House-hunting? Buying your first home can be an exciting time for you and your family. You will be glad to know that there is a great selection of properties in Colorado Springs. There, new home prices are fairly lower compared to other cities, and you are likely to find favorable mortgage rates that can help you accord your dream home. Navigating the housing market can be challenging, but knowing these things can make the process simpler and less stressful:
- Know your credit score – A good credit score will easily qualify you for any home loan, so take some time to do a credit check. Mortgage lenders will also need to know your score, but don’t worry, as some companies offer loan products that are suitable even for buyers with less than perfect credit scores.
- Get pre-approved – Consider getting pre-approved for a mortgage to determine how much you can afford to buy a home. It may even help in expediting your potential home’s closing costs.
- You can get help with the down payment – To prove the seller that you are serious about buying the home, you need to make a down payment. However, not all homeowners may have sufficient cash on hand to do this, and their mortgage might not be able to cover it. In that case, there are down payment assistance programs available to any home buyer, including first-time home buyers in Colorado Springs. You can also use the funding for the closing costs.
- Explore options beyond conventional loans – If you have served in the US military, you may consider qualifying for loans guaranteed by the US Department of Veteran Affairs. Low to moderate income borrowers may consider applying for the loans insured by the Federal Housing Administration if they are unable to make a hefty down payment on the property. Alternatively, they can consider USDA loans if they want to live in a rural area.
There are loans for big ticket homes, too. Known as jumbo loans, these are like conventional loans, but they exceed loan limits. Just make sure you have an excellent credit score.