Download - Julie Ternes Homes - Home Buyer Presentation
S T E P S TO S U C C E S S
For Buying A Home
Buying a home can be one of the most exciting adventures in your life.
It can also be one of the most overwhelming if you try to go at it alone.
When you are looking at and negotiating on properties listed for sale, the Seller will have
a real estate agent working for them. You should also have an experienced Realtor®
working for you, guiding you and looking out for your best interests. And the best part is
that hiring a Realtor® as a buyer, it is basically at no cost to you. In most circumstances,
the Buyer’s agent is paid by the Seller from the proceeds of the sale.
Introduction
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Sellstate Alliance Realty has been in the real estate services business in the Colo Spgs real estate
markets for many successful years and will be here for many more. This longevity and confidence
comes from our real estate services to a great many buyers and sellers, and their recommendations to
others that result in repeat and referral business that keeps us productive and successful.
As a full service Colo Spgs real estate team , we work with buyers, sellers and investors in real estate
transactions spanning all of the price ranges and property types.
Residential Single Family – Our residential single family services connect buyers with sellers every day,
and we do it with professionalism and a total dedication to our clients. This property type is the majority
of our market transactions, but by far not the only one in which we have expertise.
Condominiums – While condominiums are residential, they’re a very different market focus, and we
have experts in evaluating condos and helping buyers and sellers to cope with the special financing and
homeowner concerns for this property type.
Multi–family – Investors are great clients for Sellstate Alliance Realty. Multi–family properties are a very
unique market. The detailed return on investment and valuation calculations investors need to evaluate
properties for rental are second nature to us.
Commercial – Whether it’s a shopping mall, a small office building or a restaurant space, we’re
commercial property specialists. Contact us for your commercial property needs in the Colo Spgs real
estate markets.
Vacant Land – Land is a very special property class. We’re the best at it in the Colo Spgs real estate
markets.
Sellstate Alliance Realty
Better Ways To Serve Colorado Buyers & Sellers
IntroductionA Little About Who We Are
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Julie brings her passion for homes, marketing, client service and expert negotiation
skills to help sellers/buyers receive the best price for their home. She is a full service
Realtor. She has well-built networking resources in Real Estate.
Julie is described as someone who loves helping people. She is dedicated, detail
oriented and incisive. Julie is focused on customer service and satisfaction with special
expertise on marketing. She attributes her success to her hard work, energy, honesty
and creativity. Helping her clients to realize a successful and smooth transaction is her
ultimate goal. Julie achieves her goal by accomplishing yours with top drawer treatment.
Julie graduated from the University of Central Oklahoma with a Bachelors in Education.
Specialization:
•Residential Real Estate Sales - Residential Buying and Selling - Relocation
•Short Sales
Professional Experience
•Very knowledgeable about local Real Estate.
•Keen insight in today`s marketing strategies.
•Reliable & always willing to help others.
Julie Ternes
Licensed Real Estate Agent
IntroductionA Little About Who We Are
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
“Julie is very professional and personable. She stays on top of the entire purchase
process and even small details do NOT escape her business radar. She's like a tiger
with a piece of meat, once she sinks here teeth in she won't let go. She does
whatever is needed to meet her client's interests. My wife and I would recommend
her to anyone.”
11/14/2014 - Bought a Single Family home in 2014 for approximately $325K in
Briargate, Colorado Springs, CO.
“I recently worked with Julie on a foreclosure bank deal. Besides always being
available to speak to me, she also was available multiple times to walk the property
and grounds and to find answers to any questions posed. She acted as a great
liaison to get this deal closed quickly and easily. I would definitely recommend her
and hope to work together again in the future.”
10/09/2014 - Bought a home in 2014.
“Julie Ternes, was very professional yet, personal. She went above and beyond our
expectations in finding a home for us. She made herself available for every concern
we had, and answered all of our questions in a timely and professional manner. We
would refer her to anyone who wants a realtor who is looking out for their best
interests, and that of their family. She advocated for us on so many levels, and made
what could of been a stressful experience, pleasant.”
