Real Estate News Buying a home can be a daunting thought. I see so many people get caught up and not follow their dreams because they don’t have a good home buying process. Here’s some great info on why so many want to buy a home in our beautiful state of Colorado: One of the many reasons our metro Denver real estate market has been so strong is that our local and state economies have seen tremendous growth over the past several years. USA Today recently undertook a deep dive into the economies of all 50 states and Colorado is at or near the top across the board! Here’s what they said: “As was the case last year, Colorado’s economy ranks as the best in the country, due largely to its GDP and job growth, which each ranks among the top five nationwide. The state economy has expanded by an average annual rate of 2.7% over the last five years, and employment has increased by an annual average of 2.4% over the same period, compared to national growth rates of 1.7% and 1.5%, respectively. Nationwide, many of the jobs in the fastest growing industries require a postsecondary education, and in Colorado, nearly 40% of the adult population has a bachelor’s degree, the second highest share in the country. College-educated adults are more likely to have greater job security, which may help explain Colorado’s relatively low 2.7% unemployment.” Colorado’s economy ranks near the top in several critical metrics: 5 yr. GDP annual growth rate: +2.7% (4th largest increase)June 2018 Unemployment: 2.7% (tied — 3rd lowest)5 yr. annual employment growth: +2.4% (5th largest increase)2017 GDP: $302.9 billion (18th largest) Ready To Buy A Home??? The time has finally come: you are ready to take the leap into buying your first home! This is an incredibly exciting – albeit, scary – undertaking. As you begin your real estate research, you may feel as though there is information being directed at you from an infinite number sources. With so many steps in the home buying process to conquer, a considerable amount of life-changing decisions to make, and an impending housewarming party to organize, this process can be extremely overwhelming. With this in mind, where do you start? What are you really getting yourself into? Here are the top 5 things I believe you need to be aware of as you begin the undertaking of becoming a homeowner. 1. The home buying process doesn’t actually begin with searching for a house. Buying a home begins with becoming pre-approved for financing a mortgage through a qualified lender. While this isn’t the most thrilling step in the home buying process, it is one of the most crucial actions you will take. Mortgage lenders determine your buying power- or, your cash available combined with your borrowing capacity. This is a vital step in the buying process – it can often be the difference between having your purchasing offer accepted or rejected. 2. Budget for (much) more than you expected. Always overestimate your budget! As much as all of those dollar signs might pain you to look at, it is better to be cautious and pessimistic when estimating new home expenditures. It’s probably best not to max out your budget when bidding on a home. When you finally find your dream home, it is tempting to place an initial bid that skims the top of your budget in order to outjockey the competition. A best practice when searching for a new home is to look for houses that are priced below your planned monetary disbursements. This allows you the flexibility to increase your initial bid, and helps to prevent a mortgage payment that you may not be able to afford. 3. Location, location, location. In my experience, people buying houses often become distracted by details such as wanting a covered front porch or a slightly larger kitchen island. You must remember that these are all cosmetic details that can be changed over time after you purchase the house. What you cannot change, however, is the location of your home. Because of this, it is incredibly important that you choose your house in large part for the neighborhood you want to live in. 4. Make sure you know what you are paying for. It is your responsibility to be an informed buyer. For example, you’ll want to carefully examine your potential new home with a qualified home inspector. A home inspection gives a buyer more detailed information about the overall condition of the home prior to purchase. While an inspector will never directly answer the question, “Should I buy this home?”, they will give you an in depth, unbiased look at your potential new home to: Evaluate the physical condition of the structure, construction, and mechanical systems.Identify items that need to be repaired or replaced.Estimate the remaining useful life of the major systems, equipment, structure and finishes. Remember, YOU are the buyer. You should always be aware of exactly what you are purchasing. If you don’t know, ASK. It is your money, and you need to be as well-informed as possible before making such a large investment. 5. Use a GREAT real estate agent like me! (Because we matter so much more than people let on.) Your agent needs to be a trusted resource that can separate signal from noise and help to navigate the complex process that real estate has become. Your real estate agent will be by your side every step of the way on your path to a new home. You will need an experienced agent that is open and honest with you.  I believe that access to the best and most timely information can dramatically shape your decisions, and no one does more research on the local housing market than we do. We have experts in every field eager to guide you skillfully from the beginning to the end of your real estate journey. Use a great agent, it will make all the difference!

