This guide simplifies the home buying process. Most especially, the first time home buyer can use it to anticipate what goes into buying a house. Take a few minutes to sit back and study the road map. We talk about preparing your finances, finding the right home, and signing the documents. It’s everything you need to take home the keys.
QUICK CHECKLIST
- Prepare finances
- Interview lenders
- Get preapproval letter
- Pick real estate agent
- Find the right home
- Make purchase offer
- Get home inspection
- Buy homeowner’s insurance
- Close
1
Save for Down Payment
It takes financial preparation to buy a house. Homebuyers need accessible cash or the ability to finance real estate. If you save up for a down payment, you’ll save lots of money in the long run. Although some home loans require little or no down payment, there are three benefits of bigger down payments. 1) Down payment money can improve interest rates, 2) You’ll be borrowing less money, and 3) Your monthly payments will be more manageable.
If possible, save at least 20 percent of the home’s price. Need inspiration to save? Build a budget and stick to it. Set up automatic savings deposits. Add income from odd jobs. Discipline and patience literally pay off.
Calculate a Budget for Long Term
Figure out a long term budget. What part of your monthly budget do you want to use for house payments and home maintenance? If you have excellent credit, lenders may approve a jumbo mortgage. But you might want to spend less.
2
Interview Lenders – Submit Financial Records
Unless you are paying cash, plan to check out lenders. Your goal is to find a lender package that suits your income and comfortability level. Decide on a lender. Once you choose a lender, you need to prove or document your identity, income, and employment stability.
Documentation may be easier for first time home buyers who submit pay stubs and tax returns. Others, including independent contractors, may need to do some digging into past receipts. In addition, veterans seeking VA loans need to apply for identification from the military.
The lender will pull your credit report, decide if they will preapprove you, and, if so, give you a price range. Then the lender will show you some options. For example, Courlas Mortgage can guide you to the best loan packages for your home buying process.
When buying a house, buyers commonly decide on 30-year fixed loan terms for FHA or conventional loans, VA loans, and USDA loans. Your lender can also show you the difference in other terms.
3
Get Preapproval Letter
After receiving your documentation, your lender will decide the maximum amount you can borrow. Ask for a letter of preapproval.
4
Pick Your Real Estate Agent
Interview real estate agents and decide on a real estate company.
5
Find The Right Home
First, decide what priorities you are looking for in a home. Write down your parameters. Location, neighborhood, new build or historic, community amenities, schools, views, lot size, ranch style or two story, size. Define what matters most to your family.
Now arrange with your real estate agent to visit homes in your price range that fit your criteria. If you loved one of them, great. If not, go back to your priorities. See if there any tradeoffs? Can you give up 400 square feet for a bigger lot? Can you wait or do you need to take possession by a specific date?
6
Make A Purchase Offer
When you find an acceptable property, it’s time to make an offer. Coordinate the offer with your real estate agent who know the local market. Realtors negotiate on behalf of homebuyers. Your Colorado Springs real estate agent can add contingencies–like inspections and terms–to the offer. If necessary for due diligence, involve a real estate attorney to look over the purchase agreement, title documents, and paperwork.
7
Get A Home Inspection
A home inspection often exposes issues that negate a seemingly good deal. How would you or the owner know about a costly leak under the shower floor or an inferior electrical system? Better to find problems up front and negotiate the repairs. Certain problems like mold can be deal breakers.
8
Buy Homeowner’s Insurance
Unless you can put down a substantial down payment, you will be required to purchase mortgage insurance and it is wrapped into the loan. But it is also important to purchase homeowner’s insurance to guard against liabilities and accidents.
9
Closing
Plan for closing day with your real estate agent and lender. You will be signing a stack of papers. Bring identification, proof of insurance, and a check to cover closing costs. At the end of the appointment, you’ve won the keys to a new home. It’s ready for your new life.
Realtors – Buying a House in Colorado Springs
If you’ve decided it’s time to buy a home, let’s find it. Call Courlas Realty at
719-470-0178 to jump start on the home buying process. We’ll connect you to the best lenders and expert real estate agents for your goals. Enjoy our one-stop house shopping and mortgage options.
Save for down payment
Contact our Agent
Get Pre-approval letter
Make an Offer
Find the right home
Make A Purchase Offer
Get A Home Inspection
Buy Homeowner’s Insurance
Closing
Rebate Program
Courlas Realty Offers a 1.5% Home Rebate Program
See disclaimer for full details.
What Customers
Have SAID ABOUT COURLAS REALTY
Tamara is absolutely fantastic! She went above and beyond to find us the perfect house. We told her that we only had one weekend to fly in to find a home. When we arrived, she was ready to hit the ground running. She was well organized with all the listings printed out for us. And, if she couldn’t get any better, she has an awesome rebate program that you won’t want to miss out on. We can’t say thank you enough!!!
- K. Palmore reviewed Courlas Realty on Facebook with 5/5 stars on September, 2017
Tamara goes above and beyond. She was truly a God send and blessing.
- W Kay reviewed Courlas Realty on Facebook with 5/5 stars on November 2017
Tamara is amazing and so helpful!
- A Robinson reviewed Courlas Realty on Facebook with 5/5 stars on September 2017
Tamara was great! She went above and beyond helping us find our home. We looked at so many houses but she never gave up trying to find what we wanted and fit us in quickly trying to see as many homes as possible before my husband deployed.
- C Gasser reviewed Courlas Realty on Facebook with 5/5 stars on May 2017
Tamara and Jordan really took their time to make us feel heard and she worked her magic.
- R L Johnson reviewed Courlas Realty on Facebook with 5/5 stars on March 2017
Tamara is so hardworking and dedicated to her clients. She searched tirelessly for us for two months until we finally found the perfect place. She has followed up with us and been great with helping us make the transition to Colorado. Ten stars !