Learn Which Home Buying Mistakes to Avoid in Colorado Springs
Buying a home is one of the most important financial decisions you’ll ever make. This is especially the case if you’re a first-time home buyer. If you’re getting ready to purchase your first home in Colorado Springs, you’re probably wondering which home buying mistakes to avoid.
At Your Home Sold Guaranteed Realty - Barb Has The Buyers, we believe in empowering home buyers to make informed decisions. In this post, we’ll explore three mistakes every home buyer should avoid if they want a successful purchase.
Learn Which Home Buying Mistakes to Avoid to Help You Save Money
Taking the time to learn which home buying mistakes to avoid will help set you up for success. Buying a new home can have a huge impact on your financial situation. This is why it’s crucial to explore your mortgage options and find what works best for you.
Our real estate team has created a guide on 6 Buyer Mistakes, which explores the most common mistakes home buyers make during the purchase process.
In this post, we’ll explore three of these mistakes. But to download a free copy of the full guide, click “6 Things You Must Know Before You Buy“.
1. Not Figuring Out a Budget Before House Hunting
Home buying is an emotional process. Most people are tempted to find a home that looks good and makes them feel good to be in. While this is an important factor, your main focus should always be on the numbers.
One of the biggest home buying mistakes to avoid is not evaluating your financial situation before looking at homes. This means establishing a budget and knowing how much you can reasonably afford to pay each month for your mortgage.
Having a number in mind for your down payment before you start looking is crucial, so you don’t fall in love with a home only to find out later that you can’t afford it.
A great way to estimate your budget is to use a mortgage calculator. We’ve created our own mortgage calculator to help home buyers in and around Colorado Springs.
2. Not Getting Mortgage Pre Approval
Once you’ve established an estimate of your budget, your next step should be visiting a professional lender to get officially pre-approved.
A mortgage expert will approve you for a home loan and determine your down payment and monthly mortgage payments. They’ll also give you an official pre-qualification letter. This will help you stand out from the sea of other buyers and make working with real estate agents easier.
Many home sellers prefer working with pre-approved home buyers because it makes the transaction faster. Similarly, most buyer’s agents will only work with pre-approved buyers because they know those clients have serious intentions about purchasing a home.
3. Not Exploring All Your Mortgage Options
While meeting with your lender, be sure to discuss whether you qualify for any special types of mortgages. For example, special types of home loans for veterans and first-time home buyers.
You can also ask your lender whether a fixed-rate or adjustable-rate mortgage is best for your financial situation.
You should also be sure to ask about prepayment privileges, which allow you to pay part or all of your mortgage ahead of schedule. Prepayment privileges allow you to save money in the long run by avoiding interest.
If you don’t qualify for these options, make sure to find a mortgage plan you know you can keep up with. The more frequently and regularly you make your payments, the more likely you’ll save money over the long term.
For example, you may want to consider payments as often as weekly or biweekly. The more frequent the payments, the less interest you will be charged over the long term and the faster you can pay off your debt.
Another option is to consider increasing the amount you pay each month, if you can afford to do so. This will also decrease the amount of time you’ll be paying your mortgage.
Ultimately, exploring your mortgage payment options and finding a plan that works for your financial situation will help you save money and potentially shave years off your mortgage.
We Can Help You Buy a Home in Colorado Springs, Colorado
Establishing a realistic budget, getting pre-approval, and fully exploring all your options are all important steps every home buyer should take.
When you figure out your finances before looking at homes, you’ll guarantee that your home buying journey will be a success.
At Your Home Sold Guaranteed Realty - Barb Has The Buyers, we have a network of recommended lenders. These professionals can help you get started on your home buying journey.
And when you’re ready for the help of a professional real estate agent, you can reach out to our team of expert agents. We’re happy to answer any questions you may have about the home buying process and help learn which home buying mistakes to avoid.
In addition, our team is unique from other real estate agents in Colorado Springs, Colorado, because we offer an Exclusive Buyer Protection Plan. This plan ensures that your experience is as stress-free and risk-free as possible.
To learn more about our protection plan or working with our real estate team, give us a call at 719-301-1802. Or, you can also fill out the form below for more information.
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