House Buying Process in Colorado Springs CO
Are you interested in buying a home? Or have you perhaps already decided to embark on the home buying process? Whatever the situation you’ve come to the right place to get the information to make the entire process easier.
Whatever your situation, there is a certain structure that you will need to follow when purchasing your house. Take a look at the following steps that are usually involved:
- Exploring your financial situation
When deciding to buy a house, you need to be very realistic about your total income and other outstanding debt payments. Experts say that you should limit your mortgage spending to less than 28% of your monthly income. Once you have calculated your disposable monthly income and determined the optimal size of your mortgage, the next step is to determine how much money you have saved for the down payment. At the beginning of the process, you will probably want to use a mortgage calculator to determine what you are able to afford, but the best option is to consult with a mortgage lender about your options.
- Finding a realtor
Once you have determined how much you are able to spend, the next step is to find a realtor who is knowledgeable about the targeted neighborhood as well as the property type you are looking to purchase. One of the best ways to find the best possible realtor for your specific needs is by asking family and friends for recommendations. If you do not have anyone in your immediate circle of friends who have recently purchased a property, the best option is to interview several realtors and choose the one that has the most experience and the most relevant expertise.
- Look for mortgage options
Once you have made a calculation of how much you will be able to afford, while you are searching for a realtor, the next step is to get quotes regarding potential interest rates and mortgage costs. Some lenders will offer much better options than others, allowing you to secure a better deal. Once you have found a suitable loan with conditions that are acceptable and affordable, make sure you get pre-approved. You can get pre-approved for a loan even before you find the home that you would like to buy. This pre-approval will require that you submit proof of income, a review of existing debt as well as a credit check. Once you find the property that you are looking for, you can file a loan application.
- Find the perfect home
In order to find the best home at a good price, you should consult your new realtor on things like market trends, the conditions of the property and the like. At this stage, it is important to be open about your expectations with your realtor and to be upfront about the essential home features you require. Make sure you keep in mind your financial circumstances throughout the entire process.
The Home Buying Process Made Easy
Unfortunately, the home buying process does not end once you have found the perfect home. There are a number of administrative steps to be taken once you have chosen a property and made an offer. Take a look at some of the essential steps that follow:
- Attorney review
Once you and the seller have come to a verbal agreement, the next step is to draw up a contract. A common step in this process is for either the buyer or seller to have an attorney review the contract before it is finalized.
- Purchasing home insurance
Homeowner’s insurance is very important as it will serve to protect you throughout your time living in your home. Whether it’s theft or a fire, you need to make sure you and your home are well protected. Purchasing the right insurance is very important, so make sure you shop around.
- Arranging a home inspection
Once you have signed the contract, it might be a good idea to pay for a home inspection which will allow you to identify any defects or problems with your new home. Make sure the contract gives you several days after you have purchased the property to identify major defects.
House Buying Process With the Help of Buy Sell Impact
If you are interested in receiving additional advice in relation to your home buying process, feel free to contact us at Buy Sell Impact for more information. We are happy to offer a free consultation, so do not hesitate to get in touch with us today at 719-345-2300!
Frequently Asked Questions[su_accordion] [su_spoiler title=”Where Do I Start?” style=”fancy”]With a quick get-together with one of our brokers who’ll listen to your plans and interests. We want to know your vision of the perfect home – whether it be a single family home, townhome, patio home condo, land, or farm and ranch. We’ll talk some rough numbers, timing and give you a quick update of the local market.[/su_spoiler] [su_spoiler title=”What If I’m Not in the Area?” style=”fancy”]We can help you find the Pikes Peak area property of your dreams, no matter where you are located! We’ll set up a MLS search, chat with you regularly – whether that is by phone, email or text, and can preview homes on your behalf.[/su_spoiler] [su_spoiler title=”How Long Does It Take?” style=”fancy”]Our schedule is your schedule. Some of our clients have found homes they love in a day or two. Others take a longer time. Our objective, always, is to help you find the property of your dreams. No matter how long it takes![/su_spoiler] [su_spoiler title=”Who Does The Real Estate Agent Work For?” style=”fancy”]
In the past, most real estate agents worked for the seller. Today, Colorado has a wider variety of brokerage relationships.
Seller’s Agent: A seller’s agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The seller s agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.
Buyer’s Agent: A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer s agent must disclose to potential sellers all adverse material facts actually known by the buyer s agent including the buyer s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
Transaction-Broker: A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.
Customer: A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.[/su_spoiler] [su_spoiler title=”What Happens When I Find the Right Property?” style=”fancy”]We will prepare, submit and negotiate your offer! We use approved Colorado Real Estate Commission forms with modifications or additional provisions tailored for you and your situation.[/su_spoiler] [su_spoiler title=”What About Earnest Money?” style=”fancy”]Earnest money is funds you’ll present with your offer, as a promise of good-faith to the seller. In our area, earnest money is often an amount near 1% of the purchase price, but each property can be different. These funds will be deposited upon acceptance of your offer and will be held by a local title company until the closing, when they will be used as part of your purchase finds. In the event you must cancel your contract prior to closing, there are many reasons you’ll be able to get a refund of your earnest money. Work closely with your real estate agent to insure the ability to have your earnest money returned to you in the event of a cancellation.[/su_spoiler] [su_spoiler title=”When Can We Close?” style=”fancy”]Once the seller accepts your offer, you can expect the closing to take place within 30-60 days, depending on your due diligence requirements and financing.[/su_spoiler] [su_spoiler title=”Is the Price Negotiable?” style=”fancy”]Of course, but if the seller rejects your offer, don’t be discouraged—we will help you figure out the next step to take, whether to pursue the original property or to move on. Our market is much more of a seller’s market than in previous years. A well priced property is likely to have multiple offers and some offers may be over the asking price. Be prepared to compete for the property of your dreams![/su_spoiler] [su_spoiler title=”How Do I Get The Best Price?” style=”fancy”]Make offers as clean as possible, with minimal contingencies. Look for diamonds in the rough. Many buyers can’t visualize the potential in a home, but if you can, that’s an opportunity for you!. If you want to finance your purchase, get pre-qualified with a local lender and submit that approval with your offer.[/su_spoiler] [su_spoiler title=”How Do I Arrange Financing?” style=”fancy”]Using a local lender is your best bet to securing your financing in a timely manner with the least stress possible. Contact us for a list of great local lenders.[/su_spoiler] [su_spoiler title=”What Else Will You Do for Me?” style=”fancy”]Besides helping you search for and find your dream home? We handle the big picture and numerous little details to make it yours:
• Work with you to order the appropriate inspections
• Work with your lender and the appraiser to make sure your loan is ready to go for an on-time closing
• Work with the title company on dozens of closing details and the preparation of your final settlement statements
And after closing, we’ll don’t disappear. We want to be your primary source of real estate information and assistance.[/su_spoiler] [su_spoiler title=”When Can We Start?” style=”fancy”]How about now? We are ready to go when you are. Contact us today to get started![/su_spoiler] [/su_accordion]