Many potential first-time home buyers ("Property Virgins") feel overwhelmed and think homeownership is an impossible dream. Well, it's not! While home prices in the Denver area have increased in the past year, 30-year mortgage interest rates are still very low (4.5% - 5%) and there are several loan options available that require a down payment as little as $1000!
The information below will help you gain knowledge about the home buying process and will hopefully give you the courage to keep that dream alive. The first bit of advice I will give you is to hire a buyer's agent who will look out for your best interests and make sure you are not making mistakes than can cost you several thousands of dollars. This is the biggest financial decision you will ever make, so it's essential that you work with a professional, trustworthy Realtor who's there for you every step of the way.
Now, how would the list change if you had to settle for only 10 of your wishes in your price range? If you had to narrow it to five, would your top priorities be different? When you start looking at houses, this information will be invaluable to a Realtor as he or she matches your requirements to available houses.
Speak to a mortgage loan officer. The best way to learn what you can afford is to get pre-qualified for a loan. I have excellent resources to local mortgage lenders who will ensure that you get the best loan rates and terms. Pre-qualifying won't cost you anything and you'll walk away with a good idea of how your income, assets, and liabilities translate into what you can afford, and it can also help your chances of beating out the competition in a sellers market (where there are more buyers than houses on the market).
MORTGAGE LOANS & MORTGAGE REFINANCING
Denver Area Mortgage Broker (New Homes Loans & Refinancing)
Do the math. You can
also do a simple calculation on your own. Broker wisdom says that monthly
payments should be 25 to 33 percent of your monthly gross income. Use my
calculator to get a rough idea.
Now you're ready for the fun stuff: pounding the pavement. Go to as many open houses as you can stand, even at times when I'm not available, and then go to another - (just be sure to sign in under my name). In the neighborhoods you're considering, include some homes you know you can't afford and some priced below your means. Think of it as leveling out your learning curve.
Talk to friends and family about their buying experiences. People are often surprisingly open about what they've learned about financing, construction - and even themselves - in the course of buying their first house.
If there are times when you just can't bear to see another overpriced house with kelly-green shag carpet, take a day off - and remind yourself that someday you'll know it was all worthwhile. Enjoy the article on "Nine Steps to Buying Real Estate & Homes in Denver Colorado" or take a look at my Colorado Community Resource Directory featuring links to schools, city government agencies, shopping, dining, entertainment and more!
As your REALTOR, I'm here to make sure: