How to Get Started in Buying Your First Home in Durango

 

When you’re buying a home for the first time, you feel a wide range of emotions. There’s a sense of excitement and anticipation for what lies ahead, but there’s also a degree of uncertainty about how to effectively navigate the process. This article will walk you through everything that’s required when buying one of the homes for sale in Durango, CO, and you’ll learn some practical tips and tricks to make things easier from start to finish. 

Unfortunately, buying a home is often an arduous process. It may take several weeks for you to find a property that meets all of your needs and is located in the neighborhood where you want to live.

After you agree to a deal to purchase a home, you’ll have to wait between 30 and 45 days to officially close on the home. During this time, several things will happen, such as the appraisal and the inspection, and your Durango real estate agent will communicate with you on a regular basis about where you stand in the process and what the next steps are. This all happens while you’re packing boxes and getting ready to make a move. Altogether, you’re looking at spending at least a couple of months working on your move. The end result makes all of the work worth it, but you must understand what you’re getting yourself into.

 

The first step for many potential buyers is to talk with a lender about what they can afford to spend. Unless you plan to use cash to purchase a home, you’ll have to borrow some amount of money. A lender will help you understand what sort of loan you can qualify for based on your debt-to-income ratio and your current credit score. As they begin working with you, they may ask to see recent pay stubs or tax returns as a form of proof of income. Once they get all of your information together, they can pre-approve or pre-qualify you for a loan. This doesn't guarantee that you’ll be able to secure the loan (this happens during the underwriting process), but it’s a good indication of your current financial health and standing. Keep in mind that different lenders will offer different interest rates, so don’t be afraid to shop around and see who can offer you the best deal.

 

Not all loans are created equally. The main difference is how much cash you will need to bring to closing in the form of a down payment. A traditional loan requires a 20% down payment, but there are many other options available, especially for first-time home buyers.

Many new homeowners take advantage of the FHA loan program. When you buy a home with an FHA loan, you only need to put down 3.5% of the total cost of the home. There are certain requirements you must meet, like a minimum credit score of 580. Veterans, first responders, and anyone who purchases property in a USDA-certified rural area may qualify for special loans with even lower down payments. In addition to your down payment, you’ll also spend somewhere between 2% and 5% of the total cost of the home in closing costs.

 

This is the fun part! Take time to look around at online listings to get an idea of what amenities or features are most important to you in your new home. Once you get a feel for what your non-negotiables are, you can communicate these needs and desires with your Durango real estate agent. They can connect you with properties before they even hit the official market, and they will always be in tune to new listings that match your preferences.

 

Once you find a home you like, it’s time to make an offer to buy the home. Ask your agent how long the home has been on the market. If the home has spent multiple weeks on the market already, or if the seller has recently dropped the price, you may be able to make an initial offer below the asking price. If the home is new to the market, there may be other buyers looking at the house as well, and you may have to make a more competitive offer if you want the seller to choose yours. Your agent will offer advice about the best way to proceed and whether it’s wise to make a lower offer or if you should consider raising your offer and offering to waive certain contingencies.

 

Once you agree to a deal to purchase a home, you’ll begin to prepare for closing. The first thing you should do is schedule an inspection on the home that you’re going to buy. The inspector will thoroughly examine the home’s exterior and interior and provide an inspection report detailing any issues or concerns with the property. If your contract includes an option period, you can renegotiate the deal with the seller or walk away entirely if there are any significant problems. During this process, you will communicate with your agent on a regular basis to make sure everything is on track. You’ll also be working with a title company to legally transfer ownership of the home.

Thankfully, buyers don’t have to go through the process without help from the experts. Kyle Kunkel loves working with first-time home buyers. He consistently produces exceptional results for each buyer and seller who he works with, and he takes pride in providing world-class service for all of his clients. Give him a call when you’re ready to begin shopping for homes for sale in Durango, CO.