10/10/2014 - Bought a Single Family home in 2014 for approximately $100K in East
Colorado Springs, Colorado Springs, CO.
What others are saying who are
highly likely to recommend
IntroductionA Little About Who We Are
Buying A Home in 7 Steps
Step 1 - Buying Consultation
Step 2 - Loan Pre-Approval
Step 3 - Searching for a Home
Step 4 - Viewing Homes
Step 5 - Develop a Pricing Strategy
Step 6 - Writing and Negotiating an Offer
Step 7 - Managing the Transaction Through Closing
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
There are 3 types of Agency Relationships between parties in a real estate transaction:
• Seller’s Agent - An agent who represents the Seller
• Buyer’s Agent - An agent who represents the Buyer
• Dual Agency (Limited Agent) - An agent who represents both the Seller and Buyer
When you select YourCompany Realty to assist you in finding and purchasing a home, we become
your “Buyer’s Agent.” Typically the seller already has an agent representing them, who is working
hard for their best interests, not yours. You too should also be represented with an agent who will
be working on your behalf and looking out for your best interests. We will help you to find a home,
evaluate pricing, negotiate offers, and guide you throughout the entire transaction to ensure a
successful closing.
The greatest part of hiring a Buyer’s Agent is that in most cases there is no cost to you!
We are compensated for our services only when we successfully close on a home for you. When
a seller lists their home with a Seller’s Agent, a commission amount for the Seller’s Agent and for
the Buyer’s Agent is pre-determined and paid for by the Seller upon the closing of the sale.
Working for You as Your Buyer’s Agent
Step 1Buying Consultation
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Motivation - Why have you decided to buy a home?
Timing - Are you flexible in timing or are we working towards closing before a certain date?
Pricing - What is your price range? Have you begun talking with a mortgage professional?
Decision Making - Will anyone else (family member, financial advisor) be involved in the
transaction?
Location - What areas of town do you prefer, or are you not yet sure?
Home Type - Are you looking for a condominium, townhome, single family residence or land?
Home Size - What size of home are you looking for? How many bedrooms, bathrooms, etc.?
Lot Size - What size of property are you looking for?
Floorplan - What is important to you in the layout of a home?
Architectural Style - Is there any particular style you prefer - rustic, traditional or contemporary?
Amenities - What additional features will you be looking for? (pool, hot tub, clubhouse, golf, etc.)
What Exactly Are You Looking For?
DETERMINE YOUR NEEDS
What is Most Important to You?
Step 1Buying Consultation
Buying A Home in 7 Steps
Step 1 - Buying Consultation
Step 2 - Loan Pre-Approval
Step 3 - Searching for a Home
Step 4 - Viewing Homes
Step 5 - Develop a Pricing Strategy
Step 6 - Writing and Negotiating an Offer
Step 7 - Managing the Transaction Through Closing
www.JulieTernesHomes.com
Buying A Home
In 7 Steps How Much Can You Afford?
It can be discouraging to find that your salary won't stretch as far as the home you want to own.
However, sacrificing a huge part of your income just to pay the mortgage can very quickly make
home ownership a burden rather than a point of pride. It may be better to buy a modest home
now and look at purchasing your "dream home" in a few years.
A Pre-Approval Adds Strength to Your Offer
Once you have been successfully pre-approved for a mortgage with a local lender, you will
appear to be a stronger buyer to sellers. When we submit an offer, we will include a written
letter of your pre-approval. This demonstrates to the seller that you are indeed a serious and
capable buyer.
Securing a Pre-Approval for Your Home Loan
Step 2Loan Pre-Approval
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
There are many variables to consider when choosing a mortgage loan. To figure out what loan
program will be best suited for your needs you will need to talk with a local mortgage professional for
guidance in weighing the many different options. Your income, job history, and credit rating can
determine what programs are available to you. Also other considerations such as how long you plan
to be in the home can also be an important factor. As a real estate agent, we cannot answer these
important mortgage questions, but we will be sure to help you get to the right mortgage provider to
help you with this very important part of the process. Below is a list of mortgage programs and
definitions to be familiar with.
