Colorado Real Estate Professionals
for your home buying and selling
needs
Colorado Real Estate Professionals
for your home buying and selling
needs
Whether your first home or your next home, buying a house is the most expensive purchase many people will ever make.
Here's a guide to help you through the process---from taking the plunge to closing:
STEP 1
Before you head out to house hunting, learn the language of real estate. There
are plenty of books available at your local library or bookstore and sites on the Internet's World Wide Web. Knowing
the lingo will help you make sense out of the endless documents you're required to sign. It also will help you
to intelligently make decisions such as:
MIKE WILL ANSWER ALL OF THOSE QUESTIONS!
STEP 2
Get a copy of your credit report BEFORE you apply for a mortgage.
Checking your credit report early in the game allows you to clear any problems before you go through the hassle of the loan application process.
You can order a copy of your report by contacting one of the major credit bureaus---Equifax (800) 685-1111; Transunion (303) 830-0300, or Experian (800) 682-7654.
STEP 3
Hire a real estate agent. Using an agent to find a house won't cost money up-front.
Also, Realtors have access to computerized home databases and knowledge about market conditions. They are obligated
to show houses that are listed with other real estate agencies.
And they are the experts in this industry.
But, the real estate agent's fee is paid by the SELLER, not you the buyer! In a typical sale, the total commission is 6 percent to 7 percent of the sales price. The buyer's agent's fee is about 2.8 percent of the sales price with the remainder, or 3.8 to 4.2 percent, going to the seller's agent.
Some homebuyers, however, opt to hire a buyer/broker. Based on a written agreement, for a set fee, a buyer/broker will represent the buyer and negotiate in his best interest.
STEP 4
Prequalify for a loan, any good Realtor or Mortgage company will tell you. You
should have loan approval before making an offer on a house. That gives the buyer a stronger bargaining position.
To find the right lender, consider asking friends for recommendations. Also, most metro areas of over 2,000,000 people have an average of 200 different Mortgage Loan Company's. Your Realtor will also give you some input, for your consideration.
Remember, the lenders are competing for your business, so don't be intimidated. Narrow the field to several company's, then to find the best price, call them on the same day---prices change daily---and ask for an interest-rate quote and complete listing of fees. Compare the fees, services and mortgage options before selecting one company. Trust, but verify! No verbal agreements or contracts.
Generally, loan applications require you to disclose financial data from the past two years---including your monthly gross income, savings, investments and monthly debts. Start with your last two years' tax returns, then just resign yourself to full disclosure. It will save you time and money!
Assuming you have found a lender and qualify to get a mortgage, you may want to "lock in" the current interest rate. That means, from a given date until the time the sale closes, the lender is committed to that rate no matter what. Your Realtor will advise you in the best time to do so.
For homeowners who are just beginning the process, it's wise to get a 60-day lock-in period since it can take at least 45 days just to complete the paperwork on a home purchase. Your Realtor has a checklist to make sure that things like that happen!
STEP 5
Go house-hunting! Decide exactly what you want in your dream home, then prioritize
your wants. It helps to write them down, then see how a particular house stacks up. Your Realtor will have that
information available to you.
STEP 6
Investigate. Before you make an offer on a home, be sure to check on the house's
property taxes and assessed value. Check with county or state transportation departments and utility companies
to see if any roads or sewer hookups are planned that could impact the property's value. Look into deed restrictions
that might affect the property in the future. also check to see if the neighborhood has convenants that you must
adhere to. Look at the house from a seller's eye. Remember you may be selling this house yourself in the future.
Your Realtor will take all of this under consideration before you buy!
Also, if you have children, school districts make a difference. Don't forget it's a nightmare if it's in the wrong neighborhood. Your Realtor can give you good solid advice.
STEP 7
Have your Realtor make an offer. You can expect to go through several offers
and counteroffers until your Realtor and the seller's Realtor agree on a price. At about this point, you may want
your Realtor to write the contract and review the property's title.
Once the offer is accepted, you'll complete a formal loan application. This process may take up to six weeks, and the fee, which includes obtaining your full credit report should be coordinated by your Realtor, that will continue to keep in contact with the Mortgage Company until it's approved.
STEP 8
Get the house inspected. An inspection takes about two hours and generally costs
from $150 to $300. You foot the bill, but it can be will worth it. Look for an inspector who is certified by the
American Society of Home Inspectors, the industry's professional association. Don't buy anything without a certified
inspection.
If the inspector discovers a problem, negotiations begin again, that why your Realtor continues to be important through-out the process! If you can't agree on a solution with the seller, the contract may be terminated. Also, especially in Colorado, you may want to have a soil sample taken to find out if you're dealing with expansive soils that could affect the house's foundation. When it comes to new homes, most builders already may have a soil sample available. Allow your Realtor to use their expertise in these matters.
STEP 9
Check for undesirable easements and liens, outstanding debts owned by the current
or previous owners. Generally, the real estate agent will have this information available, but you also can have
another title company check these.
STEP 10
Close the deal. The closing is when the title officially is transferred from
the seller to the buyer. Typically, closings are held about 30 days after agreeing on a final sale price. Present
at the closing will be you, your Realtor, the seller and her Realtor with a title company's representative.
Closing costs include loan origination fee, title insurance and recording fees, can amount to 2 percent to 3 percent of the purchase price of the house. The buyer also typically owes the seller for utility costs, such as gas and electric, that they may have paid in advance.
Surprises also can surface at the closing. But, depend on your Realtor, because
your Realtor has assumed all of the responsibility for the transaction, and there are not very many Realtor's that
stay in business, making mistakes for their customers. "Hire the best, minimize your stress".
