Tag Archives: buying a home

From the inbox

From the inbox: What is a mortgage?

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photo from pixabay

That’s a good question.

The long answer: “A debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. ” (Investopedia, 2015)

It short answer: it’s a loan backed by a home.

What kinds of mortgages are there? There are a number of options you’re best served by speaking directly to a lender on but there are some basic types such as a Veterans Affairs (VA) loan guarantee (also called VA loan), conventional loan, FHA loan, or an Adjustable Rate Mortgage (ARM).

 

Colorado Springs, Real Estate Investing

Denver Post: Colorado markets vary but improving…

The market’s on fire in Denver and picking up in other places.

Looking to buy in Colorado Springs?  I can help!  Call Rob at 719-440-6626 or email robthompsonrealtor@gmail.com.

From the inbox

From the inbox: what’s a buyer’s agent?

Good question! Short answer: YOUR advocate in the purchase of a home.

Longer answer: in Colorado, there are four types of working relationships — seller’s agent, buyer’s agent, transaction broker and customer. A seller’s agent represents the seller and “works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller.”

A buyer’s agent “works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer.”

A transaction broker “assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties.”

Finally, in the customer relationship, the agent “has no brokerage relationship because such party has not engaged or employed the broker, either as the
party’s agent or as the party’s transaction-broker.”

(From the Colorado Definitions of Working Relationships Disclosure)

Looking to buy a home? I’d be honored to earn your business

Mortgages

From the inbox: are you joking about $780 up front to buy a home?

Short answer: I have fun with but rarely joke when it comes to real estate (this is serious business!).  Nope, not joking, you can often get into a home for as little as $780 in Colorado Springs.

Longer answer: there are three costs to a home buyer generally in the purchase process.

1. Earnest money: this is “good faith” money a buyer puts up to compensate the seller if they (the buyer) breaches contract for a non-protected reason.  I’ve had a lot of success w/$500 earnest money in town.  Note: coordinate with your lender but you can often get this money back at closing.

2. Inspection costs: a home inspection costs about $280. This is a sunk cost; even if you choose not to continue with the purchase, this isn’t reimbursable in the normal course of a purchase.

3. Appraisal: there is an appraisal cost that some lenders will charge upfront, others charge as part of the loan costs.

In sum, it is entirely possible to buy a home for an upfront cost of $780-1180, depending on the lender and the earnest money required…and that earnest money can often come back to you.

Questions, please give me a call! If you’re looking to buy or sell in Colorado Springs or Denver, I’d be honored to earn your business.

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