Denver Buyer's Guide

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Elements of an offer

Price

Terms (earnest money, down
payment, financing or cash)

Dates (closing and possession)

Inclusions & Exclusions
Contingencies (loan, inspections,
appraisal, HOA documents etc.)

 

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Compass Bridge Loan Services provides access to competitive rates and support from industry-leading
lenders, with the exclusive option to get up to six months of your payments, fronted when you sell your home with a Compass agent.

 

 

FAQS

Who pays the buyer's agent commission?

My services are paid for by the seller's proceeds. Most often, the seller pays a 6% fee to the listing brokerage which is typically split 3.2% to the seller's agent and 2.8% to the buyer's agent.

If something is discovered during the inspection that is a deal breaker, can I back out of the transaction?

Yes absolutely. The inspection will typically take place within the first 7 days of going under contract. If something major comes up, negotiating is the first step. If the seller doesn't budge, the buyer has the right to terminate the transaction. In our market, "major items" typically include sewer line, roof, foundation and major home system defects.


I don't have 20% to put down. Should I wait until I do?

When you put less than 20% down, an additional fee called PMI (Private Mortgage Insurance) will be added to your monthly payment. The exact amount depends on a variety of factors. In Denver's rapidly appreciating market the cost of waiting will likely end up costing you more. Purchase a home a a year from now means you will pay more for the home if home values continue to appreciate.

 

Key Terms


Appraisal Assessment Of the property's market value, for the purpose of obtaining a mortgage and performed by a licensed appraiser.

Assessed Value Value placed upon property for property tax purposes by the tax collector.

Closing Costs Expenses incidental to a sale of real estate, such as loan fees, and appraisal fees. title insurance and escrow fees.

Closing Statement The statement that lists the financial settlement between Buyer and Seller, and the costs each must pay.

Contingency Certain criteria that have to be met in order to finalize the sale.

Conventional Mortgage A mortgage or Deed of Trust not obtained under a government-insured program such as FHA or VA.

Credit Money given to a buyer from a seller through escrow at closing.

Escrow A neutral third party that handles the transfer of any money during the sale of a home from initial deposit to final funding and closing.

Earnest Money Deposit Buyers in California usually deposit 3% of the purchase price to show that the buyer is serious about purchasing the home. It is usually refundable in the event a contingency in the sales contract cannot be met.

Fixed Rate Mortgage A loan on which the interest rate and monthly payment do not change.

Home Warranty A policy that covers certain repairs (e.g. plumbing/heating) of a newly purchased home for a period of time, typically one year. Preliminary Title Report A report showing the condition of title before a sale or loan transaction. After completion of the transaction, a new title insurance policy will be issued.

Title Insurance Insurance protects the buyer and lender against losses arising from disputes over the ownership of a property.

Recording Fees Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.