Residential Listings
Buyer Representation
REO Listing / BPOs
Short Sales
New Homes
Buyer Representation
REO Listing / BPOs
Short Sales
New Homes
Est. 1968
EXPERIENCE
DOES COUNT!
EXPERIENCE
DOES COUNT!
The Home Buying Process
Whether you’re a first time buyer, a repeat buyer, or a buyer coming from out-of-state, the more you know about the home buying process, the better. Out-of-state buyers might be surprised to learn those real estate transactions, and the laws that govern them, can vary significantly from state-to-state.
Several steps make up the home buying process, they include:
Determining Your Needs.
Finding A REALTOR.
Obtaining Financing.
Finding the Right Home.
Closing the Transaction.
Taking Possession.
Determining Your Needs. - Make a written list of your priorities, after consulting with family members, and share a copy with your Realtor. Consider area, schools, neighborhood amenities, preferred floor plans, commuting distance to work, price range, potential resale value, and special needs you might have (like nearby daycare or a home with wheelchair access). Newly constructed homes, previously owned homes, or fixer-upper properties each offer their own set of benefits, so think about what makes the most sense for you. Once you have a basic idea of what you will be looking for, its time to do two things:
Finding A REALTOR® and begin a careful financial analysis of what price home you can afford. Try our Mortgage Calculator for a quick estimate of monthly payments for any loan amount.
Obtaining Financing - Most people need a mortgage in order to purchase a home. While many financing options are available, these are the most common:
FHA Loans - Insured by the Federal Housing Administration, FHA loans are popular because of the lower down payment required. They exist to help finance low to average-priced homes. The maximum loan amount varies by county. In addition to principle, interest, tax, and insurance, FHA loans require a payment of a monthly Mortgage Insurance Premium (MIP) of .5% of the loan balance.
VA Loans - Guaranteed by the Veterans Administration, VA loans are available to buyers with VA eligibility and typically require no down payment, though closing costs and fees must be paid at the time of closing. Most new homes and many resale homes may be financed under the VA-guaranteed loan method.
Conventional Loans - Almost any home can be financed with a new conventional loan. Normally, twenty percent of the purchase price is required as a down payment, but this can vary with special circumstances.
Other Considerations:
Fixed Rate Mortgages - These are mortgages where the monthly payment amount remains fixed over the life of the loan. Many buyers choose fixed rate loans because they like the security of knowing their payments will not increase over time.
Adjustable Rate Mortgages - "ARMS" are popular because they enable buyers to qualify for a more expensive home than they would otherwise. Buyers qualify based on a lower rate at the beginning of the mortgage period, which then adjusts over time in accordance with a specific formula. Buyers take the risk that payments could rise over the life of the loan -- sometimes substantially. Many ARMS are tied to specific a national economic index, however, which means a possibility of payments adjusting downward as well as upward.
Mortgage Loan Term - This refers to the number of years allowed for repayment of the mortgage. A longer mortgage term (such as the typical 30 year loan) allows for lower payments, but the mortgagee pays a great deal more interest over the life of the loan. 15-year loans have become popular over the years because buyers know they'll build equity faster and end up paying far less for their home. However, the higher monthly payments mean they buy a less expensive home than they could qualify for with a 30-year loan. Buyers have to decide which option works best for them. Lenders may also offer loans that have 10 and 20-year repayment periods.
Mortgage Pre-Qualification - Buyers are well-advised to go through the "Pre-Qualification" process with mortgage lender prior to their home search. This will give you an accurate idea of the mortgage amount you can qualify for, which determines how expensive a home you can buy. The mortgage company will issue you a "pre-qualification letter" stating the maximum mortgage amount they would lend. This document is useful to have before you enter into the negotiating stages for any property -- especially in a strong market where multiple offer situations can occur. Sellers will give greater consideration to your offer if they know you are financially able to complete the transaction. Many lenders offer a quick and easy pre-qualification process. We recommend Michael Bowen and Bank of America Home Loans, who offers pre-qualification at no cost or obligation. Call Michael at 720-529-6302 for more information.
