Choosing a Realtor® is
one of the most important decisions in the home buying process.
More than 2 million people in the U.S. alone have earned their
real estate licenses. It’s a tough and complex business
with a huge drop out ratio and only a small percentage of
Realtors® actually consider this their full time job . With
the maze of contracts, financing, inspections, inventory,
pricing and negotiating, it is now even more important to work
with an experienced Realtor®.
There are many more
steps to the process such as inspections, finding home
insurance, warranties, moving companies, changing utilities,
etc. Our professional experience will help guide you through the
process to make your home buying experience stress-free and
exciting…..as it should be.
Starting the Denver Home Buying Process
BEFORE YOU START YOUR SEARCH AND PREVIEWING PROPERTY
Call a lender to get “pre-qualified”, or better
yet “pre-approved”. This is a service that can
be invaluable to you for three important reasons:
- It will establish what price range is appropriate and what
your approximate monthly payment will be.
- You can ask your lender the amount of money they will
require for both the down payment and closing costs.
- When you establish the home you wish to buy, being
“pre-qualified” or “pre-approved” puts
you in a strong position when your contract is being
presented. This provides sellers with a verification of
your financial position and gives you the competitive edge in
relation to competing offers.
You may choose a lender of your choice or we can recommend
experienced companies with whom we have worked with. Go to
the “Preferred Lenders” link for more
information. Keep in mind that we do not accept any third
party compensation for referring a lender or any other third
party vendor. We are only recommending qualified Brokers
who have shown a level of professional consistency in helping
our clients. Having a surprise at the last minute can cost you a
lot of money.
This is a list of documents most lenders will require
in order to process your mortgage application.
Verification of income
» Earnings statements: W-2 forms, recent
pay stubs and tax returns for the past two years;
» If you are self-employed: profit and
loss statements and tax returns for current year and previous
» Additional income: social security,
overtime bonus, commission, interest income, veteran's benefits
and so on.
Verification of your assets
» List of bank account numbers,
the address of your bank branch, checking and savings account
statements for the previous months;
» List of savings bonds, stocks or
investments and their approximate market values;
» Copies of titles to any motor vehicles
that are paid in full.
» A credit report will be ordered by the
Loan Officer to verify your debt.
Lenders may also ask you about the origin of your down
payment. If money for down payment is a gift from a relative,
supply the lender with a copy of a gift letter and copy of gift
check. The gift letter states that the money will not have to be
Having these items on hand when you visit with a lender will
help speed up the application process.
Keep in mind that different lenders may have slightly
different information requirements, so ask your lender what you
may need to start your loan process.
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Choosing a Lender
Fact: A mortgage loan is typically the
largest and most important financial commitment or decision the
average person will ever make. Once you have one, it is
usually your single biggest monthly financial obligation.
Few resources exist to teach those seeking home financing how to
evaluate and compare lenders. Beyond interest rates, very
few people really know what to look for or what questions to
Point: When purchasing or refinancing real
estate, the RIGHT financing is critical and the right service to
attain that financing is paramount. Bad advice or poor
service can have an extremely negative impact on the experience
of buying a home. The wrong loan or a bad lender can
greatly undermine your financial situation, keep you from
getting the best deal and hurt your chance to purchase your
dream home. Your lender should be helping to create an
excellent investment opportunity for you.
Ask: Verify that your potential lender has
years of experience in the industry. You will want a Loan
Officer who will listen to your needs, financial goals and work
with you as a financial planner to help you find the best price,
rate and program to fit your needs.
Check Out: Our lender’s page for a list of
lenders we have had positive experiences with in past
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How We Represent You
No two properties are exactly alike, and no two transactions
are alike. Homes differ and contract terms differ. Having a
Realtor® looking out for your best interest and who has been
involved with many transactions to protect your biggest
financial purchase is crucial. As your Buyer’s
Agent, we will help you with information detailing market
conditions, financing options, and finding the right home for
the right price.
We will successfully project manage your real estate needs
from the beginning of the process all the way through to the
end. Once we find a home for you to purchase, we will
prepare a market analysis of the property to help us determine a
fair price and write the offer. Sometimes you may hear from
friends or family that your offer should be a certain percentage
below asking price. It really depends on each market and
neighborhood and the basic laws of supply and demand. Once that
offer has been written, signed and submitted, the Seller will
accept the offer as written, reject it, or submit a counter
offer. A counterproposal can be as simple as changing
dates and/or changing price. We will then negotiate the best
price and terms for you.
