Denver CO First Time Home Buyer Series – Where to Start (Part 1)

You have made the decision and home ownership is in your future. In this series of articles geared towards the first time home buyer we will help you to understand the process of buying a home and working with a Realtor®. Whether you choose my team to assist you achieve your goals or not these articles can also assist you through the process.

The first step is a vital: If you want to purchase your dream home you need to establish your budget, unless you are paying cash you need to speak with a lender and establish the financing which you qualify for. This will give you vital information for your home search including the maximum you qualify for, interest rates and expected payments. These will serve as a guide for your home search.

The metro Denver region offers many types of homes and a $200,000 home is different in both features and condition from a $250,000 home. Just as a $300,000 home offers differences from a $250,000 home. Location, lot size and type of residence play roles within the different price ranges. Knowing the financing you qualify for, the amount and terms will help you in setting expectations and understanding the type of home you want to ultimately buy.

While evaluating what type of loan you qualify for and your purchase power the lender will also need to check your credit report. Occasionally you will discover there are errors on it which may need to be corrected if there is time. Most people do not check there credit that often so they are unaware of what may be there. Knowing what is on your credit report will give you the opportunity to make corrections or in some cases taking a period of time to clean up any needed situations.

Here is a place online where you can check your credit - AnnualCreditReport.com – which is where you can receive the free annual report provided by the Federal Trade Commission Guidelines. Another good source would be with the lender who is qualifying you for financing who could also assist with interpreting the report.

Credit scores can and do make a difference in the mortgage you qualify for. The scores needed vary daily and by the type of financing. Many factors go into it and individual items listed within the report can also have an effect.

Next in the Denver CO First Time Home Buyers Series – The Differences Pre-Approval vs. Pre-Qualification and Its Effect On Negotiations (Part 2)