“Divorcing” your landlord by buying your first home can give many young people a great sense of relief. Market rent is going up throughout Colorado, especially in popular cities such as Denver. With interest rates still low, it’s obviously a good time to make the leap from renter to owner. But many prospective first-time homebuyers still have to decide whether they are ready.
According to an article by Realtor.com, buying your first home is an emotional and financial decision that requires a team approach. Your lender can help you figure out the financial side of buying a home, while a Realtor that specializes in Denver’s hip neighborhoods can help you sort through your feelings and preferences about new construction versus existing homes, location and various amenities.
Identifying why you want to buy
Before you figure out what you want to buy, you have to figure out why you want to buy. The first step is to figure out the advantages of buying as opposed to renting or living with relatives. Most people want a space they can call their own. Perhaps buying a home will help you get closer to family, a job or an area where you want to spend more time.
Crunching all the numbers
When doing a cost analysis, it doesn’t really matter if you will be spending more on a mortgage than you paid in rent as long as you are getting more and can afford it. Figure out if buying a home will eliminate other expenses in your budget. For example, some master-planned communities and modern lofts in Denver come with fitness clubs and recreation. You can cut the gym out of your budget. A lender will tell you how much money you can borrow to buy your first home, but only you know how it really affects your day-to-day budget.
Learning about special programs
Another way your lender can help is by explaining all the new and old lending and first-time homebuyers programs. In Colorado, you may qualify for the Colorado Housing and Finance Authority or CHFA. Also, Fannie Mae and Freddie Mac now provide 3 percent down loans for first time homebuyers. At Peter Hauben Real Estate, we can show you all the best neighborhoods in Denver including Lower Downtown, Uptown, City Park, Washington Park and Highland. We can get you into a loft, single-family home or townhouse that fits your budget as a first-time buyer.