Colorado has so much to offer its residents. From world-class views to delicious restaurants and excellent arts and culture, it makes sense that you’d be interested in moving to one of the many exciting cities in the state. That being said, there are a few important tasks and facts to keep in mind when it comes to preparing to own your first home in Colorado. While some of the tips on this list will be specific to Colorado, others are more applicable to new homebuyers regardless of where they’re shopping. Here are some tips to keep in mind as you prepare to make an offer on a one-of-a-kind home in the Centennial State.
One of the most important decisions you’ll make when shopping for a new home anywhere is determining how much house you can afford. Many homebuyers aren’t quite familiar with how mortgages work, so it’s crucial that you attend an educational course in Mortgage 101 or a similar kind of program in order to get up-to-date on what’s expected of you when purchasing a home.
As you budget for a down payment, you need to be honest with yourself or you’re going to end up in trouble. While conventional wisdom is that you’ll want to be able to put down 20 percent towards the property, you could put down less as long as you’re willing to pay something called Private Mortgage Insurance. There are some situations when this may make sense; however, it’s generally advisable to avoid PMI since that’s money you’ll never get back. Another rule of thumb is to only spend three to four times your annual gross income on a mortgage, after the downpayment. Keeping these financial tips in mind can help you avoid foreclosure.
Something unique to Colorado when compared to other states is the fact that hail storms are quite common. While hail can vary in size depending on the severity of the thunderstorm causing it, hail can cause significant damage to your property, especially your roof and windows. That’s why it’s important to budget some contingency money for covering the inevitable costs of getting your roof inspected and repaired more often in Colorado than you would in other areas in the United States.
The good news is that when it comes to getting your roof inspected, many roofing companies will offer an appraisal or consultation free of charge. Residential roofing companies can even help you navigate the insurance claim process if you have to file a claim for hail damage. Simply search “residential roofing Denver” to get an idea of your options, and then you’ll start making connections to ensure that you’ll have a plan in place should a storm come.
Since you’re moving to a new place, it’s crucial that you work with a realtor who’s familiar with the market—especially if you want to get a good deal. Realtors do cost money, it’s true, but they are worth every penny. When you hire a realtor, they can help you avoid bad decisions as well as provide important insight about the incredibly complex home buying process. Having someone in your corner who can give you good advice and help negotiate on your behalf may save you thousands of dollars in the long run. Colorado has thousands of homes listed each year, and a realtor will be able to help you pick out the diamonds in the rough when you start shopping. Always work with a realtor when you’re buying in an unfamiliar market, whether you’re in Colorado or another state.