Westminster, CO – In 2018, we have seen in the Denver area, that more Millennials are moving in the direction of HomeOwnership!
What is really crazy in the Denver Metro area, the 2 income households are “skipping” the typical “Starter Homes’, and jumping right into the 2nd market, ie: $475,000-$600,000” price range;
as reported by a few Title Companies.
One, important reason might be the lack of “resale homes”, thus they are directed their attention and resources into the New Home market.
With this being said … regardless, of what type of First-time home buyer you are, there are still very important elements of home acquistions you need to give consideration to. Such as, the home inspection (even if new home construction), a 12-15 month Home Warranty program, and the type of financing that will best suit your financial situation. (We will discuss these items in further blog postings)
For now, I want to address some of the common 14 mistakes Buyers will need to further investigate during the home buying process in order to be successful!
#1. Failing to Budget for a Home Loan
Home ownership is a cheaper alternative to renting in the long run. But in the beginning, it can be much pricier. This is especially true if you intend to get a loan to purchase your dream house.
If you do acquire a loan, remember that you will be making monthly mortgage payments for a number of years.
Therefore, it is important to budget for a home loan, beforehand. You need to determine whether your income can accommodate an extra expense or not.
If you are unable to afford making monthly payments on your home loan, it would be a mistake to try to own a house at this time.
#2. Ignoring Your Credit Score
If you thought that finishing school meant being done with competitive scoring, think again!
Apparently, your creditworthiness can be summarized in just 3 digits. Those three numerals will draw the line between owning a house and renting one.
Even if you have an impeccable sense of financial responsibility right now, your credit past can haunt you.
You could have a hard time getting a home loan if your past record shows problems with payments, or if there’s an error in your credit report.
If you go ahead and apply for a mortgage loan without checking your credit score, you could end up paying a lot more than you expected.
It’s best to perform a credit check beforehand. This way, you will be allowed to get loans without being obligated to pay hefty amounts in interest.
#3. Disregarding Housing Marketing Trends
Just like other financial markets, the housing market fluctuates from time to time. Sometimes it favors the buyers, and sometimes it favors the sellers.
There are a number of factors that affect housing marketing trends. This includes the ratio between supply and demand, interest rates and the overall condition of the economy.
It’s also imperative that you consider how the housing market changes in your ideal location, as home prices vary from one location to another.
If you disregard housing marketing trends when hunting for a house for sale, you might end up signing for a deal that favors the seller… (con’t reading the rest, here…)
Thank you for reading my blog,
Dan Hopper, Realtor® – Author
Get your FREE book, here: Real Estate Book
Broker Associate @ Keller Williams Realty – Downtown Denver
“With the help of Dan, our family was able to get our first house here in Colorado. He was very knowledgeable in the field, knew… Read More
— R. Rodrigues
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It is encouraging to see the real estate market change to a “positive equity” market swing, and NOW is the TIME to seize that opportunity to Buy and Sell!! Sellers, we need your home on the market, there are Buyers out there searching for homes, due to the lack of inventory!!
Dan Hopper, Realtor®, specializes in residential real estate in the Greater Metro Denver and Front Range areas, assisting the community in buying and selling real estate, Foreclosure avoidance in Denver Short Sales, Arvada, Golden, Denver, Westminster, Arvada, Thornton, Broomfield, and Colorado. Thank you for reading, “Millennials Are Moving Forward!!”