Buying a home for the first time can be an exciting, nerve-wracking, and life-changing experience. And in a competitive seller’s market such as the Colorado Springs area, being prepared is the secret to buying that coveted dream home.
Here are a couple of home-buying tips that may help if you’re a first-time home buyer.
Determine the type of home you are looking for
Identifying the type of home that best suits your needs from the beginning helps you narrow your search effectively. Some of your options include a family home, a multi-family residence, a townhouse or a condominium. Review the positive and negative points of each type and think about whether they fit your homeowner’s goals.
In addition to reducing the search for a house, knowing exactly the type of house you are looking for allows you to think about how to finance it. And in a market of popular sellers like Colorado Springs, the more prepared you are, the better.
Identify your essential characteristics
What do you want at home? It could range from basic features and neighborhood to luxury amenities, such as a gourmet kitchen. List the specific characteristics you want in your home and then classify them in your Must-haves and Negotiables.
Take your needs into consideration. If you can do away with a home feature, list it under your Negotiables. It’s important to leave some room for flexibility and compromise here.
Know what mortgage you qualify for and how much you can really pay
When you are buying a home, I recommend securing your financing and pre-approval early on (before you even go shop for a house). Getting an idea of just how much you can get from a lender allows you to set realistic goals and expectations. If you’re not satisfied with the mortgage you qualify for, view it as an opportunity to improve your credit score and finances so you can secure a higher amount down the road.
How much you can afford is a different thing. Aside from taking into account the mortgage you qualify for, consider all the other considerations that go into buying and maintaining a home. This includes your down payment, monthly amortization, property taxes, home insurance, closing costs, and so on. What you don’t want is to purchase a home that actually costs you more than you can afford. You don’t want your first home to drain your bank account or force you to cut back on expenditures that will severely curtail your lifestyle.
Get a real estate agent
You are a first time homebuyer and you probably do not know the local real estate market well (especially if you are moving from another location). It is not enough to search the web and read articles – you need a real estate agent to guide you through the entire process of buying a home.
Don’t spend too much time on a property
The Colorado Springs area is a competitive seller market. That means there are more home buyers than houses available for sale. If you find a house that you like, and it fits your budget, and does not reveal major problems during the inspection, close the deal. However, if an inspection produces numerous problems, do not hesitate to proceed further.
Want to learn more about buying your first home in Colorado Springs? Contact me by calling 719-600-8821, emailing john@johndiazrealtor.com or clicking here.