Mortgage Application Process - The mortgage application process can take place before or after you've entered into a contract to purchase a home. In a strong real estate market, getting mortgage PRE-APPROVAL is a good idea. It removes any question as to whether you will be able to obtain financing and complete a purchase transaction. Whether you go through the loan application process before or after signing a sales contract on a home, the lender will need certain documentation from you to assemble a loan package for consideration by the underwriting department.
These are the items you'll need to furnish your lender:
· Fully executed sales contract (unless getting Pre-Approval)
· Driver's license(s) and social security number(s)
· Addresses for past 2 years residences
· Names, addresses and phone numbers for all employers for the past 2 years
· Self employed applicants must provide: 2 years tax returns (business and personal, all schedules and K-1's) and current year income statement and balance sheet.
· Commissioned applicants: 2 years tax returns and current paystub reflecting year-to-date earnings and expenses.
· Names addresses and account numbers for all depository accounts for checking, savings, brokerage accounts, etc. Provide balances as well as copies of the most recent statements.
· Copy of complete separation agreement and/or divorce decree, if applicable.
· Copy of lease(s) on rental property.
· W-2 for previous 2 years and/or 1099(s) if applicable.
· Most recent paystub(s)
· A check to pay for a credit report
· Bankruptcy filing and discharge papers.
· Lender name, address and loan number for any properties owned during the past five years.
· Evidence of satisfaction of any judgments or collections of public record.
Start gathering this paperwork together once you've made a serious decision to start house hunting. If you need replacement copies of any of the above, you'll have time to request and receive them.
Finding the Right Home - You've written out your list of priorities, and selected a REALTOR®, (hopefully Danyliw and Associates!) What comes next? As your REALTOR®, I'll get busy searching for homes that meet your specifications. Our knowledge of area re-sale and builder inventory will help us narrow your search to the areas and properties that best fit your needs.
Viewing Properties: We'll probably tour a number of properties each time we go out and it's a very good idea to take notes on each one. Don't be disappointed if you don't find your dream home the first time out. It's an important decision and you want to view enough properties to feel certain of what constitutes good value in your price range. We can help you in this area as well, as I have a veteran’s view of the real estate market. Also, let me know if you see "For-Sale-By-Owner" homes that interest you, and I'll inquire on your behalf.
Negotiating A Purchase: Once you've found the house you'd like to buy, I'll draft an offer to purchase for you. We'll go over the contract form in detail, talk about the purchase price you'd like to offer, the amount of earnest money that's appropriate, and the various contract dates, deadlines, options and obligations. When we're done, I'll present your offer and earnest money deposit to the listing agent of the property. This is where the negotiation process starts. It's possible the sellers will accept your contract as is, but they may also reject or counter it. Then you must decide whether to negotiate further for the house or look for an alternative property.
Once Your Offer Has Been Accepted: there's still much to be done. Two very important things that will happen before your closing can take place are the inspection and the appraisal.
The inspection clause of Colorado's residential real estate contract allows the buyer one opportunity to thoroughly inspect the property. Most buyers wisely hire an inspection professional to help them evaluate the property and its components. If you find problems of a significant nature, you can decide not to purchase the house or you can ask the seller to remedy any or all of the problems you've found. Then the ball is back in the seller's court. They can refuse to remedy the problem(s), in which case the contract becomes null and void, they can agree to fix everything you've asked for, or they can negotiate further with you about specific items. If an inspection proves dissatisfactory to you, or negotiations over the inspection cannot be resolved to the satisfaction of both parties, the contract becomes null and void and you receive your earnest money back.
The appraisal is another evaluation of the property, this time to assure the mortgage lender that the value of the property justifies the amount they are willing to lend. Usually the appraisal supports the purchase price, but if it doesn't more negotiations ensue or the buyer would have the option of finding another suitable property.
