|
Happy New Year! As you consider embarking out into the exciting world of
homeownership, you really need to be aware of a few things before you
make an uneducated decision that you may regret later. Purchasing a home
will likely be the largest financial decision you'll ever make, so slow
down, seek expert advice and enjoy the process. Be sure to download my
FREE First
Time Buyers Guide and remember, you can always 'Call Ants' at
303.520.3179.
9. Shopping before getting pre-approved for a mortgage.
Many first-time homebuyers decide they’re ready to take the leap, and
start touring open houses “just to see what’s out there.” While getting
a feel for the market is certainly a good idea, you risk falling in love
with a home that is not in your budget. Before you start seriously
shopping the market, visit your bank, mortgage broker or lender, and get
a mortgage pre-approval. You’ll know the exact amount you’ll qualify
for, so when you’re ready to make an offer, you can do so with
confidence and no “conditional of financing” clauses. Visit my
mortgage lender page.
8. Skipping the mortgage pre-approval
altogether.
To reiterate what I just stated above, getting pre-approved not only
informs you of how much you can spend on a home, but it also gives you a
real good sense of where current interest rates are today and how any
change (up or down) could impact your ability to qualify. 2018 ushered
in rising interest rates and while they are still considered below
historical averages, they are projected to rise in 2019. Visit my
mortgage pre-qualification
page.
7. Making major life changes when applying for
a mortgage.
Once you’ve filed your application, avoid changing jobs, making
big-ticket purchases on credit, or taking out any new loans. These can
all alter your financial picture, and can impact your ability to qualify
for the mortgage or the amount you had originally anticipated. If
possible, wait until after you’ve crossed the ‘t’s and dotted the ‘i’s.
6. Not saving enough for a down
payment.
Saving for a large down payment is beneficial, but let's face it,
with the average home price in the Denver area at $465,000, not many
buyers (much less first-timers) have 20%. However, many buyers don't
realize that there are mortgage loan available for as little as 3% down
and even some special financing options from local housing authorities
that can assist with costs. Additionally, many active duty and retired
military Veterans don't realize they can get a
VA Home Mortgage with $0 Money
Down. This is a tremendous benefit! In a nutshell, you need to consult
with a local, trusted home mortgage officer for advice tailored to your
situation. Visit my mortgage
lender page.
5. Not accounting for the “extra”
costs.
You can estimate to spend (approximately) between 1.5 to four
percent of the purchase price of the home. This includes costs such as
the deposit, property insurance, title insurance, lawyer fees, home
inspection fee, moving costs and more. Be sure to budget these into your
purchasing plan.
4. Not seeing enough homes.
Before you settle down, make sure you sow your oats, so to
speak. Since you’ve never owned a home, and particularly if you’re
moving from your parents’ place, you’ll want to tour lots of different
home styles and neighborhoods. Keep an open mind – you just mist
surprise yourself! When narrowing down your home’s location, weigh
factors such as proximity to work, family and friends; public transit
and access to major roads and highways; and things such as shopping,
services, green space, and your lifestyle. which will affect the
liveability of the home, its current value, and the resale price of your
home. The biggest challenge to this is Denver simply hasn't had enough
inventory or supply of homes to keep up with demand, so sometimes, there
simply aren't enough homes top actually see!
3. Seeing too many homes.
It’s always good to see what’s on the market so you have a good basis
for comparison. You’ll gain a better understanding of what comparable
homes are valued at, their condition, and potential negotiating power.
This is valuable intel, whether you’re buying your first home or your
tenth. But buyer beware: particularly in hot markets like Denver,
sitting on the fence and taking too long to make a decision can result
in you losing the property to another buyer.
2. Not getting everything in writing.
Negotiating is always part of your purchasing plan. Any conditions of
the purchase and sale must be on paper. If it’s not in the contract, it
doesn’t count. Your contract is the only way of holding the buyer and
seller accountable. Call Ants at 303.520.3179 - I'm here to advise,
counsel and and negotiate on your behalf.
1. Biting off more than you can chew.
You’re probably familiar with the term “don't be house poor.” Buying a
home is a huge financial commitment, so ensure you can afford it. As a
first foray into home ownership, condos and townhomes are a very popular
choice, thanks to their lower price point, smaller footprint (with less
maintenance and lower operating costs). But condos and townhomes are a
lifestyle choice as well as a financial one. Consider your purchase from
all angles. If you're unsure what the differences between condos and
townhomes are, Call Ants at 303.520.3179 - I'm always here to advise and
counsel to ensure you make the most informed/educated decision possible.
Best of luck on your journey. Please remember to calibrate your
expectations because the real world does not look or work like what you
see on HGTV. If you run into any roadblocks or get overwhelmed and need
advice, I'm only a call, text or email away. Happy house-hunting!
==>
Return to Blog
Homepage
|
