Investor Needed for Affordable Housing in Durango Colorado

8 Steps to Buying a Home in Mancos, Cortez or Dolores Colorado

 

1.  Find the Right Agent~  Buying a home is one of the largest decisions you will ever make.  It is essential to have an experienced agent in your corner, always looking out for our best interest.  A listing agent has an allegiance to their Sellers' and their goal is to get top dollar for the home. 

 A Buyer's agent main responsibility is to look after your best interests and get you the best deal.  We provide information relating to value. market conditions, obvious defects or red flags with a home.  We negotiate repairs and pricing on your behalf as we use our knowledge and experience to navigate you thru all the real estate paperwork.  A Buyer's agent should have knowledge of the area where you want to buy, have great Google and Zillow reviews, and have excellent communication skills plus getting back to you in a timely manner. 

2.  Prepare your Finances~ Check your credit score.  A mortgage requires a good credit score.  Paying down credit card balances, and regularly paying your bills will help you raise your credit score.  Do not apply for a new credit card or get a car loan while waiting for loan approval.  When applying for a loan, the lender will want pay stubs, and 2 years of tax returns.

3.  Get Pre Approved~  Just guessing how much home you can afford, is not wise.  Pre approval, is when you are pre approved for a certain amount.  Prequalified is not enough.  Also take into consideration that even though you have been pre approved for a certain amount it still may not be in your best interest to spend that kind of money.  What would happen if you got ill, or there was a death?

A down payment is your contribution toward the purchase of the home.  This is different that earnest money.  Earnest money states you earnestly want to buy a home and it is given to listing agent upon presenting the offer, or within 3 days.  The earnest money will go towards the overall purchase price.  

Down  payments vary depending on loan and can range from 0% down (VA, first time home buyer) to 20% down.  

4. Make an Offer~  When you find the right home your agent will present an offer, with preapproval letter, price, contingencies, earnest money, and closing deadline.  Be prepared that a Seller may counter your offer in which you may accept or counter.  

5.  Executed Contract~  Once an offer is accepted and signed by both parties the contract is given to the title company to do a complete search on the property.  This will discover any tax/loan liens, easements, covenants or any document recorded.  The earnest money check will be given to the title company,  

6. Order an Inspection~ During the inspection period, this is your time to do your homework.  Hire an inspector, check with utility companies for average utility bills, and learn as much as you can on the home. After a thorough inspection is done, your agent and you will decide if you want to negotiate the offer.  There may be radon, mold, roof or numerous other problems that you want fixed prior to purchasing the home, or money given to you by the Seller to fix.  

7.  Schedule your Move~ If renting give 30 day notice, contact moving company,  start packing/decluttering, and keep track of expenses (they may be tax deductible)  You may want to donate to a thrift store or have a garage sale.  Get home insurance on new home, notify utilities of old home and new, forward mail. and notify friends and family. 

8.  Closing Day~ Final step in your home buying process.  Before heading to the closing table, do a walk thru of the home, checking to see if inspection issues were fixed if any, and Seller is completely moved out.  We will check with contract to make sure that any agreed upon items were done, ie. cleaning of home, windows, and carpet.  

A few days prior to closing, you will receive a settlement statement, showing the exact amount that you need to bring to closing in a cashiers check or wire.  Your driver's license is needed too.  Be prepared that closing takes about 1 hour and to sign lots of documents.   The keys to your new home will be given to you once the paperwork is recorded.  Congratulations on you new home!

We are here to help!  MancosHomes.com

Losing a loved one

Losing a loved one is difficult.  Overloaded with emotions, here’s a checklist to help things go smoother. 

-Contact family members, and employer.

-Secure home, provide care for pets, dependents, and forward mail. 

-Honor end of life requests (if known) This might include organ donating, celebration of life, funeral.

-Work with funeral home for cremation and burial. Take a friend or family member for support.

-Call cemetery to arrange burial.  (Best practice is to buy a plot prior to death)

-Publish obituary in local paper

-Locate a copy of their will or trust. (Check in safe deposit box, safe, or desk.)

-Get 5 copies of death certificate.

-Close out all social media accounts, i.e., Facebook, Instagram.

Grief is a roller coaster and its very easy to get submerged into what needs to be done.  Take time to grieve, and self-care.  Reach out to friends and family for support.  

 

Before you buy an older home do your homework

Thinking about buying an older home?  First and foremost get an inspection!  Inspectors might steer you towards getting the foundation inspected, electrical and plumbing inspected by licensed professionals.  

