How Do I Buy a House?

Buying a home may seem like a daunting task. The first instinct is usually to start looking for a home--read the local paper, go on-line, talk to your friends, family and associates. This is not the best approach. For this to be a pleasant experience, there are some steps to follow which will keep you on the right path so you make informed decisions and ensure that you have been offered every opportunity which would be good for you. Here is a guideline to follow:

1 Locate a real estate professional.
This is a person who can guide you through the process. He or she will help you assess your needs, help you through the financing process, help you find a home which meets those needs, see to the copious paperwork, and get you to the closing table.

What criteria are important in selecting your real estate professional?

• Select a Realtor. Realtors are members of the National Association of Realtors, and by their membership are pledged to provide professional, ethical service.
  
  
• Select a Realtor who has experience with the type of real estate you wish to purchase. Are you looking for a historic home? New construction? Prestige home? Home in the country?
  
  
• Select a Realtor with whom you are comfortable and confident. Your personalities should match so you can be completely honest in your feelings, opinions and needs. The better the communication between you and your Realtor, the better the process will go.
  
  
• Once you have made a decision on the Realtor with whom you will work, be loyal. Realtors work on a commission only basis. If you are pledged to one person, he or she will work hard to make your dreams come true.
  
  

2 Meet with a lender.
A lender will help you determine the price range you should be shopping. The lender will also help you select a loan type which is appropriate for your long and short-term goals and your current financial situation. The goal is to be credit approved for your loan, so when you find the home you wish to purchase, your offer will be attractive to the seller. Visit our mortgage calculator page to help you get started.

What criteria are important in selecting a lender?

• Remember it takes no licensing and no education to be a lender in Colorado, so be sure you find someone who has a proven track record of being capable and able to meet your needs.
  
  
• Select someone who can explain to you the various loan choices, and can help you decide which is best for you.

3 Assess your housing needs.
A good plan is to know what you need before you go shopping. Then your Realtor can match properties to those needs and show you those homes which comply, rather than looking at so many houses you cannot remember what you saw. Some needs to consider are:

• The size of the home. This could mean how many square feet, how many bedrooms and baths, whether it is all finished or has the potential to be finished.
  
  
• Location, Location, Location! Do you need to live near schools? Medical facilities? Church? Shopping? Roads ease the commute to work?
  
  
• What style home do you need or prefer? A ranch with no stairs? A home with the laundry on the main floor? A two story so all sleeping quarters are upstairs? A master near the children’s rooms? An away place for guests or a parent who lives with you?
  
  
• What age home do you prefer? Like the charm of an older home? Love new neighborhoods? Are you able to cope with updating or repairs if an older home requires it?
  
  
• Do you need a place where exterior maintenance is done for you?
  
  

4 Now you are finally ready to look!
Your Realtor can prepare a list of homes to show you which meet the needs you have pinpointed. That is not to say you are locked into that list, but it is an excellent starting point. Keep notes on the homes you see. A good trick is to view two homes and pick a preference. When you see the third property, compare it with your choice of the first two, and so on. This way, you only have to remember two homes at a time. It makes it much less confusing!

5 Write your offer!
Once you have found the home you wish to purchase, your Realtor will prepare a contract with the terms you wish to offer. When the seller accepts your terms, you are on the way.

6 Processing.
Your Realtor will get the paperwork submitted so your loan processing can be complete, and continue to work towards the closing. There should be little left for you to do throughout this period, other than arranging for your move.

7 Close!
At a time agreeable to all parties involved, you will spend about an hour at the closing table, and then you can go about getting settled in your new home.