5 Things to Know When Buying a House in Colorado
Buying a house is a key moment in anyone’s life. If you’re moving to a new area on top of that, the process can become even more stressful. Luckily, buying a home is a lot simpler than it looks. These five tips will help you work through the procedures and find an affordable new home.
Choose a Location
Of course, location is a crucial factor no matter where you’re buying a house. This is especially true in Colorado due to unique factors like underground oil drilling sites. Before deciding on a home, it’s best to check the surrounding area for anything that could affect your decision.
All the standard aspects of location still apply, like schools, shops, and distance to work. A house with everything you’re looking for might not be the best option if it’s too isolated. You can find information on Great Colorado Homes, a helpful tool with filters for everything from school districts to neighborhoods.
Create a Budget
The first thing to do when creating a budget is to research the Colorado property market. This gives you an overview of average house prices to know what to expect and budget for. You can easily find listings and area maps on real estate tracker sites for up-to-date market reports.
This information can affect your budget in many ways. For example, you could find that the market is currently too expensive. In this case, you might want to set aside funds to rent, giving you more time to find an affordable home.
Plan for Extra Costs
The price of the house itself isn’t the only thing you’ll need to pay for. There are loads of extra costs that make the process more costly than it initially seemed.
Here are some of the more common “hidden expenses” in Colorado based on your home’s price:
- Closing costs: 1-3%
- Estate agent commission: 5-6%
- Moving costs: 1-2%
Check Your Credit
Almost everyone will need to take out a loan when buying a home. Unfortunately, a low credit score can stop your plan in its tracks. Your credit ranking is usually measured between 300 and 900, with ratings below 600 being considered poor.
Since different credit agencies have different scoring methods, it can be worth looking up which ones are most likely to approve your loan. Each company provides two free credit checks per year to Colorado residents so you can easily find out if you qualify.
Research for a Loan
Once you’ve been cleared for a home loan, the next step is to choose the best one for you. Different lenders and loans come with varying rates and costs. These include the Annual Percentage Rate (APR), insurance, monthly payments, and overall interest.
While it may seem overwhelming, working through these points will make your home-buying experience much smoother. Colorado comes with a few unique challenges to consider along with the standard considerations, but the payoff is worth it. As long as you take it slow and carefully research locations, loans, and costs, you’ll be settled into your new home in no time.