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Five things you need to do now so you can buy a house this spring/summer!

So, you’re thinking about buying a home in the Denver Metro area this spring/summer. What do I need to do first? How can I make this easier on myself? What do I need to know? Truth be told, there is a lot you need to do. We have listed the top five actions you need to take to get ready to buy this spring/summer.

  1. Contact a lender. This may seem like a no-brainer, but in the current Denver Metro market you need to be pre-approved for a loan before making an offer on a property. Lenders can help you in several different ways. They will pull a credit report (see point 2 on this post).They can help you determine your “comfort zone” for monthly payments based on the current interest rate, money down and how much you want to spend per month. Lenders will also have many different types of loans available, federal programs with down payment assistance, state programs for certain counties or cities and even portfolio loans (private money loans).
    1. There are a few items you should have ready before speaking to a lender.
      1. Proof of income. Some lenders require only 30-days of pay stubs while others need up to two years of pays stubs. Sometimes it depends on what type of work you do. If you are being payed on a commission basis you may need a longer history than if you are paid salary.
      2. Proof of assets. Do you have cash reserves? Do you have an investment portfolio?
      3. Do you have outstanding debts? Debt-to-income ratio plays a big part in getting qualified for a loan.
      4. How much do you have for a down payment? Your down payment will determine which loan programs (if any) you can qualify for, how much money a lender will give you and what interest rate you will receive.
      5. There are certainly more questions lenders will ask you, but having at least some of these ready before hand will make the process less stressful.
  2. Get a credit report. You may think you know what is listed on your credit report (nothing but good things, right?), but companies that report to the bureaus often make mistakes. NOW is the time to find out if there was a mistake, some issues can be cleared up quickly while others can take three months or more. Having a credit report pulled will also put you on the same page as the lender. Do you need to pay down some credit cards? Do you need to establish more credit? Has somebody stolen your identity? The lender will also be able to help you improve your credit score if there are any issues.
    1. On a side note, your credit will also be pulled the day before or the day of closing. Don’t pull up to your closing in your brand new Hummer, not only will you give your agent a heart attack, but you might not qualify for a loan anymore.
  3. Prepare yourself mentally. Buying a home will likely be the largest purchase you have ever made or will ever make. You want to be prepared to “write the big check”. The last thing you want to happen is for you to get cold feet early on in the process and not pull the trigger on your dream home just to realize later on that you can’t find another you like as much. We have had clients put in offers on the first house they saw and others that looked at as many as 70 homes before finding one they liked (we looked at close to 70 before we bought our home).This isn’t House Hunters, you are allowed to look at more than three homes, but you need to be ready to jump on the home that suits you best! Point 4 and 5 on this post can help you get ready mentally to not only figure out where you want to live, but be prepared to make an offer when the time comes.
  4. Figure out where you want to live. One of the best things about living in Denver is that there are many different neighborhoods. You can find a neighborhood that suits your needs.
    1. Do you want to walk to bars and restaurants? Maybe a house in a subdivision in Arvada isn’t right for you. Perhaps you would be more comfortable in a condo/house in Belmar/Stapleton/Olde Town Arvada/The Highlands/Downtown Denver/Cheeseman Park/Wash Park. There are really too many to list, these are just a few of the popular options.
    2. Do you like hiking or scenic rides/drives? Maybe you would be happier living closer to the Front Range. Is a 45min commute to work worth being able to do what you love every evening/weekend?
    3. Do you need a neighborhood that’s family friendly? Dog friendly? Commute friendly? Public transportation friendly? Tech friendly? Friendly? There are hundreds of subdivisions in Arvada/Broomfield/Littleton/Aurora/Parker/Golden/Westminster (just to name a few) that could work for you.
  5. Talk to a Realtor®. A good Realtor® can help you with everything listed above. The Best reason to contact your agent today is that you can get the ball rolling. We can set you up to receive listings so you can start to narrow down your search to specific cities, sub-divisions or even streets! We can also help you get a lender, a mover or anybody else you might need.

Regards,

Tiffany and Tanner Cole

Keller Williams Preferred Realty

Tiffany 303-503-8971

Tiffany@TColeRealty.com

Tanner 303-929-0334

Tanner@TColeRealty.com

Register today at www.TColeRealty.com

“Your Family Real Estate Team for Life!!”