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Being a first time home buyer in Colorado can be intimidating! Most residents stick to renting out an apartment because it seems like buying a property is too much a hassle. Nonsense! Knowledge is going to be the key to making this process fun and worthwhile. We’re going to cover the basics of what you need to prepare for when being a first time home buyer in Colorado!
Let’s go over what your credit score is. If you don’t have a good credit score you’re going to be limited or may not even be able to buy a house in Colorado and take advantage of the historic low interest rates. Start by going knowing where you’re currently at as soon as possible. You can use sites like MyFico and get scores from all three major credit bereaus. It’s not worth it depending on a “free credit report”. Most of those go by consumer credit scores. Fico scores are what the banks look at.
Don’t spend money on unnecessary things anymore. Yes, including chocolate and wine. This is really to have the discipline to prepare for your earnest money, down payment, closing costs and new furniture. Moving into a new house costs money and you’ll need to prepare for maintenance that’ll be recurring throughout the homes lifetime.
Are you buying the house alone or with someone else? This is not so much towards couples that are married. This is really to anyone looking to buy a house with a friend or relative. If you can’t handle the monthly payments of this house over disputes, foreclosure is much worse than an apartment eviction. Be responsible! We’re not trying to scare you here, we’re just trying to make sure it’s what you really want. Peer and societal pressure can be high when being a first time home buyer in Colorado.
There’s an abundance of mortgage lenders around in this market. Ideally you’ll want to talk with at least 3-5 lenders to see who can get you the best rates and also find out who you can trust that has your best interest in mind. In just doing a Google search you’d should be able to see reviews and ratings to find out who must really know their stuff. Only work with an experienced mortgage lender!
When it comes to FHA or Conventional Loans you will need to have an account of credit currently in good standing. Keep an eye on how many active credit accounts you currently have, at least 3 is a good rule of thumb. Although it seems time consuming keeping up with all of this, the amount of money you’ll save in the long run is more than worthwhile. Try not to stress to much by worrying about moving your money all over the place, giving into impulses like a new dog, new car, new furniture when you haven’t even been approved for a mortgage yet!
You can always remember what Jordan Youngblade with Mind.Body.Wallet says, “Money is a tool and a vehicle for us in our everyday lives, so it’s crucial to understand how you interact with it.”
Here’s something you can do as a first time home buyer in Colorado, it’s actually fun and it’s totally free.. ready for the answer? It’s shopping for a new home! Okay, you may be thinking, “Don’t you have to pay for a house?” -Well yes but that’s only if you decide to move forward with a purchase. It’s no different than window shopping.
Don’t mistake this with wasting a real estate agents time having them drive you all over town if you have no intention of buying a house. What you could do is look online or better yet go out and about! You don’t need a Realtor to check out open houses or to look at houses for sale in the neighborhood you desire. This will help you know what houses are actually selling for and what is actually going on with the community. What are the time limits for parking? Any street sweeping? What grocery stores are nearby? This would be much better to do in person than on a computer because nothing beats the real thing!
Don’t let the seller or a real estate agent talk you into making a higher offer, making a larger earnest money deposit or anything. This is your life, your home and your money. Matter of fact it’ll be your money paying the agent and seller. This blog post was really just to freshen your mind on ideas and thoughts of what you will go through being a first time home buyer in Colorado. We wish you the best of luck!
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