Our Services & Duties to You
Whether we represent you as a Transaction-Broker or a
Buyer’s Agent, we shall perform the following Uniform
Duties when working with you:
Broker shall exercise reasonable skill and care for
Buyer, including but not limited to the following:
- Performing the terms of any written or oral agreement with
- Presenting all offers to and from Buyer in a timely manner
regardless of whether Buyer is already a party to a contract to
Purchase the Property;
- Disclosing to Buyer adverse material facts actually known
- Advising Buyer regarding the transaction and to obtain
expert advise as to material matters about which Broker knows
but the specifics of which are beyond the expertise of Broker;
- Accounting in a timely manner for all money and property
- Keeping Buyer fully informed regarding the transaction.
Broker shall not disclose the following information
without the informed consent of Buyer:
- That Buyer is willing to pay more than the purchase price
offered for the property;
- What Buyer’s motivating factors are;
- That Buyer will agree to financing terms other than those
- Any material information about Buyer unless disclosure is
required by law or failure to disclose such information would
constitute fraud or dishonest dealing; or
- Any facts or suspicions regarding circumstances that could
psychologically impact or stigmatize the Property.
Additional Duties of Buyer’s Agent:
- Promoting the interests of Buyer with the utmost good
faith, loyalty and fidelity.
- Seeking a price and terms that are acceptable to Buyer
- Counseling Buyer as to any material benefits or risks of a
transaction that are actually known by Broker.
BUYER’S OBLIGATION TO BROKER. Buyer
agrees to conduct all negotiations for the Property only through
Broker, and to refer to Broker all communications received in
any form from real estate brokers, prospective sellers, or any
other source during the Term of the contract. Buyer shall also
represent that Buyer IS or IS NOT currently a party to any
agreement with any other broker to represent or assist Buyer in
the location or purchase of property.
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Your Home Search
At DenverCityLiving.com you can search all properties listed
in the MLS and save your searches. You can also sign up
for a Denver area Dream Home search which will
automatically send you listings matching your search criteria as
they hit the market.
These days everyone uses the internet to browse listings but
by working with us you will have an additional advantage in your
home search and purchasing process.
- We have access to available properties in all neighborhoods
and in all different price ranges within your search
criteria. We work closely with other Real Estate Brokers
networking in regard to other available properties.
- We will show you every available property that meets your
unique specifications, both financially and personally. We are
fully invested in your complete and total satisfaction
- We know real estate values. And can answer your concerns
regarding price, zoning, neighborhoods, schools and any other
pertinent information that is important to you.
- We know the tax structure of the community’s
services. And can intelligently answer questions such as
cost of maintenance and utilities.
- We will answer all questions objectively and honestly.
- We are familiar with local lending institutions, know how
much of a down payment will be required, the approximate
monthly payments, and what the approximate closing costs will
- We will help guide you through the complex maze of the
title commitment and other legal documents. We want to
help you protect your interest and investment.
- We operate under a strict Code of Ethics enforced by the
NATIONAL ASSOCIATION OF REALTORS®. We
assure you the most competent, professional, caring and ethical
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You Found Your Dream Home! What’s Next?
You have found your Dream Home now its time to write
a purchase contract!
When you find a home that you wish to purchase, communication
with the selling party is done by means of a written
offer. At this time we will help you determine an offer
price based on market comparable's. A check will be
required at this time, which is referred to as “earnest
When the seller accepts this offer it becomes a legal
contract. Our real estate firm uses two basic forms of
state approved contracts in Colorado which both require the
How you wish to take title to the home.
The amount of earnest money deposit
At the time a written offer on a property is initiated, you will
be required to include a personal or cashier’s check as
earnest money. An earnest money promissory note can be used for
certain circumstances Colorado law requires the deposit to be
made within 24 hours after a fully executed contract. This
amount is credited to the buyer as partial down payment and
represents your intent to purchase the property. If the
offer is not accepted, this amount will be returned to you in
Depending on the price of the property, you should anticipate
typical earnest money to be 1-3% of the purchase price.
The purpose of earnest money is to establish good faith.
At this time you will also present your pre-qualification or
pre-approval letter from your lender, thus strengthening your
Inclusions and exclusions
Items to be included with and excluded from the home.
Title insurance policy
The seller generally pays for this item. If you are
obtaining a loan, there may be additional endorsements/fees for
which payment will be required.
Date for closing
A typical closing is 30 days from contract acceptance. It
can be negotiated earlier or later depending on the
Buyer’s and Seller’s needs.
Date of possession
Although this is negotiable between you and the seller, it is
customary in Colorado for possession to be one to three days
In order to be fully protected, fax signatures are acceptable
during the contract process however originals may need to be
The contract has important legal consequences and if you
desire the services of an attorney and do not currently have
legal counsel in Colorado, we would be happy to provide you with
a list of attorneys.
Depending on the terms of the contract the sellers may
“counter” your initial offer. You then have
the opportunity of accepting their proposal; declining their
offer, (thus canceling the contract) or submitting a whole new
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Is a Home Inspection Necessary?
