You want to buy your first home....but where do you start?
1. CREDIT SCORE CHECK - Before you start shopping for a new home in Denver, make sure your credit score is the highest possible. Get a free copy of the report at Credit Karma. Make sure it is correct and report any mistakes immediately. If the score is not the best, try to improve it before house hunting. Your credit score determines the interest rate you are charged. This can add up to literally thousands of extra dollars paid on the mortgage over the life of your loan. So, start with the best credit score you can.
2. FIND A LENDER - Zillow Mortgage Lender Reviews Search for a lender who can provide the best rate and lowest fees. Then get a letter from that lender which states the maximum amount of money you can borrow. This letter will help you during the home price negotiation phase of the home buying process.
3. FIND A REALTOR – Zillow Agent Reviews is a good source. Interview several realtors. You will want to enter the process with someone you trust to represent your interests.
4. START YOUR SEARCH - Now start searching for your dream home keeping in mind that the characteristics listed below will affect the amount of money you pay for home insurance and the resale value of the house.
· The size of the home (the bigger the home, the more the insurance costs)
· The overall condition of the home (if the roof is dilapidated you might have a hard time insuring it)
· The location of the home (mountain properties in Colorado are getting harder and more expensive to insure)
· The age of the home (older homes experience more insurance losses, means higher insurance rates)
· Risk of Flood or Earthquakes (you must buy additional insurance policies to get this coverage
· Prior insurance losses on the home (make sure to ask the seller about prior insurance claims and make sure any repairs have been made)
Once you’ve found your dream home and your offer has been excepted…make sure to hire a professional home inspector who has prior experience in this field. And spend the extra money and have a plumber inspect the underground water and sewage lines. This is money well spent. It’s better to find out now if the home has potential costly maintenance issues. Then if the inspection is acceptable to you call your insurance agent and get a quote for the cost of the home insurance. Make sure to add this to the home payment amount and the estimated taxes to find your true monthly payment. Also assume maintenance costs (which always crop up at the most inopportune time) and remember…insurance policies are not designed for pay for ‘maintenance’ issues and are not usually covered on a home insurance policy.
Note: Data and information provided on this site is for informational purposes only and should not be considered professional advice. Denver West Insurance Brokers makes no representations as to accuracy, or validity of any information on this site and will not be liable for any errors, omissions, losses, injuries, or damages arising from its display or use.