|7385 W Hwy 50
Salida, CO 81201
TIPS FOR BUYERS
Much of this information may seem like common sense and you may have heard much of
it before. However, a quick review of the material may shed light on a few nuances of the
process and get you prepared before they become nuisances.
Real Estate transactions have become increasingly complex and the legal parameters
are constantly evolving. The goal of this never ending process is to protect buyers and
sellers of real estate (and anyone having an interest in that property.) There are
numerous forms and disclosures required by law that your real estate professional will
present and explain to you. Don't hesitate to ask questions as you review these
documents. Its our job to stay current on these guidelines to further protect everyone
involved, but it important that you feel comfortable with and understand what you are
The information below will be helpful in preparing ahead of time to avoid delays and
costly problems down the road. .
The two biggest hurdles are choosing a home and arranging finances. Not a
very profound statement, but these are the areas where the most time is abused and the
most anxiety is originated. There are usually hundreds of homes on the market, but
you'll become frustrated and weary if we show them all to you. Spend some time listing
the style of home you prefer and things that are necessary in a home followed by a list of
things desirable to you in a home. Make another list of things you don't like in a home
and styles of homes you don't particularly like. The process will be more enjoyable for
you if we work together to target a short list of homes. We'll refine the search from there.
Finances. If you will be financing , talking with your lending institution should be
one of you first steps in preparing to buy a new home or property. It is critical
(for you and your broker) to know what you can comfortably spend and what financing
options are available to you. The process can take several weeks and can often bring
the entire buying process to a halt. Starting ahead of time gives you more time to find
the best financing option available and ensures that you don't experience delays and
possibly miss an opportunity to make an offer on that perfect property.
Below is a link to a Buyer Tips Handout. These lists are not all-inclusive and every listed
item may not apply to your situation, but they will initiate some forward thinking and help
you get organized and prepared for the buying a property.
Potential home buyers inevitably must confront their credit scores. Here’s a primer
for those who have never faced this issue before:
A credit score, commonly known as a FICO score, is derived from a history of taking on debt
and paying it off. The credit factors that determine the score are: a person's payment
history (35 percent of the score), how much they owe (30 percent), the mix of credit and
installment loans they have (10 percent), the length of their credit history (15 percent), and
whether they have applied for new credit recently (10 percent).
FICO scores range between 300 and 850, with the highest reflecting the best credit risk. The
median FICO score nationally is around 720-723, according to Fair
Isaac, the company for which FICO scores are named.
Except for a first-time buyers or those who have a large down payment, lenders will want to
see a FICO score of 680 or higher, says Robert Satnick, chairman
of the California Mortgage Bankers Association.
To get their FICO score, potential home buyers can go to Myfico.com, a unit of Fair Isaac.
Obtaining a FICO score and a credit report from one of the three
credit bureaus that collect this history costs $15.95; the combination of all three scores and
the FICO report costs $47.85. Remember that you are legally entitled to a free annual credit
report from the three major reporting agencies. Go to www.freecreditreport.com to get yours
if you haven't in the last 12 months.
Source: The Associated Press, Alex Veiga (07/21/2008)
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