Buying Our First Home in Lakewood Colorado

KeyWords: real, estate, home, buy, FHA, first, time, buyer, mortgage, broker, denver, colorado, lakewood, shusterinc, steps, howto, tips

Buying Our First Home
by FrosT

Introduction
My wife and I are buying our first home. We wanted to purchase a home in January of 2007 but while at work a co-worker mentioned that they were selling a Town home for way under market value as she needed it sold by January of 2007. Well the deal was tremendous for the house. Here are the specifics on the house:

-2,344 SQ Ft
-4 Bed 3.5 Bath
-Partial Finished Basement
-3 Stories
-Patio
-3 Parking Slots

The price she was asking for is $135,500. Around $40,000 under market value! Basically just by buying it we are making around $40,000. Now the house is in pretty bad condition right now. It needs all new carpeting, paint, cabinets, and some drywall repairs. Figuring it out, if we put around $5,000-$8,000 into the house the value appreciates a lot more. Hopefully we can put that money into the house and live in it for a year or two and than turn around and sell the house and make $40,000-$60,000 to put towards another house that is a little better but needs similar work. Do the same thing to that house and have a goal within 15 years to have enough money to completely buy a house with no mortgage payments.

The location of the house is very close to where I work, which will also save us in gas money. Although the mortgage payment is quite high, we would rather live in this house than rent an apartment for another year. We hate apartments because the only people who live there are noisy college students who do not know what being courteous is.

For those of you who are wondering the process we took once we found the house for us I will line it out right now:

Step One
First things first, we had to make sure we qualified for the house. We contacted a Mortgage Broker and gave him the low-down and what we were doing and wanting to do. He told me what paperwork we had to get him so he could run the credit check and find out what type of loan we had to do. We qualified for an FHA (Federal Housing Accommodations) which is a typical loan for first time home buyers. Now that we are approved for a $140,000 loan he went over how much we had to pay at closing. Basically we are writing the contract for $4,500 over the asking amount so that I do not have to pay any closing costs. The seller will pay for all closing costs with that extra $5,000 attached to the loan. Now the FHA loan requires us to put 3% of the total loan down on the house from our own pocket. That part we were not expecting, but that is alright. Out of pocket to close and finalize the house we are only paying $4,500. Better than what it would have been if we had a Real Estate broker and agent involved.

Step Two
The next step was to write up the contract. The lady who is selling the house has a friend who does Real Estate on the side. He said he would write up the contract for us. Well we are not to keen on this part so after we have the contract written up we are going to hire our own lawyer to look it over basically to just make sure all the i's are dotted and t's are crossed and make sure that there is not something in the contract that was over looked that will end up biting us in the butt. The contract is suppose to be done today and I am meeting with her friend who does Real Estate. Hopefully this goes over smooth without any confusion and minimal errors.

Step Three
We are not on this step, but after the contract has been signed I need to send it over to my mortgage broker so he can look over it and give it to the under-writers who will then qualify us officially for the loan. After this I am not sure where to go next other than the actual closing. If there are any extra steps I will be sure to create a new blog and link it here.

Anyhow thanks for reading, any questions feel free to comment and I will answer them as best as I can. I will also post an email address for my mortgage broker, who we are very happy with in hopes to generate a little more business for him in the Denver, Lakewood and Jefferson County area.

Rodney Shuster
rod [-@-] shusterinc [-dot-] com
Denver Colorado Mortgage Broker

Posted by frost on Sep 14th, 2006 11:26 - Subscribe Bookmark and Share


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