Interest Rate - What are current interest rates? What rates are you being quoted?
Fixed Rate Mortgage - A mortgage where the rate remains the same through the life of the loan.
Adjustable Rate Mortgage (ARM) - A mortgage where the rate changes based on a financial index.
Down Payment - What amount do you have for a down payment? How much will you really need?
Origination Fee - A charge levied by a lender for underwriting a loan. Typically 1% of the loan
amount.
Points - A point equals 1% of a mortgage. Should you pay "discount points" to reduce the loan's
interest rate?
Mortgage Term - 15, 20, 30 year loan terms. What is best for you?
Conventional Mortgage - A fixed-rate, 30-year mortgage that is within the limits set by FNMA &
FDMC.
Jumbo Mortgage - Exceeds the limits set by FNMA & FDMC. Usually has a slightly higher interest
rate.
FHA Mortgage - Usually requires less money down, but has tighter guidelines. Can you qualify?
Balloon Mortgage - Can be a great option for short term situations, but will you be ready to pay it off
at the end?
Interest-Only Mortgage - This will give you a lower monthly payment, but is it the best route to go?
Pre-Payment Penalty - If you pay the loan off early, or refinance, will there be a penalty or fee?
Mortgage Industry Conditions - Any issues with the current mortgage industry that could affect
your financing?
What Type of Loan is Best?
Step 2Loan Pre-Approval
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Buying A Home
In 7 Steps
Just like any major purchase, it is usually worthwhile to shop around for the best deal. It is also
important to choose a local lender with long term experience. Below we have a few
recommended mortgage professionals we have worked with.
Recommended Local Lenders
Step 2Loan Pre-Approval
What is your debt-to-income ratio?
This is something that lenders take very seriously. Your overall debt should not be more than
40% of your income, and your housing debt should not be more than 32%. What 32% of your
income will buy depends on where you want to live. In rural or downtrodden areas for example,
it can buy a very comfortable residence and ample acreage. In highly sought-after urban areas
however, it may not even buy a 400 square foot bachelor suite.
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
• Do NOT change jobs, become self-employed or quit your current job!
• Do NOT buy a car, truck, boat or RV!
• Do NOT use your credit cards excessively or miss payments!
• Do NOT transfer balances or open new credit cards!
• Do NOT pay off any credit cards or other revolving debts!
• Do NOT spend money set aside for closing costs!
• Do NOT withhold debts or liabilities from your loan application!
• Do NOT open new credit accounts to buy new furniture, appliances, etc.!
• Do NOT make any inquiries into your credit!
• Do NOT make large deposits or withdrawals from your bank accounts!
• Do NOT change banking accounts!
• Do NOT co-sign any loans for anyone!
Inquire with your lender before considering any of the above.
Until You Close on a Mortgage Loan...
Step 2Loan Pre-Approval
Buying A Home in 7 Steps
Step 1 - Buying Consultation
Step 2 - Loan Pre-Approval
Step 3 - Searching for a Home
Step 4 - Viewing Homes
Step 5 - Develop a Pricing Strategy
Step 6 - Writing and Negotiating an Offer
Step 7 - Managing the Transaction Through Closing
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
As we begin our search we will utilize our many resources and strong network of information
to seek out the best opportunities and find the home that best suits your needs.
• REALTOR® Listings / Multiple Listing Service: The most up-to-date home information
resource!
• New Home Construction Developments
• “Pocket” Listings
Our Home Searching Resources
Step 3Searching for a Home
The Value of the Multiple Listing Service
As a member of the Board of REALTORS®, we have access to the Multiple Listing Service
(MLS).
The MLS is an extensive database that contains information on all listed homes in the area.
When sellers decide to list their home with an agent, their agent posts all the information for
that home into the MLS database. All relevant information on a home is available such as
location, size, price, layout, features and photos. As your buyer’s agent we can enter desired
information based on your search criteria and the MLS will analyze the database and list all
available homes that match your needs.
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Once we can narrow down your search criteria such as location, city, neighborhoods,
number of bedrooms and bathrooms, overall square footage, etc., we can then set up
an automated search for you on our MLS. Whenever a new property becomes
available you will receive an email update and will know about it before most other
potential buyers. You’ll also receive an update on price reductions as well. No more
missing out on great buys!
