Buying your first home in Colorado can be very rewarding – Not paying rent anymore and the pride of ownership are two great reasons to buy. But there can be disappointments too, especially in Denver market.
As a Colorado first time home buyer, you should at least prepare yourself for the possibility of some of these issues, particularly if you are pursuing short sales, foreclosures and bank-owned properties (which may be most of what you are seeing in your price range).
Here are a few things to think about when purchasing your first home, in no particular order:
1. Getting Pre-Approved for a Loan
2. Down Payment FHA requires 3.5% down. State of Colorado offers down payment assistance programs.
3. REOs = lots of competition and multiple offers, including cash buyers
4. Short Sales = LONG waiting time for short sale approval (4 – 6 months), perhaps never
5. Moving quickly enough on a great deal – keep in mind the competition, you may NOT have much time to “think about it”; a delay can cost you the home
6. The appraisal – many of them are coming in lower than agreed on prices due to the market and changes in the appraisal process
7. Getting a loan – banks are becoming more and more restrictive
8. The home inspection
9. Being realistic – about what you can afford, the trade-offs (wants vs. needs), etc.
10. Do I buy now or wait?
If you need help sorting through these issues or want more information on the matters you really need to think about, please let me know.
