Making the decision to buy your first home can be overwhelming, especially if you’ve spent your whole life renting. There is a lot take into consideration, including the length of time you’ll stay in your new home, the home’s prospects for appreciation and taxes.
The transition from renting a Colorado home to becoming a first-time home buyer can be daunting. It’s not always easy to determine the best path, so we asked our 22,000 real estate professional how they prepare their “career renter” clients for a first-time home buy.
Understand the Process
First and foremost, have them speak to a quality lending partner to help educate them on that side of the process and facilitate the pre-approval process. I then sit down with them and take them thru the process from beginning to end so they will feel more prepared to start looking at properties.
Work with a REALTOR
Many new home buyers do not understand that they do not pay the real estate broker’s commission. Some will try to do without an agent to “save money.” Mostly, buyers need to understand that they need to talk to a lender and find out what they not only can qualify for, but what they realistically can afford with their income.
Pay Your Own Mortgage
I tell them that you are either paying someone else’s mortgage, or you are paying your own. Then I teach, guide, and help them through the entire buying process.
MB- Fanning Realty & Assoc. Inc.
Look at the Finances
I tell them to connect with a reputable lender to show the financial advantages.
Tip: Use REcolorado’s Rent vs. Buy Calculator to find out if you’re better off renting or buying based on your numbers.
Renting vs. Owning a Home
I go over financial info about rent versus owning a home. Explain tax breaks, and any additional expenses they will have.
ReMax of Cherry Creek
If you’re considering the switch from renting to buying a home, the first thing to do is contact one of these experienced real estate professionals. Your REALTOR® can offer valuable advice to help you make the decision and guide you on the path to purchase your first home. First time homebuyers can also learn from others who made the switch from renter to buyer.
Originally published July 21, 2016 — Updated March 1, 2018.