Disclaimer: This calculator will provide you with P&I (Principal and Interest) payments only and will NOT include taxes, insurance, and HOA (if applicable). This is to be used for hypothetical purposes only as actual payments will vary based on lender, fees to lender, actual interest rates, and so forth.
Will you be using financing, paying cash, or a combination of both?
A lot of times buyers will ask to go look at homes, only to find the one that they really love, yet have no plan in place for how they will be purchasing the home. By the time everything is aligned the home may already be under contract or sold to someone else. Getting your financing in place prior to going out to look at homes will help in several key areas:
- It will help determine what you can reasonably afford for a home when searching.
- It will make pulling the trigger on a home that you like that much easier and will avoid that let down if you don’t have financing in place.
- You’ll know what type of financing you’ll be using which can be a Conventional, FHA, VA, CHFA or other type of mortgage. This will also help dictate how strong your offer will look in the eyes of a seller when presenting if using financing.
When is the Best Time to Buy a Home in Colorado?
If you have a home to sell to purchase a new one, a lot of thought and planning will need to go into timing so everything can proceed as smoothly as possible. We have lots of experience in this area, so simply reach out and let us help mitigate this anxiety for you.
How Do I Find a Good Lender?
We have preferred lenders we work with, so simply ask and we’ll be more than happy to make a referral for you! If you have a lender you prefer working with that’s great too. It’s critical though that the lender and Realtor have a good working relationship to help ensure a smooth transaction.
What is on your wish list for your dream home?
Here are a few of the areas you might want to focus in on to help narrow down your search to be manageable:
- How many bedrooms/bathrooms do you need?
- Is there a minimum amount of square footage needed? Are there any special characteristics to the type of lot you would like?
- Do you want an HOA or no HOA? If so, are you looking for certain amenities that go with the HOA?
- Are you looking for a newer or older home?
- What areas of town are you focusing on? Are schools going to be important?
- Do you need close proximity to work, shopping, parks and recreation, and other amenities?
What is the Best Way To Find Homes That Meet My Needs?
After you have some criteria for a search, now it’s time to start looking at some homes and finding the one you really want. A good agent will help you set this up in the local MLS searches that you can both work together to start touring properties.
How do I put in a strong offer on the home I like?
Once you have found your dream home, it’s time to write an offer. Structuring a very well written offer will go a long way in helping you get the home you want, especially when you are competing against other offers. Again, a relationship with a good Realtor will go a long way in helping you with this process and in getting a good deal in front of the sellers.
What is the next step after putting in the offer when buying a home?
You will have several deadlines to meet between the time your offer is accepted and the time you close on the home. If you are using financing, 30 days is usually ample time to get everything completed and closed on time. If you are writing a cash offer, this will give you the best flexibility and these closings can usually be completed within a couple of weeks.
What happens when you put a home in Colorado under contract?
During the contract period, there are typically two major events that will also result in out of pocket cost for the buyer. The first one is the inspection. That typically happens pretty quickly after you are under contract. Costs on inspections can vary based on square footage and size of the home and if you will be testing for Radon and doing a sewer line scope. On average you should budget $500-$800 for this, but again costs can vary.
What out-of-pocket expenses will I have when buying a home?
The next major out of pocket cost (if using financing) will be the appraisal. These costs can vary in the $600-$800 range as well. On average, we tell people to have a good $1,000-$1,500 set aside to cover the inspection and appraisal costs. There will obviously be other items along the way during the contract period to get passed, but these two areas will be the ones resulting in out of pocket cost and pretty major thresholds to cross in order to get to the closing table.
If all goes according to plan, you have a well-structured deal and every provision of the contract has been met, you should be sitting at the closing table for your joyous day of getting the home of your dreams!
As you can imagine there is even more to cover here, but hopefully this helps give you a feel for some of the areas to be prepared for as you enter the market.
Why work with a Colorado real estate professional, like Mark Fuller, when buying a home?
Real estate transactions can often be some of the biggest financial transactions we will ever make in our lifetime, so why leave this to chance without some professional representation and someone working for your benefit? If you are buying a home, the good news is that your real estate professional will likely be paid by the person selling the property, so working with a professional when buying your home should be a no brainer!
