The Buying Process
Buying a home can seem like an overwhelming and stressful process if you’ve never been through it before or if it’s been a while. Understanding the steps of the buying process upfront, however, can help to ease your fears so that you can focus on the enjoyment of finding a home!
1. Get Prepared
The home buying process begins with education, whether you’re a first-time home buyer or a seasoned real estate investor.
- Contact a lender to begin the pre-approval process (Contact us for a list of lenders if you don’t already have a preferred lender). Work with your lender to determine how much you can afford and what steps need to be taken to qualify for a loan.
- Schedule an educational home tour with Red Door Properties to familiarize yourself with Denver neighborhoods and home styles to determine what your money can buy.
- We will set-up a broad home search and send you daily emails with results. Review photos and details to narrow in on what you like and what you don’t like.
2. Get Focused
Once you’re educated on the market, have a lender pre-approval letter in hand and have a good idea of your ideal home and neighborhood, you’re ready to get serious about finding a house and writing an offer!
- Work with Red Door Properties to refine your daily home search based on revised needs and wants that you have gleaned from the education phase of the process.
- Sell your current house if necessary (click here for an overview of the home selling process). Depending on market conditions, you may not be able to write a “real” offer if you have a home to sell.
- Research home inspectors, insurance providers and contractors to determine who you will hire so that you are ready to schedule an appointment once you have a house under contract.
- Be ready to see homes on short notice! Red Door Properties will be searching listings and previewing homes on your behalf and when the right home pops on the market, we want you to be first in the door!
3. Negotiation & Due Diligence
Once you’ve found the right house for you and your family, we will work together to prepare and present a robust and organized offer package presenting your offer and your team (you, Red Door Properties, your lender, and your inspector) to increase the odds that your offer gets accepted!
- Review Red Door Properties’ quantitative analyses and check your qualitative gut based on the properties that you have seen during your search to determine an offer price.
- Discuss timing and establish comfortable yet competitive closing, possession and contingency dates.
- On your behalf, Red Door Properties will submit your offer, a copy of your earnest money check (expect +/-2% of the purchase price), your lender pre-approval letter and any personalized information or materials that will enhance your offer.
Sometimes offers are simply accepted, but in most cases a little back-and-forth can be expected between you and the seller.
- Receive a response from the seller. Did the seller accept your offer or did the seller counter your offer? If the seller countered, what are the terms of their counter and are they acceptable?
- Red Door Properties will work with you to determine a negotiation strategy to arrive at the most ideal price, terms, dates, inclusions, exclusions, etc. that are acceptable to both parties.
In Colorado, real estate contracts are written to protect the buyer. You will have ample time to conduct inspections, review documents and work with your lender to ensure that the transaction can be completed to your satisfaction.
- Red Door Properties will monitor all dates and deadlines to ensure nothing gets overlooked!
- Thoroughly investigate the home, lot and neighborhood. This is the time during the process for you to examine whatever is important to you. Hire professionals to inspect and survey the property. You should also take the time to personally drive the neighborhood, measure for furniture placement, visit the local school…check out whatever is important to you!
- Contact your preferred property insurance provider to get property insurance approval.
- Work with the title company to review title documents and ensure that the property is unencumbered.
- Coordinate with your lender to order an independent appraisal of the property. For most loans, the appraised value of the property needs to meet or exceed the contract price
- Provide your lender with all requested documents to verify your financial history and expedite the underwriting process. Review final loan commitment to ensure that all terms, fees and rates are acceptable.
- Prepare for your move!
4. You’re Home!
Once you have successfully completed the due diligence phase and have received both a title commitment and a loan commitment, you’re ready to close on the property!
- Meet Red Door Properties at the home to conduct a final walk-through to ensure that the general condition of the property has not changed.
- Bring a valid photo ID & closing funds to closing. At the closing, you, the seller, brokers on both sides and the closing agent will sign a ton of documents. The closer will facilitate the closing process.
- Transfer utilities into your name and get your keys! You’re a home owner!!!
The most important part of the home buying process is home ownership. Once you’re an owner, you need to responsibly maintain your property, select renovation projects wisely and keep all documents safe and organized. You will ultimately sell this property and the choices you make during your ownership period will directly impact your return on your investment. Your relationship with Red Door Properties will not end at the closing table…we will be here for you throughout your ownership period to provide you with market data and advice so that you can make smart decisions to realize the full potential of your real estate investment!
That’s it! It’s that easy! Contact us today to discuss your home buying needs!