortgage is a government-backed home loan with more flexible lending requirements, interest rates may be higher the buyer will need to pay monthly mortgage insurance premiums along with their monthly loan payments.
» Conventional Loans can vary, but typically require a minimum of 5% down. Keep in mind though, that Private Mortgage Insurance (PMI)is required any time you put less than 20% down on a conventional loan; however, we have an awesome way to put less than 20% down and not pay PMI.
* Loan requirements may vary: Consult your mortgage lender, attorney, or credit advisor for more information.
Owning VS Renting
THE ADVANTAGES OF HOME OWNERSHIP:
EQUITY – You can’t build equity in an apartment or rental property. ~ In your own home you CAN.
TAX DEDUCTION – Your rent payment is not tax deductible. ~ The interest portion of your mortgage payment is tax deductible*
PERSONALIZATION – When renting, your landlord dictates how the home is to be maintained. ~ Purchasing a home allows you to personalize it to your own unique style without restrictions. Have the freedom to choose your own paint colors, fixtures, and updates, making it feel like home!
FIXED PAYMENT – Your rent almost always increases when your lease is renewed. ~ With a fixed rate mortgage, the principal & interest payments never go up.
APPRECIATION – Since 1971, on average Denver, Colorado has consistently appreciated over 6% each year. In 2016, the Denver Metro area appreciated an average of 8.1% and Denver Proper at over 10%! The Denver Housing Authority (in 2012) stated rents were to appreciate 10% every year and they have been correct thus far.
PRIDE – Often times, renting can feel like a temporary place to stay. ~ Purchasing your home allows you to always remain in control of it’s condition and to make it a true reflection of you and your family!
*Consult your tax advisor