Buying a home can be a complex process, especially for first-time homebuyers. If you're looking to purchase a home in Colorado, it's important to understand the ins and outs of the purchasing process. Let’s take a look at the key steps involved in buying a home in Colorado, from determining your budget to closing the deal.
Find the Right Agent
Buying a home can be overwhelming process. From financing to negotiating to closing., there are lot of moving pieces that can leave homebuyers bewildered. You want to make sure you have the right agent who will help guide you through each step of the buying process, offering sound advice along the way. by working with someone who knows the ins and outs of this real estate industry, as well as the market, you will not only end up with a great home, but you will also walk away with a great experience.
Get Pre-Approved
The first step in the homebuying process is to get yourself pre-approved with a lender. this will ensure you are ready to make an offer on a home when you find the right one! A Pre-Approval is a statement from a lender showing that they have reviewed your credit score and financials and pre-approving you to buy a home up to certain dollar point. A pre-approval let’s you know how much you can afford when it comes to buying a home, meaning you will not be shopping above your price range. It also gives the seller confidence that you are well qualified.
Find Your Home
Once you have your pre-approval in hand, the home search can begin. Make sure that you not only have your price range in mind but also your list of must haves and like to haves. No home is going to be absolutely perfect, so be sure of what you can and cannot compromise on.
Make An Offer
This may be one of the most daunting parts of real estate. Your real estate agent will help you review recent comparable sales in the neighborhood, as well look at other factors about the home like potential reapair concerns and will then help you structure an offer and negotiate a price and contract you are happy with.
Inspect & Appraise
Once you are under contract, you will begin working your way through the due diligence period and contingencies on the contract. During this time, you will want to order an inspection on the home to ensure there are no major issues, and your lender will most likely order an appraisal to ensure the value.
Finalize Negotiations & Loan Approval
Many times, after the inspection, issues will have been identified that result in negotiations. You may request the seller does repair work or ask for a credit in lieu of repair work. Try to only bring your biggest issues to the forefront. Sellers tend to be less agreeable when you come to them with a laundry list of items and usually pick the smallest ones.
Closing & Moving Day
The day has finally come for you to sign those papers and officially become a HOME OWNER! At least three days prior to closing, you should receive your final settlement disclosures. Your lender is required to provide you with the final loan terms and all the closing costs associated with your loan, as well as the final amount you will need to bring to the closing. The lender should review these numbers with you and help answer any questions or clarify any confusion you might have.