Colorado House Buyer

As property values have been falling, it’s a great time for home buyers to find good deals on Colorado Springs homes that are for sale whether you are looking for that perfect retail home or want to save a little more money by purchasing a short sale or REO property. While now is the time to take advantage of great pricing, you need to ask yourself if you are ready and willing to make a commitment to stay in the house for a few years. When people buy a home, they anticipate growing equity in their home over time. There was a time, not too long ago, where this happened pretty quickly, however, in today’s market, it takes longer. When you add in the transaction costs involved in buying and selling a home, you could find yourself losing money on your home if you try to sell too quickly. So, first things first - can you can make the commitment to stay in the home for a few years?

Some other questions you should answer before you and your Pink Realty agent go out to find your dream home:

• When do you want buy? Depending on the time of year you begin house hunting, the market may be slower. For instance, if you are buying in the colder seasons (i.e., through the holidays), sellers may be more willing to offer incentives or be more flexible on price.

• If you aren’t in a hurry to buy, you might want to consider buying a home that is being sold as a short sale. The short sale process does take longer than a typical retail sale, but if you have the time to work through the process, you will have the opportunity to get more house for your dollar if you buy a short sale.

• What part of town and what neighborhoods do you want to live in? Colorado Springs neighborhoods that have better schools tend to have higher values. Even if you don’t have school-aged children, it’s an important aspect to consider when it does come time to sell because resale values will be higher.
• Be sure the neighborhood you choose is one you can commit to staying in for a while, so do some research on different Colorado Springs neighborhoods to find out about property values and if houses are selling close to their asking prices. Find out about the attributes that are important to you such as schools, shopping, recreation, homeowners associations and dues, crime rates, etc. Remember that your Pink Realty agent can help you find any of this information that is of interest to you. Just call us at 719-393-7465 (Pink) to get started.

• How many houses in the neighborhood are for sale and how fast are they selling? Talk to neighbors to see how they like the neighborhood. If they are selling, ask why they are selling. Again, consider your lifestyle and make sure the neighborhood will work for you.

Another very important aspect of buying a house is financing. The average person needs to obtain a mortgage in order to purchase a home, and getting a mortgage these days isn’t as easy as it used to be! The human element of issuing credit has been removed from credit transactions, so the approval or denial of a mortgage is determined by your credit score. Your credit score is determined by the information that is in your credit report. Therefore, you need to know what’s in your credit report and what your credit score is. Knowing this information helps in several ways. If your credit score falls short of the approval requirements, you will have an idea of what you’ll need to do to raise your score. Again, if you need help with this, just call Pink Realty at 719-393-7465 (Pink) and ask to speak to our loan specialist and she will be happy to help you with any loan or credit issues or questions you may have. If you have great credit and a high score, you will have some negotiating power when it comes time to determine interest rates and points. You are entitled to free copies of your credit report annually from all three credit bureau reporting agencies (Equifax, Experian and TransUnion). Actually obtaining your credit score generally costs a fee, however, you can have a lender pull your credit report and tell you your credit score for free. Most conventional lenders ideally look for a credit score of 720 or higher. In today’s economy, there aren’t many people with scores that high. If you don’t qualify for a conventional loan, you can apply for an FHA or VA loan. While FHA has their own credit score requirement of 580 or higher, many lenders add their own requirements to FHA financing.

If you find your credit score doesn’t qualify you for a mortgage, you will need to do some homework to get your scores up. We have posted previous articles on credit reports and repairing your credit. You can review these articles to learn about how you can repair your credit or just call the Pink Realty office at 719-393-7465 (Pink) and ask to speak to our lender. She can definitely help.

If your credit is strong enough to qualify you for a mortgage, the next thing to figure out is how much of a mortgage can you realistically afford. An industry rule of thumb says you can afford a mortgage that is 2-1/2 times your annual salary, but this rule of thumb doesn’t take into consideration your monthly debt and living expenses. To better determine what you can afford, you can use an online mortgage calculator. These calculators take into consideration your income and your monthly debt payments to give you a more realistic mortgage amount for your budget.

