Buying a home in Ridgway, CO
Whether or not you are a first time home buyer, the process can be intimidating. We are here to help! Our Ridgway Real Estate brokers are not only proficient on the home buying process but also experts when it comes to information on the Southwestern Colorado area as well! If you want the inside scoop on neighborhoods, schools, local services, etc. Give us a call or you can read about it on our website.
Step One: Build up your credit
Having good credit is important if you are in the market for buying a home, it can help lower your interest rates and potentially save you a lot of money! You can order a credit report (usually free online) and from here on out work on spiffing up your credit.
Lenders like to work with clients who aren’t in a lot of debt and are able to pay their bills on time. Some tips include consider closing some of your accounts, or not shuffling your debt around, because that can cause your credit to temporarily take a dip.
Financing is important! Do some research and get to know the financing basics, the more knowledge you have the better!
Step Two: Save some money for a down payment and closing costs
A down payment is important because the more you can afford to put down on your home the better deal you are able to get! A down payment can be anywhere from 5-20%, and the buyers also has to come up with closing costs which can be about 1-3% of the home price. So if you haven’t already, make sure to start putting away some money to save up for your dream home!
Step Three: Calculate your price range
There is a lot to consider when you are deciding your price range for your new home. Paying for your home can be pricey, as a rule of thumb most home buyers spend approximately 25-30% of their pre-taxed income on housing. How much do you spend on your credit card bill? Do you have student loans or children? Tuition? How much do you want to spend on utilities and maintenance on your new home? These are all factors to consider before you determine a budget for your new home.
Step Four: Determining the right mortgage for you
There are new loan offers which can make it easier when buying a home, but also harder when deciding what mortgage is right for you. There is the standard 30-year rate mortgage which can give you foreseeable payments, or you can go for an adjustable rate mortgage which is good if you want to move quickly because you have lower payments and interest for the first few years. There are some advantages and disadvantages when choosing a mortgage so make sure to compare rates from different sources, your lender can help calculate monthly expenses.
Step Five: Start shopping for your dream home
Here comes the exciting part! You can work with one of our realtors to determine your must haves and deal breakers that fit in with your price range, these could include home features or even neighborhood resources such as nearby schools, parks, stores, etc. Here on our website you can find a list of all the homes for sale in the Ridgway CO area. Our real estate agents are experts when it comes to life here in Ridgway, CO. Put our expertise to work for you!
Step Six: Making an offer
Work with your real estate professional when making an offer on your dream home. Take into consideration the neighborhood market value, how long the house has been on the market, etc. You want to make a strong offer, while also getting the best bang for your buck.
Step Seven: Your signature
You sign and pay a deposit that is held by a neutral third party. When you make your offer, make sure to take a close look at the house and notice broken fixtures, plumbing or electrical issues, etc. Make sure you are clear about what stays or goes. You will want your contract to include some contingencies, but not too many, these are fail safes incase something goes awry and you aren’t able to get financing in order, or the home does not pass inspection you are able to back out of the contract. Make sure any verbal agreements are also presented in writing.
Step Eight: Finalize the sale
You will meet at a lawyers office or title company and sign the final papers for your home and receive the keys to your new home!