Automated “Hot Sheet” Emails
Step 3Searching for a Home
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Buying A Home
In 7 Steps
Internet 37%
Step 3Searching for a Home
Over 90% of home buyers use the internet as a tool when searching for a new
home!
Now more than ever people are accustomed to using the benefits of technology to better
gather information. Many home buyers start with surfing the web, where you can easily
and quickly view pricing, details and photos of many homes right from your living room. It
is a quick way to educate yourself on the local real estate market. On our website you
can also save your favorites to view later and keep track of the homes you want to go
see.
Our website allows you to easily search in many different ways:
• Search by city, community or subdivision
• Search by price range
• Search by school district
• Search by single-family, townhome or condo
• Search bank foreclosures and short sales
Search for Homes at www.JulieTernesHomes.com
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Short Sales and Bank Foreclosures
Step 3Searching for a Home
A short sale is a property where the seller owes more to the bank than what the property is
worth. For example the home may only be worth $300,000 but the seller owes $350,000. So
how do they sell the home? They will need to get special permission form the bank (third
party approval) to sell the home for less than what is owed. For a buyer It can be
discouraging to wait for this lengthy process. Often a short sale can take months to obtain
the approval from the bank, especially if there are multiple mortgages or additional liens on
the property. If you are trying to coordinate a move based on your current home selling or
lease ending, this can be a very difficult process to go through.
A bank owned or foreclosure property is a property where the owner failed to make the
mortgage payments, and the bank completed a foreclosure process and is now the owner of
the home. Banks are not in the business of owning homes so they typically will price the
home low to get it sold quickly. But buyer beware, bank owned homes play by different
rules. These homes are sold “as-is” with no warranties on the condition of the home.
Additionally bank owned sales are often sold with limited Title Insurance coverage.
Buying A Home in 7 Steps
Step 1 - Buying Consultation
Step 2 - Loan Pre-Approval
Step 3 - Searching for a Home
Step 4 - Viewing Homes
Step 5 - Develop a Pricing Strategy
Step 6 - Writing and Negotiating an Offer
Step 7 - Managing the Transaction Through Closing
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Your role and participation in this stage is obviously crucial to our success. You may even
find or preview homes on your own (Open Houses) but it is very important to keep us
notified and included in the process so we can better assist you to be sure your best
interests are are fully met.
Determine Neighborhoods Prior to Viewing - We can do an area tour to examine &
discuss potential neighborhoods. We encourage you to spend some time driving through
desired areas on your own to get the feel of different locations.
Clearly Know Your Criteria - Think about what is the right fit for you. We select homes
together based on the criteria you give us. We may drive by many other homes on our
property tour that may look interesting from the exterior. If it is not on our list, it is most
likely because it was priced too high, home size is too small, did not have enough
bedrooms, etc. It is best to stay focused on the homes that do meet your needs.
Immediately call us if you find a home - In a newspaper or magazine ad, driving by a
“For Sale By Owner" sign, or visiting an open house.
When approached by other REALTORS® - They will appreciate you letting them know
you are working with us.
Narrowing Your Search
Step 4Viewing Homes
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Buying A Home
In 7 Steps
Now the fun part begins, time to go view some homes. Now that we know what your price range is,
and what your wants and needs are, we can schedule to see the homes you are most interested in.
Be Mindful of the Appointments Made - It takes a great deal of time to set up a smooth,
productive property viewing tour. Please do not be late, and we must stay on track with the timing
of all the homes. Many of the homes we will be viewing are primary residences and families must
make plans to accommodate our visit.
Comfortable Shoes - Most homes will ask us to remove our shoes, so wear easy slip-on/off shoes.
Eat Prior to Tour - You will feel much more alert & productive if you simply eat before our tour.
Take Notes - We will supply you with a clipboard, pen and a sheet for each home in the order we
plan to view them. Be sure to take descriptive notes on each home - good, bad, etc. After viewing
many homes, they all seem to blend together when trying to think back. Share these notes with us,
it will help us to better know what you like and do not like. If you have questions on a property, write
them down so we can work on getting answers from the seller's agent quickly.
