10 Tips for the First Time Home Buyer?

Making a move from renter to homeowner?  You're not alone!

Some of the questions you may be asking are:

• Will I be able to afford the home of my dreams?

• Do I have enough money for a down payment?

• Will I know how to make smart home buying decisions?

1.  Get prepared and get help:  The first purchase can be a good experience, but be prepared from the start and get people to assist you who have done it before like a well qualified real estate agent.  You do not have to try to figure it out yourself.

2.  Resources:  Before starting out, educate yourself on the process. Check your library or local newspaper to find a homebuyer seminar that you can attend. The U.S. Department of Housing and Urban Development has an entire section on its website (www.hud.gov) devoted to homebuyers. It has a list of common questions of first-time homebuyers, information on mortgage and home-buying programs, access to housing counselors, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc.

3.  Visit with Your Denver Area Real Estate Agent:  Your real estate professional is also a great resource. Don't hesitate to let him or her know that you are new to the process. They will expect you to have questions at each step-from house hunting, to making an offer to the closing.  Want to visit with a great Denver Area Real Estate Agent?  Call Frank Nuebel at 720-273-3514 for a free and private consultation.

4.  Costs can be overwhelming:  The costs involved in the purchase of a home can be overwhelming to first-time homebuyers. There are mortgage costs, the down payment, and closing costs to think about.  There are many parts and what makes it seem most scary is the fact that

5.  Affordability:  By looking at your income and debt ratio, your professional lender can help you calculate out how much you will be able to pay each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities, and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.

6.  Mortgage Payment and Pre-Approval:  Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage where there are multiple offers for a specific property. In addition, the fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. If you don't have a specific mortgage lender in mind, ask your sales professional for a recommendation.

7.  Down payment:  The down payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time homebuyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down payment. Your real estate professional will be able to explain the different options available to you.

8.  Making offers:  Don't feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you decide on a home to make a bid on, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

9.  Very Important:  Remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first home purchase is a rewarding experience.  Call Frank Nuebel at 720-273-3514 or hit the "contact us" button on the top of the page.  We will be notified imediately and reply to you as soon as possible. 

10.  Don't be scared:  Frank Nuebel is a real estate agent that knows the in's and out's of buying and has been through this before many, many times.  He enjoy's teaching you the process along the way and you are in good hands with him to assist you.  Instead of it feeling like unfamiliar territory, you will soon find that it is exciting in every way to consider the possibilities of your new home.  It won't be long and you will be moved in and enjoying your new place.

Homes under $300K in the Denver Metro Area