Episode 2 ~ The Buyer Process
This episode covers the general process of buying a home in Colorado.
You’ve most likely started your search even if just online. When you’re ready you’ll need to hire an agent to represent you. We covered how to find a great agent in Episode 1, if you’ haven’t listened to that one yet take some time to go back and take a listen.
When you’ve chosen the agent you’d like to work with you will sign a buyer agency agreement, this is the contract between you and your agent that hires them to represent you and outlines what services they will provide.
Step 1 – Getting pre-approved for a loan
Step 2 – Defining and narrowing down your search criteria
– What do you want your daily lifestyle to be like?
Step 3 – Search for the perfect home for you
Step 4 – When you find the perfect home and are ready to put in an offer you’ll sit down with your agent and go over all the details outlined in the purchase contract such as price, timeline, etc.
Step 5 – assuming everyone agreed to the terms of the contract and you’re moving forward the following will be roughly the order of tasks.
- Deliver earnest money*
- Send a copy of the contract to the lender
- Schedule inspections and inspection resolution with the seller
- Property insurance
- Survey or ILC
- Appraisal review
- Final walk thru on the property
- Final approval of the loan if using one
*Earnest money – when you execute a contract you define in the contract the amount of collateral you as the buyer are willing to put up to show you will work in good faith to closing. The contract specifies the amount and time of delivery. This check will be cashed within a day or 2 of being received and at closing the money is credited toward your down payment and closing costs.