Depending on your needs, it is up to you whether to buy or rent a home in Colorado. But why would you consider Colorado housing? Since there are top we buy houses companies in the state, why prefer renting if you can invest in something that can increase your wealth? Of course, before you commit to buying a home, there are many factors to consider. But with these four tips, you can feel prepared for an easy Colorado home buying experience.
Secure a Healthy Credit Score
A good credit score does not necessarily mean that you will be approved for a mortgage. However, it is important to remember that the better your credit score, the better your terms and interest rates will be. Why? First, higher scores are an indication that you have managed your debts well in the past. And secondly, low scores indicate poor financial decisions and could make it difficult to repay a loan.
If you are classified as high risk, you can expect to pay a higher interest rate or even be turned down for a mortgage. You should improve your credit score before buying a home.
Don’t Pay a Large Down Payment
Taking out a mortgage and making a down payment are the biggest upfront costs. First of all, do you need a 20% down payment? No! The FHA (Federal Housing Administration) loans require a 3.5% down payment. Fannie Mae HomeReady Loans and Freddie Mac Home Possibility Loans allow a 3% down payment. If this …Read More