First time homebuyer 101

Hello again!
In an effort to be the best agent I can be for you, I've been thinking a lot about what would be useful information that you could find helpful or pass along to a friend or family member.
I tend to work with a lot of first-time home buyers. I absolutely LOVE working with folks searching for their first home. It's such an exciting time in their life, and I love sharing in that excitement! Most first-time buyers express the same sentiment: that they feel overwhelmed by the process and the current market.
It's a fact that Denver is in a bit of a housing crisis right now. Not because we're 'in a bubble' (that's a topic for another day!), but because there's a housing shortage! We've seen thousands of people moving to the front range every month, for several years now. Unfortunately, the secret is out-- Denver is a wonderful place to live! So we're really facing a supply v. demand issue.
With that being said, it's still an incredible time to jump into your first major investment, and one that will pay off big for the rest of your life! We've seen record setting appreciation rates in the front range, so there's never been a better time to start paying yourself, instead of someone else's mortgage!
Next I'd like to outline what the buying process looks like. Hopefully this can answer a lot of questions about the 'unknowns' first-time home buyers are usually nervous about!

WHAT TO DO and WHEN TO DO IT

1. First thing's first, is to meet with a Realtor (preferably, me ;-) )
   Your agent should take the time to sit down with you, get to know you, and ask the important questions: what are your goals? Don't know your goals? I'll help you figure them out! Where would you like to be, and for how long? (this goes back to your goals!), what's important to you in your living situation? So on and so forth. The more invested your agent is in YOU, the harder they will work for YOU!
2.  If you haven't already spoken with a lender to see about a pre-approval, that is the next step. Hopefully your Realtor will have some recommendations on who to speak with. Most lenders only require a few documents to get a pre-approval ready for you. A pre-approval is important prior to 'shopping' for a home, as most sellers want to see that you are qualified to purchase, prior to accepting your offer.
3. TIME TO SHOP! You and your Realtor will now start the fun part of all of this-- shopping for your new home! Most first-time buyers get worried that 'they'll take too much time' and 'they are all over the map', but I always try and reassure my clients that it's really just part of the process! We may look at 2 homes together, or we may look at 20+ homes. Sometimes it takes that many homes to really understand what you want, and what you need, what you can give up and what you can't.
4. WE FOUND THE HOUSE! We found YOUR dream home! You knew it from the minute we walked inside. Great! Now, your agent will prepare an offer. This is another piece of the home buying process that first-time buyers dread, as there tend to be multiple offers on homes nowadays. Not to worry! Myself and my team are beyond equipped to make YOUR offer stand out. There are behind the scenes steps we always take to do everything we can to make it happen for you. And that is what any agent should be doing! Each home and seller is unique, and I treat every offer with that mind-set too.
5. THE SELLER ACCEPTED YOUR OFFER! CONGRATULATIONS! Now, we will undergo a process called "under contract". This process is typically 4-6 weeks long, all depending on the seller and buyer's needs. This is a breakdown for how that 4-6 week process usually looks:

• Seller accepts offer (maybe they counter as well, but we've both signed the contract)
• Buyer drops off earnest money
• Buyer schedules inspection within first week
• Buyer and seller come to terms on inspection
• Buyer works to secure home owners insurance and sends insurance info to lender
• Lender had already begun to work on the buyer's loan
• Lender orders an appraisal
• Appraiser visits home
• Appraiser sends appraisal report- buyer and seller negotiate IF needed
• Lender finishes loan
• WE HEAD TO CLOSING TABLE and YOU GET THE KEYS!
  
  

I get a lot of questions on what costs the buyers can anticipate up front:

• Earnest money -- your 'good faith' money, that also counts toward your down payment. Amounts differ
• Inspection -- $300-$400 typically, depending on services needed

• Appraisal -- usually around $600, is included in your closing costs
• Closing costs -- typically around 1-2% of purchase price of home
• Final payment at closing table -- your earnest money, plus any extra you're putting down, and closing costs. Your lender will put all of this information together for you.
  
  

There are so many options that your lender can outline for you in terms of down payments. It's easier to get into a home as a first-time buyer than most people think! And it's important to have a team of people surrounding you who are knowledgable about all of your options. Myself and the team of folks I work with guarantee just this.

Here's a testimonial from a client, who was a first-time buyer. I loved working with them, too!
​
"We had a great experience working with Jenna! As first time home buyers, we didn't really know what to expect and needed someone who could not only help us navigate a competitive market, but would help keep us informed and grounded along the way. Jenna really took our feedback, wants, and concerns seriously from the initial search process to the closing table. She encouraged us to be patient and helped us balance our expectations with the frenetic pace of the market. I was also so impressed that she knew what extra behind-the-scenes steps to take to make our offer stand out to ultimately get us into our new home. Thanks, Jenna!" -Claire and Brandon


If you have any other questions on what this process entails, let's get together! Shoot me an email, give me a call, I'd love to buy you a coffee (or a beer!) Jenna@firstsummitrealty.com | 303-946-9476
Cheers,
Jenna

---