11 Things You Should Know about Colorado Real Estate
11 Things about Colorado Real Estate
1. Realtors in Colorado need to disclose facts that they know and must disclose material facts. This is because Colorado is an "actual knowledge state." Some other states are "imputed knowledge states" which means realtors are expected to know certain things.
2. Some areas in the U.S. realtors ask 10% for Earnest Money. In Colorado, most realtors ask for 1% Earnest Money for their listed properties in their local MLS.
3. Most of the homes listed in the Summit County area are posted in some type of MLS database. Many of these homes also get listed in multiple MLS's.
4. In Colorado you can only be an agent for either the buyer or seller. In some states dual agency is still allowed.
5. In some states, an oral real estate contract is enforceable in the court of law. In Colorado all real estate contracts are in writing.
6. Colorado's contract to buy/sell is currently 16 pages. Other states only have a 3 page buy/sell contract.
7. In many states, lawyers are almost always involved in real estate contracts. In Colorado most times lawyers are not involved in the process. Lawyers only get involved when there are new Colorado Real Estate Forms. Realtors are allowed to use approved Colorado Real Estate Forms without consent of a lawyer.
8. Colorado homes listed in the MLS database include basement or below ground square footage. In other states, MLS will only allow realtors to list above ground square footage. This causes challenges for the national databases and consumer sites, for example, Zillow.
9. Colorado requires realtors to carry Errors and Omissions Insurance. Some states do not require their realtors to carry this insurance.
10. Most sales representatives working for a builder are not licensed Colorado Realtors.
11. Every listing in Colorado must include a square footage disclosure which shows where the broker obtained the information. Most states do not use this type of disclosure.
Posted at 05:07PM Jan 27, 2012 by Kristin Corsette in General |
Mortgage Rates at Record Low
Rate on 30-year Mortgage at Record Low
This week has seen the average rate on a 30-year fixed mortgage fall to a record low. This is the 8th time in a year rates have fallen. The new average rate is 3.88%. This is the time to buy or refinance if you have not done so already!
Posted at 09:45PM Jan 19, 2012 by Kristin Corsette in General |
GO I-70!
With the holiday weekend upon us and crowds heading to the mountains, I-70 will be a little more trafficked than normal. This will result in some spots of congestion along the mountain corridor. Here are some tips on how to avoid hitting traffic.
Most of the time I-70 is traffic-free, but there are some prime holiday times that are best to be avoided. With the website GoI70.com you can access timely road and traffic information. A quick check on this website before you leave and you can be more informed about what is going out on the roads. On GOI70.com you can learn about travel speeds, road conditions, learn where the delays might be, and view traffic cams.
If you have a smartphone you probably have a bunch of apps downloaded that you rarely use. One app that will not go unused is the GOI70.com/mobile app. This app has much of the same information as the website. If you like to tweet than follow @GOI70 to get text messages sent directly to your phone about changing conditions.
A good thing for you that travel I-70 frequently is that the traffic is predictable and very infrequent. With all this information at your fingertips you should never get stuck in traffic again!
Posted at 10:09PM Jan 14, 2012 by Kristin Corsette in General |
19 Steps for the Typical Home Loan Process
19 Steps for the Typcial Home Loan Process
1. Pre-qualification If you're not already pre-approved for a mortgage before looking for a new home, do not worry. There is a pre-qualification process that can help give you an idea of how much you can afford. This process is based on your income, credit history, and debt. When going through the process be sure to provide an accurate credit history because neglecting to mention credit problems in the past or outstanding loans will create a false pre-qualification estimate.
2. Pre-Approval This step is similar to the previous stage. The difference is your income, credit history, and debt are all verified. After this verification you are actually approved for a loan under specific terms and conditions and up to a specific amount. After you become pre-approved you can search for a home with a set budget in mind.
3. Finding the Perfect Home Now that you know your budget, start the search for your perfect home! Ask your real estate agent for listings within your specifications. A daily search will optimize your chance to find your dream home.
4. Purchase and Sale Agreement The terms of sale are negotiated once you find that perfect home. Some of the details in the terms of sale are move-in date, sale price, and repair requests. This offer is presented to the sellers by your agent. The offer also typically includes your pre-qualification or pre-approval letter which can help tilt the sale in your favor in a competitive market.
5. Loan Application If and when the seller accepts your offer, you will need to complete a loan application. If you have already been pre-approved than you have already filled out a loan application.
6. Necessary Documentation To support the loan application you will need to submit some supporting paperwork. Some of the paperwork will include pay stubs, tax returns, and account statements. This is to verify the source of the down payments, funds to close, and reserves. If you have already been pre-approved than this step has already been completed.
7. Appraisal For all home sales an appraisal must take place. If the sale price and the appraised value of the home are different, the sale could be jeopardized. This happens rarely.
8. Search for Title For a title transfer to take place, a search for liens against the property must be conducted. A lien might have been placed on a property to ensure payment of outstanding debts by the owner.
9. Property Inspection Inspection of the property for any potential safety hazards or termite and water damage may be conducted before the finalizing of the sale. Any problems may need to be repaired before going further.
10. Processor's Review A loan processor will package all pertinent information to be sent to the underwriter, including any explanations needed.
11. Underwriter's Review The underwriter will make a final decision to approve a loan or not based on the information put together by the loan representative and the processor. Lenders ideal borrower will make payments on time and a property that will cover the cost of investment if a buyer defaults.
12. Mortgage Insurance When a down payment is less than 20% of sale price most lenders will require borrowers to carry Private Mortgage Insurance. A mortgage insurance company may still deny coverage even when a loan meets lender requirements.
13. Final Loan Approval If your credit and debt-to-income is in good standing, your loan approval will be approved with little or no problem. If the debt-to-income ratio is high, you may need to put more money towards the down payment. In some cases, repairs or improvements may be required. You may also need to put more money towards the down payment if the property appraises for less than the purchase price to cover the difference. In some instances, other conditions must be met before the final loan approval and loan documents are issued.
14. Insurance Lenders will require home owners to acquire fire and hazard insurance on the replacement value of the structure. If the home is in a flood zone, than flood insurance will be required. In earthquake prone areas, earthquake insurance may be required by the lenders on certain structures.
15. Signing Final loan and escrow documents are signed by both you, the buyer and the seller.
16. Funding The title company will receive a wire or check for the amount of the loan.
17. Close of Escrow Documents transferring title are recorded with the County Recorder.
18. Confirmation of Recording Once documents are transferred, the title company will authorize the escrow company to draft a check to the seller.
19. Home Ownership You are now the owners of your perfect home! You can now move in enjoy your new home. For safety it is recommended that you replace all locks.
Posted at 09:24PM Jan 06, 2012 by Kristin Corsette in General |