Check the crawl space and attic for proper insulation.  

Does the home need new windows?  Doors?

How's the neighbor?  Barking dogs, screaming family, loud music?

How's the landscaping?  Old trees that need trimming or taken down?  

How's the sewer lines?  Might want to get an inspector to do a sewer scope.  

How's the roof? Siding?  

Do your homework before you buy and you can save yourself some money and stress.  For more tips: call Carrie Summers 970-759-2540  MancosHomes.com

Tips for First Time Home Buyers

 

Thinking about buying a home?

1. Start saving early

Here are the main costs to consider when saving for a home:

• Down payment: Your down payment will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Set up automatic transfers from checking to savings to get started.  There are also loans with 0% down.  This is different than Earnest Money that shows the seller that you are earnestly proceeding with purchase.  

• Closing costs: These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around. 

2. Decide how much home you can afford

Figure out how much you can safely spend on a house before starting to shop.  Check out NerdWallet’s home affordability calculator.

3. Check and strengthen your credit

Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Take these steps to strengthen your credit score to buy a house:

 

• Get free copies of your credit reports from each of the three credit bureaus — Experian, Equifax and TransUnion — and dispute any errors that could hurt your score.

 

• Pay all your bills on time, and keep credit card balances as low as possible.

 

• Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.

 

• Track your credit score. NerdWallet offers a free credit score that updates weekly.

4.  Research First Time Buyer Assistance Programs.

• Check out HomesFund.

5.  Shop around for lenders and compare fees.

• Not all lenders are the same.  Some lenders are offering free appraisal if home doesn’t appraise.  Appraisal fees are paid out of pocket very soon after getting a home under contract and are about $700.  You want to know exactly what the lender will charge for a loan. Roughly it’s about $5000 and that charge will be built into the loan as well as your property insurance and taxes.

6.  Get prequalifed before looking for a home!

• Many buyers start looking and they find a home they would like to purchase however it’s already under contract before they can get a prequalification letter.

Call Carrie Summers with Colorado Ranch & Home Realty  970-759-2540!

Tips for shopping for a loan

 

• Know what you can afford.  Don't start looking online for a home before you get preapproved.  Just because you get preapproved for a loan it doesn't mean that monthly payment will work for you.  Look at your debts, future bills and plan.

• Get advice from trusted sources.  Ask your friends who they used to get a loan.  Talk to your realtor.

• Understand loans and fees.  Not all loans are the same.

• Shop Around.  Ask questions of your potential lender.  What if I pay for appraisal and my loan doesn't go thru, did I just lose that money?  How long will it take to close?  How much are closing fees for loan?  Will I need money for a down payment?

   
  

I'm here to help! Carrie Summers ~Colorado Ranch & Home Realty 970-759-2540

Protect Your Home

 “For people living in wildfire-prone areas here in Colorado, mitigation is a proven method to reduce the risk to your home and property,” said Insurance Commissioner Michael Conway. “Now is the time to take what steps you can, before we get any further into this summer’s wildfire season.” 

The Storm Prediction Center issued the first extreme fire danger warning for Western Colorado and Eastern Utah in 15 years. Unfortunately, this serves as a reminder that we are now in the height of wildfire season in Colorado and the West.

Tips for wildfire mitigation

• -Clear a safety zone around your home and remove trees, leaves, brush and pine needles. Create a zone of at least 100 feet, but know that 200 – 500 feet is often recommended. Also remove overhanging tree branches near your home.
• -Be sure propane or fuel tanks are at least 30 feet away from all structures.
• -Keep the smoke detectors and fire extinguishers inside your home working properly.
• -If you do not have access to a community water system or water hydrant, get a water storage tank. Make sure your garden hoses reach all areas of the property, and keep them visible and in accessible areas.
• -Be sure your entrance road is accessible. Inaccessible roads can prevent fire-fighting equipment from reaching your home quickly. The street address should be easily visible from the entrance to the property so emergency responders are not delayed.
• -Use fire-resistant materials in the structure of your home, especially the roof, which is most vulnerable
• -Do not store firewood on your deck or porch.

We have a couple of great companies that can help you be proactive.  Give Carrie Summers a call 970759-2540. We are here to help!

Should I Renovate Before I Sell?

Thinking about selling and unsure if you should renovate?  Will it make your home more appealing to buyers?  Will you recoup the cost?  Renovations might not be for important in the current market.  

Homes are currently flying off the market if priced right.  Multiple offers and above asking price is the norm.  Due to the high demand, spending time and money on renovations might not be smart.  

