Buying your very first house is one of the most exciting occasions of your life as a first time homebuyer in Denver CO. You’re finally able to have a place to call your own and make memories with the friends and family you love most. But the process of buying a home is often confusing and intimidating. If you’re a first time homebuyer in Denver CO, consider these five tips.
Save for Your Down Payment Early
As soon as you decide you want to buy a home, start saving for your down payment. Even if you can only afford to save $50 each month, those little chunks of cash add up! Depending on what type of loan you get and what your credit score is, you may be able to purchase a home with as little as 3% down. Even if you expect a low down payment, start saving anyway. If you don’t need the money for your down payment, you can use it to cover moving expenses or closing costs instead.
Don’t Buy More Than You Can Afford
It’s tempting to purchase the most upscale home you can afford once you’re approved for a loan, but this path could be a dangerous one. Buying above your means could leave you in a bind if you suddenly lose your job or encounter another financial tragedy. Consider your income, any debts you have, your credit score, and the cost of living in your area to decide how much you can truly afford to spend on your home. A home affordability calculator could also help as a first time homebuyer in Denver CO.
Get a Preapproval Letter
Once you start working with a lender, apply for preapproval. This process essentially involves your lender offering to provide you with a certain loan amount under their terms. When you have a preapproval letter to present to sellers and real estate agents, it proves you’re serious about buying a home and have the confidence of a lender to back you up. If you choose to shop around for a home lender, try to submit your applications within 30 days of each other to minimize the impact on your credit score. Being a first time homebuyer in Denver CO is very competitive and it will require you to be properly prepared.
Find the Right Neighborhood
In addition to finding the right home, you have to be careful about picking the right neighborhood as well. Many first-time homebuyers in Denver CO, simply focus on the home itself and aren’t as concerned about the neighborhood. If you aren’t careful, though, you could end up on the opposite side of town from your workplace or in a neighborhood that’s too loud for your taste. Think about the privacy your potential neighborhood would afford you, the location compared to your work or school, and whether your neighborhood has an HOA or any other fees.
Don’t Be Afraid to Negotiate
You’ve found a home you like and are ready to submit an offer to the seller. You don’t have to make up your mind based on the asking price alone. You can negotiate with the seller to lower the price of the home if there are any repairs that you may need to make after the sale. Alternatively, you might be able to have the seller pay a portion of the closing costs. Your real estate agent can help you determine if there’s room for negotiation. If you’re buying a home in Denver CO you need to negotiate to get your price down.
5280Lend Helps a First Time Homebuyer in Denver CO
The good thing about being a first time homebuyer in Denver CO, is that you don’t have to do it alone. 5280Lend is here. Our team has been helping homebuyers in Denver for years, giving us the knowledge and confidence to get you the loan you need. We’ll walk you through the application process and help you secure loan terms that work for your budget.
Contact 5280Lend today to learn more!