3 Smart Moves for First-Time Homebuyers
Jumping into the housing market for the first time? It can be both thrilling and a bit nerve-wracking. It’s a huge step forward that will enhance your life in many ways. For those planning to buy their first home in Colorado, the current market does present some challenges such as limited homes to choose from and the prices of those homes continuing to increase. With the right planning and working with top professionals on your side, there are ways to navigate these hurdles and make homeownership a reality.
Smart Move 1: Leverage First-Time Buyer Programs to Ease Initial Costs
The upfront costs of buying a home—think down payment and closing costs—can add up. Luckily, there’s a bunch of support out there for first-time buyers. These loans can be a bit easier to get into and require less cash upfront.
These programs are typically referred to as Down Payment Assistance programs, or DPAs. Some of these programs have income limits and minimum investment requirements. If you’re interested in seeing which program fits you best, reach out to our team today and we’ll help create your custom plan.
Smart Move 2: Think Beyond Single-Family Homes
With the current strain on available homes driving prices up, widening your search to include condos and townhomes might be a smart move. These options are often more budget-friendly and can be a great way to start building equity, even if they’re not your forever home.
Hannah Jones from Realtor.com highlights the strategic advantage of starting with a condo:
“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”
Smart Move 3: The Multi-Generational Home Approach
If you’re looking for creative ways to make buying a home more achievable, teaming up with friends or family could be the way to go. Sharing the financial load means you can aim for a bigger mortgage and a better home without shouldering all the costs alone.
Another option could be “house hacking” which is buying a muti-family property such as a duplex and renting out one of the units. This way your friends or family members aren’t on the loan with you, in case they may not be mortgage-ready, but they can rent space and that rental income can go toward your monthly payments.
Which Approach is Best for You?
Exploring down payment assistance programs, considering condos or townhomes, and even teaming up to buy a place can make your first home purchase more manageable. When you’re ready to take the first step and see which options are best for you, we’re here to help.
