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Once we have researched the property, we will then prepare an offer on a Colorado Real Estate Commission approved contract.  This offer is then delivered to the agent of the seller, who will present the offer to the seller.  After the seller reviews your offer, they will then do one of three things. 

           1.      Accept the offer.  If this happens you will be under contract to purchase this home.

           2.      Reject the offer.  If this happens, we will then need to find another property or prepare another offer.

           3.      Counter the offer.  If this happens, the seller will prepare a document that states the things they would like changed to go ahead with your purchase.  You then have the decision whether to proceed or negotiate further.  We will help you negotiate for the best possible price, terms etc. 

Once you enter into a contract to purchase, you then begin the due diligence of title insurance, appraisals, inspections, finalize financing, etc. 

An important note:  To give an offer to purchase your home, we will need to include, with the offer, a check for earnest money.  This check will only be cashed upon acceptance of the contract and will be held in a trust account on behalf of both you and the sellers.

After the pre-qualification and meeting with a lender, the fun begins.  We will determine your wants and needs in relation to the property you will purchase and then go out and look at different properties that meet your criteria. 

We will look at no more than 10 properties on any given day.  I do this on purpose as my experience shows me most people get overwhelmed with more than this.  In order to come up with the properties we look at, my team and I screen 40-50 properties and choose the best of the best for you to actually see.  Remember, we are in the market place every day and will most likely have seen a number of these properties previously.   After I have identified our daily tour of properties, I will prepare a computerized list of these properties for you to use as a comparison tool.  My computerized list will include prices, bedrooms, baths, price per square foot and all other pertinent information.  It will also include a space for you to write down any notes about a specific property. After we look at each property, I will ask, “If the price were right, would you consider buying this property?”  If the answer is “YES” we then would go back and figure out what that price should be.  The reason for this is very simple.  In my experience, I’ve found most people have difficulty telling me what they really do like.  However, everyone seems to know exactly why they don’t like a particular property.  The importance of this is it allows me to find out exactly what you don’t like in a property.  I can then make sure subsequent properties we look at fit your criteria. Normally, it takes less than three trips of looking at houses to find the right one for you!  Don’t be surprised if we find the perfect house on the first day out, this is not uncommon.  Remember, we are in the market place every day and usually know the best properties available. After we locate the house you would like to buy we will go to my office and research the property.  We will look at the comparable sales in the area, the tax records of the property and formulate an offer based on this information.

We will talk about what happens next, on our next post!

A Mortgage lender looks for your overall financial picture.  The main items of importance are current employment status, current income, and your ability to manage credit, as well as the amount and availability of a down payment. 

In most cases the most recent two-year period of time is used as the primary focus on your ability to obtain a loan. When processing your loan application, the lender will obtain all of the necessary information and then verify this information for accuracy. 

In particular;                   

VOD - Verification of Deposits.  The lender will verify with your banking institutions the funds you state are available to close.  In addition your bank statements are used to verify the amount of income you claim.          

VOE - Verification of Employment.  The lender will verify with your employer the facts of your employment as stated in your loan application.          

VOR - Verification of Rent.  The lender will verify with your current landlord or mortgage company the fact of you making your payments as agreed upon. 

Another portion of your qualification for a mortgage are the ratios of your income to your monthly mortgage payment.  There are two ratios that your lender will evaluate you on.  First, the front-end ratio is the amount of your mortgage payment in relation to your gross monthly income.  Second, is the back end ratio.  The back end ratio is the amount of your mortgage payment in relation to your monthly income minus any monthly obligation you may have (car payment, credit card payment, student loans, alimony, child support, etc.)  Different types of loans have different qualifying ratios involved.  Typically FHA insured mortgages are 29% and 41% while conventional loans are 33% and 36%. 

Please contact us if you would like to discuss this in greater detail.  We would also be happy to refer you to one of our mortgage partners.  These professionals will take care of you and we are happy to put our name to their reputation!