If you are new to buying a home, you might think that looking at homes is the first step in the home buying process. This is only true if you are paying cash and know how much you are going to spend. Most buyers don't have that kind of money laying around, so the first step is to talk with a local lender.
Looking at homes first is more than likely a waste of your time, the seller's time and an agent's time. After all how do you know how much home you can afford without being pre-qualified by a local lender? It would be a big disappointment to find your perfect home only to find out that you can't afford it.
A lender will be able to discuss the different loan programs that are available to you, and to answer your loan questions. There are many options out there. After you learn about the different programs, you can decide which one will be right for you. When looking at the different options there are things to consider like how much of a down payment will be required (if any) and the interest rate. Is the rate fixed or adjustable? After talking with a lender you will have more information about the loan process and know what you can afford to spend on a home.
It's also OK to shop around for a lender. What I tell buyers is to find a lender that you like working with, and that will explain the loan programs and process to you in an easy to understand way. This isn't something you do everyday, so you really want to be able to understand what you are getting involved with.
Your lender will give you an idea of what you can spend on a home, and what your monthly payments will be.
Now you can start looking at homes. You know what you can afford without over extending yourself. With interest rates still low, it can be possible to have a mortgage payment that is less than what you are paying for rent.
Buying a home is a big deal and an expensive one. There is a lot of paperwork involved, but the end result of home ownership is very rewarding and well worth the time and work.
If you are thinking of buying a home in Delta or Montrose Counties, Colorado, give me a call. Let's get you started on your home buying journey.
Here are some other articles you might find helpful and interesting:
What is Earnest Money and Do I Have to Have It?
REALTOR® versus real estate agent
Some commonly used real estate abbreviations with links to other articles explaining more real estate jargon.
I've lived on Colorado's Western Slope for over 26 years. I love this area and all it has to offer, and I enjoy sharing what I know about my home. As a REALTOR®, I also love to share my expertise in this area as well. If you need real estate information for Montrose County, or Delta County, Colorado...please give me a call.
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