Cleaning up the property is still key, and decluttering.  However some repairs might not be necessary.   

In today's market, many buyers are willing to take on home improvement projects, thus they can transform the home to their needs and tastes.  

Contact me for how to get top dollar for your home, without doing major repairs.

 

Understanding Contact to Buy and Sell Dates and Deadlines

Congratulations you found the home you love!  Now you are ready to sign a contract, however the paperwork can be overwhelming – especially because it is 21 pages long! I'm here to help make your transaction go smoothly!

There are 39 possible deadlines in the Contact to Buy and Sell, but you don’t typically use all of them in a normal transaction. Real estate agents set the dates of the contract based on when they believe they can get the items accomplished. Keeping track of all the dates is super important.  I will send you a calendar plus weekly reminders.  

Before you sign the contract, if you learn what these dates mean and how they relate to other dates, it will help you tremendously!

Let’s go through each one in order to make sure you are prepared for one of the largest purchase in your lifetime.

Contract to Buy and Sell

Real Estate Contract Dates & Deadlines 

Item No. 1 – Alternative Earnest Money Deadline

The Alternative Earnest Money Deadline is when the earnest money is due, usually upon offer or within 3 days of the contract be accepted. This deposit must be turned into either the Brokerage or Title Company ands needs to be either a check or wired. The amount of the deposit is usually set by the sales contract and is typically available in the MLS. The title company will cash your check.  Earnest Money says you are earnestly going forward with the purchase.  

Title Deadlines

Item No. 2 – Record Title Deadline

The Record Title Deadline is the deadline in which the Title Company must provide the Buyer a current commitment for an owner’s title insurance policy.

This will consist of links to any plats, declarations, covenants, conditions & restrictions burdening the property. This date is usually 7-10 days from the MEC (mutually executed contract). Please be sure to read this carefully, and if you have any questions ask your realtor.  

Item No. 3 – Record Title Objection Deadline

The Record Title Objection deadline allows the Buyer to object to the title condition. This is at the Buyer’s discretion and can therefore be based on any unsatisfactory title condition. This date is typically 12-15 days from the MEC.

Item No. 4 – Off-Record Title Deadline

The Off-Record Title Deadline is when the Buyer must receive copies of all existing documents in the Seller’s possession and must disclose to Buyer all easements, liens, leases, agreements or other title matters not shown by public records, of which the Seller has actual knowledge. This date is usually 10-14 days from the MEC.

Item No. 5 – Off-Record Title Objection Deadline

This is similar to the Record Title Objection. The Buyer can object & terminate if unsatisfied with documents provided in item No. 4, the Off-Record Title Deadline. This date is usually 12-15 days from the MEC.

Item No. 6 – Title Resolution Deadline

The Title Resolution Deadline is the date by which all title objections must be resolved. This date is typically 15-17 days from the MEC.

Item No. 7 – Right of First Refusal Deadline

The Right of First Refusal date applies to situations, where an outside entity, like an HOA, or a former owner has to approve a Buyer’s contract. If the entity who holds this right disapproves the contract, the contract terminates. The right of first refusal is common with a back-up offer if the contract has a contingency. This date is usually 5-7 days from the MEC.

Owner’s Association Deadlines (HOAs)

Item No. 8 – Association Documents Deadline

The Listing Agent typically handle the Association Documents (HOA documents) for the Seller. This is the deadline for which the Buyer must receive all current HOA documents.

It is VERY important for Buyers to review all documents of this nature especially in townhome or condo communities. This is where buyers can find pet, architectural control, covenants, parking, and many other rules and restrictions. Oftentimes, HOAs need appropriate time to deliver these documents. This date is typically 10-14 business days from the MEC. 

Item No. 9 – Association Documents Objection Deadline

The Association Documents Objection Deadline gives the Buyer the right to terminate the contract based on any unsatisfactory provisions in the HOA docs. This date is usually 10-14 Business days from the MEC.

Seller Property Disclosure Deadline

Item No. 10 – Sellers Property Disclosure Deadline

Sellers typically complete the Seller Property Disclosure before listing their home for sale. This is the Sellers disclosure on any issues or improvements that they have any knowledge of pertaining to the home. There is no objection for this because it’s simply a disclosure. The Buyer will have their own inspections to get the current facts on the property. This date is typically 1-3 days from the MEC.

