...if all my friends, family, and old co-workers understood the following facts no one would ever rent again. The below are answers to the most common questions I get as a real estate professional with regard to buying a home:
1. A home is NOT a forever commitment, you can ALWAYS sell it.
2. You can buy a home in Colorado with as little as 1.75% down at closing. (0.00% down + 1.75% fee for a loan through CHFA). All other expenses can be wrapped into the loan.
3. To NOT pay PMI (Private Mortgage Insurance), you need 15% - 20% down depending on your credit.
4. As of the end of January 2019, the rough monthly payment on a $350,000 home with the minimum FHA loan down payment of 3.5% is $1,746.63 / month.
5. You do NOT pay a Real Estate Broker's commission, the Seller in many cases will pay the Buyer's Broker as a kind of "Finder's Fee".
6. During the process of buying a home with a loan, you risk the cost of your Inspection & Appraisal ONLY. This adds up to roughly $850 - $1,250 depending on the contractors your use.
7. Earnest money is 100% refundable, but required as "Good Faith" to the Seller of the home. It goes towards the down payment of your home at closing.
8. Closing costs on your home purchase can be estimated at roughly 1.75% + Down Payment.
9. In most traditional contracts, you have until 3 days before closing to walk away consequence free.
10. Do NOT buy a house for the paint color. Some houses sell over list price just for this reason. It's cosmetic! Paint it after you buy it!
If all of you out there that are thinking about buying a home would know the above --- you probably wouldn't be so worried about your first home purchase! It's all true, and