7 Tips For First-Time Home Buyers in Colorado Springs 80920

7 Tips For First-Time Home Buyers

Housing inventories are high and mortgage rates low. Even so, it’s as easy as ever to overestimate how much house you can afford and underestimate how much it’ll cost you. Following are a few tips for making your home purchase as cost effective as possible.

Own or Rent?

Owning a home is expensive. In addition to the down payment and mortgage, you’ll have to pay for closings costs, insurance and maintenance. To figure out whether it’s financially smarter to buy or rent in your area, calculate and compare total home ownership costs to rental rates.

Consider Monthly Costs

Even if you can scrounge up a down payment, figure out before buying a home whether you can comfortably cover the full costs of ownership–including the mortgage, taxes, insurance and regular fix-up costs.

Aim For A First-Time-Buyer Tax Credit

If you’re buying your first home, the feds have a deal for you: An $8,000 income tax credit for those who sign a binding contract before May 1. Then again, it’s entirely possible that, like past deadlines, this one will be extended.

Getting a Government-Backed Loan

As of this month, mortgages guaranteed by the Federal Housing Administration got harder to come by. Would-be buyers with a credit score of 580 or less now must put up a 10% down payment. That too may change.

Consider Foreclosures

Foreclosed homes often sell at discounts–but you’ll have to act fast and often with help from a real estate agent who specializes in foreclosures. It also pays to first get a mortgage pre-approval letter from a lender. Among the best markets for foreclosures: 

Factor in Property Taxes

Got your eye on a dream home in Westchester County, N.Y., or Marin County, Calif.? Both are property tax danger zones, according to a recent Forbes analysis. Before taking the plunge, consider the thousands of dollars a year you might save by moving a county or two away.

Cut Insurance Costs By Upgrading

Security systems, smoke alarms and other upgrades can cut your insurance premiums. It can also pay to insure your home with the same company that covers your car, boat or other property.

Contact Carrie Lukins, Carrie Lukins Real Estate, When Looking To Buy or Sell Property In The Colorado Springs and Front Range Region. Dial 719-651-2199 or Visit www.CarrieLukinsRealtor.com

Fortress Real Estate Group