Tips When Preparing For Your Homeownership Journey
Right now, home prices are climbing in the Denver-area. However, the good news is there is more to choose from in comparison to traditional market seasonality. Also, active listings for the Denver residential market finished 5.56% higher than last month and 5.31% higher year over year. For example, in February there were 4,084 total active listings in the residential market (single-family and condos).1 When taking this all into consideration, getting ready to buy your first home can feel like a high-stakes game of poker. Remember, take it step-by-step and prepare yourself for the journey.
If you are a first-time home buyer, there are tips you can take advantage of when preparing for your homeownership journey. The first is to consider your credit score. Purchasing a home for the first time is probably one of the most significant purchases you will encounter in your life. Having a reasonable interest rate will make an impact on how much you pay over the lifespan of your loan. Your credit history largely determines your interest rate. So, get your credit score up as high as possible before applying for a mortgage. A mortgage broker like myself can assist you with ways to monitor and increase your credit score with tools such as a “what if simulator,” which is used to show what your potential score would increase to should you pay off or pay down certain debt. Even if you feel you are six months or more out from purchasing a home, reach out to a mortgage professional like myself to make sure you are ready to go, because it can take time to fix credit if it’s an issue.
Secondly, get pre-approved for a loan before you look. It is hard but remember- don’t fall in love with a house you cannot afford. Before you even start to look, meet with someone like myself, an expert in the field, and see if you can get pre-approved for a mortgage amount. While being an expert in the industry for years, I can help you learn about your monthly payment for different loan amounts and discuss with you what you are comfortable paying back. Trying to afford a house that is out of your reach will only lead to disappointment, so save yourself the unnecessary pain and stress.
Lastly, think about the area or neighborhood you want to live and don’t settle. Location is important, so think about your commute to work, proximity to amenities, personal interests and also schools. Basically, consider your future and your lifestyle. While you may be thinking the tips discussed are everyday things—surprisingly most first-time home buyers are so excited, that the small details are missed.
The Colorado home buyer landscape changes quickly. As a senior mortgage loan originator, I have experience originating loans for self-employed borrowers, first-time homeowners, seasoned home buyers, and investors. I consider myself a trusted professional who takes a face-to-face approach in order to help you with your mortgage and ultimately guide you along your homeownership journey.