A lot of folks I am talking to these days are getting serious about buying a home. Even though there has not been too much inventory on the market, and those homes that are on the market don't stay too long (about 30 days on average in our neck of the woods here in the Boulder Valley, Colorado). But since interest rates are still relatively low, it remains a good time to purchase a home.
But what if you have never purchased a home? It can be a daunting task, but like most things in life, if you can break it down into manageable parts, it is certainly less intimidating. For example, we recommend that you begin the home buying process with getting pre-approved by a lender. That way you not only know what you can afford, but you will be best prepared to make an offer quickly as time is of the essence.
Let's look at the advice from Jaime Lee of the National Association of Realtor, as we share some of her tips to home buyers as well:
1. Take care of your credit report. You should request copies of your credit report annually—especially before applying for a mortgage. Look for any issues or instances of identity theft. These won’t necessarily keep you from getting a mortgage, but you’ll have to take action to clear them up.
2. Set your realistic budget. If you need financing, your mortgage broker or banker will help you determine how much you can afford based on your income, debts, and credit history. He or she will then calculate what you’re eligible to borrow. Your job is to be ready to supply this information and set a price range that your realtor can use to find potential properties within your budget.
3. Get pre-approved. Your mortgage broker or banker can also help you get a pre-approval letter that states how much a lender is willing to let you borrow. When you’re ready to put an offer on a property, this letter will tell the seller you’re serious and you’ve already taken the first steps toward seeking funding.
4. Respond to requests quickly. You may be asked for copies of your financial statements, your tax records, or for your signature on forms. Your role is to provide this information in a timely manner so the requester can move forward.
5. Communicate with your broker. If you’re feeling uncertain about part of the process, or you just have a nagging question, talk to your realtor. He or she will have the knowledge and experience to answer your questions.
If you have been following LRA on Facebook, you already know how much interesting real estate information we provide on a daily basis. If you are new to LRA and you would like to see housing data for Boulder County, there are plenty of statistics to check out in such as "Days on Market", "Total Inventory" and "Newly Listed Homes". We track all these market statistics for Single Family Homes (SFH) for most of neighboring towns on a monthly basis, including Louisville, Erie, Lafayette and Superior. Check out Spring 2017 market summary here. At Louisville Realty Associates, we have the experience, energy and depth of knowledge to help you list your home for the best price. You can reach us anytime at firstname.lastname@example.org.