I recently had the honor of sitting in with Chris Lopez at The Denver Metro Investment Group and talk real estate investing. These guys are the real deal, and truly help people that want to invest in real estate. There’s so much “fluff” and for a lack of a better term, “bulls#*t” information out there about how to invest in real estate, that’s it’s nice to have a group that breaks through all the nonsense and helps people with real strategies that they can execute on! If you’re into podcasts, and you’re into generating real wealth, these guys are the real deal and you should be following them: https://www.denverinvestmentrealestate.com/category/podcasts/ https://player.blubrry.com/id/36438872/” scrolling=”no” width=”100%” height=”138px” frameborder=”0″> Alex Saldana got his start in real estate by flipping houses. He then became a licensed agent to do his own deals. After a few years of fix and flipping, he started working with investors and traditional buyers and sellers. Alex talks about his experiences (the good and the bad) about flipping houses. A few of the highlights: He breaks down his most profitable flip ($80k)And his biggest lost ($25k)He shares his investing strategyWe discuss why most people should not get into flipping! Alex is a great guy and very down to earth. Reach out to him! Alex Saldana (720)819-7789 alex@alexsaldanahomes.com www.alexsaldanahomes.com

It’s more than a house, it’s a home. For most people, purchasing a home is the single largest investment they will ever make. But it’s not only about dollars and cents. It’s about having a place to call your own, designed to suit your tastes and needs. A place where you can lay down your roots, start a family, grow as a family, and make memories to last you a lifetime. In short, it’s about defining your own personal sense of home.  This guide is designed to provide first-time home buyers like you, a detailed look at the home buying process. Important Questions Before you start your home buying journey there are two questions you should ask yourself. Hint: your answer to both should be “Yes.”  Do I qualify to own? Make sure your finances are in order by obtaining a credit check and general financial analysis from your bank or lending institution. Don’t forget about all your options – you may be eligible for loans insured by the Veterans Administration (VA) or the Federal Housing Administration (FHA).  IS IT A GOOD TIME TO BUY? If you want to own a home, have the funding, and a trusted real estate professional to guide you, then the time might be right for you to buy.  An experienced real estate professional will assess the current local market conditions and inform you about your options. As an industry expert, your agent will often find opportunities you never even thought about. The road to homeownership Buying a home will likely be your single largest investment. Such a major undertaking requires adequate research and careful analysis. Sure, there may be bumps along the way, even a couple of pit stops, but the following steps will help make the journey as smooth as possible. Relax you got this! PREP AND PLAN An endeavor like this takes some serious thought, preparation and planning. Being sure of the kind of home, features and neighborhood you want ahead of time will be of great help as you start your home search. And because most of us can’t buy a home without financing, now would be a good time to gain a clear picture of your financial situation and exactly how much home you can afford. This will be of value as you research both your housing and mortgage options. GO WITH A PRO No one said buying a home would be easy, but it will be a whole lot easier if you have a trusted real estate professional by your side. A real estate agent will be able to assist you every step of the way from your initial property search, to financing, to the negotiation and eventual close. Your agent will also use his or her expertise to help you avoid potential pitfalls and capitalize on unique opportunities.  Contact a real estate professional once you’ve decided to buy. Consider their local market knowledge, experience and track record when evaluating potential agents. Get pre-qualified  To purchase a home, you’re likely going to need a loan. Which means you’ll want to get pre-qualified for that loan before you even start looking at homes. The pre-approval process requires meeting with and authorizing a lender to examine your finances and credit history. Your lending officer may provide you with a document detailing how much you are pre-qualified to borrow.  WHY PRE-QUALIFY?  You’ll gain a better understanding of how much home you can afford.You’ll be taken more seriously when making an offer.You might discover you qualify for special programs that can help you afford a better home. FIND YOUR DREAM HOME  Here comes the fun part – looking at homes! To make your search a successful and enjoyable one, it is crucial that you identify the things you need (must-haves) and the things you want (like-to-haves). Compromise is often necessary. SOME PERSPECTIVE ON THE HOME SEARCH PROCESS:  54% of buyers who used the internet during their home search ultimately found the home they purchased online76% of buyers who used a mobile device to search found their home through a mobile appBuyers typically search for 10 weeks and look at 10 homes before purchasing86% of buyers use real estate agents during the home search process LET’S TALK TECHNOLOGY Websites and mobile apps are a valuable tool in the home search process. From photos and video tours to home and neighborhood details, they provide a wealth of valuable information to help you zero in on homes that fit your needs.  