Looking to jump into the real estate market? It is certainly an exciting time for real estate, especially in the Denver metro area. But before you start visiting open houses or scheduling showings, there are a few things you should check off your list.
#1. Get a mortgage pre-approval
This is a crucial step in the home buying journey! A mortgage pre-approval will help you understand how much house you can afford, and it will give you a better picture of your monthly mortgage payment. A pre-approval is typically a more rigorous process than a pre-qualification, so although it requires more paperwork, you’ll save yourself time in the long run by getting some of the documentation out of the way first. It will also provide a more accurate picture of your mortgage options, since you’ll need to provide your lender with some detailed financial information. In such a competitive market, many sellers won’t even consider a buyer without a pre-approval, so don’t miss out on your dream home by forgetting this step.
#2. Find a real estate agent
I know it’s tempting to jump online and start picking out your perfect house, but don’t start without a real estate agent! In a market where homes are moving faster than fast, you want to set yourself up for success by working with an agent before you find a great house. It’s important to find an agent who is knowledgeable, professional, and trustworthy, since this is such a major financial transaction. Don’t forget - I’m always available if you want to chat about your options!
#3. Focus on your must-haves
Take some time to really identify which items you must have, and which things are nice to have. This real estate market is hot, and that means you may have to make some compromises on certain things if you want to buy a home right now. Remember that cosmetic items like paint, carpet, and window coverings are all easily changeable. Don’t fixate on those items - keep your must-haves at the forefront when you’re looking at houses! Talk with your real estate agent about which items you can’t compromise on, whether it’s location, number of bedrooms, etc. Make sure you’re on the same page so your agent can find you the best options for your budget.
#4. Start financially preparing for a house
I’m not just talking about your down payment - I’m talking about your monthly mortgage payment and housing maintenance items. Once you have an idea of your monthly housing budget, start setting that amount aside each month to prepare for your housing payment. When it comes to home maintenance, a general rule of thumb is to save at least 1% of your home’s purchase price every year for maintenance costs (for example - if you buy a home for $400,000, you should save at least $4,000 each year for ongoing repair and maintenance costs). If you’re looking for some quick financial tips, check out this previous blog post.
Ready to go home shopping? Let’s talk! Get in touch with me at 8Z Real Estate - I would love to have a conversation about how I can support your homeownership goals.