Colorado Springs Homes Blog

You've thought long and hard about buying your first home.  You've considered the pros of home ownership - the satisfaction of achieving the milestone of a place to truly call "home", the tax breaks, and the equity you can build while paying your own mortgage, not someone else's.  You've also considered the cons - no landlord to fix that broken dryer, that you're not quite as footloose, and that your future "disposable" income may tend to be spent at Home Depot instead of the luxury car dealership. 

If you've been a resident of Colorado Springs for awhile, you may already know what neighborhoods appeal to you.  If not, consider your lifestyle, and what matters most to you - convenience to services vs. quiet;  commute time; newer homes vs. established neighborhoods; square footage vs. upgrades; indoor vs. outdoor living spaces; your own yard to putter in vs. the more carefree lifestyle of a town home or condo.  Drive around, and visit different neighborhoods.  If you're like many first time home buyers, the largest factor may be what you can afford.  You may or may not be able to buy your dream house for your first home, and that's ok!  You'll be building equity toward purchasing any future homes.

While you're considering these factors, start working on your finances.  Do you know your credit score?  If not, try a service like freecreditreport.com (their Triple Advantage program is free for the first month; by signing up you can get your Experian credit score and also see any credit problems you may need to clear up).  Your ability to qualify for a mortgage, and get a favorable interest rate, will depend heavily on your credit history.  

Do you have down payment money?  How much a month do you think you can realistically afford, while leaving some reserves for the unexpected, and for fun?  Have you considered the extra expenses you can have with home ownership, like property taxes, insurance, repairs, and perhaps increased utilities?  (Don't be scared by these, though - your landlord likely accounted for these in your rent; and your lender will take taxes and insurance into account when helping your decide on a comfortable payment.  One of the advantages to living in Colorado Springs is comparatively low taxes and utilities.).

Find a realtor.  One of the best ways is to get recommendations from family members and friends.  You'll want to find an agent who enjoys working with first time buyers (we do!), and who'll take the time to give you the guidance you need.  Be sure you're comfortable with the agent you choose.  Most Colorado Springs real estate agents will ask you to sign a "Buyer Agency" agreement; you commit to working exclusively with that agent, while he represents your best interests, and not the interests of the sellers.  

Most realtors will put you in touch with their preferred lender right away.  While this may not seem like quite as much fun as looking at houses, it's the logical and first best step. Your lender can help you determine your purchase price range, assist you with credit repair if necessary, and help you determine a realistic time line to purchase (should you need to repair your credit) or pre-qualify you if you're ready to start the buying process.  Your real estate agent should not be showing you homes if you're not pre-qualified - it's not fair to you, the listing or selling agents, or the sellers.

Once you're pre-qualified, the real fun begins.  If he hasn't already, your agent should give you a thorough overview of the home buying process. 

Let your agent know your likes and dislikes, your must haves and those items which would be nice, but not essential.  Your agent will have access to all homes in the Pikes Peak Multiple Listing Service, and will search according to your criteria.  You'll narrow down the homes you want to see, and visit those homes.  

One you find "the" home, your agent will draw up a contract and negotiate your offer.  You'll give your "earnest money" when you submit your offer.  It can seem a bit complicated, but your agent will walk you through offers and counter offers, inspections and title commitments, and closing of the property (settlement).  

It's a great time to buy your first Colorado Springs area home.  Interest rates are favorable, price appreciation has slowed, and there is a large inventory to choose from.  Please call us today; we're here to help you.

Ken and Sandy Wickham, the authors of this article, are REALTORS® with RE/MAX Real Estate Group in beautiful Colorado Springs, CO, and they welcome your real estate inquiries. To contact them, visit their website.