Once you know the amount of the mortgage you can afford, the next thing to determine is how much cash you have available for a down payment. Most conventional loans require 20% of the purchase price as a down payment to avoid private mortgage insurance. If you don’t have 20%, you can put as little as 5% down if you agree to have private mortgage insurance added to your loan. If you qualify for FHA financing, you may only have to put down 3-1/2% of the purchase price. Depending on how much cash you have to put down will also determine how much of a mortgage you can afford. As you can see, it’s important to know if you can obtain a mortgage, how much of a mortgage you can afford and how much you can afford for a down payment. Knowing the answers will help you determine what price range you and your Pink Realty agent need to be looking in for your new home.

If you are confident you will qualify for a mortgage, it’s time to have contact your Pink Realty agent and start looking for your dream home. You want to pick a lender and a real estate agent who will work for you and take your interests to heart.

Once you have been approved for your mortgage, you don’t want to do anything to change your credit report or your financial situation. Therefore, avoid doing any of the following:

• Don’t apply for new credit. Inquiries affect your score and will have to be explained to your lender.

• Don’t incur more debt. This means don’t increase your credit card balances or credit lines and don’t take out any new loans. It will affect negatively affect your debt to asset ratio.

• Keep accounts current and make payments on time.

• Don’t pay off collections or charge off accounts, don’t close any credit card accounts and don’t consolidate debt into one or two credit cards.

• Don’t make any large deposits other than your standard payroll as all deposits will have to be explained.

• Don’t make any large cash purchases as it will lower the amount of verified funds in your bank accounts.

• Don’t change jobs without talking with your loan officer first.

OK, now that you know your credit is good, you know how much cash you have to put down, you are working with a Pink Realty agent and you know what neighborhoods you are interested in living in. Congratulations! You have just crossed the first big hurdle.

Now it’s time to start looking for the house that’s right for you. While you can comb the internet and newspaper ads to find houses yourself, it can easily become overwhelming with the large inventory of homes that are on the market. To save you time and miles of legwork, your Pink Realty agent will do all of this work for you. They can narrow houses down based on your interests and your budget and when it comes time to making an offer, signing contracts, disclosures, and addendums, they are there to help you understand what it all means.

Here are some tips that will make things easier as you and your Pink Realty agent look for your Colorado Springs dream home.

• Make a list of things the house must have and a list of what you would like to have. Prioritize your list and separate the ‘have-to-have’ from the ‘want-to-have’. Don’t be too restrictive on your search criteria. For instance, include a price range that is 10% above and 10% below your budget.

• Bring a notebook and camera with you to help you remember the details of each house. Take pictures and take notes about each because after you have seen several, you can easily forget details or get the details and houses mixed up!

• With each house you see, keep an open mind. Don’t reject a house just because it was short a few features on your wish list or was a bit out of your price range. Remember, the asking price is simply a starting point. You will have an opportunity to negotiate once you are ready to make an offer.

Once you have found the home you want, work with your Pink Realty agent to determine what your offer should be. Depending on the market and the area, you may have to act quickly. Your agent should have a good idea about what homes in that neighborhood are selling for and to know how close your original offer should be to the asking price. Additionally, you should discuss what terms you would like in the contract such as how quickly you want to close, what stays with the house, how much earnest money you have to put down, and so on.

When you have settled on a home and are in the process of negotiating a final price, you will have the contract contingent up the results of a home inspection. Have a licensed inspector inspect the home to see if there are any major repair surprises. Home inspects can check the heating, plumbing, electric, roof, etc. to see if there might be some foreseeable issues in the future. You may want to ask for a home warranty as well. There are all things your Pink Realty can help you will.

Buying a beautiful Colorado Springs homes is no easy task, but it is a very rewarding experience when you know what to expect and you are working with the professionals at Pink Realty who have your best interests at heart. We have experienced buyer’s agents who will work with you to find the home of your dreams. You can also use our professional in-house lender that will get you an affordable mortgage and help you with credit repair if you need help with that. Whether it’s a retail property or a short sale, they are professionals, knowledgeable and experienced. Additionally, we have an outstanding short sale team that not only has a very high success rate but also takes great pride in getting the deals closed in a timely manner. We are the ones to call!

When it comes to purchasing homes, buying a foreclosure is one of the best ways to create equity. Many times, you will find foreclosed houses for sale listed as half of what they are actually worth. After purchasing one of these homes, you can rent them out to generate positive cash flow, or flip and sell to generate an immediate profit. Yes, foreclosures can be a great way to create equity (or just get a create deal on a home), but many of us do not know a lot about foreclosures. Let’s take a look at what foreclosures are and how you can go about finding a great deals of Colorado Springs Foreclosures.

