If your list of New Year’s resolutions includes becoming a homeowner, metro-area realty agents and recent buyers say there are several things to keep in mind to ensure the process goes smoothly.
Among the most common advice they offer: Learn as much as you can ahead of time and take advantage of programs that help educate first- time buyers.
“I still get information and forms from my mortgage company, and I have no clue what they are,” said Steve D’Ascoli of Denver.
D’Ascoli, 45, bought his first home at the end of October. The process moved along smoothly for him, aided in part by an economic boost courtesy of the Colorado Affordable Housing Act.
But he said he wishes he had taken advantage of another component of the act, one aimed at educating first-time buyers on the purchasing process.
Another bit of advice from those who have been there: Be open-minded and flexible during the process.
Pinelopi Xenoudi admitted that she felt frustrated waiting for a short-sale property to become available this year.
The 31-year-old Aurora resident had never bought a home before, but she knew enough to keep her options open during the process.
That proved fortuitous when she discovered another house for sale near her Aurora apartment complex, one that proved too good to pass up.
First-time homebuyers aren’t always so open-minded. Neophytes can run into myriad complications, from not knowing the nuances of the preapproval process to letting one’s emotions get the better of them.
Xenoudi, who moved into her home over Thanksgiving weekend, said the house-buying process still frayed a few of her nerves.
“It was very overwhelming as the closing date was approaching,” she said.
Mike Baker, broker/owner of Hot Spot Real Estate in Denver, who helped Xenoudi with her home purchase, said the current housing market might give some first-time shoppers the wrong impression.
“They’re misled that they can go steal homes. There are good deals to be had, but you have to be realistic,” Baker said.
The No. 1 lesson Baker tries to teach his rookie home shoppers is “the affordability factor.”
“Don’t always go with what the bank says you can afford. Go with what fits your budget,” Baker said.
A lender might not factor in small but important fees such as a gym membership, grocery bills and other expenses that drain a family’s income, he said.
“It sounds pretty simple, but people overlook that,” he said.
Mark Trenka, Realtor and president of the Denver Board of Realtors, advises new home shoppers to interview not just potential real-estate agents but lenders as well.
Trenka, a broker/owner of Trenka and Associates, also advises against using an out-of-state lender who might not be familiar with the intricacies of Colorado law.
A determined real-estate agent can figure out plenty of ways to craft a mortgage that makes sense to a cash-strapped homebuyer, said Carole Higgins, broker/owner of Cygnus Real Estate in Denver.
Tax incentives are available for first-time buyers depending on the price of the home, she said, adding that some homes can be sold with an assist from the U.S. Department of Housing and Urban Development.
Part of that process involves finding a real-estate agent with market savvy and a can-do spirit, she said.
“Find someone who is creative and willing to help,” she said.
Realtor Sunny Henderson of Cherry Creek Professionals Realty said first-time buyers often hit the home market armed with a wish list of amenities: a spacious two-car garage; a finished basement; two or more bathrooms.
Part of being a home shopper is realizing even the best homes won’t have every item on that list.
“It’s a lot like a relationship,” Henderson said. “If your partner has eight out of 10 of what you want, you’re probably doing pretty good. You have to find out what the deal-breaker is.”