Closing The Transaction - As your real estate agent, I will coordinate with the parties involved in your transaction, including appraisers, inspectors, surveyors, mortgage and title company representatives. As the time for the closing draws near, I will coordinate a date, time, and be in touch with the title company closer as final documents are prepared. Settlement statements, which show a final monetary accounting of the transaction, are generally available the day before closing. We will review them thoroughly prior to closing. If your contract specified a final walk-through, I'll set an appointment for that. A walk-through enables the buyer to confirm that the home is in the same condition as when the contract was accepted, that repairs stipulated in the contract have been completed, and that items listed as inclusions are indeed still on the property.
Unless it's a cash transaction, the real estate closing generally consists of two parts: the loan closing and the real estate closing. Both may be handled by a representative of your title insurance company, or in some cases are representative of your mortgage company may handle the loan closing. The documents will be explained to you and signatures obtained from the necessary parties. These documents will include:
·Closing (Settlement) Statements
·Tax Agreement
·Water and Sewer Agreement
·Deed
·HUD Settlement Statement
·Truth in Lending Disclosure
·Deed of Trust (and riders)
·Final Lien Affidavit
You'll need to bring a few things to the closing table as well. These include:
·A cashier's check or other good funds (see Glossary of Terms)
·A picture I.D., such as a valid driver's license
·Your homeowner's insurance policy
·A duly executed Power of Attorney for any parties involved in the transaction who are not present and for whom you will sign.
Possession of the Property:
You'll usually receive your keys and garage door opener controls at closing. The time and date of your actual possession of the property takes place as dictated by the contract you signed. Often time’s possession occurs on closing date, but sometimes there is a few days wait while the previous owner vacates the premises. Both parties must honor the agreement made in the contract regarding possession.
Celebration!
Hey, you've just bought a new house, a momentous occasion for most people. It's time to celebrate the beginning of a new chapter in your life. Before you do -- take a moment to put your closing papers in a safe place. These are important documents that you will need in the future, so be sure to retain them. You're going to call us when you're ready to sell.
Remember to call us as the first step in your new home search. Ask about his unique money-saving listing program on your existing home.
Several steps make up the home buying process, they include:
Determining Your Needs.
Finding A REALTOR.
Obtaining Financing.
Finding the Right Home.
Closing the Transaction.
Taking Possession.
Determining Your Needs. - Make a written list of your priorities, after consulting with family members, and share a copy with your Realtor. Consider area, schools, neighborhood amenities, preferred floor plans, commuting distance to work, price range, potential resale value, and special needs you might have (like nearby daycare or a home with wheelchair access). Newly constructed homes, previously owned homes, or fixer-upper properties each offer their own set of benefits, so think about what makes the most sense for you. Once you have a basic idea of what you will be looking for, its time to do two things:
Finding A REALTOR® and begin a careful financial analysis of what price home you can afford. Try our Mortgage Calculator for a quick estimate of monthly payments for any loan amount.
Obtaining Financing - Most people need a mortgage in order to purchase a home. While many financing options are available, these are the most common:
FHA Loans - Insured by the Federal Housing Administration, FHA loans are popular because of the lower down payment required. They exist to help finance low to average-priced homes. The maximum loan amount varies by county. In addition to principle, interest, tax, and insurance, FHA loans require a payment of a monthly Mortgage Insurance Premium (MIP) of .5% of the loan balance.
VA Loans - Guaranteed by the Veterans Administration, VA loans are available to buyers with VA eligibility and typically require no down payment, though closing costs and fees must be paid at the time of closing. Most new homes and many resale homes may be financed under the VA-guaranteed loan method.
Conventional Loans - Almost any home can be financed with a new conventional loan. Normally, twenty percent of the purchase price is required as a down payment, but this can vary with special circumstances.
