| Buying a home is a major event for everyone involved. If this is your first home buying experience, or if it's been a few years since you've bought a home, knowing what to expect makes it easier. This is a huge investment for you not only in dollars, but the time and energy you'll spend finding the right home and negotiating the deal that you will live with for many years to come. If after reading the information on this page you have further questions, contact a RE/MAX Royal Gorge agent - they're here to help! |
Click here for a printable chart of the home buying process and a list of lender requirements.
| Once you find the home you want to buy, the next step is to write an offer. Your offer is the first step toward negotiating a sales contract with the seller. Since this is just the beginning of negotiations, you should have in mind the most you will pay for the home, and the protections and contingencies you will insist on. The goal is to get what you want, and to protect your investment and limit your risk. In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well. This includes how you intend to finance the home, your down payment, who pays what closing costs, what inspections are performed, timetables, whether personal property is included in the purchase, terms of cancellation, any repairs you want performed, which professional services will be used, when you get physical possession of the property, and how to settle disputes should they occur. Once the deal is negotiated, and your offer accepted, you are bound by it to do everything possible to fulfill your obligations laid out in the contract. This will include obtaining financing and the aspects of the contract that you have agreed to be responsible for such as a home inspection. On the closing date agreed upon in the contract, you will meet with the seller to make sure all obligations have been fulfilled by both parties and then sign the necessary documents to transfer ownership to you. Taking possession of the home is the last step in the process. That means that from now on, you are responsible for the home or property, including utilities and insurance. Finally, you're ready to move in! |
| Appraisal: A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby. Appraisals are done by an individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent. Broker: Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. Clear Title: A title that is free of liens or legal questions as to ownership of the property. Closing: This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents record at the local recorders office. In others, the "closing" is a meeting where all of the documents are signed and money changes hands. Closing Costs: Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application. Commission: Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Contingency: A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector. Deed: The legal document conveying title to a property. Earnest Money Deposit: A deposit made by the potential home buyer to show that he or she is serious about buying the house. Escrow: An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed. Home Inspection: A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser. Lien: A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien. Purchase Agreement: A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. Title: A legal document evidencing a person's right to or ownership of a property. Title Company: A company that specializes in examining and insuring titles to real estate. Title Insurance: Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property. Title Search: A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding. |
| The Right Home for You Know what your needs in a home are before starting to look. While there are many variables when selecting homes to look at, you'll save time by narrowing your search by price, size, location and features that are important to you. Keep track of the homes you look at by keeping a scorecard of each. Find a Real Estate Professional A real estate agent is trained to assist you with a home or property purchase and is invaluable to guiding you through the process and paperwork that is required Protect Your Investment Asking the right questions will help avoid surprises down the road. Things like knowing what the utility costs are and having a home inspection done by a qualified individual are just some things to consider. Financing Knowing your financial situation and getting pre-approved for a mortgage will speed the process and make you more attractive to a seller considering your offer. Be Prepared for Challenges Don't be discouraged if you don't find that perfect home right away, or perhaps your offer has been rejected. There is a home for you-just keep looking! |
| These companies provide utilities to the Royal Gorge Area. Contact them to transfer or begin service. |
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 Atmos Energy - natural gas. |
 Aquila - electricity |
 Qwest - telephone/DSL |
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Water Service
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In Canon City, 719-269-9015 E-mail In Florence, 719-784-4848 In Penrose, 719-372-3289 |
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