Before we talk about how you can find a foreclosed house, let’s first discuss what a foreclosure actually is. A foreclosure occurs when an owner cannot make payments on their home. If payments become severely overdue, the property is seized and sold. Many times, when foreclosures are resold, they are resold much below their actual value, making them the perfect find for home buyers.

Typically, there are four stages to a foreclosure. If a home owner goes 60 days without making a loan payment, they will enter into the first stage of foreclosure known as the ‘notice to accelerate’. During this stage, the owner will receive a notice from their lender letting them know that their payments are past due and must be brought up to date. If the owner fails to respond to this notice they will enter into the second stage of foreclosure – the ‘demand letter’. This letter will be delivered to the owner by a lawyer, letting the owner know that the foreclosure process will begin if they do not soon bring their payments up to date.

If the owner still does not respond, the lender will receive a notice of default, letting them know that the lender has filed for a formal foreclosure from the court. Once again, the owner is given an additional 20 to 30 days respond. If there is still no response after the given time, a final notice of sale will be delivered, letting the owner know when they must move out and when the house will be auctioned off.

If you are looking for a great deal in the Colorado Springs area, you may want to consider looking at these foreclosed houses. Begin by asking your real estate agent about foreclosures in the area. If there are any available, your agent will take you around to look at each. It is generally recommended that, before you look at homes, you ensure that you have a secure financial backing. Foreclosed houses are hot sellers, so if you are interested in a home, there is no time to waste.

Once you find a home you are interested in, you can submit your bid. Generally, the lender who repossessed the home will create a starting bid of which you cannot bid lower. Once you have made your bid, it will be considered against other bidders. You will be noticed once a decision has been made.

If you win the bid for your home in Colorado Springs, your next move is to perform an inspection. Do not skip this step. While some foreclosed homes are in excellent condition, many need repairs. And when it comes to buying a home, it is best to know what to expect beforehand!

If you are looking for homes for sale in Colorado springs area, you may want to start by looking at foreclosures. Foreclosures can get you a great deal on your home and can also be a great way to earn equity. Speak to your realtor about foreclosed houses and see what homes are available in the Colorado Springs area.

Are you looking to relocate to Colorado Springs? Sometimes, relocation to a new city can be scary. New neighbors, new streets, and new surroundings can be a little intimidating if you don’t know the area. Let’s take a brief look at what you can expect when you relocate to Colorado Springs so that you can more easily adapt to your move.

When you move to Colorado Springs, the one thing you can count on is beautiful surroundings. Colorado Springs is located right at the base of Pikes Peak, the highest peak of the Rocky Mountains. Each year, this city attracts millions of visitors looking to experience a small part of the beauty that it has to offer. Within the Colorado Springs area, you will find a variety of parks for nature lovers including the Garden of the Gods, the Native American tribal grounds, and Seven Falls. Wherever you go in this city you will be surrounded by sky high mountains, unique rock formations, and natural beauty.

If the gorgeous scenery is not enough to help you adapt to your relocation in Colorado Springs, perhaps the weather will be. Because Colorado Springs is surrounded by the Rocky Mountains, the climate here is quite mild and dry. In the summer, average temperatures range between 70 and 80 degrees, making it the perfect weather to catch a tan. In the winter, temperatures are mild reaching an average of around 28 degrees.

When it comes to relocating to Colorado Springs you will find that most of the economy is based around military installations, aerospace, and tourism. To give you an idea of how strong the military influence is, one fifth of all people in the city of Colorado Springs are employed by the military! Aside from the military, however, Colorado Springs also places a great deal of emphasis on space research. The Combined Services Space Center and the Consolidated Space Operations Center are both located in Colorado Springs, making it the perfect location for those interested in aerospace. As for tourism, Colorado Springs is booming. On average, the city drives over one billion dollars each year in tourism alone, one of the main attractions being Pikes Peak.

If you are looking to raise a family in Colorado Springs, you have plenty of educational opportunities to choose from. Colorado Springs offers access to over 39 different elementary schools, 9 middle schools, 9 high schools, and 6 alternative learning schools. Colorado Springs also has a lot to offer in terms of post-secondary education. With over 20 different colleges and universities in the surrounding area, Colorado Springs is home to Colorado College, the University of Colorado, and the United States Air Force Academy.

Relocation to a new city can be scary, but be assured that relocation to Colorado Springs, you will adapt quickly. Surrounded by beautiful scenery, a booming economy, and excellent educational opportunities, it does not take one long to adapt to life in Colorado Springs!