Scheduling Viewing Tours
Step 4Viewing Homes
Buying A Home in 7 Steps
Step 1 - Buying Consultation
Step 2 - Loan Pre-Approval
Step 3 - Searching for a Home
Step 4 - Viewing Homes
Step 5 - Develop a Pricing Strategy
Step 6 - Writing and Negotiating an Offer
Step 7 - Managing the Transaction Through Closing
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
As a member of the Board of REALTORS® we have access to the Multiple Listing Service
(MLS). With the MLS we can prepare a report that analyzes values of properties comparable to
the one you want.
We can also gather background information on the desired property such as how long it has
been on the market, pricing changes, or if it has gone through a previous listing period. Using
this valuable information, we can assist you in determining a realistic, yet attractive offer price
for the desired home.
How Does the Seller’s Asking Price Compare to Recent Market Activity?
Comparing the Seller’s Pricing to Recent Sold Homes
Step 5Develop a Pricing Strategy
4 Bedrooms, 5
Bathrooms
3450 Square Feet
Asking Price: $455,000
3 Bedrooms, 4
Bathrooms
3230 Square Feet
Sold for: $432,000
6 Bedrooms, 4
Bathrooms
4050 Square Feet
Sold for: $445,000
4 Bedrooms, 5
Bathrooms
3200 Square Feet
Sold for: $437,000
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Using a Comparative Market Analysis as a Guide
A Comparative Market Analysis (CMA) is the strongest tool we use when estimating the
potential market value for a home. As a member of the Board of REALTORS® with
access to the Multiple Listing Service, we can prepare a report that analyzes
comparable homes in your area. Using this valuable information, we can assist you in
determining an attractive, yet realistic offer price for the home.
A Comparative Market Analysis highlights similar homes in your area that are:
Active Listings - Homes that are currently available for sale. We can see what
comparable asking prices are, but remember these homes have not yet received an
acceptable offer.
Under Contract - Homes that have received and accepted an offer
and give a good indication of realistic pricing.
Sold - Looking at the prices paid for recently sold
homes provides the best foundation in
determining a home's most accurate market
value. Once adjustments are made for square
footage and features, we can make a qualified
recommendation for the offer price on the home.
Expired - Homes that have gone through the
duration of a listing period, but failed to sell.
Many factors could be responsible such as lack
of marketing or the home’s condition, but most
often it is simply because the home was priced
too high.
Step 5Develop a Pricing Strategy
Buying A Home in 7 Steps
Step 1 - Buying Consultation
Step 2 - Loan Pre-Approval
Step 3 - Searching for a Home
Step 4 - Viewing Homes
Step 5 - Develop a Pricing Strategy
Step 6 - Writing and Negotiating an Offer
Step 7 - Managing the Transaction Through Closing
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
We will write an offer for your desired home in the form of a Real Estate Purchase Contract (REPC) - a state
approved form that is used to present an offer. The REPC is a 6-page contract with many details to carefully
fill in. Each section should be thoroughly read and reviewed before any decisions are made. All accepted
terms of the REPC must be carried through the life of the contract. The signed, accepted REPC (with all
addenda & counteroffers) is a LEGALLY BINDING CONTRACT.
Below are some of the items that we will need to pay close attention to:
Purchase Price - You want a good buy, but your offer must also be attractive to the Seller.
Included Items - What is included - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork, etc.?
Excluded Items - What is excluded - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork, etc.?
Water Rights - Do they apply? We may need to employ the services of a Water Lawyer.
Earnest Money - This is the initial deposit. The importance of this item is often overlooked.
Method of Payment - Will this be a cash sale, traditional mortgage or seller financing? How much down
payment?
Special Assessments - Are there any outstanding or upcoming assessments? Who pays, Buyer or Seller?
Possession - When does the property legally change ownership? (You receive keys and move in)
Seller Disclosures - What information about the home should you be asking for?
Due Diligence Condition - What "outs" will you have?
