Are You Ready For Home Ownership?
Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.
Some people have a notion that home ownership is like renting, but with the power to have pets and paint the walls whatever color you like. However, while these privileges are available to homeowners in most locations, they come with the responsibilities of a mortgage, taxes, property maintenance, and monthly expenses such as association dues and water bills. Preparing for home (or condo) ownership requires you to take critical stock of your finances and your expectations.
Search now for homes in the area.
Questions for Prospective Homeowners
Are you ready to buy?
Owning your own home is about more than just being able to decorate any way you like; it's about being prepared to maintain your home over the years, realizing that part of your income and time will go towards repairs and maintenance. It's about being willing to take the risks of home ownership with a realistic expectation of the rewards.
How much can you afford?
It can be discouraging to find that your income won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It's better to buy a modest property now and look at purchasing your "dream home" in a few years.
What is your debt-to-income ratio?
This is something that lenders take very seriously. Lenders vary in their debt-to-income ratio requirements, but in general your overall monthly debt should not be more than 36% of your gross income, and your housing debt (mortgage, taxes, insurance) should not be more than 28%. What 28% of your gross monthly income will buy depends on where you want to live. In a resort areas such as Breckenridge, the cost of ownership is much less in older neighborhoods, further from the slopes, while property that's close to the slopes or newly constructed will cost more. So the first thing a first-time buyer should do (or any buyer that plans to secure a loan) is talk to a local lender, and get pre-qualified; find out how much mortgage you can afford. Once you know that, you can begin to search for property that fits your budget.
What do you want?
Do you like the idea of painting your home every five years? How about shoveling the snow on your walk all winter, arranging for your driveway to be plowed during the snowy months, and staining your deck in the summer? Would remembering the trash pick-up schedule be a nuisance? Would you rather just pay a fee every month and have everything done for you? These questions bring up the difference between home ownership and condo ownership. The answers to these questions can help you narrow down the search for the right type of property for you.
We Can Help
You need a good agent who will work hard for you. Susan is dedicated to helping you find the right home or condo or vacant lot, at the best price. She wants you to find the home that will make you happy and successful in real estate ownership.
When you hire Susan to help you buy mountain real estate, she wants to know what you want to buy, and what your price range is. Then she'll find a way to merge these two priorities and find a property that you'll enjoy owning.
Keep your objectives in mind when visiting a property. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features that you need and want in a home, and judge each home by the list instead of by details that could distract you from your goal. When you're alone with your Realtor, you can go over the pros and cons of each home. Susan can help you stay on track while still keeping our eyes out for a great property.
Engage the services of a good real estate lawyer. Most buyers don't feel the need to hire an attorney when buying real estate in Colorado - most often it's not necessary, but it's always an option for every buyer. When buying new construction that is already underway, but not yet completed, an attorney is highly recommended. We can recommend several lawyers in the area who might be a good fit for you. Interview them to ensure that you get someone you can work with. A knowledgeable attorney can charge several hundred to over a thousand dollars for their services, but in a complicated transaction it can be worth the investment.
Make the offer. It can be a challenging procedure to get through the maze of properties on the market, and then narrowing your selection to the single property you would most like to own. I'm here to assist you in that process, and when you're ready, I'm here to assist you with putting that offer in writing, to advise you on deadlines and other decisions that must be made. I'll prepare the paperwork, and after your signatures are received, make sure it's delivered in a timely manner to the seller. The seller may reject or counter your offer, so even at this late date, avoid setting your heart on the home you hope to own. At the time your offer is prepared, you'll write an earnest money check to the seller's broker or local title company that proves the seriousness of your intentions.
Get all necessary inspections done. A home inspector will check for signs of harmful materials like asbestos, lead paint and mold. They'll also check for evidence of pests, faulty wiring and leaks. This is a crucial part of the home purchase. Not getting an inspection done means that you could be stuck in a home with a bad case of black mold and no recourse other than to pay for its removal. Inspections will cost a few hundred dollars, but again, this is more than worth it in the end. There are several inspectors in the area that I'm happy to recommend.
Do a final walkthrough before closing the deal. I'm here to assist in the final walk-through, to make sure that everything agreed upon is completed prior to the final signing.
From the first interview that determines your requirements to the moment that you receive the keys, we can help you with the complicated process of buying a home. Don't hesitate to contact us to find out more about how we can make the home buying process easier!
Contact Susan for more information about first time home purchasing.
- Featured Properties
Recent Blog Posts
Summit County Update: May 7, 2012
For Breckenridge and Summit County Market Stats: www.BreckStats.com The number of listings closed so far in 2012 is up 3% in Summit County! The number... Read More
Best Deals - May 4, 2012
Click on 'Read Full Post' below to access details. For info on some of the best deals available, check out the list below. I watch the market daily, and a... Read More
2012 Breckenridge Snow Sculpting Contest
Contest began Jan 24th Once again, the space outside the Riverwalk Center in Breckenridge is transformed into an outdoor sculpture gallery, with the sculpt... Read More