So you have decided that you want to purchase a home for sale in Colorado Springs? The next step is to hire a realtor! A Colorado Springs real estate agent can help you through the process of finding and purchasing a home. Let’s take a look at how a real estate agent can help you in your quest to find a new home.

When you first speak to a real estate agent in the Colorado Springs area, one of the first things that you will do is discuss your wants and your needs. Once the real estate agent knows what you are looking for, they can begin searching through the Colorado Springs MLS listings, finding homes that match your needs. Real estate agents can help to limit your house search based on housing type, housing price, location, and a number of different amenities such as number of bedrooms and bathrooms. A real estate agent can help you to pick through the long list of homes for sale, showing you only the houses that match your exact needs. Need a pool? Your real estate agent will find you houses with pools. Need air conditioning? Your real estate agent can find that too!

Not only can a Colorado Springs real estate agent help you to find your perfect home, but they can also help to choose the perfect location for you and your family. One of the things that make Colorado real estate agents so good at what they do is the fact that they are very familiar with the different neighborhoods. They can tell you any information that you need to know about schools in the area, crime statistics, demographic statistics, or anything else you wish to know. If you are new to the Colorado Springs area, this knowledge can be very beneficial to your decision!

One of the most important jobs that a Colorado Springs real estate agent has does not come while you are searching for a house, but rather while you are purchasing a house. Real estate agents are responsible for any communication between the buyer and the seller. The best part? Real estate agents have excellent negotiation skills, helping you to negotiate a price that works for both you and the seller.

Once you have reached your agreement with the seller, a real estate agent will handle all of the paperwork for you. When it comes to purchasing a home, there can be a great deal of paperwork that needs to be read and signed. Most of these papers, however, are written in a real estate code that is difficult for the average person to understand. A real estate agent can help guide you through the paperwork process, explaining any contracts that you may sign and answering any questions that you may have.

If you are looking to purchase a home for sale in Colorado Springs area, your first step is to hire a real estate agent. Colorado realtors can help you find the perfect home and then guide you through the process of purchasing it!

Homeowners whose homes have been put up for foreclosure are unfortunate but investors are somewhat lucky to find these deals on the market. Even with a “run-down” property, an investor can flip it and make a decent amount of money on its resale. The process of colorado springs foreclosures is somewhat simpler than other areas of the country as there is no need for a court appearance by neither the lender nor the borrower.

How does a foreclosure work?

When a borrower has defaulted on a loan, the lending institution issues a notice to the borrower and trustee. The lender requires a 3-moth reinstatement period to give the borrower the chance to pay the debt. When this time period elapses, a trustee’s sale is publicized, typically in the form of an auction. All costs related to the foreclosure and the principal amount is deducted from the winning bid. The balance is then given to the borrower.

Why foreclosures are good news for investors

A foreclosure is a good opportunity for an investor to snag real estate. This is especially true about Colorado Springs foreclosures. Though the market has experienced a dip in prices, the housing values in Colorado Springs are at a steady rise ranging from 2% to 6%. In addition, defaulted banks are willing to sell foreclosures at lower than normal prices in order to recoup what they have lost. They aren’t interested in real estate, they are more interested with lending money to new buyers.

There is actually an even better situation for investors as it relates to foreclosures. There is the instance when a property is sold in pre-foreclosure which means less cost and time. The buyer has more power to negotiate as the seller is willing to forego equity on the property to evade the tarnish to their credit report.

What are the steps that a buyer should take?

As a buyer, you should do a lot of research to find the right property. If you are planning on using the property as a primary residence, then factors such as the school district, the crime rate, local amenities, long-term plans for the area and comparable properties in the area should all be considered. When a property is decided upon, the next step is to approach a bank to get pre-qualified for a loan.

During this time, it’s recommended that you avoid making huge purchases. Lenders use your debt-to-income ration to establish what you can afford. It will include monthly housing costs, car payments, credit cards, student loans, etc. Additional debt will negatively impact the amount the lender will finance.

The next step is to either contact the seller or go to the auction to submit an offer. The ideal price will take into account the fact that banks hardly want less than 90% of the loan balance. Also, you should get the property professionally inspected. It makes no sense getting a “money pit” that has a lot of shortcomings which will end up costing a lot of money to fix. Keep this in mind when negotiating a price.