Can you Buy in your Preferred Neighborhood? – You may be anxious to start investing in your new home, as many renters are, but it’s important to look at the kind of budget you have for a home and if you can be happy living in those kinds of neighborhoods. Often times young buyers will eagerly start looking for homes as soon as they have a down payment, but the homes in their price range are less than satisfactory. If you feel that an extra $30,000-$50,000 will make a world of difference you may need to wait and save up for another year. Buying a “starter home” is great for young couples, but can lead to disappointment when a home is in less than move-in condition.

Many young couples want a fixer upper, but don’t understand quite what they’re getting themselves into. If you are unimpressed with everything in your price range, it may be time to slow down on the Baker real estate house hunting and to continue saving up. Another thing that new buyers may not understand is that it can actually hurt you to move too often. If you buy a home that hasn’t had time to appreciate in value , you’ll end up selling for a loss once you figure in closing costs, moving expenses and the time and money you invested into the property that may only have a 50-75% return rate.

Do you Have Emergency Money Set Aside? – Buying a home is very different from renting an apartment, since banks tend to be far less forgiving than landlords are. Another major difference in a home versus an apartment is the fact that you are now obligated to 15 to 30 years of payments, typically at a set rate, whereas leases tend to run one to two years tops. Making sure you have enough money saved up for mortgage payments is crucial. Unfortunately, misfortunes do happen; people get laid off from work, they get into car accidents, and they get sick or injured and can’t work. It’s important to have at least six months worth of mortgage payments in an account, in case anything was to happen. More than anything, this can give you peace of mind, knowing that even in the event of a tragedy, your family will have a bit of time to figure out what to do next.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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