Del Mar Neighborhoods United

Home Ownership

May 04, 2009

THE STEPS TO HOME OWNERSHIP

THE CATCH:

For those of you who may be looking for a new home and/or who may have family and friends who are looking for a home, the Association strongly recommends that you and they become members of this Association or they become members of their new Neighborhood Association and/or Home Owners Association to be eligible to participate in the below program.

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Part I: Home Ownership
Part II: Income/Payment Ratio
Part III: Home Inspection Checklist

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Stabilize your income and employment. Establish a saving account and reduce your debt. Review your Credit Report and make corrections or updates. Contact a local Non-Profit Organization if you need assistance.

Attend a Homebuyer Education Class so that you understand the process of buying a home.

Talk to a Lender or Bank to determine how much house you can afford and how much mony you need for a down payment

Choose a Real Estate Agent and start your home search.

Select an Insurance Agent. They will explain what is covered under your insurance policy.

Select an Inspector, who determines the physical condition of the property.

The lender will select and order the Appraisal, which supports the purchase price of the home.

AFTER YOU CLOSE - If for any reason you are unable to make your mortage payment, call your loan servicer immediately. They will try to help you when possible, but they cannot help you if you wait to call them. Non-profit Housing Counseling Agencies offer default counseling to prevent foreclose and can assist you with available options when your financial condition changes.

WHO?’S JOB IS IT ANYWAY?

Responsibilities in the home buying process

Lenders Responsibility:

Be aware of product requirements and rates to present appropriate loan products.

Provide good faith estimates and truth in lending disclosures within 3 days of the loan application.

Comply with the Fair Lending Practices and Fair Housing Practices.

Obtain pre-approval for their client so there are no last minute surprises.

Real Estate Agent?’s Responsibility:

Explain agency disclosure (buyer?’s agent and transaction agent) as well as any questions or terminology encountered during purchase process.

Be an advocate for the buyer.

Understand borrower?’s affordability and
borrower?’s requirements of the property.

Select properties for review.

Write Purchase Agreement and present to Listing Agent.

Accompany borrower to inspection.

Stay involved with borrower to insure the Purchase Agreement deadlines are meet.

Review Closing Documentation and attend Closing.

Homebuyer?’s Responsibility:

Have knowledge of your Credit and understand your affordability and requirements for a home.

Select a Lender.

Be prepared for Cash Requirements.

Select Real Estate Agent and Inspector, often provided by the RE Agent At A Charge.

Insure deadlines are met on Purchase Agreement.

Arrange for utilities at a new and movers.

Make mortgage payments timely, usually due between the 1st -15th on the month.

Maintain home and be a good neighbor.

THE KEYS TO Choosing a Mortgage Lender

Before you go for a Loan Application:

Know your Credit Score.
Understand what you are willing to spend.
Attend a 1st time homebuyer class or counseling session.

Know what type of borrower you are:

First time homebuyer, haven?’t purchase a home in at least 3 years.
Stated income borrower.
Sub prime borrower.

Interviews with at least 2 lenders should address the following:

Professional affiliations.
Loan products compatible with your Credit Profile.
Down payment assistance available:

While interviewing, do not have each Lender pull your Credit Report.
Ask it there are Fees you must pay up front.

Predatory Lending - Beware of deals that seem too good to be true!

Look out for: Loans with High Closing Cost, Balloon Payments, Loan Fees totaling more than 5% of the loam amount, Fees you do not understand, or Loans with High Interest Rates and Penalties for Prepayment.

NEVER Sign a Blank Document or Anything You
Do NOT Understand.

CHECK YOUR CREDIT REPORT EVERY YEAR!

www.annualcreditreport.com

This central site allows you to request an actual ?“FREE?” Credit Report, once every 12 months from each of the nationwide Consumer Credit Reporting companies: Equifax, Experian and TransUnion.

Check to make sure the information on your Report is correct from each of these 3 Credit Reporting Agencies. If there is something that is NOT correct, Contact that Credit Bureau in Writing with the necessary Documentation to support your claim. Be Sure to Make Copies of any Correspondence with the Credit Bureau. Checking your Credit Report every year helps PREVENT Identity Theft and will help you when you apply for Credit.

