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What Every Denver Home Buyer Needs To Know About The Colorado Home Buying Process
- Define your Denver Area property criteria – (price, location, property features, schools, loan type, etc.)
- Find an agent to locate Denver Area properties matching your criteria
- Secure a lender letter (LL) or proof of funds (POF) – start the loan application process
- Ability to access a computer – all docs must be electronically signed. Time is of the essence.
- Sign Buyer Agency Agreement(s)
- Review with an agent (definition of working relationship, agency agreement, etc.)
- Engagement Rules (find you a home for a success fee during a specific time frame)
- Agent Shows you homes – look at each home…take photos…., and make notes on the property sheet.
- Decide which, if any, property(s) you want to make an offer on.
- Offer (CBS)– on homes you really like – Contract to Buy/Sell Real Estate; my job is to write a proposal that will be accepted
- Quick response – this market
- Deadlines – 1st one is the earnest money, Seller's disclosure, title work, inspection, appraisal, loan, closing, and possession (not a complete list of possible deadlines)
- Contract to Amend/Extend – any deadline must be adjusted if necessary.
- Seller Concessions – ask Seller to pay for closing costs, etc…. If not a buyer's market in the Denver Area, the offer will be less likely to be accepted.
- Counteroffer – if necessary
- Offer accepted/rejected.
Ready to find your dream home in Denver?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents.- Accepted Loan underwriting starts – the lender is in the loop as soon as the offer (CBS) is accepted.
- Earnest Monies – liquid and readily available funds…if not, get them readily available….your commitment to the Seller you are serious about buying the house. Each Seller establishes what they want in earnest from the buyer (2-20K). Personal check or Certified check is generally acceptable
- Inspection – approx. $300 - $500 /house – (identifies issues) you need to be present
- Sewer Scope – approx. $125 – no need to be present – you will get the video
- Your duties to get the loan…check in with your lender weekly…stay on top of process
- Your tasks to shop for property insurance – homeowners policy (check w/ car insurance and bundle)
- Closing Costs – per transaction (different for buyer and Seller, title company, appraisal, prorated water, sewer and property taxes, notary fees, etc.) The Seller pays for the real estate brokerage success fee.
- May need to take 1-2 days off from work during the entire process
- Ways out of the contract…inspection, appraisal, loan, title issues
- No job changes (new job, no decrease in pay and hours, lost position)
- No big purchases during this time (CC or new loans)
- No leaving (vacations, extended days away) – available during the entire contract period
- Need to be available for inspection -will be completed within 1 week of CBS acceptance.
- Inspection report – list the property safety issues and high $$ repair/replace items –
- Inspection Objection – list of topics to be repaired/replaced. Top 5 list. Not all items in the inspection report will ask the Seller to repair/replace. One chance to get significant issues fixed. No low-ticket items will be on a Homeowner's To-Do list.
- Inspection Resolution – what the Seller will repair/replace – mutual agreement
- Appraisal – bank will request; buyer pays for (validate the sale price for the bank is appropriate)
- Loan Objection (if the buyer does not like any part of the loan being offered by the lender
- Walk Through New Home (day before closing – validate all mutually agreed upon items in the Inspection resolution have been addressed)