But while these technologies play an important role, it is important that you view homes in person. There are aspects of homes that you just can’t see online, like layout details, design, and craftsmanship to name a few. Be sure to bring your real estate agent with you as he or she can provide expert analysis and may notice things you would otherwise miss.  ONTO THE OFFER You found a home and you love it! Love it! Love it! Now it’s time to make an offer. Most likely, your state or local real estate association has the proper contracts for transactions in your area. These contracts enable you to specify an offer price and allow the inclusion of clauses specifying various terms of purchase, such as the closing and possession dates, your deposit amount, and other conditions.  Carefully review these clauses with your real estate agent to ensure that they accurately express your intended offer. Remember that your agent is a pro at this and will not only draw up the contract, but also address any questions you have about the offer process.  You’ve written a nice clean offer with the help of your real estate agent. Now it’s time to present it to the seller and/or the seller’s representative. What happens next can vary depending on the market you’re in, but generally the seller can accept the offer, reject it, or come back with a counter offer thus beginning the negotiation process.  Negotiations can go back and forth between you and the seller with deadlines for meeting conditions. This can continue until a mutual pending agreement is met or the negotiations breakdown. These types of negotiations can be complex and involve many different factors – all the more reason to rely on the expertise of a real estate professional. GET YOUR FINANCING  You and the seller have come to terms. Almost there! You now need to return to your lender to hash out the final details on your mortgage. This means completing the loan application and finalizing the down payment, interest rate, regular payment schedule and any other financial conditions associated with the closing.  Securing a mortgage can be a complex and confusing process, not having a complete understanding of your financial decisions could come back to bite you. That’s why it is imperative for you to work with people you can trust, and having a good real estate professional can make all the difference. SEAL THE DEAL  Yes, this is really happening. You’re buying a home! But before you can move in there are a few more steps to take prior to the closing of escrow.  Getting a title search – you will need a historical review of all legal documents related to ownership of the property to ensure there are no claims against the title of the property. It’s also a good idea to purchase Title Insurance for protection in the event of errors in the records or mistakes in the review process. Conducting the final walkthrough – this is your chance to take a look at the home one last time to ensure it’s in the same condition as when you signed the sale agreement. Complete the settlement – typically, on or shortly prior to the Closing Date, you’ll sign all the paperwork required to complete the transaction, which may be done in a meeting with a lawyer, real estate professional, or, escrow agent, depending on your market. The settlement will include paying your closing costs, legal fees, property adjustments and transfer taxes. At that point, you’ll receive the property title and copies of all documentation pertaining to the purchase. Jump for joy! – you are now a homeowner. Congratulations! You’ll most likely get the keys at this point as the possession date typically falls within a few days after settlement. Better start packing.  Financing your home – The loan process Unless you’re swimming in money, paying all cash for your home isn’t usually an option. You’ll need to find the right lender who can help to find the right mortgage products for you.  Take the following steps to help secure a mortgage that fits your needs:  1. DO YOUR HOMEWORK There are a wide variety of loan types and programs available through thousands of banks, finance companies, credit unions and other lenders. Educate yourself about your options and seek out the many sources of information available about mortgages.  Websites like realtor.com®, books, news articles, seminars, mortgage brokers, lenders, and knowledgeable real estate professionals can all help you navigate the labyrinth of financing possibilities.  