Item No. 11 – Lead Based Paint Disclosure Deadline

The Lead Based Paint Disclosure is important only for homes built before 1978 and does not apply if the home was built after this date. A Seller agrees to deliver the lead-based paint disclosure and the EPA Brochure “Protect Your Family From Lead in your Home” to the Buyer on or before the deadline. The Buyer will then have until the mutually agreed date to terminate the contract and receive the return of their earnest money based on the disclosure. This deadline is understandably early in the contract and is usually 1-3 days from the MEC.

Loan and Credit Deadlines

Item No. 12 – New Loan Application Deadline

The Loan Application Deadline is the deadline in which the Buyer must submit a full loan application to the lender. In most cases,Buyers have usually gone through this process before submitting an offer. This date is typically 1-3 days from the MEC.

Item No. 13 – New Loan Termination Deadline

The New Loan Termination Deadline is to aid the Buyer determining whether the new loan is satisfactory to their needs. This includes payments, interest rate, terms, conditions, and cost. This deadline is for the sole benefit of the Buyer. This is usually 24-30 days from the MEC.

Item No. 14 – Buyer’s Credit Information Deadline

The Buyer’s Credit Information Deadline applies in the case of owner carry financing. The Buyer must supply the Seller with financials, a credit report or other documents requested. This deadline is usually 7-10 days from the MEC.

Item No. 15 – Disapproval of Buyer’s Credit Information Deadline

The Disapproval of Buyer’s Credit Information is the Seller’s opportunity to decline the Buyer based on the information provided. This date is typically 10-14 days from the MEC.

Item No. 16 – Existing Loan Deadline

The Existing Loan Deadline is only applicable for if the Buyer is going to assume the Seller’ existing loan. The Seller must provide all current loan documents to the Buyer for review. This deadline is typically 7-10 days from the MEC.

Item No. 17 – Existing Loan Termination Deadline

Once the Buyer receives the Seller’s current loan information, they have the right to review the terms and object or decline thereby terminating the contract. This date is usually 10-14 days from the MEC date.

Item No. 18 – Loan Transfer Approval Deadline

Again, this deadline only applies if the Buyer is going to assume the Seller’s existing loan. This is the deadline for the Seller’s Lender to approve the loan assumed by the Buyer. This deadline is typically 21-28 days from the MEC.

Item No. 19 – Seller or Private Financing Deadline

The Seller or Private Financing Deadline only applies if any portion of the financing of the transaction is provided by private or seller financing. The Buyer must decide by this date if the financing being offered is acceptable. This deadline is typically 21-28 days from the MEC.

Appraisal Deadlines

Item No. 20 – Appraisal Deadline

The Appraisal Deadline is the date in which the Buyer must receive an appraisal of the property. In most cases where there is a loan, the Lender will require an appraisal in order to determine the property’s current market value. This can be an important deadline to monitor because appraisers tend to fall behind during the busy season. This does not apply to VA loans. This deadline is typically set 18-21 days from the MEC date.

Item No. 21 – Appraisal Objection Deadline

The Appraisal Objection Deadline is when the Buyer must submit in writing that the valuation is less than the purchase price and outline the appraiser requirements of work to be done before it can close. (For example, Remove the chipped lead based paint from the side of the house). This deadline is usually set at 18-21 days from the MEC and is typically set at the same date as the Loan Termination deadline.

Item No. 22 – Appraisal Resolution Deadline

If there is an appraisal objection, the Appraisal Resolution Deadline is when the objection needs to be resolved. At this point, a couple of things can occur: a) the Seller can come down in price to match the valuation; b) the Buyer can bring the difference in cash or c) the Contract can terminate. An agreement must be reached by this date or the contract terminates. This deadline is set 21-24 days from the MEC date.

Survey Deadlines

Item No. 23 – New ILC or New Survey Deadline

An Improvement Location Certificate (ILC) or Survey is usually only ordered if the title company (and in some cases the lender) requires it, or if the Buyer has questions as to where the exact property lines are. The New ILC or New Survey Deadline outlines when the Buyer must receive either document by the deadline. This date is usually defined as 18-21 days from the MEC date.

Item No. 24 – New ILC or New Survey Objection Deadline

The New ILC or New Survey Objection Deadline is the date when the Seller must receive a written description of any matter that is unsatisfactory and the Buyer requires the Seller to correct. This date is typically set 18-21 days after the MEC date.

Item No 25 – New ILC or New Survey Resolution Deadline

If there is an ILC or Survey objection, the issue must be resolved by this date or the contract terminates. The resolution deadline must be after the objection deadline and is commonly set 21-24 days from the MEC contract date.

