Quick Tips For Buyers:

First things first.  Before you go out to view potential properties to buy, you need to know how much you can spend.  By going and getting a full pre-approval done, you can be sure about exactly how large of a mortgage you qualify for!  

The lender will provide you with a written document in the form of a "commitment" as to how much money they will lend to you. You will be informed as to whether or not you require a co-signer. 

If you are thinking of buying an investment property, the lender will guide you through all their requirements and prerequisites. You will find that each institution has different ideas, rules and regulations. By addressing the finance issue prior to looking, when you find the perfect place, you can simply go out and buy it, usually still ‘Conditional upon arranging satisfactory financing’. 

When you find the perfect place, chances are you will know it immediately upon setting foot on the premises.  You will want to take your time while viewing to reassure yourself that you have made the right decision. 

If you’re working with Jeff Arnold from RE/MAX Unlimited Inc., he will do a CMA (comparative market analysis) for that particular property to determine its true value.   Then I will suggest a starting price... usually several thousand dollars less than list price.  If your offer is changed by the seller, perhaps you can negotiate further. If not, you can choose to find a better deal elsewhere, at another time.  The only time it becomes difficult to negotiate is when there are other offers on the property.  When that happens, your only choice may be to offer the list price or even higher if that home is the perfect one for you! 

Put it into your contract that you would like the option to view the property again before closing. Whether or not you choose to view again is up to you, but at least you have pre-arranged permission in black and white. 

Make a list of everything in the property that you want the owner to leave with the property when he moves out.  Regardless of whether these items are in the listing, some things are negotiable, others are not.  You will find out fast enough when you make your offer.  Don't ask for outrageous things that no owner would normally even consider leaving.  Don't assume anything will stay that is not accounted for.  Be absolutely specific. i.e. the fireplace screen, special lights, outdoor lights, garden accessories, garage door openers, remotes, security systems, mail boxes, window boxes, or door knockers; loose carpets or rugs are not broadloom. What are window coverings? Itemize everything in detail.

 If you are buying a condo - is there a locker?  What other storage is available?  How many parking spots are there?  Where are they?  Are appliances included?  These ones or are they to be replaced by some other ones?  Are these ones owned by the tenant?  Regarding central vacuum accessories - what are the accessories?  Make a list!  A long list!  Then, everyone will know where each other stands on these issues. The best surprise is no surprise.  

Making an Offer

Chris Yedo will assist in making the offer but consider the following points before signing:

• If you find something you do not understand be sure to discuss it fully with Chris.

   

• Chris Yedo will assist in filling out the State Of Colorado Purchase Agreement. Do not be afraid to be explicit in your requests for purchasing the home.

   

• Know how much you will offer for the house you select. It may be that the seller of your dream home does not consider your offer to be in his best interest. It is not unusual for the seller to counter with another offer.

Inspections 

Whatever the age of the house you are thinking of purchasing, the best money you can ever spend is to hire a home inspector.  Provide the inspector with a list of items you want addressed, and he will add even more. Hopefully, you will be pleasantly rewarded with a perfect report. But, nearly every property has some flaws, so don't be too disappointed.  

If there are any major findings, however, now is the time to learn about them. Sometimes the purchase price can be adjusted to accommodate the problem and sometimes the homeowner will have to bear the burden.  At other times you will just decide not to make the purchase, based on the findings.  In any case, it is better to find out now than later.  Make your offer conditional upon a satisfactory report of the building inspector's findings, no matter how much you have fallen in love with the place.

Mortgage Insurance For The Lender 

Whether you’re buying with a large or small down payment, you will want to allow a few days condition to give time for the financial institution you have chosen to do business with, to get an appraiser into the property to do its own evaluation. The bank will find this critical, dependent upon the amount of down payment you are investing into the transaction, and whether or not your financing is to be FHA insured.

Mortgage Insurance For The Lender 

Whether you’re buying with a large or small down payment, you will want to allow a few days condition to give time for the financial institution you have chosen to do business with, to get an appraiser into the property to do its own evaluation. The bank will find this critical, dependent upon the amount of down payment you are investing into the transaction, and whether or not your financing is to be FHA insured.

The Appraisal Provision

Whether you’re buying with a large or small down payment, you will want to allow a few days condition to give time for the financial institution you have chosen to do business with, to get an appraiser into the property to do its own evaluation. The bank will find this critical, dependent upon the amount of down payment you are investing into the transaction, and whether or not your financing is to be FHA insured.

Mortgage Insurance For The Lender 

Whether you’re buying with a large or small down payment, you will want to allow a few days condition to give time for the financial institution you have chosen to do business with, to get an appraiser into the property to do its own evaluation.  The bank will find this critical; dependent upon the amount of down payment you are investing into the transaction, and whether or not your financing is to be FHA insured.

Hazard Insurance For Both The Lender and The Homeowner

In order to protect your purchase, you will need  home owners' building and liability insurance too. This covers the home in case of catastrophic loss from fire, flooding, etc, and protects you as well mortgage holders from irreparable financial damage as the insurance will allow you to fully fund repairs.  This insurance only covers the structure of the building and a portion of the contents.  If you have valuable items such as computers, jewelry, etc you must insure them separately with a ‘rider’.