Advice for Buyers
Do home buyers consider mortgage interest rate increases a barrier to homeownership?
Less than 15% of Americans believe that rising mortgage interest rates will keep them from becoming homeowners. Source: Fourth Annual National Housing Opportunity Pulse, a survey released today by the National Association of Realtors®.
Why buy when I can rent?
Purchasing a home is an investment that will continue to work for you long after the boxes are unpacked. In addition to equity, appreciation and tax savings, homeowners establish strong communities and stable living environments.
Do I need a Realtor® to perform a Comparative Market Analysis (CMA)?
Yes. In addition to analyzing county assessor data, your Realtor® will personally visit the property and provide a comprehensive property analysis including property condition, improvements, cleanliness, neighborhood location and future plans to determine the best options for you.
Do I need a Realtor® when purchasing a new construction home?
A Realtor® is unbiased towards areas and builders and will protect your interests while a sales associate will protect the developer’s goals. Plus, a Realtor® will prepare an independent CMA, handle contract details, recommend key upgrades for resale value and coordinate an independent inspection, and best of all, negotiate the best price for you.
Should I use my own Realtor® when buying a home, or go directly through the Listing Agent?
A buyer’s agent will protect your interests; a listing agent will protect the seller’s interests. Similar to new home construction purchase, a buyer’s agent will prepare an independent CMA, handle contract details, recommend key upgrades for resale value and coordinate an independent inspection, and best of all, negotiate the best price for you.
Do I need a down-payment to purchase a home?
This is wide-open. You need to be comfortable with your budget and investment program. New lending products allow home buyers more flexibility in obtaining mortgage home loans. We encourage you to discuss your options with a reputable lender.
What is the “home buying process”?
Once you and your Mortgage Lender have determined an investment budget and your Preferred Realtor® finds the right home for you, a series of steps are taken to make it yours:
- Check out all the Disclosures
- Determine the best offer based on price, terms, and dates.
- Schedule Dates and Contingency Deadlines
- Accompany the offer shall be a lender pre-qualification or pre-approval letter and an earnest money deposit.
- Once the offer is accepted, all parties must adhere to the contract stipulations including title, inspection issues, survey, appraisal, loan commitment, and finally transfer of deed, (The Closing).
What can title work reveal?
The title company provides insurance over the parties involved in the transaction, any boundary disputes, and guarantees all prior liens to be paid at time the new buyer obtains the property. Title work also reveals property inclusions, for example, mineral and/or water rights, covenants, conditions, restrictions, etc.
Is a home inspection necessary?
A home inspection provides an opportunity for future homeowners to obtain vital information about the home so they can maintain their investment, assess any problem areas, and respond to Health and Safety issues. Buyers then have the option to negotiate with the sellers to correct disclosed issues; or in a worst-case scenario, withdraw from the contract with full refund of earnest dollars if a resolution cannot be met. Ask your Realtor® for more information.
Is my earnest money safe?
Earnest money secures a serious offer when purchasing real estate. Should a property contract end legally prior to closing, buyers are entitled to retrieve their earnest money. Make sure earnest money is kept in a Colorado Real Estate Commission approved escrow account. (Title companies and Builder accounts can not guarantee this.)
What is an appraisal?
A valuation of the property by either the comparative market approach or the cost replacement approach. Should you require a mortgage loan, your lender will require an appraisal of the property to make sure that it meets or exceeds the purchase price and fulfills the loan requirements.
How are Closing Costs determined?
Initially, your lender must provide a Good Faith Estimate of closing costs, fees and estimated mortgage payment. During the process, the Title Company and your Realtor will work with the lender to provide you a Settlement Statement which outlines an accurate accounting of the total of Closing Costs prior to closing.
