Colorado Mountain Property and Homes for Sale - A professional header for "code of the west real estate" featuring a stylized mountain range within an oval shape, using a color palette of dark blue, teal, and white.

Want to buy a home? It’s not as complicated as it sounds!

Want to buy a home? It’s not as complicated as it sounds!

Perhaps you’re curious about what’s involved in buying a home or want to dive in and go for it. Maybe you’re tired of paying rent and building your landlord’s wealth and you’re ready to invest in your own future. Buying a home is exciting, but the process can seem overwhelming. Don’t worry! In this post, we’ll give you some things to consider as you work through the home buying process.


Check Your Credit Report

First, get a free copy of your credit report. You can get a free credit report every year from It pulls info from the three major credit bureaus and provides your credit score (the higher the score, the lower your mortgage loan rate). Check your credit report annually—even if you’re not buying a home soon. That way you can monitor items on your report and dispute any errors before they hurt your credit score.


Will This be Your First Home?

If it is, research first-time home buying programs. Some cities and states offer first-time home buyer programs that can provide incentives like down-payment assistance, closing cost support and low interest rate mortgages. Some programs provide tax incentives as well.


Determine How Much You Can Afford

Use an online mortgage calculator like our home mortgage calculator to determine what you can afford. In general, lenders recommend that people look for homes that cost no more than three to five times their annual household income. This amount assumes that home buyers have a 20% down payment and a moderate amount of other debt. Keep in mind that just because you can afford a certain amount doesn’t mean you have to borrow that amount. You’ll also want to look at mortgage payment amounts depending on your home loan.


You’ll also want to research different types of mortgages and rates to find the one that fits. You can compare mortgages from different lenders to see how rates, fees, etc. match up.


Find a Realtor

Realtors are valuable resources—they’re full of knowledge, know the area well, have superior negotiating skills and can answer all of your questions. Plus they don’t cost you anything! Your Realtor is compensated by the commission from the seller of the house.


Get Prequalified

Getting prequalified allows you to know how much a lender will give you for a home. This info allows you to look for homes in your budget. If you can, obtain a pre-approval prior to looking for houses. Pre-approval takes prequalification one step further because the lender verifies your financial documents in advance (W2s, paystubs, bank statements, tax documents, debt to income ratio, etc.). Depending on the market, a prequalification or pre-approval might be good to do before you browse potential homes.


Find a Home and Make an Offer

Browse homes online to locate what types of homes and areas you like. Start looking at homes with your agent and find one that you like. Work with your real estate agent to negotiate an offer. Once you and the seller have reached an agreement on price, the house goes under contract. This is the period when you and your agent will complete all of the remaining steps in the home buying process (home inspection, loan approval, appraisal).


Time for a Home Inspection

Part of the home-buying process is a home inspection. You’ll arrange a home inspection to look for potential home issues so you’re not surprised after purchasing. Don’t worry, your real estate agent has home inspector recommendations. Most home purchases are contingent on the home inspection so that buyers can renegotiate or back out if there are any major issues. As the buyer, you can ask the seller to fix items that the home inspector found. Your Realtor can help guide you through the home inspection process, so don’t stress!


Get Home Insurance and Set Up Utilities

Your lender requires homeowner’s insurance. Contact your current insurance agent for an estimate and then shop around at other insurance companies for quotes. That way you can ensure you have the best insurance price. Once you have a closing date, contact utility companies to set up your services (gas, electric, water, trash, Internet, etc.). You don’t want to get the keys to your home and have to move in the dark!


Close on Your Home

Your agent arranges a title company to prepare the closing paperwork. You’ll sign the closing paperwork including your loan documents. Once the closing is complete and the home loan is funded, it’s time to get the keys to your home. The final step–it’s time to move!


Please reach out if you have additional questions or want to start looking for a home in southern Colorado! There’s plenty of amazing properties to choose from. Your dream home is out there waiting for you, and we can help you get it.