Colorado Springs Home Buyer FAQ
When should I start searching for a home?
Give yourself about two months before the date you have planned to move into a home. You should have enough time to find a home and negotiate terms, complete the inspection, appraisal, and loan process. If you need to sell a home it can get tricky timing the sale of your home with the purchase of another home. Your best bet is to list your home first and then look for another home.
I have never bought a home before, how long does the buying process take until closing?
This question is dependent upon many factors such as the terms of the contract, how quickly the deadlines are met, and how soon the home is available for move in. Additionally, repairs that need to be made after the inspection, by the owner could delay your move in date or closing. If you decide to purchase a short sale property, it will probably take more time since you have to wait for bank approval of the short sale.
What happens after my agent negotiates the price and contract terms to my satisfaction and I sign the contract?
Since you have probably already been pre-qualified by a lender, you will now work with your lender to find a loan that is right for you and provide the lender with any the necessary documents such as pay stubs and W-2 forms for the loan approval process. Your real estate agent will assist you with scheduling the inspection and appraisal for the home. You will also need to obtain homeowners insurance and title insurance to ensure you have clear title to the property.
Do I have to pay my REALTOR a commission?
As a buyer, you usually do not have to pay your agent’s commission, since it is standard for the Buyer’s agent to be compensated by the Listing Broker. You and your real estate agent will have to refer to the Buyers Agency Agreement where that was negotiated in the circumstance your real estate agent is not compensated by the listing Broker.
Do I need to be pre-qualified before beginning my home search?
It is a good idea to get pre-qualified by a lender so you have an idea of how much you are able to spend on your home purchase. You will be able to narrow down your home search if you have a price range and having a pre-qualification letter assures the seller you are a willing and able buyer.
Do I have to pay closing costs? How much will closing costs be?
Some sellers offer to pay closing costs for the buyer and with the current market, it has been a negotiating tool for buyers. If you have VA financing then the seller must pay the “non-allowable fees” or closing costs that cannot be paid by the borrower outside of the “allowable” charges. If the seller does not pay your closing costs then it is your responsibility. Purchase price of the home and your mortgage determine the amount of closing costs. Talk with your loan officer to receive more information about the down payment and closing costs you can expect to pay when you find a home.
What if the seller does not repair items that result from the inspection?
If you and the seller cannot come to an agreement on the items you requested to be repaired on the Inspection Notice prior to the inspection resolution deadline than the contract is terminated and earnest money should be returned back to the buyer.
What if after inspecting the home, I discover the physical condition is unsatisfactory and no longer want to purchase it, can I terminate the contract?
You must notify the seller in writing that you are terminating the contract due to the physical condition of the home being unsatisfactory on or before the inspection notice deadline.
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Affordable Home Ownership – Rocky Mountain Community Land Trust
If you have any questions, or would like further information please contact me…your Colorado Springs Real Estate Agent.