FIND ASSISTANCE

Adams County Housing Authority Aurora Business Development Center
Home Ownership, Jennifer
Foreclosure, MaryEllen De Los Santos
Home: 3.227.2089
Fore: 3.227.2075
www.adamscountyhousing.com

American Family Insurance Co.
Priscilla Madero
3.680.0499
www.amfam.com

Arapahoe County Housing Authority
3.738.8060
1st time homebuyer: 3.572.9214

Aurora Business Development Center
Chuck Hahn, 3.326.8690

Aurora Assn of Realtors
Michigan Hill, 3.840.1400
www.unitedcountyparker.com

Aurora Sentinel
Diane Adams
7.449.9702
www.aurorasentnel.com

Brothers Redevelopment, Inc (BRI)
3.685.4204
www.brothersredevelopment.org

Chase Home Finance
Ann B. BAgwell, 3.584.4142
www.annbagwellonline.com

City of Aurora, home Ownership Assist.
Tony Ormsby, 3.739.7900
www.auroragov.org

CO Housing Assit. Corp (CHAC)
Ruth Offerman, 3.572.9445
www.coloradohousingassistance.org

CO Housing & Fin Authority (CHAF) Home Fin Dept., 1.888.320.3688
www.chfainfo.com

CO Rural Housing Dev Corp
David Mayeranderson, 3428.1448 x 202
www.crhdc.org

Douglas County Housing Partnership
Travis Anderson, 3.784.7857
www.douglascountyhousingpartnership.org

Habitat for Humanity of metro Denver
Family Svcs Dept, 3.534.2929
www.habitatmetrodenver.org

Hope Communities, Inc.
Pamela Ortiz, 3.860.7747
www.hopecommunities.org

HUD - US Dept of Housing & Urban Dev
Nannetta Locke, 3.672.5139
www.hud.gov

Keller Williams Realty, LLC
Sharon D. Henderson, 3.345.3000
www.kwddenverhomes.com

Money Management International
George Shoemaker/Jeri Ajayi, 3.632.2254
www.crediteducaation.org

NEWSED
Richard E. Rodriguez, 3.534.8342 x 104
www.newsed.org

Rocky Mtn Communities
Michelle Goins-Lewis, 3.863.8651 x 105
www.rocky mountaincommunities.org

Step Above Realty, Inc.
Slava Bakhor/Kirill Merkulov, 3.671.7837

US Bank Home Mortgage
Larry Johnson, 3.369.4561
http://mtg.usbank.com

WIN Home Inspection Aurora South
Tom Gould, 3.752.9400
www.wini.com/aurorasouth

Wells Fargo Home Mortgage
Ester Talamantes Ontiveros, 7.855.4251
www.wfhm.com/wfhm/esthertalamantes
/index.page

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How does the lender decide the Maximum loan amount that I can Afford?

The lender considers your debt-to-income ratio, which is a comparison of your Gross (Pre-Tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony or child support. According to the Federal Housing Administration (FHA) monthly payments should not be more than 30% of gross income, while the mortgage Payment, combined with non-housing expenses, should total no more than 43% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.


QUICK CALCULATION EXERCISE

Gross Gross 31%
Annual Monthly Available Income Income 4 Housing

$20,000. $1,667. $ 517.
$25,000. $2.083. $ 646.
$30,000. $2,500. $ 775.
$35,000. $2,917. $ 904.
$40.000. $3.333. $1,033.
$50,000. $4,167. $1,163.


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HOUSE PURCHASE CHECKLIST

Questions:

Leasing Co./Owner:

Address:

Telephone#: Cell #:

May I assume your current Loan/Financing?

Will you ?“Carry Back?” a Note?

How much ?“Cash or Collateral?” up front?

Acquire average billing amounts for: Heating, Electricity, water, etc:

Check with others neighbors, if possible:

Miscellaneous:


Basic Information:

Address:

General description:

Asking Price: Taxes:

Total Sq. Footage: Lot Size:

Age:

No. of Bedrooms: No. Of Bathrooms:

Facing Direction: Front: Back:


Front/Living Room

Approx Size:

Floor: Level: Carpeted: Wood:
Sq. Blks: Strips:

Ceiling: Condition: Need Painting: Light/Lighting:

Doors:(Open and Close)Fit: Warped:

Walls: No Barrier from Outside: Dry Walled: Plastered: Painted: Wallpapered:
Cracked: Peeling: Scaling: Loose Paint:

Electrical: Wall: Floor: Switches: Outlets:

Lighting: Wall: Ceiling: Other:

