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A Map of the Home Buying Process
Colorado Springs CO Real Estate
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Prequalifying to Buy a Home in Colorado Springs Interview Questions to Ask a Realtor Looking for Real Estate in Colorado Springs Delivering Your Offer with Earnest Money Congratulations - Offer Acceptance The Importance of Having Your Home Inspected What is a Title Commitment A Look at the Lender's Role What it Means When the Loan Has Been Underwritten The Importance of Final Loan Approval The Day of Settlement and Closing Time to Start Moving








Prequalified vs. Preapproved
 When you are prequalified, it means that a lender could POTENTIALLY give you a loan for the stated amount, assuming that all of the information you gave them was accurate and true. If you are preapproved, it means that you have undergone a more extensive financial background check and the lender is willing to give you a loan for Colorado Springs CO real estate. Preapproval is usually valid for about 60 days. Most sellers prefer buyers that have been preapproved because there is a much smaller chance that loan commitment will fall through for the buyer.

Get Prequalified Online
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Tips For Interviewing a Realtor
 Whether you're buying or selling a home, ask your REALTOR:

  • Can you explain in detail the process from contract to closing?

  • Specifically describe how you will represent my interests above yours throughout the process?

  • What is the process you use to negotiate on my behalf?

  • What is your real estate background and experience? How will it help me?

  • Are you a REALTOR? What continuing education have you committed to, and how will that education benefit me?

  • Do you work in real estate full-time? How accessible are you? How can I reach you?

  • For which aspects of the home buying process are you available? If you are unavailable, will someone else be available

    to work in your place? (presenting offers, inspections, closings, etc.)
  • How will you assure that deadlines are meticulously met?

    Planning to buy a home?

  • Tell me in detail the type of information you can gather for me about a home listed for sale that may be of interest to me. (i.e., comparable sales, resales, disclosures, etc.)

  • What type of assistance do you provide in finding a mortgage lender?

  • Do you have any financial affiliations with mortgage lenders, and is that a conflict of interest?

  • What role do you play in the mortgage lending, title, and closing processes?

  • How will you assist me in the inspection process?

  • How can you assist me in dealing with a "for sale by owner?"

  • What are the on-going services you provide after closing?

    Planning to sell a home?

  • Tell me in detail how you plan to market my property.

  • What responsibilities do I have as the seller of Colorado Springs CO real estate?

  • How long does this process usually take?

  • How do you determine if buyers are qualified and will make it through closing?

  • Describe how you will help me in properly presenting my home for sale.

  • What is you role in pricing, showing, and taking offers on my home?

  • How frequently and in what way will you contact me with feedback on those who have expressed interest in or viewed my home?

    To Schedule an Interview, Contact Angela Byrne
    (719)494-2777 or angela@springsliving.com

    Download a Printable Version of These Questions

    Why Use a Realtor?

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    Looking for the Right Colorado Springs CO real estate
     Once we've gotten a clear picture (from the lender) about purchase power and preferred loan products, we can begin looking for a home. The first time we go out will be a trial period. We'll utilize your initial criteria and see homes that match your interests. Once we are able to see some of these homes, you may want to adjust your criteria a bit to focus on a specific area, or a different type of home (two-story vs ranch home...or whatever). Sometimes it's hard to know what will be a good fit for your family until we are out seeing some places in person. If we know after a few homes that the initial criteria needs to be modified, then we can stop, regroup, and change our schedule up a bit. This ensures that we are not wasting valuable time looking at homes that are not a good fit.

    Search All Homes

    Complete a Buyer Wishlist

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    Delivering Your Offer and Earnest Money
     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 a pre-approval letter from your lender. What is Earnest Money?

    Earnest Money is a good faith deposit that shows the seller that you are serious about your offer. The amount is determined by the seller and/or the listing agent, but is usually around one percent of the listing price. It is important to remember that the Earnest Money is negotiable, so if you don't have it at this point, don't get discouraged! There are ways around it.

    Your Earnest Money is not just "given" to the Seller. If you are not in default of the contract, but need to terminate the transaction, you should be able to get your Earnest Money back. If you proceed to closing, your Earnest Money can be applied to the purchase price of your home, your closing costs, or (in some cases) it can even be returned to you at closing.

    If you work with me to purchase your home, I will always let you know if a decision you make could affect your Earnest Money. There are many dates and deadlines to observe, so make sure your money is always protected.

    Curious About the Earnest Money Amount on a Property?Contact Me to Find Out

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    Contract Acceptance
     There are three things that a Seller can do when they receive your offer.

    1 - They can submit a CounterProposal to your offer with new terms.

    2 - They can accept the offer as it is and return the contract with signatures.

    3 - They can ignore the offer and allow the response deadline to expire.

    Number three doesn't happen very often, but when it does, it's usually because the Buyer has submitted an offer with one or more conditions that are offensive to the Seller. Before we even write an offer together, I will give you a good idea of the terms and conditions that would (most likely) be attractive to the other party. Based on my research and experience, you should be able to make an educated decision about the offer terms. This means you are able to walk away with two very important things...the terms/conditions that are acceptable to you...and the HOUSE!

    When the negotiations for the initial offer are completed, we move on to the other steps of the Colorado Springs CO real estate process.

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    The Importance of a Professional Home Inspection
     A professional home inspection is an invaluable stage of the home buying process. Most would agree that the fee for the inspection is money well spent. Not only does it provide the Buyer with a much more thorough understanding of the home they are purchasing, but it also helps the Seller provide more accurate disclosure information. The home inspection can provide peace of mind and gives all parties a better understanding of the value of the home.

