FAQS

+ What is my first step?

Your first step is to get pre qualified with a lender. There are multiple options for this route and shopping around is going to be your best bet to find the loan, rate and lender that works best for you. You also can request that they DO NOT pull your credit until you are ready! Make sure to download our lender recommendations as well as ‘How To Read Your Loan Estimate’

+ How much do I need for a down payment?

There are loan programs all the way to $0 down. Make sure when you are getting loan estimates, you are asking what your out of pocket costs are. These fees include but are not limited to: loan closing costs, title closing costs, title insurance fees, inspection, appraisal, transfer fees, insurance and more. Every situation is different so make sure you know exactly what to expect before offering on a home.

+ What is the difference between an inspection and an appraisal and why do I need both ?

• The inspection is an out of pocket expense for the buyer. This is done to make sure the home is in safe condition before purchasing. In this inspection period, it is a time for negotiation between the buyer and the seller on safety conditions.The main areas of concern and focus for inspection should be: electrical,plumbing/HVAC, foundation and roof.
• The appraisal is an unbiased 3rd party market evaluation justifying the contract purchase price of the home. This is done for a lender to make sure that they are not giving the buyer more money than the property is actually worth.
• The main difference between the inspection vs appraisal is the requirement. The inspection period is between the buyer and seller with 100% negotiation. The seller does not have to do anything requested by the buyer in this period. It is often that the seller and buyer meet in the middle on repairs needed for the home. The appraisal is required when getting a loan and any requirements that come back from the appraiser MUST be done by the seller for the buyer’s loan to be approved. There is no negotiation on appraisal requirements where there is 100% freedom in negotiation at inspection.

+ Credit Karma says my credit score is a 658, is that accurate?

No, Credit Karma and other websites do not use the same formula to calculate your FICO score that a mortgage lender does. We like to call that a ‘feel good score’. In reality, most of the time, your score is much less than what is on there. The ONLY way to find out your mortgage score is with a mortgage lender. Purchasing a car will even pull a different score than when purchasing a home.

+ How much does an inspection cost?

The inspection will cost on average between $200 - $300. Some inspectors go off square footage and others go off base pricing. Make sure to compare pricing and service before hiring your inspector.

+ Does my inspector have to be licensed?

In the State of Colorado, there is no requirement for an inspector to be licensed in any capacity. Make sure when you are hiring your inspector that at the very minimum, they are bonded and insured. Make sure to do your research and hire an experienced inspector. Don’t forget to download our inspector recommendations document to help you in your search !

+ How do I figure out my budget?

The only way to truly figure out the price of a home you can afford is by talking to a lender directly. They take factors into consideration such as your debt, your income, length of employment, ability to have a down payment (or not), credit score and more. Your FICO score is the leading factor that affects the interest rate of your loan.

+ Do I have to buy a house if I start the process?

Absolutely not. Make sure you always have a mortgage lender and Real Estate professional to go to for questions at any point in your home buying process. No professional should ever make you feel pressured to purchase a home before you are ready to. The only time that there are legal ramifications is after you have signed an offer on a home AND the other party (buyer or seller) has ALSO signed.