The process of buying a home can be very daunting. Whether you’re a first-time buyer or not it really doesn’t get any easier since every situation is different. With that being said, there are some questions that get asked the most often by all types of buyers. Today, I’ll try my best to answer some of these questions and hopefully help you be a more prepared buyer when the time is right.
Where do I start?
The most commonly asked question is “ Where do I start?” If you have followed me on Facebook or read my blogs you already know the answer to this one. The first step in the home buying process is to talk to a bank. This is because without knowing what type of loan or what price you are qualified for you can’t start shopping for a home. You wouldn't go shopping at a store without knowing how much money you have to spend, would you? Home buying works the same way. Your loan type will also tell you or your agent the condition the home has to be in because all loan types have different condition requirements for the house.
Do I have to contact the listing agent on a home I’m interested in or can I use my own agent?
Another question I get often is “ Do I have to contact the listing agent on a home I’m interested in or can I use my own agent?” The answer, agents in Colorado are licensed to sell in the whole state. This means that you do not have to contact the listing agent to look at a house, you can go through your own agent. This is true of most any house currently listed for sale with an agent. In some cases, a seller may also want the seller’s agent to be present a the showing as well but this does not mean that you can’t still have your own agent.
What types of programs are there for first-time buyers or to help with a down payment?
The next question I get asked a lot is “What types of programs are there for first-time buyers or to help with a down payment?” This one is kind of a long answer since there are various different loans that help both with down payment and some for first-time buyers. The most common are; FHA ( which is a federally insured loan requiring 3.5% down), Rural Development Loan ( 100% loan), Conventional Loan ( down payment can be as low as 5%), CHFA ( which can be either a grant or 2nd loan that can be used for down payment or closing costs), Home Ready Loan ( 3% down. There are only a few of the most commonly used. If you want more information on different loan types you can read my blog on home loans here or give me a call and I would be happy to put you in touch with a lender.
How long will it take me to find a home?
The last and final question I get asked is “ How long will it take me to find a home?” The answer is there is no timeline. The amount of time it takes you to find a home depends on a variety of this such as price range, location, inventory levels, and requirements; there’s no one size fits all. For example, if you were to tell me you want a 5 bedroom, 2 bath house with 2 acres in Fort Morgan that’s move in ready and you want to pay less than $200,000 for it; I would have to tell you we will likely be looking for a while. That’s because in our current market in Morgan County that type of home is selling for upwards of $300,000. This is why it’s very important to sit down with your agent prior to looking at homes and discuss your budget and list of must-haves for your home. Don’t be surprised if you end up having to take some things off your list in order to stay within your budget.
Now, these are not the only questions to consider when thinking of buying a home nor are they the only questions that come up. These are simply the most common that I get asked by potential buyers in my area. If you have any specific questions or if you would like to buy a home, call me anytime at 970-370-0135 or stop by my office and I’ll do my best to help in any way I can.
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**This information is for educational purposes and does not constitute legal or tax advice.