First time home buyers in Fort Collins.  

With the inventory and demand being polar opposites, a buyer in this market needs a strategy. Let's go through my buyer process and save time and win by being prepared.

What can I afford?

Federal guidelines recommend a maximum 30% of the gross household income to cover the mortgage, taxes, and insurance.

How much do I need for a down payment?

A typical conventional loan requires between 3 and 3.5%.

Can I get a loan?

Equifax, Experian, and TransUnion, the three primary credit reporting agencies, are all required by law to provide you with one free credit report per year. Get your FICO score. Most common lending programs require a minimum FICO score of 600, but financing options are abundant, and there are steps you can take to increase your FICO score like paying down debt, managing the number of accounts you have, etc. Lenders also look for steady employment, length of credit history, and not over drafting bank account.

Should I get pre-qualified / pre-approved?

Yes. If you have a down payment, and you are ready to shop, you should absolutely get pre-approved. Finding your new house could still take time, and with sellers receiving multiple offers on their homes, it may take multiple offers before your bid wins. Unless you have cash or are pre-approved, your offer will not bet taken very seriously. Knowing what you can spend is the beginning to shopping for a home, and this is how we find out.

How long does it take to buy a house?

The best we can do is prepare by saving for a down-payment, getting your credit in order, and getting pre-approved. Inventory is extremely tight so it can take extra time to find the right house. And, because of demand there are often multiple offers for sellers to choose from. Your offer needs to be the most attractive.

How does an escalation clause work?

It informs the seller that you will increase your bid, up to an amount, if there are higher bids from other buyers. Think Ebay.