Appraisal Condition - Will the sale be contingent on the home's appraisal amount?
Financing Condition - Will the sale be contingent on you securing financing?
Additional Earnest Money - Will you be offering an additional deposit to your earnest money?
Additional Addenda - Are there any additional terms or addenda to consider?
Home Warranty - Will you be asking for a home warranty? Will you ask for the Seller to pay for it?
Mediation - If a dispute arises, how are you and the Seller directed to handle it?
Seller Disclosure Deadline - What should the deadline date be for the Seller to provide all seller disclosures?
Due Diligence Deadline - What should the deadline date be for you to complete due diligence?
Financing & Appraisal Deadline - What should the deadline date be for you to cancel based on loan denial?
Settlement Deadline - What should the deadline date be for you and the Seller to complete closing?
Response Deadline - How long should you allow for the Seller to respond to your offer?
After considering all terms... The Seller may Accept, Counteroffer, or Reject the Offer.
Writing an Offer: What important factors should you consider?
Step 6Writing and Negotiating an Offer
Buying A Home in 7 Steps
Step 1 - Buying Consultation
Step 2 - Loan Pre-Approval
Step 3 - Searching for a Home
Step 4 - Viewing Homes
Step 5 - Develop a Pricing Strategy
Step 6 - Writing and Negotiating an Offer
Step 7 - Managing the Transaction Through Closing
www.JulieTernesHomes.com
Buying A Home
In 7 Steps
Receive the Seller's Disclosures
This is the process where the Seller is required to provide information relating to the property.
• Seller Property Condition Disclosure - filled out, signed and dated from Seller.
• Commitment for the policy of Title Insurance, showing easements, encroachments and liens.
• HOA information, budget, minutes, assessments, CC&R's, and survey, water rights if applicable.
• Copy of any leases, rental, and property management affecting the property not expiring prior to closing.
• Notice of any claims and/or conditions relating to environmental problems & building or zoning code violations.
Your Due Diligence (Evaluations and Inspections) – IMPORTANT DATE!
This is the time period provided to you as the Buyer to learn, review, inspect and decide if acceptable.
• Carefully review all items provided in the Seller's Disclosures.
• Schedule any physical condition inspections, tests and evaluations deemed necessary.
• Review the costs, terms and availability of homeowner's insurance for the property.
Your Right to Cancel or Resolve Objections
If you determine the Evaluations and Inspections to be unacceptable, you may:
• No later than the Due Diligence Deadline, cancel the contract by written notice to Seller.
• Or no later than the Due Diligence Deadline, resolve in writing any objections.
Remaining Contingencies and Financing
In the final steps of the transaction we will coordinate and complete any remaining details.
• Is the sale and/or mortgage contingent upon an appraisal? At what amount did the property appraise?
• How is your financing going? Are there any last minute issues for securing your mortgage?
• Is the sale contingent upon you selling your previous home? How is that sale going?
• Schedule a final pre-settlement walk-through inspection.
Settlement (Closing) – DO NOT SHOW UP IN YOUR MOVING VAN!
Settlement, and then Closing shall take place only when all of the following occur:
• Buyer and Seller have signed all documents required by REPC, Title, Lender, etc.
• Any monies required to be paid have been delivered by Buyer and/or Seller.
• The proceeds of the new loan have been "funded", then all closing docs are "recorded" at the County
Recorder.
• Hand off keys, garage door openers, manuals, warranties.
• Help you to find a new home in this area or offer relocation assistance.
Step 7Managing the Transaction
Through Closing
Lets Get Started!
There is so much thought, knowledge and preparation that
goes into a successful home-buyer process. We will be your
resourceful guide through every step. Lets get started right
away and we’ll find your dream home soon.
Thank You for Your Business
Much of our business is based on referrals from satisfied clients. If you know
anyone who could benefit from our services, please let us know how we
can be of help!
Julie Ternes
Sellstate Alliance Realty
9475 Briar Village Point STE 215
Colorado Springs, CO 80920
www.JulieTernesHomes.com
Office:(719) 629-6142 #FA100049123