Inspection & Due Diligence Deadlines

Item No. 26 – Inspection Objection Deadline

The Buyer has the right to have a professional inspection done of the property. All home inspections are to be completed by this date. The Inspection Objection Deadline is the date by which the Seller must receive a written description of any unsatisfactory physical condition that the Buyer requires the Seller to correct. This is an important deadline and is typically set 7-10 days from the MEC date.

Item No. 27 – Inspection Termination Deadline

The Inspection Termination and Resolution Deadlines only pertain if an objection is sent. If an objection is received by the Buyer, the Seller has until this date to respond in writing, addressing the repair requests from the Buyer. The Buyer has to agree to the terms or the contract terminates. This date is usually set 10-14 days from the MEC and is usually the same date as the resolution.

Item No. 28 – Inspection Resolution Deadline

If an Inspection Objection is received by the Buyer, the Seller has until this date to respond in writing addressing the each of Buyer’s repair requests. If the Buyer and Seller cannot agree to the terms or agree to withdraw the objection, the contract terminates. This date is usually set 10-14 days from the MEC and is usually the same date as the inspection termination. Once an Inspection Objection is given to the seller it's in the best interest of all parties to come to a resolution in a timely manner (1-2 days). When the resolution is signed by both parties, buyers may not present any other inspection objections.  

Item No. 29 – Property Insurance Termination Deadline

If there is financing required to purchase the property, the Lender will require property insurance to be obtained, commonly called homeowner’s insurance. The Property Insurance Termination Deadline is when the Buyer must obtain as many bids as they’d like for their homeowner’s insurance. If the insurance does not meet their satisfaction, they must terminate in writing by this deadline. This date is usually set 21-24 days from the MEC date.

Item No. 30 – Due Diligence Documents Delivery Deadline

In the contract, if the box is checked in the Due Diligence section, the Seller agrees to deliver copies of specific documents pertaining to the property. This can include any leases, completed contract work, warranties, permits, etc. This date is commonly set 7-10 from the MEC prior to the Inspection Objection date.

Item No. 31 – Due Diligence Documents Objection Deadline

If the Due Diligence Documents are not supplied to the Buyer, or are incomplete or unsatisfactory, the Buyer can terminate or Object. When the Buyer objects, they must provide a written description of the documents that they require the Seller to correct or supply. This date occurs 8-11 days from the MEC date.

Item No. 32 – Due Diligence Documents Resolution Deadline

If there is a Due Diligence Document Objection, the issues must be resolved or the objection retracted by the Due Diligence Documents Resolution Deadline or the contract terminates. This deadline is set after the delivery deadline and is typically 10-14 days from the MEC.

Item No. 33 – Conditional Sale Deadline

The Conditional Sale Deadline only is applicable If the Buyer has a property to sell before they can complete the purchase of the property under contract. The contingent property must be sold and closed by the conditional sale date, or the Buyer may terminate the contract. This date is flexible.

Item No. 34 – Lead-Based Paint Termination Deadline

Beginning in 2019, the Colorado Department of Regulatory Agencies added the Lead-Based Paint Termination Deadline for the Buyer to terminate the contract and receive the return of their earnest money if they are not satisfied with the lead-based paint disclosure or any of the results of the lead-based paint inspection(s). This deadline is set 10-14 days from the MEC date.

Closing & Possession Deadlines

Item No. 35 – Closing Date

The Closing Date is when the loan papers are signed, recorded and funded  After closing the Buyer can take possession of the property on the date and time specified in the contract. The Closing Date is typically set 30-45 days from the MEC.  Buying a home with cash takes about 2 weeks to close.

Item No. 36 and No. 37 – Possession Date and Time

The Possession Date and Time is when the Buyer gets keys and the Seller is no longer allowed to enter the property. This usually  the date of closing or one day after closing. If the Seller requires more time to occupy the property, a Post Closing Occupancy Agreement must be signed.

Item No. 38 and No. 39 – Acceptance Deadline Date and Time

This is the day and time in which the Buyer requires the Seller to respond to their offer. This is typically 1 day from the date of the contract. If the Seller is offering a counterproposal, a new deadline is established on the counterproposal and a new MEC will be established.

These real estate contract dates and deadlines might seem so overwhelming when reviewing the contract, but they all serve an important purpose in the negotiations of the contract.

Got questions?  I'm here to help.  970-759-2540  Carrie Summers,  Colorado Ranch & Home Realty.  

Happy New Year! 2021!!