Other Considerations:
Fixed Rate Mortgages - These are mortgages where the monthly payment amount remains fixed over the life of the loan. Many buyers choose fixed rate loans because they like the security of knowing their payments will not increase over time.
Adjustable Rate Mortgages - "ARMS" are popular because they enable buyers to qualify for a more expensive home than they would otherwise. Buyers qualify based on a lower rate at the beginning of the mortgage period, which then adjusts over time in accordance with a specific formula. Buyers take the risk that payments could rise over the life of the loan -- sometimes substantially. Many ARMS are tied to specific a national economic index, however, which means a possibility of payments adjusting downward as well as upward.
Mortgage Loan Term - This refers to the number of years allowed for repayment of the mortgage. A longer mortgage term (such as the typical 30 year loan) allows for lower payments, but the mortgagee pays a great deal more interest over the life of the loan. 15-year loans have become popular over the years because buyers know they'll build equity faster and end up paying far less for their home. However, the higher monthly payments mean they buy a less expensive home than they could qualify for with a 30-year loan. Buyers have to decide which option works best for them. Lenders may also offer loans that have 10 and 20-year repayment periods.
Mortgage Pre-Qualification - Buyers are well-advised to go through the "Pre-Qualification" process with mortgage lender prior to their home search. This will give you an accurate idea of the mortgage amount you can qualify for, which determines how expensive a home you can buy. The mortgage company will issue you a "pre-qualification letter" stating the maximum mortgage amount they would lend. This document is useful to have before you enter into the negotiating stages for any property -- especially in a strong market where multiple offer situations can occur. Sellers will give greater consideration to your offer if they know you are financially able to complete the transaction. Many lenders offer a quick and easy pre-qualification process. We recommend Michael Bowen and Bank of America Home Loans, who offers pre-qualification at no cost or obligation. Call Michael at 720-529-6302 for more information.
Mortgage Application Process - The mortgage application process can take place before or after you've entered into a contract to purchase a home. In a strong real estate market, getting mortgage PRE-APPROVAL is a good idea. It removes any question as to whether you will be able to obtain financing and complete a purchase transaction. Whether you go through the loan application process before or after signing a sales contract on a home, the lender will need certain documentation from you to assemble a loan package for consideration by the underwriting department.
These are the items you'll need to furnish your lender:
· Fully executed sales contract (unless getting Pre-Approval)
· Driver's license(s) and social security number(s)
· Addresses for past 2 years residences
· Names, addresses and phone numbers for all employers for the past 2 years
· Self employed applicants must provide: 2 years tax returns (business and personal, all schedules and K-1's) and current year income statement and balance sheet.
· Commissioned applicants: 2 years tax returns and current paystub reflecting year-to-date earnings and expenses.
· Names addresses and account numbers for all depository accounts for checking, savings, brokerage accounts, etc. Provide balances as well as copies of the most recent statements.
· Copy of complete separation agreement and/or divorce decree, if applicable.
· Copy of lease(s) on rental property.
· W-2 for previous 2 years and/or 1099(s) if applicable.
· Most recent paystub(s)
· A check to pay for a credit report
· Bankruptcy filing and discharge papers.
· Lender name, address and loan number for any properties owned during the past five years.
· Evidence of satisfaction of any judgments or collections of public record.
Start gathering this paperwork together once you've made a serious decision to start house hunting. If you need replacement copies of any of the above, you'll have time to request and receive them.
Finding the Right Home - You've written out your list of priorities, and selected a REALTOR®, (hopefully Danyliw and Associates!) What comes next? As your REALTOR®, I'll get busy searching for homes that meet your specifications. Our knowledge of area re-sale and builder inventory will help us narrow your search to the areas and properties that best fit your needs.