Windows (Open & Close): Screens: Storm Windows: Weatherstripping:

Heating: Thermostat: Steam: A/C:

Options: Closets (Check Doors): Dining Room: Dining Area: Ceiling Fan:
Fireplace: Net/Cable Ready: Master Antenna: Other(s):

Miscellaneous:

Comments:


Bedrooms:
How Many:

Floor: Level: Carpeted: Wood: Sq. Blks: Strips:

Ceiling: Condition: Need Painting: Light/Lighting:

Doors: (Open and Close) Fit: Warped:

Walls: No Barrier from Outside: Dry Walled: Plastered: Painted: Wallpapered:
Cracked: Peeling: Scaling: Loose Paint:

Electrical: Wall: Floor: Switches: Outlets:

Lighting: Wall: Ceiling: Other:

Windows (Open & Close): Screens: Storm Windows: Weatherstripping:

Heating: Thermostat: Steam: A/C:

Options: Closets (Check Doors): Dining Room:

Dining Area: Ceiling Fan: Fireplace:
Net/Cable Ready: Master Antenna: Other(s):

Miscellaneous:

Comments:


Kitchen checklist:

Cabinets: Additional Storage:

Sink (Condition): Garbage Disposal:

Refrigerator (Condition): Make: Model:

Oven (Condition): Self-Cleaning: Elec: Gas: Grill: Make:

Dishwasher (Condition): Make: Model:

Faucets (Turn on/off):
Check drainage:

Floor: Level: Carpeted: Wood: Sq. Blks: Strips:

Ceiling: Condition: Need Painting: Light/Lighting:

Doors: (Open and Close) Fit: Warped:

Walls: No Barrier from Outside: Dry Walled: Plastered: Painted: Wallpapered:
Cracked: Peeling: Scaling: Loose Paint:

Electrical: Wall: Floor: Switches: Outlets:

Lighting: Wall: Ceiling: Other:

Windows (Open & Close): Screens: Storm Windows: Weatherstripping:

Heating: Thermostat: Steam: A/C:

Options: Closets (Check Doors):

Dining Room: Size:
Dining Area: Size: Ceiling Fan:
Fireplace: Net?Cable Ready:
Master Antenna: Other(s):

Miscellaneous:




Bathroom:

How many:

Medicine Cabinet: Just a mirror:

Wash Basin (Condition):
Run & check water:
Check under cabinet:

Toilet (Condition):
Flush & check pressure:
Check around seams:

Tub (Condition): Shower (Condition):
Run & check water flow:

Floor: Level: Carpeted: Wood: Sq. Blks: Strips:

Ceiling: Condition: Need Painting:
Fan: Light:

Doors:(Open and Close) Fit: Warped:

Walls: No Barrier from Outside: Dry walled Plastered: Painted:
Cracked: Peeling: Scaling: Loose Paint:

Electrical: Wall: Floor: Switches: Outlets:

Lighting: Wall: Ceiling: Other:

Windows (Open & Close): Screens: Storm Windows: Weatherstripping:

Heating:Thermostat: Steam: A/C:

Options: Closets (Check Doors): Dining Room: Dining Area: Ceiling Fan:
Fireplace: Cable Ready: Master Antenna: Other(s):

Miscellaneous:




Inside Checklist:

UP:
Halls: Crawl Space: Attic: Additional Storage: Elect Outlets:

Lighting: Leaks: Insulation:
Ventilation:

Misc:

DOWN:

Lighting: Check Water Heater: Check Gas Connections: Check for Water leaks:
Check Heating Plant:

Washer: Dryer: Make: Model:

Floor (Condition): Concrete: Wood: Sloped/Level:

Check: Doors: Widows:

Outside Checklist:

Roof (Condition): Flat: Sloped: Master Antenna:
Chimney: Drainage Spouts/Gutters:

One Way Street: Two Way Street: Corner: Mid Block:

Yard Size: Trees: Shrubs: Fince/Divider:

Building (Outside Condition): Brick: Wood: Porch/Balcony:

Check Front, Side & Backdoor locks: Check Garage Door Locks:

Parking: Sidewalk (s): Alley(ies):

Garbage Collect: Public: Private:

Xcel meter: Water meter: Electrical Outlets: Outside Lighting:

Windows: Storm: Screens: Weatherproofing: Locks:

Doors: Storm: Screens: Weatherproofing: Locks:

COMMENTS:



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