    A typical home inspection will review (in detail) hundreds of items in the span of approximately one to three hours. Often an inspector will look at the heating and central air conditioning systems, interior plumbing, electrical systems, the roof, attic, visible insulation, walls, ceilings, floors, windows, foundations, and basements. A professional inspector should be armed with all the necessary equipment, including an expandable ladder, volt meter, amp probe, moisture meter and even boots and binoculars, when necessary. After the inspection, the Buyers should have a very good idea of what is in good working order, what needs immediate repair/replacement, and what will need attention over the next few years.

    Sometimes a Seller will have an inspection done before the listing and marketing period. This helps them to uncover any potential surprises and allows them to educate any interested parties.

    Here are some basic guidelines to follow:
  • Choose someone from the RE/MAX Properties, Inc. Home Inspector list (I will share this list with you upon offer acceptance). These inspectors are ASHI certified and they have Errors and Omissions insurance, which provides added protection for you.

  • Verify that the firm you contact is "full service" and that they have no interest in the sale of the house or any involvement with anyone who does.
  • Inquire about what the inspector will do and how much it will cost.

  • Be sure you understand what is not included.

  • Be sure you schedule the inspection on time (and let me know when it is scheduled so I can make plans to attend with you). I will provide you with the necessary deadlines ahead of time.

    If for some reason you decide not to have a home inspection, you will be required to sign a "Waiver of Property Inspection". Of course, a professional home inspection is the way to go...the value they bring to the table is immeasurable.

    Here are a few questions that you may want to ask when interviewing a home inspector.

  • What are your qualifications?

  • Are you a member of the American Society of Home Inspectors or National Associaton of Home Inspectors?

  • Do you have Errors & Omissions Insurance?

  • How many inspections of properties such as this do you do each year?

  • Do you have a list of past clients I can contact?

  • Do you provide any guarantees of your work?

  • What specifically will the inspection cover?

  • What type of report will I receive after the inspection?

  • How long will the inspection take and how long will it take to receive the report?

  • How much will the inspection cost?

  • Will you be available after the inspection to answer any questions that might come up?

    Brick and Mortar Home Inspections

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    What is a Title Commitment?
     Title Insurance protects your Colorado Springs CO real estate ownership against possible title problems that can hinder the transfer of your real property or make it unmarketable. A policy of title insurance is issued in real estate transactions in Colorado. Unlike casualty insurance which protects against future acts, title insurance protects against loss or damage resulting from defects that may have occurred in the past. The process begins with the title insurance company providing a search and examination of the public records to determine and disclose the current facts relating to the ownership of a piece of real estate, such as:

  • Who currently owns the property;
  • Any liens or encumbrances against the property or its owner;
  • Easements and/or restrictions;
  • Other recorded interests. With this information, the buyer, seller, real estate agent, attorney, lender, and settlement agent can work toward closing the transaction. When these searches have been completed, a commitment to insure is issued stating the conditions under which title will be insured. The closing of the transaction may proceed after clearing up any defects in the title which may have been uncovered by the search and examination. The mortgage lender is concerned about the quality of the title, because the property is to be security for the new mortgage loan. The mortgage lender requires assurance that it has a valid first (or another acceptable priority) mortgage lien on the property. The lender's title insurance, however, doesn't protect the new buyer of the property. Although the land is the same, the interest of the buyer and the interest of the lender are not. The provisions of a lender's title insurance policy are different from those of a buyer's policy, so the buyer should obtain his own policy.

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    Lender Activities
     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. Remember, lenders in Colorado are not licensed. I hear about shady lenders on a weekly basis, so be sure to take a look at one that comes highly recommended.

    Be sure to have some good questions on hand when you plan to interview lenders. Here are a few for you:

  • What are the most popular mortgage loans you make? Why?

  • Which type of mortgage plan do you think would best for us? Why?

  • Are your rates, terms, fees, and closing costs negotiable?

  • Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required? NOTE: **Private mortgage insurance** (link to mort. ins. question in FAQ section) is usually required if you make less than a twenty percent downpayment, but most lenders will let you discontinue the policy when you've acquired a certain amount of equity by paying down the loan.

  • Who will service the loan? Your bank or another company?

  • How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?

  • How long will the loan approval process take?

  • How long will it take to close the loan?

  • Do any of your products have charges or penalties for prepaying them?

  • Are we eligible for any Downpayment assistance?

    (links to Contact a Lender form) right now to get the answers you are looking for.

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    Underwriting
     Underwriting is basically the process of evaluating a loan application to determine the risk involved for the lender. At this point in the process, the Lender may request more supporting documentation if it is needed. If you are in the process of packing, be sure to keep all of your personal information (like pay stubs, tax returns, etc.) in a safe spot. If they are misplaced, they could delay the processing of the loan.

    Get Prequalified Online

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    Loan Approval
     Congratulations are in order when you get to this stage of the transaction! The Lender has sent your application with all supporting documentation through underwriting and they are ready to fund the loan for your Colorado Springs CO real estate. This means you are one BIG step closer to the closing table. If there is a delay in final loan approval, we have to extend deadlines to keep your Earnest Money safe.

    If you have any questions about underwriting, contact me and I'll get right back to you.

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    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.

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    Possession
     Today is the day! All went well and you are ready to move into your new home! Working with my team of professionals should get us to this point with no hiccups. I love to see smiles the day of possession, so I work hard from day one to make things fun and easy!

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