Tips for New Homebuyers:
- Saving money for down payment. The least amount needed to buy a home is 3.5% of the purchase price of the home. Keep this in mind when wondering how much is needed for a down payment. The more money you have to put down, the better.
- Improve credit. Most lenders will require a middle credit score of at least 640 and each person’s credit is unique. There are many assumptions and myths about credit. Please don’t hesitate to call with questions or come attend one of our free credit classes to better understand how credit works and what you can do to improve your scores.
- Get Pre-Approved. It’s extremely important to sit down with a loan originator to go over your credit and documents to figure out what mortgage payment and house value you can afford to buy. Each person’s situation is unique and there are multiple factors that go into qualifying for a loan. Call us today to sit down for a free consultation and better understand what you qualify for.
- Create list of wants and needs in a house. What neighborhood you want to move to, how many bedrooms and bathrooms you need, what schools do you need to stay by, do you prefer a garage and/or basement, what’s your minimum requirement for square footage, what monthly mortgage payment would you be comfortable paying, etc.
- Interview for an agent. It’s important to make sure you hire a real estate agent that knows the process and works well with not only you, but the loan originator and seller’s realtor. We recommend you call and interview at least 3 agents to make sure you get paired with the right one. I work with some of the top agents in the Denver metro area and can recommend a couple for you to contact.
- Understand what type of market you’re in. Denver is currently in a strong seller’s market. This means there’s a lot of competition for houses and you will probably have to make an offer immediately on a house you like, overbid and expect not to get seller concessions to cover some of your closing costs.
- Ask questions. The process of buying a home can be frustrating and confusing. There’s a lot of information, fees and new regulations. Don’t hesitate to ask questions and trust your gut. If you’re not getting answers or don’t feel comfortable with the process, look into working with someone else. Buying a house will probably be the largest purchase of your life and you need people that are going to guide you through the process and look out for your best interest.
Let me know if you have any questions, comments or referrals.
Your Lender for Life,