Guide for First-Time Homebuyers in Colorado

With the median rent prices constantly increasing in the state of Colorado, it might be the time you considered purchasing your own piece of property. The good news is that doing so might not be as far-fetched as you might have previously thought. In fact, there are a variety of government programs out there meant to simplify the process for those buying their first property. This guide for first-time homebuyers in Colorado is meant to introduce you to the crucial information you’ll need to know before venturing into the purchasing waters. Armed with facts, we’re 100% sure you’ll be settling into your perfect home before you know it!

The Complete Guide for First-Time Homebuyers in Colorado

Before you’ve started packing up your suitcases and looking for movers, you’ll want to familiarize yourself with all aspects of the homebuying process. As far as your residential move itself is concerned, with the right kind of assistance and professional movers by your side, it will be a breeze. The journey to acquiring your dream home can be simple, too, provided you know what must be done before the purchase.

Know Your Finances

Before you’ve begun house-hunting, it’s important you understand how much house you can afford. If you are in such a financial situation that you can afford to make an all-cash purchase, good for you! Unfortunately, though, not many people have that amount of money lying around. In most cases, property purchases are financed through loans – or rather, mortgages.

The best option for those capable of putting a down payment of 20% is a conventional mortgage, considering it doesn’t come with private loan insurance. To take it out, however, a good credit score is a necessity.

If the conventional home loan doesn’t sound like the one for you, you might be better off taking the FHA loan. Unlike the first one, which requires you to put down 20% of the price, the FHA loan requires you to put down a mere 3.5%. Qualifying for it is relatively uncomplicated, as well. In fact, the chances of your getting approved are high, even if your credit score isn’t all that impressive.

First-time Colorado homebuyers will be happy to know that The Centennial State has down payment programs in place, too. These allow for an easier entry into the homeowners’ waters. Colorado Housing & Finance Authority (CHFA), in particular, can boast of several programs supporting first-time homeownership.

In the end, if you happen to be in the military or are a veteran, the perfect option for you might be the VA loan. This one requires no down payment and comes only with a low fee.

However, whatever loan you end up going for, before applying for it, make sure your broker has carefully explored all the available options. That way, you’ll be 100% sure that the loan you’ll be taking out is the one that’s right for you!

Find Yourself a Top-Notch Real Estate Agent

Buying a home without an agent is a considerable risk. One that you definitely shouldn’t be taking, considering the money that you’re about to invest. It’s a matter of finding a real estate agent with experience and knowledge to answer all questions you might have.

Set Up a Rainy Day Fund

Purchasing a property will cost you a lot of money. But, unfortunately, that’s not where the expenses end. Actually, you are looking at spending not hundreds but thousands of dollars later on in your journey as a homeowner. That’s why, in this guide for first-time homebuyers in Colorado, we recommend that you set up a rainy day fund early on. Think of it as your fail-safe that you can always go to whenever a repair or house maintenance requires you to spend a certain amount of money.

Think Small, Not Big

Being approved for a certain sum doesn’t mean you have to splurge and buy the most expensive house you can afford. Instead of thinking big right from the start, think small first. Take your time and pick. Who knows, maybe the perfect house for you is actually the one that’s well below the approved amount.

Make Up Your Mind

This being your first residential purchase, you’ll have to think about what you would like to have in a property. You might be conflicted, and that is fine. Nobody expects you to nail it all down your first round. Still, you’ll need to make some decisions before going through with the purchase. How big of a house have you had in mind? Are you interested in overhauling the whole place, or are you looking for a move-in ready home? Would you prefer buying somewhere urban, for example, in Denver, or is the countryside lifestyle better suited for you? These questions, and a whole lot more, require your answering.

Don’t Forget About the Home Inspection

Never make the mistake of not having the place properly inspected before buying it! The home inspection is one of the most significant parts of the home buying process. Its purpose is to bring to light any issues that a property might have and, thus, possibly prevent you from purchasing a place that isn’t worth your time, let alone your money. After all, the last thing you want is to buy a house only to realize it will never be habitable.

Prepare to Move

Once you’ve figured out how to finance your purchase, set your priorities straight, hired a realtor, had the house properly inspected, and, finally, closed the deal, it’s time you got yourself and your belongings moving. We suggest finding a reliable moving company to handle the job. Database websites such as USA Moving Reviews can be an excellent source of information on different moving companies and their rates. Make sure to get estimates from various companies and compare them to find the most suitable one for you.

Conclusion

With this guide for first-time homebuyers in Colorado and the help of a reliable real estate agent, you have everything you need to succeed. Take your time and explore all options, and we’re sure you will find the home of your dreams.