6 Mistakes When Buying A Home in Colorado

Don’t Press Your Luck

It’s both exciting and a little scary to buy a home. That feeling of nervousness and not knowing what to expect is normal! But, what you don’t want to rely on during this process is luck or chance. Avoid these 6 mistakes when buying a home in Colorado.

Everyone wants the “Luck of the Irish” when looking for a home, but it comes down to much more than luck.  Finding the right home for you requires a solid strategy. Especially this year with home inventory at a 40 year low.

You can still wear green and keep that 4-leaf clover in your pocket as a buyer if that makes you feel better. But, as the saying goes, don’t press your luck and make sure you steer clear of the following mistakes.

Mistake #1 – Not knowing how much you can afford

Always think monthly payments first and foremost. At the end of the day, the purchase price is not the most important number. Next, get pre-approved by a lender BEFORE you start looking at homes. They may approve you for more than you are comfortable spending per month, so ask them to approve you for the monthly payments you want to spend, not the highest purchase price possible.

Make sure you understand the correlation between your purchase price, monthly payments, and down payment required. This is different for every home buyer. You may be able to afford a much more expensive house by putting more down. So make sure you know the specifics of your situation, and look for homes accordingly.  Also, don’t forget to take into account utilities, potential repairs, and maintenance.

Mistake #2 – Not realizing that the wrong mortgage can cost thousands of dollars

Certain loans will naturally have higher interest rates than others. Or, you might qualify for a loan that has a higher mortgage insurance premium. Both of these things can drive up your monthly payment and mess with affordability. There are all kinds of loans with different terms. Make sure you’re getting all the info on the loans you qualify for before making a choice. Need to know what questions to ask? I’m here to help you with that!

Mistake #3 – Not discovering hidden defects before you buy a home

Never buy a home without a professional home inspection. But even before you reach that point, you need to know what the potential problems are in the home. Before you even submit an offer, you can ask the listing agent some questions: How old is the heating and air conditioning system? When was the roof last replaced? Think about what issues might be important to you, and ask those questions too!

Mistake #4 – Not knowing how much your credit can affect your ability to buy a home

Lenders are getting tougher on credit these days. You will be able to get a better interest rate if you have a higher credit score. About 3 – 6 months before you want to buy a home, start monitoring your credit online. You can go to websites such as www.myfico.com and pull your own credit for free. Do this very early on, before you start looking at homes, so you don’t have any surprises.

Need something a little more hands on? Most lenders will give you tips on increasing your credit score before you put in an application. That way, you won’t be spinning your wheels trying to increase your credit. Repairing your credit can take a few months, so make sure you check it early on!

Mistake #5 – Not knowing about state and local down payment assistance programs

Don’t make this mistake! Colorado offers great down payment assistance programs. And you don’t even have to be a first time buyer. I’ve had buyers get into a home with as little as $1000 by using one of these programs. If this sparks your interest, let’s chat about it. I can connect you with lenders who offer programs like this.

Mistake #6 – Not asking questions if you’re confused or need clarification

There are no stupid questions when you are making the biggest purchase of your life. My job is to educate and empower you to make the right decisions along the way. Don’t hesitate to ask any questions!

You’re In Luck!

Want the Luck of the Irish? You’ve got to be one step ahead when it comes to finding a home in this market.  This article shows you how to do just that so you’ll be prepared. Avoid these 6 mistakes when buying a home in Colorado.

If you are thinking of buying a home sometime this year, let’s meet up.  This year especially comes down to planning and prepping WELL before you want to make a move. 

Together, we’ll make a plan that works for you and your timeline and then put into action when you say GO!  This is just one of the ways we can make buying a home in this crazy market not just doable but actually enjoyable.   

This is the best way to become a happy homeowner and have those Irish eyes smiling down on you along the way!

Ready to get started? You can schedule your Initial Buyer Conversation with me today!