You're thinking about buying a house in Colorado Springs - now what? The journey toward homeownership is exciting, emotional, and sometimes filled with surprises. Here’s how the buying process works from start to finish, and a few things to consider along the way.
First: Let's Talk. Buying a home is a complicated process with many moving pieces; it's more than picking out a home, writing a check, and moving in. That's why we're here - to help you. Building a relationship with a locally-trusted Realtor® will save you time and money, while making everything else easier: the home search, contract negotiations, and minimizing any obstacles that pop up along the way. In order to help you achieve your real estate goals, would you please tell us about what you'd like to accomplish? We'd like to get to know you, and our first discussion might be over the phone, or in-person over a cup of coffee (on us)! Let's talk about what "success" looks like to you. We can describe the ways that our skills and expertise align with your needs, create an action plan, and set your expectations for the journey ahead. When you're ready to connect, send us a message or call/text us at 719-459-9653!
Then: Get "Pre-Approved". Estimate monthly payments with a mortgage calculator (like the one below) - but it won't evaluate affordability. Here's a quick rule of thumb: calculate 36% of your gross monthly income (i.e., before deductions & taxes), then subtract your total monthly debt payments (do not include housing expenses). The result is a very informal estimate of an "affordable" monthly mortgage payment, by lending standards. Now, you’ll need to get some paperwork ready: pay stubs, W-2s, two most-recent tax returns, as well as bank & credit account statements. Start with your most trusted financial institution, but you might find a better rate elsewhere.
Next: Tour Houses and Make Offers. Finding the right home and getting your offer accepted requires patience and decisiveness. In the Pikes Peak Region, well-marketed properties receive several offers and are taken off the market quickly. Don't get discouraged! It's common to view a handful of homes and write several offers - in fact, we encourage it. You'll benefit from your vigilance and develop well-informed market instincts. We'll prepare you to act quickly, and advise you on a reasonable offer based on market conditions. Our hard work begins as your offer is negotiated, so get ready to make and request reasonable concessions (see below). Once your offer is accepted and earnest money is deposited, you're nearly out of the woods.
Finally: Inspect the Home and Close. Don't get too comfortable once you're under contract; a lot can happen in the 2-4 weeks it takes to close the transaction. As experts, we strongly encourage you to hire a quality home inspector - there is almost no good reason to waive the opportunity to a home inspection. You'll usually retain the option to withdraw your offer and have your earnest money returned. When our final negotiations with the seller are successful and formalized, both parties are ready to close. You’ll spend about an hour signing real estate closing documents and receive the keys to your new home!