First Time Home Buyers Guide
We’re big on steps around here so the first step in deciding to buy a home is just that… deciding to buy a home!
There are tons of great reasons to purchase a home and the most practical of these is sometimes the most obvious: a home is the biggest and most often best, investment you will ever make. As a first time home buyer, you might not be used to the idea that everything is on you. Repairs, design decisions, maintenance, etc. We are obviously huge fans of houses and all the possibilities that each one brings. But we do understand the trepidation that such a big financial commitment can pose but we are here to help you through each step.
Once you’ve decided to start exploring home ownership we recommend the following steps:
Get a Copy of your Credit Report
Improve your credit score
Get pre-approved before house hunting
See if you qualify for an FHA Loan
Know Your down payment options
Hire The Tucker Team as your experienced real estate agents!
Budget for all home ownership costs
Know your debt to income ratio
Check first-time home buyer programs and grants available
Know the Types of loans available
It’s important to have your financial house in order before you get your actual house in order. :)
Once we do start looking at homes there are… you guessed it… more steps! Before we get into the nitty gritty of house hunting, we cannot stress this enough:
Pick a Realtor that you enjoy spending time with, has experience, and understands you.
Your entire home buying experience will be shaped by the person you choose to be your realtor. You can go read this post to decide what questions to ask your realtor and answers from The Tucker Team. Here are some more bonus questions to ask when choosing a real estate team:
Are they familiar with the area you are looking to buy in? An agent that knows the area is more likely to know the ins and outs of the neighborhood. They should have their fingers on the pulse of the neighborhood.
How many deals have they closed in the past year? Someone who has closed 30 deals will have much better experience than someone who has closed 2.
What Kind of Home are you Looking for?
Is this your forever home? Are you handy and looking for a fixer-upper? Are you buying a property to live in part and rent the other part? Are you looking at the home as a straight-up investment?
Providing us with this information will help them find you the perfect house. If you want a turnkey property, let them know so they don’t show you that wrecked house at the end of the block. And vice versa.
Choose the Right Neighborhood
Are you a city dweller, country dweller, or somewhere in between? Are you looking for a planned community, certain school district, or a shorter commute?
You’ll need to figure what exactly it is you’re looking for, and where you want to be. Get out and explore Colorado. Find the neighborhoods that appeal to you most and start your search there. We can provide customized searches to be delivered to you for properties that match exactly what you are looking for.
Do NOT Make Any Large Purchases or Apply for New Credit
No matter how much you want to buy all that new furniture, DON’T DO IT! This can wreak havoc on the loan process. Just be patient and wait to buy anything big OR apply for any new credit until you’ve got the keys in hand. SERIOUSLY DO NOT DO THIS!!!
Get the Right Insurance
Shop around for insurance. In addition to comparing rates, you will also want to compare the coverage offered. Sometime the cheapest rates offer the worst coverage.
And the last thing you want is for your house to burn down, only to realize you didn’t have adequate insurance coverage.
You will also want to check and see if flood insurance or wildfire coverage are required/recommended in your area.
Conclusion
We’ve been through this process thousands of times and love helping buyers. As you get into the process, you’ll probably find there is more to buying a home than you ever thought there would be.
Looking for a house will be exciting. It will likely be painful at different points. It will definitely be stressful.
But you’ll get through it and we are here to help!