Deciding to purchase your first home buyer is a major milestone and requires careful consideration. It’s essential to ask yourself key questions to assess your readiness, such as your financial stability, long-term goals, and current market conditions. Whether purchasing your first home, your tenth, or an investment property, understanding your personal circumstances and doing thorough research will help ensure that you're truly ready to make this significant investment.
A Steady Income
Finances are a fundamental factor in the home-buying process, influencing everything from mortgage approval to determining your purchasing power. A steady income is essential not only for securing a loan but also for making monthly mortgage payments manageable.
Savings
In addition to a steady income, maintaining a healthy savings account is important in most buying transactions. These funds will help cover the down payment, closing costs, insurance, property taxes, and build an emergency fund. Having these savings set aside is vital for unexpected situations, such as necessary maintenance and repairs, job loss, and medical emergencies to ensure you can still meet your mortgage payments.
Long Term Plans
While renting offers flexibility with monthly or annual leases, buying a home often comes with a commitment to stay for several years. Although plans change and selling is always an option, it’s advisable to hold on to the property longer to maximize your investment. A minimum of 3 to 5 years is typically recommended, with even more time being ideal to build equity.
Research & Home Buying Team
Understanding the market and cost of living is essential for anyone considering a move to the area, or home purchase. RealtorsⓇ provide valuable guidance and can connect you with the various other professionals involved in the homebuying process. They assist not only with finding a home, but also with many aspects of homeownership and community integration. From recommending lenders and coordinating home tours, to arranging home inspectors and insurance agents, they play a crucial role that extends well beyond just writing the contract.
HomesFund
For first time and/or local homebuyers, HomesFund can be an amazing addition to the homebuying team. Their Southwest Colorado programs include down payment and mortgage assistance. Generally offering equivalent to a below market rate their programs are especially designed to meet the needs of our community including deed restricted units. They offer an educational homebuyers class which is required for anyone to use their program but covers many useful pieces of information about being a homeowner.
This is just a starting point for thinking about entering the real estate market. We would love to be a part of your real estate journey and beyond. Please do not hesitate to contact us for more information or set up a meeting to kick off your property search.
