5 Things To Know Before Buying A Home
Making the switch from renting to buying is both a nerve-wracking and exciting time. From budgeting to finding the perfect realtor, it’s not always as easy as HGTV shows make it seem. Here are five things to know before buying a home.
Use A Trusted Realtor or Broker
Very few people find the house of their dreams on their first home tour. At Peloton West, we work with the best brokers in Colorado to ensure you do. Buying a home is a big decision, which is why working with a trusted broker is very important. They will guide you through the buying process, help with home inspections, and find the correct location and price that best suits your wants and needs. Head over to our Sales Gallery for a list of our trusted brokers.
Remember Your Location
Location is another factor to keep in mind. If you want to reduce your commute, you may want to be close to the city or near public transportation. If you’re hoping to start a family in the near future, neighborhoods with parks and schools nearby may be a priority. Traffic, school buses, restaurants and shops, and other amenities are all things to keep in mind when getting ready to buy your first home.
At Peloton, you’re just minutes away from downtown Boulder and dozens of local favorites, shops, and restaurants. You also have access to our rooftop pool, community center, gym, and movie theater.
Home Owner Expenses
Your monthly mortgage isn’t the only expense you’ll be paying for when you buy a home. There’s also utilities, property taxes, homeowners insurance, possible HOA fees, and other maintenance bills to take care of.
The price can add up quickly, which is why it’s important to not overextend yourself and stay well within your budget on your first home purchase. You will also be responsible for fixing anything that arises, such as leaks, cracks, and plumbing issues.
While purchasing a home is a big expense, it can actually be cheaper than renting, depending on how much you put down. The best part about buying is that your monthly payments are helping you to build your equity!
You Don’t Need A 20% Down Payment
Needing to put down 20% on your home is a common misconception. While you always want to put down as much as you can to reduce your monthly mortgage payment, there are other options available.
You can pay a premium in the form of Private Mortgage Insurance, where you pay a small percentage of your home’s value annually until you reach 20% equity in your home.
Peloton West has great financing options available with trusted lenders to help you find the best loans and rates to fit your budget. You can check them out here.
Furniture Can Be Expensive!
We all want our home to be decorated like the Pinterest boards we’ve created, but that comes at a cost. Furnishing your home can cost up to 25% of the house’s value. As soon as you get moved in, you’ll want to host a housewarming party with all your friends and family, but take time to find the decor you want, rather than stressing yourself (and your bank account) out right off the bat. Each season brings new markdowns and pieces that will turn your house into a home.
You also may need window blinds, new light switch covers, and lighting. Keep this in mind while calculating your down payment and monthly payments in order to make your house a home without extending your finances too far.
Buying your first home is a huge milestone. As exciting as it is, it’s one you need to be prepared for, and the Peloton team is here to help you through the process! From finding the place of your dreams to helping you close out the deal, we’re here to support you from start to finish.