January 30, 2023

5 mistakes to avoid as a first time homebuyer in Colorado

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Sarah Thomsen

5 mistakes to avoid as a first time homebuyer in Colorado

As a first-time homebuyer, it's natural to feel excited and overwhelmed by the process of buying a home. Especially in a competitive market like Denver, CO. However, it's important to avoid 5 common mistakes that can cost you time, money, and stress. Here are some of the most common mistakes first-time homebuyers make and how to avoid them:

  1. Not hiring a good real estate agent: A good real estate agent can make a big difference in the success of your home purchase. They can provide valuable guidance and advice, help you find the right home, and negotiate on your behalf. It's important to take the time to find a good real estate agent who you trust and who has experience in the local market. We always talk about how agents are like coaches for the process. They will support you in building the rest of the team, with lenders and inspectors and making sure you understand the process from end to end. 
  2. Not understanding the assistance programs that are available to you. This is why it’s essential to work with a great real estate agent. Your agent will act as your guide to support you in finding the right assistance program for you if you’d like help with the down payment or closing costs. 
  3. Failing to budget properly: One of the biggest mistakes first-time homebuyers make is not properly budgeting for the costs of buying a home. In addition to the purchase price of the home, you should also budget for closing costs, inspection fees, and other expenses that can add up quickly. It's important to have a clear understanding of how much you can afford to spend and to stick to your budget to avoid overspending. Again, this is something you can discuss with your realtor and lender. The cost of buying a home is not complicated. Work with an agent that will help you understand the cost to buy. 
  4. Not getting pre-approved for a mortgage: Before you start shopping for a home, it's a good idea to get pre-approved for a mortgage. This will give you a better idea of how much you can borrow and what your monthly payments will be. It will also make you a more competitive buyer, as sellers will know that you have been pre-approved and are ready to buy.
  5. Not understanding your main goals for the home. Do you want to walk into equity? Do you want to not worry about any home repairs? How long do you want to live in the house? These are all things you can discuss with your realtor. 

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