If you’re making a resolution to take the leap from renting to buying in 2017, you need to know a few things to make sure this New Year’s resolution succeeds. If you plan to make 2017 the year to own your first home, here is a checklist of the things you should start doing to make your goal a lot less stressful.
Make sure you’re ready- Ask yourself questions like if your job is stable or do you see yourself living in that place for the next five to 10 years? You will get the best interest rate if you have at least 20 percent of the home’s purchase price saved as a down payment. But there are first time buyer programs available that only require you to have a few thousand dollars for the earnest money deposit. Also, make sure you are prepared for all the extra work that comes with homeownership. Owning a home entails more maintenance than renting. Being certain about these questions will help you decide if you’re ready or not.
Create a list of “must haves”- It’s important to know which features you are willing to compromise on and which are deal breakers. Buying a home always involves compromises. You must also gather documents like collecting your proof of employment, such as pay stubs or copies of the past two years of tax returns if you’re self-employed. You will also need to have copies of your bank and investment account statements from the past 30 days.
Figure out what you can afford- get prequalified or pre-approved with a lender. Keep in mind that your mortgage payments aren’t the only cost you will need to consider. You’ll also want to make sure you’re financially able to handle other expenses like utility costs, yard maintenance, pest control, and any repairs and maintenance that will pop up in the future. Tax rates will vary in different communities, of course, but your lender will factor in an average rate with your pre-equal amount.
Buying your first home is one of life's major milestones. It's easy to get caught up in the euphoria of the decision and overlook the reality that it costs a significant amount of money not only to buy a home, but also to keep it and maintain it. But most homeowners will quickly agree that it’s all worth it. They love the financial advantages and the certainty of controlling their destiny with regard to housing location and costs.
If you’re ready to look at getting started on your path to home ownership, contact your local metro Denver real estate professionals, The Bandy Team! Our team will guide you through all phases of the home buying or home selling process in Denver. Let us show you homes in some of the fine communities of Castle Rock, including real estate in Castle Pines, homes in Founder's Village, or property in The Meadows.
We are here to help you find your dream home and will guide you every step of the way!
Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows