How to Know When to Purchase in Colorado Springs

COLORADO SPRINGS, Colo. - Dec. 24, 2014 - PRLog -- An easy 6 step checklist for anyone considering homeownership for the first time instead of renting:

1. Committed to the location:

Purchasing and moving into a home is costly, not only with the regular moving fees, but also closing costs, home inspections, property taxes, home insurance, etc. A good rule of thumb is to be comfortable and happy living in the new property for at least 5 years so you do not loose money. Young hearted travelers are great, but not a great fit for homeownership.

2. Financial Stability:

While owning a home has its perks, if making rent on time is a problem then rethink owning just yet. Most of Colorado Springs residents and Americans for that matter need to finance a home purchase and that take a healthy credit score. Before looking to purchase, first check credit score and talk to a credit union, personal banker or mortgage advisor to take necessary steps. Hidden cost and unpredicted home repairs are extremely common, without a landlord a cash cushion should be in place for these items beforehand.

3. Healthy Nest-Egg:

When purchasing a home, a sizable down payment is required and the larger the payment the better the terms of the mortgage. Sometimes up to 20% of the homes value is recommended. Then once a home is purchased, closing costs come to typically 3 - 5% of the total cost of the home. Cash will be necessary, so be forewarned that better beforehand than struggling after finding a dream home.

4. Additional Responsibility:

Renting and homeownership vary the most when it comes to maintenance. Property upkeep is time consuming and costly. From now on all maintenance falls on the homeowner, not a call to the landlord. Gutters will clog and will need to be cleared, landscaping, chimney sweeping, winterization, etc. When shopping monthly mortgage payment, ensure that costs are well below the previous rent payment because property taxes, HOA dues and everything else are new expenses.

5. Risk Taker:

The housing market is coming back in a big way, but that is not to say that the market is forever stable. No one can predict the future and riding out the housing market when looking to sell a home later down the road is part of it. Total assets should never sit in one place, including a property.

6. Market Understanding:

Knowledge of the local housing market is key. The Colorado Springs area housing market is favorable and obtaining the right buyers agent for finding the right property, navigating negotiations, the right price range to look at in the desired neighborhoods is priceless.

Contact Cindy Linder to find out more information on being homeowner ready.

http://buyingthesprings.com