The home buying process can seem daunting. It is a multi-stage process that can take months. We have put together this guide to help you familiarize yourself with the process you are about to undertake. Please contact us should you have any questions or would rather a face-to-face explanation of how this process works. Also check out our Concierge Level Buyer's Package, a complimentary gift from us to you!
When you’re looking for a real estate professional to help you, know that above all else good agents put their clients first. The seller of the property you select has a real estate professional on their side, so should you.
The main roles your real estate agent will perform are:
The mortgage pre-approval process is one of the most crucial steps in the home buying process. In a market like today, where many homes are receiving multiple offers, you simply will not get your offer heard if you are not pre-approved.
Your lender will review your credit score and history, request documentation relating to your income and employment (and possibly other items), then offer a specific amount that is the maximum you may finance, as well as discuss various mortgage options with you.
This step arms you with the very important pre-approval letter from your lender to submit with the offer we make on your next home.
So you are pre-approved and ready to begin your search. But how or where do you begin? This is where the real estate agent you have selected can really come in to play. Most folks begin their search online, then have their agent bring them to properties they have seen. After a few houses you'll realize you've been hoodwinked by HGTV, you're not going to stumble into the perfect house after seeing just three houses every time – not without proper and professional preparation and research.
During, and before, our buyer's consultation we will ask a series of questions to get to know your needs, wants, and desires. It can sometimes feel tedious – but a well thought out and thorough buyer's consultation will arm your real estate agent with the knowledge of what fits you to help you FIND the perfect home, not endlessly SEARCH for your next home. We want to be the agency that helps you FIND the right home, not the one that just assists you in search.
Congratulations! So you’ve found a home you love. The next step is to make an offer. The three basic components of your purchase offer are price, terms, and contingencies.
After a thorough Comparative Market Analysis study, your agent will present to you a range of reasonable pricing for the property you've selected. Dependent upon the market, you may want to be aggressive in negotiations or you may want to make a “no regrets” offer. The decision is completely up to you, but your agent will be an invaluable resource in guiding you through the decision making process as well as being your voice at the negotiating table.
In a competitive market where multiple offers may be received on the property you've selected, often times the factors beyond price weigh in heavily (all offers will typically be comparable money-wise, and the seller can always select the best candidate and counter-offer for a bit more money). This is where we come in. We will put together a professional Buyer's Package uniquely created just for you. Chances are the competing offers will be relying on money to talk, we'll put together the right package so you can have a stronger voice than simply money alone.
There are multiple steps here and things can get very hectic. Your agent will be your calm steadying hand, experienced in guiding folks through this process and maintaining that all items are handled before specific contractual deadlines.
First things first, you're going to want to meet with your lender. They will ask for more documentation to validate information and solidifying the funding required for your loan. At this time they may also ask you to pay up-front costs of the loan including credit report or application fees.
Within a week of contract acceptance you will want to have an inspector review the property. Just because you love a particular property doesn’t mean that it’s perfect. A thorough inspection by a top-flight inspector is crucial so you know exactly what you are getting into before you sign closing papers. Your main concern should be major or costly repairs. It’s the inspector’s job to mark everything discovered, no matter how large or small, so remember don’t sweat the small stuff.. Things that are easily fixed can be overlooked. In case you have a big problem show up in your inspection report, you should bring in a specialist. And if the worst-case scenario turns out to be true, you might want to walk away from the purchase.
Here in Colorado you also want to remember to bring in a specialist to do a sewer scope as well as (possibly) a Radon test. You are responsible for the sewer line all the way to the public street – a sewer scope can uncover very costly repairs far down the line. Radon is, of course, quite common in Colorado so you want to ensure the home has proper exhaust for Radon or have a test done to ensure there is no build up.
Finally you will have an appraisal done on the property. The appraisal is primarily for your lender to protect the bank from over-lending on a property. The bank will send an appraiser out to review the property and you will be responsible for paying the bank the fees associated with this service.
You’ve made an offer that was accepted and performed due diligence, which means you’re now in the “home” stretch, pun intended. But you have a few preclosing responsibilities, and these include staying in control of your credit and finances, first and foremost. You will also need to keep in touch with your agent and lender and return all phone calls and paperwork promptly. The seller will begin the process of moving their stuff out, as well as completing any repairs agreed upon during the due diligence period. You should be reaching out to your insurance agent to acquire your homeowner's insurance as well as contacting the utility companies to make sure you're up and running the day you move into your new home.
With proper preparation and due diligence done, closing day should be a breeze. Typically you will be moving in to your new home within 72 hours of closing day, but the timeline will be discussed and stated in your contract well ahead of time – everyone's situation is unique and different. After closing, your real estate agent can still be a valuable resource. We focus on having the very best ancillary home services contractors within our sphere and can offer help with finding the right moving services, repairman, contractors, landscapers, you name it! Closing day can seem like the end of your relationship with your real estate agent, but it should really be just the beginning! Check out our Concierge Level Buyer's Package for the advantages our firm will gain you in your first year!