John of Old Town Realty

John Tomasini
Associate Broker/GRI, CNE
Cell Phone: 303.718.7907
E-Mail John:


350 South Lincoln Avenue
Steamboat Springs, CO 80487
(970) 879-8814
Toll Free (800) 282-8814

Steamboat Springs Real Estate There are many things to research and prepare when approaching the purchase of property,
be it land, a condo or home.

Credit History:
The loan application process is part of the total process. All lenders will require your credit report, listing long term debts, mortgage payments, credit card debt, student loans, and automobile loans, along with the entire payment histories. Most banks and lending institutions will require a credit report to accompany the loan application, and require you to pay for the report.

You are well advised to obtain a copy of your credit history months before engaging the process of the loan application.

Proof Read Your Credit Report:
You might be very surprised to learn that there are mistakes and errors in your credit report. By proof reading the report, in advance of your loan application, it will give you time needed to contact the reporting agency and resolve the problem.

Personal Finances:
Down payment - Accumulating the funds for a down payment should be part of a plan to get your finances in order before you go shopping for property. Your plan should include additional allowances for closing costs, and you need to include these costs in your budget.

Earnest Money - Typically the Buyer is required to deposit earnest money with the Sellers broker in an earnest money account, at the time the Buyer makes an offer. If the Buyers offer is accepted, the earnest money will be credited toward the down payment. The amount of earnest money can vary depending on the Seller. Remember to earmark some funds for this purpose.

Private Mortgage Insurance:
In the event a Buyer has less than 20% of the purchase price of the subject property, the lender will require the buyer to purchase (Private Mortgage Insurance). The insurance protects the lender in case of loan default. This involves an upfront payment at closing, as well as a monthly premium. If you go on to pay off the 20% of the loan, you can request that your mortgage insurance be cancelled. Always document a request in writing.

Knowing how much you can spend is an important rule to adhere to when buying a home or property. The budget you (pre – identify) will effect everything from the size of the house/condo, the type of financing you choose, as well as the neighborhood you choose.

The Pre-Approval process is a formal process, where a lender will examine your finances and agree in advance to loan you money up to a specified amount. Ask your lender to draft a letter stating the pre – approved amount the lender will loan to you. Attach this letter to the offer to be presented to the Seller.

Closing Costs:
When a Buyer applies for a loan, the lenders are required to provide the Buyer with a good faith estimate of their closing costs. The typical Buyers closing costs are:

  • Down Payment
  • Loan Fees ( loan application fee, points, credit report )
  • Prepaid Interest
  • Inspection fees
  • Appraisal
  • Mortgage Insurance
  • Hazard Insurance
  • Title Insurance
  • Documentary stamp on the note

Sellers Closing Costs:
The Sellers most important closing cost is satisfying the remaining balance of their loan. The Escrow Officer will contact the Sellers lender before the day of the closing to verify the final amount needed to close out the loan. Sellers closing costs include:

  • Brokers Commission
  • Property Taxes
  • Transfer Taxes
  • Title Insurance
  • Documentary stamps on Deed