05.16.08
The Steps in Purchasing Colorado Springs Real Estate
I created a simple chart for the home buying process. There’s a fairly logical order to a purchase transaction when you’re interested in buying Colorado Springs real estate. The first step (and one that cannot be skipped) is getting prequalified by a lender. During this process, you will take a few minutes to share some information about your debt, your income, your credit score, your employment and payment history, etc. During this process, a good lender will counsel you as to any necessary changes required to consummate the purchase. They will also let you know the available loan types and the loan amount they have prequalified you for. Before we look at a single property, this must be done to identify the correct search criteria.
Once we have this valuable information, I’ll ask you to complete a Buyer Wishlist. This will let me know how to begin the hunt for the right house for you. Once the list is narrowed (incorporating your ‘needs’ and, if possible, your ‘wants’) we’ll go and see some of the properties in person.
Once we’ve found the right Colorado Springs CO real estate, we have to write up a formal offer. Anything delivered verbally has no guarantees. This is why we have a ten page contract, an addendum and multiple disclosures…to protect you! When we have a formal offer (with all signatures) it is time to deliver it to the Seller. At this point, an Earnest Money check should accompany the offer along with the pre-approval letter from your lender.
Once we have negotiated a deal with the other party, we can begin our due diligence period. We’ll start with a home inspection and continue by collecting Common Interest Community Documents (Covenants,Bylaws, and more), collecting a Title Commitment, etc. It’s during this time that we are going to try to learn as much as we can about the house, the other party, the neighborhood and more.
At this point in the transaction, a good Lender is really working hard for you. They are gathering necessary documents, researching other scenerios that might work better for you or for the property. If you’d like a list of qualified, experienced Lenders, contact me. Once we have loan approval, it’s time for settlement.
The time of settlement is sometimes referred to as the “closing”. Most of the time we try to get all parties together around the same table. This gives the Seller a chance to meet you face-to-face and to give you the keys. Your lender should be present should there be any last-minute issues with funding the loan. Colorado is what is called a “Good Funds” state which means the loan must be completed (or cash must be delivered) before the transaction can be completed. You should have your final figures 24 hours prior to closing. This allows you to be prepared for the closing in case you need to bring money or something.
Once settlement is done, you should have a set of keys to your new home…congratulations! The process isn’t difficult with an experienced Realtor on your side. If you are ready to get started, give me a call or request a free home buyer packet.
