Homes in Colorado are currently staying on the market for 46 days, which is up 24% from last year. Because of this slow-paced housing market, now is a better time than ever to buy a home for the first time.
If you are thinking about buying a home, then it is essential to put in the proper time and research to find your dream house. These are a few of the most important home buying tips for first-time buyers.
1. Assess Your Budget and Save for a Down Payment
The first step to navigating the Colorado real estate market is to assess your budget. Take into consideration your income, outstanding debts, and any non-negotiable monthly payments you need to make. Understanding your budget allows you to refine your search to include specific house prices.
You will also want to save up for a down payment. Traditionally, a down payment is about 20% of the total cost of the home.
2. Get Pre-Approved for a Mortgage
Before you start house hunting, you will want to get pre-approved for a mortgage. This involves submitting a mortgage application and providing information to a lender. They will then assess your financial situation and provide you with a pre-approval letter.
3. Look for First-Time Home Buyer Programs
Many organizations offer programs and incentives that are specifically designed with the first-time home buyer in mind. There are several Colorado first-time home buyer programs, including the CHFA Second Mortgage Loan and the CHFA Down Payment Assistance Grant.
4. Hire a Local Real Estate Agent
Hiring a local real estate agent is highly recommended for first-time home buyers. An experienced agent will be able to guide you through the hard-to-understand real estate market, help you find the best properties, and negotiate on your behalf.
5. Find a Neighborhood That Fits Your Needs
Take the time to explore different neighborhoods and find one that best suits your needs. If you have children, you may want to find a neighborhood in a top-rated school district. If you work in the city, you might want to consider a neighborhood with a short commute.
6. Attend Open Houses
Going to open houses is a good way to get a feel for different properties and neighborhoods. During open houses, don't be afraid to ask questions to decide whether or not the home is a good fit for you.
7. Get a Home Inspection
Before you finalize a purchase, make sure you invest in a home inspection. A home inspector can find issues that you may never have noticed, such as structural damage or mold problems.
8. Be Patient
In the end, the most important home buying tip is to be patient. The home buying process can be time-consuming and stressful. However, it is essential not to rush into any decisions and to carefully consider every option that comes your way.
Consider These Helpful Home Buying Tips
By using these helpful home buying tips, you will be settled into your dream home in no time. After you nail the basics, you can be on your way to becoming an experienced Littleton real estate investor in no time.
PMI Little Town is a full service real estate asset management company that provides professional property management and real estate brokerage services. To learn more about how we can help you, feel free to contact us at any time.