Viewing Properties: We'll probably tour a number of properties each time we go out and it's a very good idea to take notes on each one. Don't be disappointed if you don't find your dream home the first time out. It's an important decision and you want to view enough properties to feel certain of what constitutes good value in your price range. We can help you in this area as well, as I have a veteran’s view of the real estate market. Also, let me know if you see "For-Sale-By-Owner" homes that interest you, and I'll inquire on your behalf.
Negotiating A Purchase: Once you've found the house you'd like to buy, I'll draft an offer to purchase for you. We'll go over the contract form in detail, talk about the purchase price you'd like to offer, the amount of earnest money that's appropriate, and the various contract dates, deadlines, options and obligations. When we're done, I'll present your offer and earnest money deposit to the listing agent of the property. This is where the negotiation process starts. It's possible the sellers will accept your contract as is, but they may also reject or counter it. Then you must decide whether to negotiate further for the house or look for an alternative property.
Once Your Offer Has Been Accepted: there's still much to be done. Two very important things that will happen before your closing can take place are the inspection and the appraisal.
The inspection clause of Colorado's residential real estate contract allows the buyer one opportunity to thoroughly inspect the property. Most buyers wisely hire an inspection professional to help them evaluate the property and its components. If you find problems of a significant nature, you can decide not to purchase the house or you can ask the seller to remedy any or all of the problems you've found. Then the ball is back in the seller's court. They can refuse to remedy the problem(s), in which case the contract becomes null and void, they can agree to fix everything you've asked for, or they can negotiate further with you about specific items. If an inspection proves dissatisfactory to you, or negotiations over the inspection cannot be resolved to the satisfaction of both parties, the contract becomes null and void and you receive your earnest money back.
The appraisal is another evaluation of the property, this time to assure the mortgage lender that the value of the property justifies the amount they are willing to lend. Usually the appraisal supports the purchase price, but if it doesn't more negotiations ensue or the buyer would have the option of finding another suitable property.
Closing The Transaction - As your real estate agent, I will coordinate with the parties involved in your transaction, including appraisers, inspectors, surveyors, mortgage and title company representatives. As the time for the closing draws near, I will coordinate a date, time, and be in touch with the title company closer as final documents are prepared. Settlement statements, which show a final monetary accounting of the transaction, are generally available the day before closing. We will review them thoroughly prior to closing. If your contract specified a final walk-through, I'll set an appointment for that. A walk-through enables the buyer to confirm that the home is in the same condition as when the contract was accepted, that repairs stipulated in the contract have been completed, and that items listed as inclusions are indeed still on the property.
Unless it's a cash transaction, the real estate closing generally consists of two parts: the loan closing and the real estate closing. Both may be handled by a representative of your title insurance company, or in some cases are representative of your mortgage company may handle the loan closing. The documents will be explained to you and signatures obtained from the necessary parties. These documents will include:
·Closing (Settlement) Statements
·Tax Agreement
·Water and Sewer Agreement
·Deed
·HUD Settlement Statement
·Truth in Lending Disclosure
·Deed of Trust (and riders)
·Final Lien Affidavit
You'll need to bring a few things to the closing table as well. These include:
·A cashier's check or other good funds (see Glossary of Terms)
·A picture I.D., such as a valid driver's license
·Your homeowner's insurance policy
·A duly executed Power of Attorney for any parties involved in the transaction who are not present and for whom you will sign.
Possession of the Property:
You'll usually receive your keys and garage door opener controls at closing. The time and date of your actual possession of the property takes place as dictated by the contract you signed. Often time’s possession occurs on closing date, but sometimes there is a few days wait while the previous owner vacates the premises. Both parties must honor the agreement made in the contract regarding possession.
Celebration!
Hey, you've just bought a new house, a momentous occasion for most people. It's time to celebrate the beginning of a new chapter in your life. Before you do -- take a moment to put your closing papers in a safe place. These are important documents that you will need in the future, so be sure to retain them. You're going to call us when you're ready to sell.
Remember to call us as the first step in your new home search. Ask about his unique money-saving listing program on your existing home.
