First Time Home Buyer Program
Our First Time Home Buyer Program Helps You Realize Your Wish of Home Ownership!
Get a plan, Stick with it, and Don’t give up, You Can Do It!
***Read About the FREE Down Payment Money Program below!***
Use our Accredited Buyers Representatives (ABR®) from the National Association of REALTORS® to Buy Your Next Home, Our Services are Free to First Time Home Buyers!
It is Very important to have Buyer Representation when you are buying a Home whether you are a First Time Home Buyer or a seasoned home buyer. There are many other benefits by having a professional REALTOR® Work for You! The best first step is to link up with one of our REALTORS® and get a plan in place. As they say, if you fail to plan, you plan to fail. Set up your First Time Home Buyer consultation today!
If you feel ready, you can search ALL Colorado Springs Homes on this site with REAL TIME Data directly integrated to the Pikes Peak MLS (Multiple Listing Service for El Paso & Teller Counties).
We work with ALL Lenders! In fact, if you are Military Active Duty or a Veteran we’ll give you .5% (of the Purchase Price) of our seller paid commission at closing just to say thank you for your service. That is $1,000 on a $200,000 home purchase.
Do you have a Credit Score of at least 620? Then you are likely eligible to get a Home loan with most any lender depending on your Debt to Income ratio. Some of our partnering Direct lenders locally here in Colorado Springs can even go as low as 580 depending on your profile!
Don’t have Down Payment money, Don’t worry! There are several programs that give Free down payment money or grants for your down payment that you don’t have to pay back. These programs are not limited to those that are a First Time Home Buyer.
With the “Turnkey” mortgage program you will need a 640 Credit Score. There are a lot of great programs, Read More here about the 4% Free Down Payment Money “Turnkey” mortgage program that you Don’t have to pay back. In Colorado Springs and elsewhere in El Paso County we have helped many buyers utilize this program. Click the Guide below to Sign Up for your Free Guide and Join our Buyers List or Call us immediately at 719-422-9474 to help you get it done!
This “Turnkey” program applies to VA loans as well, but typically if you are eligible for a VA loan then you don’t need a down payment and so this may not be the best path for you, but you can still make use of the program. Primarily this 4% of purchase price FREE Money helps those that would need an FHA loan that requires the minimum 3.5% down payment requirement. So you are effectively given 3.5% down payment money and the remaining .5% can be applied to closing costs. You are charged 1% back to the County “Turnkey” program and that is rolled in to the loan. So you are effectively Netting 3% of FREE Money and getting over the down payment hurdle to get in to a home. The rate is slightly higher than a normal FHA loan but historically that is still extremely low, currently 4.5% right now. Check it out or just give us a call at 719-422-9474 to get you going.
Rent vs. Buy, that may be your Question? If you are Renting, Stop wasting your money on rent… or living in a house which doesn’t meet your needs. Discover how to buy and live in a better home now! Some people are tenants by choice. But most people would prefer to enjoy all the benefits of owning a home if at all possible. It can be the single most important investment you ever make. A lot of people’s personal wealth is made up mostly from equity they’ve built through years of responsible home ownership. We believe buying a home should be at the top of your goal list. Are you tired of maintaining and fixing up a house you don’t own? Do you want more privacy in a bigger or better house? If you have pets, you know it’s hard to find someone that will rent to you not to mention the pet fees they charge. Assess your Wants and Needs and Take Action! Each month you pay rent you are not building equity… you get no tax benefits… you get no appreciation… and you have no pride of home ownership. Our wish for you, is that you realize how important home ownership is to your future and do something about it. TAKE ACTION Today, call us and schedule your consultation.
Owning is Cheaper than Renting, Seriously! It is true, let’s look at a general scenario here in Colorado Springs. In the mid part of town you can Rent a 1600 square foot home for about $1,300 per month for a 4 bedroom 2 bathroom home. The price per square foot to buy varies a great deal depending on the home, but in general it is about $95 per square feet. That puts this house at about $152,000 to buy. Using the affordability calculator on this site, at a 4.25% rate 30 year mortgage with $0 down, Your payment is going to be around $1,080 per month. That is everything, Principal, Interest, Taxes, and Insurance (PITI). How Awesome is that? In this scenario you would be saving $220 per month or $2,640 per year. This doesn’t even account for the tax benefits, building equity, or appreciation that is gained.
