The 10 Stops On The Road To Buying Your Home

Stop 2 - Get Pre-Approved

This is a tough one! And for good reason. Oftentimes buyers will want to skip to stop 3 and shop for a home before starting the pre-approval process. Maybe you’re confident in your ability to be pre-approved. Maybe you want to build a relationship with your agent and a lender before divulging all of your personal information. And that’s understandable! But in a market as competitive as Colorado Springs, when that perfect house comes along, it’s quite possible you may see multiple offers on the property. If you aren’t able to produce a pre-approval letter at the time of the offer, guess who’s offer goes to the back of the line? Additionally - dotting all your i’s and crossing your t’s before starting the process is important. It never hurts to get a professional set of eyes on the big picture so you know exactly what you’re looking at before starting your path towards homeownership. If you need help with finding a lender, the team at Springs Realty has some AMAZING contacts here in the city, so please don’t hesitate to reach out.

(Not sure if you can qualify? No problem! We can get you on the right path towards credit repair so that you can enjoy the American Dream of Homeownership!)

 Stop 5 - Earnest Money

Earnest money is a vital step of the process. Once your offer is accepted, it shows that you have some skin in the game. Earnest money lets sellers know that you intend to move forward with the property barring any unforeseen circumstances. The earnest money check needs to be ‘good funds.’ This typically means either a personal check, cashiers check or a wire transfer (not cash or a money order). This allows the lender to track the source of the funds. Your earnest money check is held onto by a neutral third party (usually the title company) and credited back to you at closing. Should any disagreement between the buyer and seller arise that can’t be worked out, you would typically go to arbitration where a former judge, police offer, or authority figure would sit down with everyone to talk about our feelings and see if we could come to an amicable solution. Springs Realty has never had a purchaser go to arbitration… and we don’t anticipate that you’ll be our first * Knock On Wood *

 Stop 6 - Inspection And Remedy

Your home inspector is going to look for material defects in the property, as well as health and safety items needing repair. Typically, these are easily negotiated between the buyer and seller and you get through this process in a breeze. That being said, every once in a while though, things get a little tricky! (Inspection and remedy is the #1 reason why a home falls out of contract). That’s why it’s important to have an industry professional in your corner advocating for you. Depending on the property, sometimes more intensive tests should be asked for - whether that be mold, radon, or even soil samples! Be sure to ask your agent if there’s any additional testing that needs done outside of a standard home inspection. With new construction, the home is inspected every step of the way by the regional building department so we typically do not do an inspection and instead do a homeowner orientation walk prior to closing - and then any issues that arise while you live in the home can be remedied through your builders warranty.

Stop 7 - Homeowners Insurance

Homeowners insurance is important. We have some crazy weather here in Colorado. In my personal experience, I had shingles rated for 100mph winds that received gusts strong enough to rip them off, leaking water into the attic, taking down a few sections of the ceiling, and warping the beautiful wood look, laminate flooring. And all that just in my 2 year old home! These would have been over $10,000 in repairs by myself, but luckily I had my homeowners insurance to cover the cost of the damage. Definitely shop around and see who will give you the best rate based on the type of coverage you need. If you’re looking for guidance, your Springs Realty agent can certainly help you out!

 Stop 8 - Appraisal

Ever seen antiques roadshow? It’s kind of like that, but without so many big surprises. The appraisal step is when a licensed professional comes out to get a valuation on the property. They will give an honest assessment of the homes value based on comparable sales. There’s all sorts of intimidating terms like TIDEWATER that can arise if their recommendation value comes in less than what you paid for it. Make sure you have a professional agent on your side to help you navigate the appraisal step should any issues arise with the home valuation.

 Stop 9 - Clear To Close

You’re almost there! You got pre-approved, found a home, navigated the inspection and remedy, made it past the appraisal and got all your docs in to underwriting. This stop is like having a winning lottery ticket and all you have to do is take it in to get cashed and not mess it up. Don’t quit your job. Don’t put all the brand new furniture you want for your new home onto your credit card. Just relax until you get into your new home. Make sure to take some time to treat yourself and celebrate as well. Just don’t go all out and put it all on credit!

 Stop 10 - Closing!

Congratulations… You did it.

Whatever your motivation - Maybe you’re a first time homebuyer who wants to enjoy the American dream of homeownership. Maybe you bought your very first home with your significant other. Perhaps you sold the family home after the kids flew the coop. You needed more space for your growing family. A backyard was important for your furry friend(s). Maybe you wanted an investment property and it isn’t even yours to live in. You still did it. And that was probably a really great decision and you should be proud of yourself (pat yourself on the back).