With the ever-growing economy, stunning landscapes, and mounting tourist attractions Colorado has to offer; it’s no surprise that Americans are flocking towards the state. The U.S. News ranked Denver and Boulder as the best cities to live in in 2020 and 2021 – with Briargate Colorado Springs coming up as an impressive neighborhood for young families.
Still, housing prices in Colorado can be pretty startling, especially if you are moving from another state. It might feel like you are paying a fortune for very small square footage. But for individuals moving to Colorado from more expensive states like California, it can be relatively economical.
On the other hand, buying a house should be a standard procedure for Colorado residents. Overall, if you are planning to buy a house in Colorado, there are a few things you should know.
What You Need to Know When Buying a House in Colorado
1. The Housing Market Moves Fast
When you find a house you like, it’s best to put in an offer and schedule a showing that same day. Homes listed on the Colorado housing market are often taken off the market in as little as 2 days. This means that you shouldn’t hesitate to put in an offer on a home that suits your needs when it comes on the market.
2. You Should Get Pre-Approved For a Mortgage
Before you start house hunting, you should have a pre-approval or pre-qualification letter from a bank – this is a requirement in Colorado. The letter should contain how much the loan is for, interest rates, and the date these terms expire. This will help you know what houses you can afford.
Plus, being pre-approved for a mortgage gives you a higher chance of sealing the deal since sellers like working with serious buyers. It’s best to get pre-approved for a mortgage about 30-90 days before you start searching for a house to buy.
3. Finding Mortgage Assistance is Fundamental
Residents in Colorado have several options for down payment or mortgage assistance. Among those options is the CHFA which offers potential home buyers various grants and programs that help with closing costs and down payments.
You could also get mortgage assistance from a Colorado community bank. Vets or military families can also get assistance with the down payment, or better yet, no-down-payment options – search “Colorado Resource Portal for Vets” for more details.
4. You Should Work with the Right Realtor
It is essential to have a realtor that prioritizes your needs and has time for you. Since the Colorado housing market moves fast, you’ll need a real estate agent that moves just as fast.
Let your realtor know your budget so they can help you stick to it. Otherwise, you’ll find yourself at a showing for a house you can barely afford and signing your name to a contract. Buying a house in Colorado doesn’t have to render your house poor or unable to make mortgage payments.
5. The Time of Year Determines Housing Prices
The end of summer and spring are popular times for buying a house, which means there will be tons of inventory to choose from. It also means that housing prices will be higher due to the additional competition from other buyers. There might be less inventory available during winter, but you will also have less competition to worry about.
6. You Should be Prepared For Closing Day
Closing days are often scheduled 30 days after an offer is accepted and the house is put under contract. There will be several closing-related tasks during this time, including house inspections, repairs, and securing a city’s appraiser to sign off the deal. It’ll be time-consuming, and you will need to do everything in a very timely manner, so it’s best to prepare for it when buying a house.
Do Your Research
Regardless of the state, buying a house is a massive commitment that requires a significant monetary and time investment. Since you can’t ask for your money back when you have buyer’s remorse, it’s wise to do extensive research before buying a house. Only move forward with the purchase after all the proper pieces are in place.