Day to day checklist of things to do during your final four days in your
old house.
FOUR DAYS BEFORE...(Now we start!)
Schedule final utility meter readings for day of closing or possession, including:
In case the meter readers come while you're at the closing, arrange for a friend or relative to be home during the time you're out of the house.
Verify the moving company has that it has you on their schedule and reconfirm your current address and your new home address.
THREE DAYS BEFORE...(It's starting to get easier!)
Go to the post office and arrange for mail to be forwarded to your new address.
Cancel newspaper subscriptions, cable TV service, telephone and garbage collection.
TWO DAYS BEFORE...(Now, the homestretch!)
Talk to the title officer, your lawyer, and your agent to verify that all necessary
paperwork will be ready for your closing.
THE DAY BEFORE...(Now you can see the end of the tunnel, and its not a freight
train coming at you!)
Pick up or have a faxed copy of your estimated closing costs from the closing
officer, you're entitled to it by law. Check to make sure all fees, tax adjustments, and other charges are correct
(Mike and Leah will also be checking on these details as your agent). Gather all the documents you are expected
to bring to the closing meeting.
Verify the time and place of closing with your agent!
CLOSING DAY (Happy day's are here again!)
When you leave for the closing, make sure you have any documents your mortgage
company may have asked you to bring (including your settlement statement from your previously sold house), your
driver's license or pictured I.D., and all house keys and garage door openers. After the closing is completed,
call your insurance agent and cancel your homeowner's policy to coincide with the day you are giving up possession
of the house.
Congratulations!.....and remember, we're still here , WE don't disappear after
the closing. Any questions, last minute details etc.? Just let us know...We'll help!
50 POWERFUL AND INSIGHTFUL QUESTIONS FOR A REAL ESTATE AGENT, BEFORE
YOU SIGN ANY CONTRACT! Then compare, before you select an associate for your valued possession!
A. RELOCATION GUIDE
B. AREA MAP
C. COLORADO SNOW COUNTRY INFORMATION
D. METROPOLITAN DENVER, A PERSPECTIVE
E. COLORADO WEATHER
F. POPULATION AND GROWTH FACTS
G. LOCAL MAJOR NEWSPAPERS
H. LOCAL TELEVISION STATIONS
I. AND MUCH, MUCH MORE INFORMATION TO SEND YOU!
For Quick information just fill out our Relocation Form and send it back to us and we will help you
out!
Excellent Information on your House/Home, from Mike Lucas and Leah Hamilton,
Your Denver Colorado Real Estate Specialists!
Our houses, Your home
Like people, houses have sturdy youths, mid-life creaks, and old-age infirmities.
A home sometimes, will not act like a home. It sometimes needs, tender-loving-care!
The foundation will last longer than it takes nations to rise and fall. The outside door, properly sheltered, will span a century. Cast-iron waste pipes are for the ages.
Tough things, houses.
You (or successors) will get 20 years from a quality chrome faucet and up to 100 years from wood siding---if it's treated right.
The kids can be born and gone before flames die on that gas range. But garage door openers beyond 10 years old are cranking on borrowed time.
So says the National Association of Home Builders, reporting on trends and facts in homes.
Against that backdrop, the government says that last year was the best for home sales in 14 years. Americans bought 756,000 new single-family homes, up more than 13 percent in a year.
Further, builders say people are getting more for their money:
But the story of American housing is still very much an old one. Of houses around today, only in 10 was built before 1920---twice the number that went up in the first half of this decade.
Three in 10 were built before 1950. And they're typically tough as nails.
That's one reason so many people fix them up. People spent $42 billion in home repairs last year and almost twice that amount on improvements.
Some improvements are better than others in driving up resale value. The builders say a kitchen spruce-up can return 94 percent of the investment; a deck, 72 percent; conversion of a room into an office, only 67 percent.
Bathroom renovations also pay off handsomely, but a turquoise toilet won't do. People want white, white, white.
The builders are quick to note that homes represent the largest portion of the nation's worth.
Even though home affordability may have declined over two decades, the rate of home ownership has risen in the most recent years. In the third quarter of last year, it hit 65.6 percent, matching the 1980 record.
As for longevity, houses generally fall apart as people do. First the cosmetics, then the serious stuff.
The foundation may last 200 years, a veritable monument. Copper wiring and slate roofs join cast-iron pipes in the century club. Father time's huffing and puffing may bring down vinyl and aluminum siding before wood.
But that wood will only last a decade if it's wet a lot. And treating for termites is not a long term wood fix: they'll be back munching in five short years.
HOW LONG WILL THINGS LAST!
Life expectancy of properly installed and maintained materials in the home,
according to the National Association of Home Builders:
Dishwasher 11 years
Exterior door with protected overhang 80-100 years
Ducts plastic 15 years
Microwave 11 years
Garage door opener 10 years
Wood deck 15 years
Range, gas 19 years
Copper wiring 100 years
Brick, stone wall 100 years
Range, electric 17 years
Sealer, silicone, waxes 1-5 years
Concrete walk 24 years
Water heater, electric 14 years
Paint, interior 5-10 years
Sink, enamel steel 5-10 years
Water heater, gas 11-13 years
Paint exterior 7 years
Sink, enamel cast iron or porcelain 25-30 years
Counter top, ceramic tile life
Wallpaper 7 years
Roof, asphalt or wood shingles, shakes 15-30 years
Counter top, laminate 10-15 years
Carpet 11 years
Roof, slate 50-100 years
Ducts, galvanized 30 years
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