How To Know If You’re Ready to Buy a Home in the Pikes Peak Region

If you’re trying to decide if you’re ready to buy a home in the local Colorado Springs real estate market, there’s probably a lot on your mind. You’re thinking about your financial health, mortgage rates and home prices, the tight inventory of homes for sale, and more. All of these factors play a part in your decision-making process.

While the state of the Colorado Springs housing market is definitely a crucial consideration in your decision, your personal circumstances and finances are potentially even more important. As an article from NerdWallet says:

“Housing market trends give important context. But whether this is a good time to buy a house  also depends on your financial situation, life goals, and readiness to become a homeowner.”

Instead of trying to time the Colorado Springs real estate market, it may be beneficial to focus on the variables within your control. Here are a few questions to consider that can help you determine whether you’re ready to make your move into the local home-buying scene.

1. Do You Have a Stable Job?

Employment stability is an important factor when considering buying a home. Purchasing a home is a significant investment, and you’ll sign a home loan contract that asserts your commitment to repaying it. This is a substantial responsibility. Feeling secure about your job and regular income can alleviate some of this stress. As NerdWallet explains:

“A mortgage is a big commitment . . . Wait until your employment is stable before thinking about buying a house.”

2. Have You Figured Out What You Can Afford?

To ensure you have a clear understanding of what you can afford, what your monthly payment might look like, and what your down payment should be, it’s important to connect with a trusted LOCAL Colorado Springs lender. They can inform you about the pre-approval process, current mortgage rates, closing costs, and more.

The best part is you may find out you’re closer to your goals than you realized. You don’t necessarily need to put 20% down, unless it’s specified by your lender or loan type. As Down Payment Resource says:

“A 20% down payment on a home is great, but . . . Many mortgages require no more than 3% to 5% of the purchase price as a down payment. Plus, there are loans and grants that may help cover these costs. Search for down payment assistance in your area, and discuss your results with your mortgage lender . . .”

3. How Long Do You Plan to Live in Your Colorado Springs Home?

If you're looking to buy a Colorado Springs property, it's crucial to consider how long you intend to stay there. Building equity in your Colorado Springs home takes time, so if you’re planning to move soon, it might not make sense to buy now. As a recent article from CNET says:

“Buying a home is a good idea if you’re planning to stay put for at least three years. Home values typically increase between 2% and 5% annually, so you could end up paying more in closing costs than you’d earn in proceeds if you sell after only a year or two.”

Above all else, the most important question to answer is: do you have a team of real estate professionals specializing in Colorado Springs area real estate in place? If not, the first step would be finding a trusted local agent and lender.

Bottom Line
If you’re trying to decide if you’re ready to buy a home in Colorado Springs, these questions can help. But ultimately, your best and most reliable resource is a team of trusted real estate professionals experienced in the Colorado Springs market. Like us ;) 719-434-7525

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