If you’re a first time home buyer wanting to invest in Colorado real estate, there has never been a better time than the present to take the plunge. Historically low interest rates are beckoning first time home buyers across the country to make the transition from home renter to property owner. Even though property buying time is ripe on the real estate market, there are some things you should keep in mind when you begin your search for your first home.
Your prep work to get you ready to buy your first home should start way before you’re actually in the market to do so. The first thing to educate yourself on is your credit score. If it’s not that great, do what you can to repair any negative marks you’ve accumulated on your report. This will serve you well when applying for a mortgage.
Start A Savings Account
Set aside some savings to be dedicated for your home purchasing ventures only. You’ll need enough money for your down payment in addition to other fees associated with closing on a home. Not having enough money at the signing can be a real deal breaker for some first time home buyers because they did not anticipate the added expenses in advance.
Buy Within Your Means
This piece of advice is akin to ‘live within your means’ and should be heeded at all times. Know what you can afford before you begin your search. When you’re looking for a home, it’s easy to get enamored with a property because of its beauty, its layout or the neighborhood. When you go with your realtor to view available listings of Colorado real estate, always be aware of your budget and remind yourself of it regularly. Knowing what you can spend will deter any surprises later on that could result in you losing your home to foreclosure and other financial hardship-related events.
Take Advantage Of Special Offers
There are a number of financing perks available to first time home buyers that other property buyers aren’t privy to. These special financing programs offer loans and other incentives that greatly reduce the amount of money you need up front in order to get into your home. Do your research with the Federal Housing Administration (FHA) and other government-sponsored buying programs for plans that will make your transition to home owner an easier one.
Stand Your Ground
Falling for high-pressure sales tactics is the easiest way for a home buyer to get in over their heads. First time home buyers are especially susceptible to falling for these tactics because they are anxious and want to make the right decision while getting the best deal. One way that you can avoid this situation is to never agree the same day to purchase a home. Take your time. Sleep on it. Then decide whether it’s such a good deal. True, the home might not be there by then, but neither will the headache of having purchased a home you really didn’t want or really couldn’t afford.
Guest Post by Summit Realty…