2. BE HONEST ABOUT YOUR FINANCES As you start to learn more about your loan options, ask yourself how much mortgage and down payment you can realistically afford. Most importantly, be honest with your answer and weigh the risks and opportunity costs. There’s more to your monthly payments than just your mortgage. When calculating your monthly expenses keep in mind all the other factors such as taxes, insurance, home improvements, maintenance, fees, and more. Make a list of these costs and project your financial commitment through the life of the loan. This will provide a realistic figure of what you can afford. 3. FIND A REPUTABLE LENDER OR MORTGAGE BROKER  When shopping for a loan you should consider two main sources – direct lenders and mortgage brokers.  Direct lenders have the money and make the decisions, but have a limited number of in-house products to offer. Brokers are intermediaries and while they do charge a fee, they can provide loan options from many sources which may save you money overall. Your real estate professional most likely has great connections and can help you evaluate your options.  4. MAKE A MORTGAGE DECISION  When determining which financing option is right for you it is important to consider the different type of mortgages, rates and terms. Generally, there are two ways to go:  Fixed-rate mortgages have interest rates that remain the same through the life of the loan. This is particularly advantageous if you can lock in a low rate and will protect you against the risk of rising interest rates. This kind of stability also makes budgeting easier. Be mindful, however, not to lock yourself into a high rate. With a fixed-rate mortgage you must also take term length into account. Short-term mortgages such as a 15-year will have lower rates than a 30-year term. While you will pay less interest over the life of a shorter term loan, your monthly payments will be higher. Adjustable rate mortgages (ARM) have interest rates that will move up or down in correlation with economic trends. These rates are commonly based on the U.S. Treasury index for a one-year Treasury bill. Lenders usually add 2-4% to the index rate to get their ARM rate. The advantage here is that the initial rate is lower than the fixed-rate mortgage by a quarter point to two points or more. This rate will periodically adjust within set cap limits that are specified by the terms of the loan.  Keep in mind that your credit status will ultimately help determine the loan you qualify for. The better your credit, the better your rates and terms will be. So consider paying off your credit cards and be sure to make all other bill payments in full and on time.  5. READY. SET. APPLY! You found the house, made an offer and reached a pending agreement with the seller. Now it’s time to formally apply for a mortgage. To complete the application your lender will want to know about your household income, job tenure, assets and existing debt as well as your regular expenses. The types of documents you’ll need to provide include bank and investment statements, pay stubs, tax returns and other documentation.  At this point the lender will run a credit check, review the various loan options and programs you qualify for and finalize the size of your down payment. If you place less than 20% down, the lender may require the mortgage to be guaranteed by a third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI). You’re about to be making what is likely the largest investment of your life, so don’t be shy about asking as many questions as possible. You need peace of mind and if it helps to reassure you, bring your trusted real estate agent along to explain the ins and outs of the mortgage contract.  Lastly, once you qualify for a loan, be prepared for the lender to have the home professionally appraised to ensure that it’s worth the purchase price. The benefits of a real estate professional To ensure your home buying journey is a successful one, it’s best to obtain the services of a real estate professional, specifically a buyer specialist focused on helping you find, land and finance your dream home.  Buyer specialists should:  Educate you about Buyer Agency, outlining their professional responsibilities to you, including complete Disclosure, Loyalty, Confidentiality, Obedience and Accountability. Help you explore your financing options and, if required, provide you information about mortgage professionals. Save you time by regularly searching the market for homes in your price range that meet your criteria. Email your desired home requirements to top producing agents in the area so they know they have a qualified purchaser. View homes with you and provide comparative analysis. Refer you to home inspectors that will provide in-depth observations of properties, if you desire. Provide consultation in relation to your written offer to purchase a home, with all terms approved by you. Negotiate the best possible price and terms for you and take care of all the documentation details. Keep you fully informed about all activities leading to the transaction closing. Assist you, if necessary, in finding any home-related services you need.  In short, real estate professionals are the rock stars of the industry. The level of service, advice, expertise and peace of mind they provide is invaluable.  For further questions, we can be reached and consult with you free of charge. Alex Saldana C: (720)619-6149 E: alex@alexsaldanahomes.com