Recent estimates show that home sales in Colorado have soared by as much as 15 percent over the last several months. Combined with historically low mortgage rates this rebounding housing market may once again fuel Colorado's economic recovery.
More and more Coloradans will be purchasing homes in the coming months, and understanding the buying process can save time and money. Buying a home can be a stressful experience, but following five simple tips can make this adventure less painful.
1. The real estate contract: An offer for the purchase of real estate must be in writing to be valid. The Colorado Real Estate Commission requires that every real estate broker licensee use a contract form approved by the real estate commission, unless the contract is drawn by either the seller or buyer, or the attorney for the buyer or seller.
2. What are contingencies? Since every offer to buy is unique, the Colorado Real Estate Commission-approved contract allows for the buyer and their licensed broker to make the contract contingent on certain things such as approval of financing, a satisfactory home inspection, or the sale of their current residence. It is critical for a buyer to include those contingency items in the contract to eliminate misunderstandings about what circumstances will allow for a successful execution of the transaction.
3. Realize that time is of the essence: Your offer allows you to make decisions regarding when to close on your new property, when you can take possession of that property, and what remedies are available if the contract dates are not met.
4. Know your rights of acceptance, rejection and counteroffer: The buyer's contract should give the seller a specific period of time to consider the offer. If your deadline is not met, you have no obligation to continue with the purchase. If your offer is rejected, either by notification from the seller or by no response, you can decide whether to amend your offer or consider other property. If the seller wishes, they may decide to change the terms of the offer and give you the opportunity to consider the terms as modified. At this point your original offer is rejected and you can accept or decline the counteroffer.
5. Talk to your lender early in the process: Talk with your lender early in the process to get pre-approved or pre-qualified for a loan. Once an offer is made, your mortgage lender will want a copy of the contract signed by you and the seller. In most cases, the lender will arrange for an appraisal to ensure that the value of the property is sufficient to secure the loan and begin the underwriting process. If the loan is approved, a closing date will be set — usually at a title company. At closing, the final paper work is reviewed and signed and the funds change hands. After closing you can take possession of your new home subject to the terms of your contract.blog comments powered by Disqus