Yes! If you are purchasing a re-sale property, it is in your
best interest to have a thorough home inspection. Included
in this type of inspection are: Appliances, plumbing,
electrical, heating/ventilation, bath/kitchen fixtures,
basements, crawl spaces, garage, roof, attic, insulation, and
general maintenance of the home. Pools, hot tubs,
sprinkler and security systems and structural evaluations are
not generally included in an inspection of this kind. The
cost of a home inspection generally runs from $225-$350.
Payment is due upon completion of the inspection. You
should plan to be at the inspection, as it is an excellent way
to learn about your new home. Inspections generally take
anywhere from two to three hours.
A radon test is optional at the time of inspection.
This is an additional charge and usually runs around $100.
Sewer scopes are also optional and run $175-$200
Possible Home Inspectors
Please contact us for a home inspector recommendation.
We have worked with many reputable companies in the past.
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Preparing to Move
One month before closing date:
- If you plan on using a moving company, be sure to select a
reputable one. Don't forget to check their records on the Better Business
Bureau and schedule your move. We recommend gathering
specific information about how the companies charge, their
- Collect important papers and a list of important phone
numbers and store them in a safe place.
- Take inventory: decide what to keep, what to give away or
sell and what to throw away.
- Begin packing items that you don’t use frequently.
- Make a list of all of the people/companies that you will
need to notify of your new address.
Two weeks before closing date:
- If you have scheduled a move with a moving company, call
and confirm your moving date and time.
- Notify your current utility, phone, trash and cable
companies of your disconnect/reconnect dates.
- Arrange for cancellation of newspaper deliveries to your
current address and new subscriptions to your new address.
- Complete change of address paperwork at the Post
- Begin notifying businesses that reach you by mail at your
current address (doctor’s offices, veterinarian, magazine
subscriptions, banks, credit card companies, insurance
companies) of your change of address.
- Should you have pets, arrange for someone to take care of
your pets on moving day.
Call Public Service at (800) 895-4999 to arrange the start of
your utilities on the day of closing. In Colorado, the
Buyer owns the house the day of the closing so that even if you
are taking possession two or three days later, you are still
responsible for the home.
Call Qwest at 1-800-244-1111 to arrange your telephone service.
Notify the Post Office using a “Change of Address”
Water and Sewer
This service will vary depending on the county. Typically the
title company will take care of this for you.
Call to cancel your cable service and determine where the
nearest drop off location is for any leased equipment. The
largest cable television carriers are Comcast at (303) 930-2000
and Direct TV (303) 756-1655. There are other companies as
well, depending upon your area. They are listed in the
Yellow Pages under “Cable Television and CATV.”
ADT Security — (800) 554-3322
Brinks — (800) 735-3537
The Denver Post — (303) 832-3232
The Rocky Mountain News — (303) 892-2525
If you are outside of Denver, you may need to notify an
independent company of your change in service. In Denver,
there is no need to notify anyone.
One week before closing date:
- Continue packing items that you will not need in the next
- Make a list of items that you will need on moving day and
designate a location for these items so that they will not be
- Begin cleaning out the refrigerator, making arrangements to
move/dispose of perishable food.
After your closing/on moving day:
- If scheduled, confirm the arrival time for your movers.
When they arrive take them on a walk-through and identify any
items that will need special handling.
- Gather the list of phone numbers, file of important
documents and any items that you will need and keep them with
you instead of packing them.
- Supervise the mover’s placement of boxes and
furniture; make sure someone is at your new home to meet the
- Make a final sweep of your old home.
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Preparing to Close
A FEW DAYS BEFORE CLOSING
A week prior to closing we can provide an estimated
amount of the funds you will need to bring to closing, allowing
you to plan accordingly. The final figure is often not
available until 24 hours prior to closing.
Important Documents to Bring to Closing
- A photo ID (driver’s license, passport)
- A cashier check for final funds.
Even if you are experienced at buying and selling
property, the closing still may have mysteries for most home
buyers. There is a seemingly endless stack of paper to be
signed, especially by the buyer, but there is no need for
confusion about the procedure. The title is transferred
first, then the loan is made and placed as an encumbrance
against the property.
TRANSFER OF TITLE
The sellers will execute a Warranty Deed conveying
their interest in the property to you, the Buyer’s.
(Other types of deeds may be used depending upon the nature of
ownership of the property.) The deed will be recorded with
the County Clerk and Recorder.
Bill of Sale
This document, executed by the seller, conveys interest
to the personal property.
Other Buyer/Seller Documents
Once all of the documents have been executed, funds are
collected and disbursed by the closer. Congratulations
you have just purchased a new home!
A number of other acknowledgements will be signed by you and the
Seller including a tax agreement letter, water and sewer
prorations, utilities acknowledgement, HUD settlement document
and individual buyer and seller settlement sheets that show all
debits and credits involved in the transaction.
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