January 26, 2021
Get Your 2021 House-Buying Journey Started Right…
Buying a house in Loveland, Fort Collins, Berthoud, Windsor, Timnath, Greeley, Erie, Longmont or Firestone?
Setting out on the search for your new home can be both exciting and overwhelming, especially if you’re uncertain about which steps to take.
Focusing on these 6 steps will help take the “overwhelm” out of the equation and keep you focused on the big picture as you pursue your Northern Colorado home:
1. Check Your Credit
It’s certainly not what most of us would consider a fun place to start. Fun would be looking at homes, determining if there is room for your RV, camping equipment, fly-fishing gear, or the ultra-large big screen for the Bronco and Rockies games!
But wise homebuyers today begin by getting their free annual credit report from one or all of the major credit reporting agencies; Equifax; TransUnion; or Experian. Checking credit is always a great way to begin any home-buying venture.
Comb through the reports for any inaccuracies or errors, and go through the proper channels to remedy them as soon as possible. You may discover you still have some old debt floating around out there, and paying it off will make a big difference in the future.
Keep in mind that it is not uncommon to find errors on your credit report; e.g., a late bill that actually belongs to someone else with the same or similar name; a bill that has been paid in full, but the creditor failed to update records, etc.
Knowing what is on your credit report and monitoring it regularly is an excellent habit to establish.
2. Identify Your Genuine Wants & Needs
With your financial history sorted out, it’s time to brainstorm what you want and need in your new, Northern Colorado home!
I always encourage buyers to list their wants and needs by category:
- Must Haves – these are the absolute non-negotiables. If the home does not have these items, it does not make the walk-through list. If the Must-Haves are missing, it makes no sense to invest time and emotional energy.
- Nice-To-Haves – these are the items that would be ideal. At the same time, if we find a great home, in an ideal location with all the Must-Haves in place, we could still make an offer on this one, even if means relinquishing one or two of the Nice-To-Haves.
- Fun-To-Haves – these are the features that, if included, are like the cherry atop the ice cream sundae. If they come with the home, awesome, but if they are not present, we are still moving forward with an offer.
Buyers have a tendency to get wrapped up in the search too early on, then slowly start to figure out what is important and what they truly value in their next home. As a result, a lot of unnecessary emotion and time is invested, all because their wants and needs were unclear.
Years ago, my wife and I were keeping our Realtor busy, looking at home after home in Northern Colorado. One day he said, “Here is your assignment…tonight, get together and make a list of things you Must-Have in your home. Make another list of the things that would be Nice-To-Have and finally, a list of what would be Fun-To-Have.” The next day, we presented our lists, which included orange kitchen countertops and green, shag carpet [did I motion this was years ago?] on the Must-Have list. The following day, we stepped into a home with green, shag carpet! My wife ran to the kitchen and shrieked when she found orange countertops!
Take the time, once you decide to look for a home, to compile your Must-Haves, Nice-To-Haves, and Fun-To-Haves. Taking that action will save you time and energy, keep you focused, and make it clear exactly what you want in your home, even if it isn’t green shag and orange countertops!
Then, check to see which of the remaining potential properties meet your criteria.
3. Check Out Online Listings
Today, it’s extremely common for the average buyer to immediately scan online listings to begin the house search.
While we do encourage buyers to use these online listing databases, it’s important to keep in mind that financial data and estimated prices for homes on these sites are often pulled from whatever tax data the site they can get their hands on. This means the data may be outdated or inaccurate, so please exercise caution.
One of the best ways to see online listings is on the home page of this website, http://TimAveryRealEstate.com, where you will find many featured listings across all Northern Colorado!
Vetting these online listings against your Must-Have, Nice-To-Have, and Fun-To-Have lists will make it much easier to determine those homes you would truly like to visit with your Realtor.
4. Get Familiar with Down Payment Assistance Grants
An opportunity often overlooked by qualifying buyers, is down payment assistance. These grants come in many shapes and forms, and often act as a low- or interest-free second mortgage.
For Northern Colorado buyers, one example of this type of grant is CHFA – Colorado Housing & Finance Authority.
CHFA does require all applicants to participate in an education course, but the course fee is actually credited toward the $1,000 minimum borrower contribution required for the purchase of your home!
These grants vary, sometimes significantly, based on their individual terms. However, you’ll find that some are forgiven or deferred if you make a certain number of payments on your first mortgage on time.
Searching online for the grants offered in Northern Colorado could be a boon, especially if you’re buying a house in this area for the first time.
5. Research Mortgage Programs
Not all mortgages are alike, and you want to look to see if you qualify for any specialized programs that could save you money. Some of the most common mortgage programs in the US include:
- USDA Loans – designed to provide low-interest loans for rural development, and you can find more details – including if you would qualify – through your local Federal Housing Administration.
- VA Loans – are a zero down payment, no Private Mortgage Insurance loan awarded to qualifying United States military veterans through the Department of Veterans Affairs.
- FHA Loans – are insured by the Federal Housing Administration [FHA]. They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.
- Conventional Loans – are a great choice for many homeowners because they offer lower costs than some other popular loan types. If you have a high enough credit score and a large enough down payment, at least 5%, a conventional mortgage might be right for you. These loans are not guaranteed or insured by the federal government. Homebuyers with 20% down can avoid Private Mortgage Insurance, thereby lowering their monthly payment.
6. Realtor®️
The most important step when you’re planning to buy a house in Northern Colorado is selecting your local, qualified, trusted, and experienced real estate professional.
Real Estate Agents come equipped with the knowledge and networking contacts to not only find you what you’re looking for in a home, but make the deal a success from beginning to end. An effective agent will work tirelessly, to see that your desires are fulfilled in the home-buying journey.
Having an agent on your team to help you schedule, view, and evaluate houses; write and negotiate offers; manage dates and deadlines; introduce you to the right lenders for your situation; and navigate the myriad of details, issues, and paperwork, only makes good sense.
For most people, a home purchase will be the largest investment of their lives. That is not a good place to put your “Do It Yourself” skills to the test 🙂
Selecting an agent who is a true real estate professional, should be step number one in the journey! Having someone who comes highly recommended, responds promptly, and has your best interest at heart will be an invaluable asset as they lead you skillfully through the other 5 steps above!
Get the Expert Help You Need to Buy a House in Northern Colorado
If your future plans involve buying a house in Northern Colorado, contact me today at 970.820.0969 for an introductory conversation!
