What you need to Know Now about the Home Buying Process is The Denver Area
by Brian Burke
on Thursday, October 15th, 2015 at 7:08pm.
What Every Denver Home Buyer Needs To Know About The Colorado Home Buying Process
Define your Denver Area property criteria – price, location, price, location, property features, schools, loan type, etc)
Find agent to locate Denver Area properties matching your criteria
Secure a lender letter (LL) or proof of funds (POF) – start the loan application process
Ability to access a computer – all docs must be electronically signed. Time is of the essence.
Sign Buyer Agency Agreement(s)
Review with agent (definition of working relationship, agency agreement, etc)
Engagement Rules (find you a home for a success fee during a specific time frame)
Agent Shows you homes – look at each home…take photos….make notes on property sheet.
Decide which, if any, property(s) you want to make an offer on.
Offer (CBS)– on homes you really like – Contract to Buy/Sell Real Estate; my job to write an offer that will be accepted
Quick response – this market
Deadlines – 1st one is the earnest money, seller’s disclosure, title work, inspection, appraisal, loan, closing and possession (not a complete list of possible deadlines)
Contract to Amend/Extend – if necessary any deadline needs to be adjusted into the future.
Seller Concessions – ask seller to pay for closing costs, etc…not a buyer’s market in Denver Area…less likely offer will be accepted
Counteroffer – if necessary
Accepted Loan underwriting starts – lender in the loop as soon as the offer (CBS) is accepted
Earnest Monies – liquid and readily available funds…if not get them readily available….your commitment to the seller you are serious about buying the house. Each Seller establishes what they want in earnest from buyer (2-20K). Personal check or Certified check generally acceptable
Inspection – approx. $300 - $500 /house – (identifies issues) you need to be present
Sewer Scope – approx. $125 – no need to be present – you will get the video
Your duties to get the loan…check in with your lender weekly…stay on top of process
Your duties to shop for property insurance – homeowners policy (check w/ car insurance and bundle)
Closing Costs – per transaction (different for buyer and seller, title company, appraisal, prorated water, sewer and property taxes, notary fees, etc…). Seller pays for the real estate brokerage success fee.
May need to take 1-2 days off from work during the entire process
Ways out of the contract…inspection, appraisal, loan, title issues
No job changes (new job, no decrease in pay and/or hours, lost job)
No big purchases during this time (CC or new loans)
No leaving (vacations, extended days away) – available during the entire contract period
Need to be available for inspection -will be completed within 1 week of CBS acceptance.
Inspection report – list the property safety issues and high $$ repair/replace items –
Inspection Objection – list of issues to be repaired/replaced. Top 5 list. Not all items in the inspection report will we ask seller to repair/replace. One chance to get big issues fixed. No low ticket items these will be a Homeowner To-Do list
Inspection Resolution – what the seller will repair/replace – mutual agreement
Appraisal – bank will request; buyer pays for (validate the sale price for the bank is appropriate)
Loan Objection (if buyer does not like any part of the loan being offered by the lender
Walk Through New Home (day before closing – validate all mutually agreed upon items in the Inspection resolution have been addressed)
View homes with current updated information including Foreclosures on your Phone or IPad
Brian Burke | Broker | ePRO | Expert | 303.955.4220 Office | 303.710.2609 Direct | Brian@kennarealestate.com