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What You Need to Know When Buying Your Home

Purchasing a home is one of the biggest decisions most people will make in their life. It involves a long-term commitment financially and emotionally, but it can also be a very exciting and rewarding experience.

When buying a new home, there are a few things to consider:

• What monthly payment can I afford?
• What am I looking for in a home?
• Should I work with a REALTOR®?
• Once I find a home to purchase, what do I need to do next?
• How much cash do I need at closing?
• How do I obtain a mortgage loan?

Making an Offer

Once you have found your dream home, it is time to prepare an offer to purchase. Your buyer’s agent can provide guidance to you on the price you should offer to pay for the property. Have your agent compare prices for similar homes that have sold in the area recently. This will help you to determine a reasonable price to offer.

In addition to the selling price, the other items to include in the terms of the Offer to Purchase include:

• The amount of earnest money (deposit) to offer.
• Concessions that you want the seller to make, such as a carpet or paint allowance, or payment towards the closing costs.
• Home inspection contingencies.
• Financing contingencies.
• A clear definition as to what is to be included with the home, such as appliances or window treatments.
• A closing date.

Don’t be surprised if your initial offer is not accepted. Your REALTOR® will represent you in all contract negotiations until an agreement is reached between the seller and you.

Closing the Deal

Once your offer has been accepted, it is time to work on the final details of purchasing your home. There are several tasks that will need to be accomplished during this phase of the sales transaction:

Home Inspection: Arrange to have a professional come out to inspect your home. They are able to spot electrical, plumbing, and structural problems that may not be noticeable to you at first glance. The home inspection is not required, but it is in your best interest to have one done on the home so that you do not receive any surprises once you move in. This is an expense incurred by the buyer and is included in your closing costs. You may also need to get a pest inspection on the property to make sure there is no structural damage to the property caused by termites. Your REALTOR® can usually make a recommendation of a reputable inspector.

Apply For A Loan: Once an offer has been accepted, you will need to contact your mortgage specialist to officially apply for a loan. Items that you will need for your loan application include:

• W-2s and/or tax returns from the past 2 years.
• Proof of gross monthly income for the past 30 days.
• Proof of investment income, including rental incomes.
• A list of creditors, including account numbers, balances, and monthly payments.
• Two months worth of banking statements.

The Final Walk-through: Prior to closing, you should be given access to the house so that you can walk through and give it a final inspection. This should be done as close to the closing date as possible, preferably on the morning of the closing proceedings. When you go to do your final walk-through, your home inspector will not be with you. It is your responsibility to inspect the home and ensure that everything meets your approval.

Things to look for during your walk-through:

• The seller has repaired items included on the purchase agreement.
• The house is in “as-was” condition (everything is in the same condition as it was when you signed the purchase agreement).
• The house is vacant and clean. The home does not have to be spotless, but there should be no remaining trash or junk left behind in the house or in the yard.
• Tenants have moved out prior to your closing unless you have agreed for them to stay.

Closing: Usually at the time an offer is accepted, or after you have a commitment from your lender, a date and time will be arranged for your closing. The closing procedures will be handled by an attorney of your choosing. The day before, you will be told the total dollar amount you will need to bring to closing by the closing attorney. They will also provide you with any additional information you may need to prepare yourself for the proceedings.

On the day of closing, remember to bring:

• A certified check for the total amount of your closing costs.
• A picture ID, such as a driver’s license.
• Your personal checkbook.
• Evidence of mortgage insurance (if this information has not already been requested).

During the closing, details of the sales contract will be explained to you. If everything meets your approval, you will sign the contracts to finalize the deal. Congratulations! You are now a new homeowner!!

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  • Becky Ciani

    Becky Ciani
    Broker Associate
    CNE, EcoBroker, GRI, ABR, CRS

    Becky Ciani logoColdwell Banker Mason Morse logo
  • Contact Becky

    290 Highway 133 Carbondale, CO 81623

    (970) 309-1027

    (970) 963-0879

    becky@masonmorse.com

    Coldwell Banker Mason Morse

  • Buyer Testimonials

    A DELIGHT TO WORK WITH!

    Thanks so much for finding our home! And the “quick” sale of our Rifle home! You have been a delight to work with.

    Ben & Sue Happy buyer & seller

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