Great question. In this real estate market, it’s important to get in where you can. The home you buy today may not be your dream home but homeownership is so important. Starting the journey at a price point that you’re comfortable with is critical to your ability to build equity and wealth through real estate. Our advice is to get in where you can. If the home isn’t quite big enough and you want to upgrade in a few years, you should be able to. The Colorado real estate market is appreciating in different neighborhoods anywhere from 5 to 15 percent. It’s important to know those numbers upfront so you can look at your year-over-year appreciation in any of the neighborhoods you’re considering so you figure out how long you need to own the home before you have enough equity to upgrade. Many times, three years is enough time to turn around and make that next purchase.

This market can be intimidating. The Denver real estate market is short on inventory and experiencing high demand. Today, we are anticipating we won’t see much inventory until April or May. It’s important to be patient and have all your finances in order. The best thing you can do as a first-time homebuyernin Colorado is to have all your finances in order. We will always direct people to our trusted lending partners first, this will give you a good idea of what you can afford and get all your financial questions answered.

Congratulations—you’re a homeowner! You have accomplished quite a bit, but remember this is just another beginning, and the Smart Start Homeowners team is always available for you.

Here are tips on successful homeownership, including regular preventative maintenance you should perform every year you own your home.

You’ve selected your home and your offer has been accepted; you are in the final stretch. You will be reviewing and signing many documents. Before you sign any document, review it and ask questions if the document is unclear to you. Our team will pay attention to deadlines and dates for items that need to be completed to purchase the home and to obtain your loan.

Click here to learn more about the documents you will sign at closing.  

You should be comfortable and confident in the lender you choose. Remember, you are in charge of selecting your lender and they are working for you—ask as many questions as you need to feel secure. Our lending partners will answer all of your questions and provide you with a pre-approval. View a list of suggested questions.

Credit is critical to the homebuying process. Your credit history has information on how you borrow money, use credit, and pay it back. Your credit, your credit scores, and how wisely you shop for a loan that best fits your needs may have a significant impact on the mortgage interest rate and the fees you pay. Learn how to read your credit report and learn how credit affects the homebuying process. 

Once you’ve determined you are ready to buy a home, choosing a Smart Start agent is important to help you find the home you want. Our team will help you find homes that meet your must-have requirements while staying within your budget. Our team will set up showings, provide market analyses for competing and sold listings, prepare offers, and handle negotiations on properties.

Remember, our team works for you—you are in control of the process. We are available 7 days a week.

Five pros of homeownership:

1. There are tax benefits that help

offset the costs of homeownership.

2. You will build equity as you

pay down your principal and/or if the value of

the home increases. 

3. With a fixed-rate mortgage loan, your

principal and interest loan payment will never

increase (property taxes and

homeowners insurance can go up each year).

4. Homeownership has benefits such as

a sense of stability, belonging to a community,

and pride of ownership.

5. Owning a home gives you greater freedom to

control your own environment.

Six cons Colorado renters should be aware of.

1. There may be less of a tax advantage if you

rent your home.

2. Repairs may be made at the landlord’s

discretion and timing.

3. Your rent payment does not build equity.

4. You may not have as much control in making

decisions about updates or changes to your

home.

5. The landlord may sell the property, which may

affect whether your lease will be eligible for

renewal.

6. Rent may increase upon lease renewal.

A network of government-approved lenders distribute all CHFA (Colorado Housing and Finance Authority) loans. To be considered a new homeowner, you can't have owned or co-owned a home within the last three years. The only catch is a requirement to complete a home buyer education class before closing on your home.

Since you can complete these classes online or in person for free, that isn’t much of an inconvenience. Plus, you’ll learn valuable lessons about the homebuying process and insight into the true cost of homeownership.

6 first-time homebuyer mistakes to avoid

Mistake No. 1: Spending more than you can afford.

Mistake No. 2: Not preparing for the mortgage process.

Mistake No. 3: Confusing prequalification and preapproval.

Mistake No. 4: Skipping the home inspection.

Mistake No. 5: Not budgeting for closing costs.

Mistake No. 6. Overlooking the extra costs of homeownership.

Down payment assistance programs (DPAs) can provide grants and loans to help buyers cover their out-of-pocket expenses.

Eligibility requirements include:

1.Have a 620 minimum credit score.

2.Complete an in-person or online CHFA home buyer education course.

3.Meet income limits, which vary by location and household size.

4.Make a minimum financial contribution of at least $1,000.

5.Meet the qualification requirements of a CHFA participating lender.