What about Timing…How should I Plan and when should I Start Looking? Although you can search homes online any time, as a First Time Home Buyer especially it is best to link up with a REALTOR® for a buyer consultation and get a lender analysis before you get real serious and go out looking at homes. You want to know if and when you can get approved for a loan and at what max price you are approved for. As we have previously stated, it is important to know that just because a bank or lender says you are approved for a certain amount, that doesn’t mean that is what you can afford. You need to get an estimated monthly payment amount at different prices in your range from the lender so you can know what you can realistically afford. Once you know what you can afford, you typically select a list of ten homes and go out with your REALTOR® to look at them. We don’t care how many homes you need to look at before you select one to put under contract. We find typically the average number of homes our buyers need to look at before selecting is 10 or less. Also typically, it is about a 2 week window from when they get their lender pre-approval to getting a house under contract. Then on average it is about 40 days or less from being under contract to closing. Something important for you to note which is a very good thing, is that you skip the initial month of payments when you close on a house. So if you close on any day in March for example, your first mortgage payment is not until May 1st. So if your lease if up end of April for example, then you would want to close a week prior to allow time to clean up and move to the new home. So in general, you can back date from the time when you need to move to get an idea of when you should start looking for a home. Our example below should give you a general idea of timing, just plug in your dates:
- March 1 – Loan Pre-Approval granted, Look at Houses
- March 15 – Put Offer on House and Get Under Contract
- April 25 – Close in 40 days and get the Keys!
- June 5 – First Mortgage payment Due
What Up Front Out of Pocket Costs are Involved, Are there any Hidden Costs to Buying? There are some up front out of pocket costs that you should be aware of whether you are a First Time Home Buyer or have bought before. However, our services to a First Time Home Buyer are FREE. We will help you for free through the whole process to find a house, negotiate the best deal for you, submit the offer, do our best to manage and keep the deal on track with respect to various milestones such as with inspections, appraisals, loan objection and closing deadlines. Our Buyer’s Agent (or Transaction Broker) commission is paid by the listing brokerage which in turn is effectively paid by the seller, so you do not pay us anything.
The upfront out of pocket costs you should be aware of are as follows:
- Home Inspection = about $350 (optional but highly recommended)
- Appraisal = about $450 (paid to lender, usually credited to you at closing, ask your lender)
- Earnest Money = about 1% ($2000 on a $200,000 home) (Earnest Money can be and often times returned at closing unless it is part of a down payment)
- Additional Optional items: Radon test ~$50, Sewer Line Inspection ~$150
As a First Time Home Buyer you may not have much money to put down even for earnest money, but there are some ways around that. In some circumstances we have done as low as $100 earnest money, or even an earnest money promissory note can be created. Earnest money can be negotiated, however it is up to the listing agent and seller as to if they would accept anything less than what is stated. The earnest money is really your Good Faith commitment that you will do everything you can to follow through and purchase the home once you sign the contract. If for some reason your loan underwriting does not go through, say a collection popped up at the last minute, then as long as it is before the loan objection deadline in the contract, your Earnest money will be returned to you. This is the same for an appraisal that comes in lower than the price you have the property under contract for. If the house you have under contract doesn’t appraise at contract price, then you can walk away from the deal and get your earnest money back. What about those so called Closing Costs? We always ask for closing costs for our buyers when we submit a contract. We ask the lender what amount of closing costs (seller concessions) do we need to ask for in the contract so that our buyer does not have to come to closing with any money. So effectively we structure the deals so that you do not have to come to closing with any money. If you do get a loan that does require a down payment, then you bring the difference of what you already put down as earnest money to closing. So if your down payment was $7500 and you put down $2000 in earnest money, than you would bring $5500 to closing, but you would know this all upfront in general before you get a house under contract.
But my Credit is Not Good…But is it Good Enough? If your credit score is in the 500s, we can definitely give you guidance on how you can get that score up often times very quickly to put you in position to get a traditional bank or direct lender loan. To read more, click here Credit Improvement We’ll stick with you to help you get to where you need to be to get that loan and close on that house. We have many people come to us that are points short of the magical number and with a little follow through on what our partnering lender tells them to do, they are able to purchase a home. Typically the magic number for a loan is 620 for FHA, VA, and Conventional loans. Now as of 2014, some people may be able to qualify for an FHA or VA loan if they have a 580 credit score. For the The 2014 El Paso County, Colorado “Turnkey” Mortgage Origination Program you will need a 640 minimum FICO score.
Your rates will be better if your score is higher but given rates are so low and home prices are still low, it doesn’t make sense to wait to get the score up higher than what you minimally need to get the loan. Some first time buyers we work with are amazed after we do an initial 15 minute desktop underwriting that they can qualify for a home loan and better yet their monthly payment is going to be lower than what they are currently paying to rent.
How do I find Good Information on Colorado Springs Schools or Good Areas to Live in Colorado Springs? As REALTORS® we can not legally or ethically tell you what a good area is or what a good school may be. (Reference Fair Housing Act) (Reference NAR Fair Housing Program) (Reference HUD Fair Housing) It may sound strange, but there is good reason for this so as to not to unintentionally discriminate and steer people in to certain areas.
So we need to point you directly to the data so you can determine what constitutes a good area or good school.
Visit the GREAT SCHOOLS to see what is a good School in Colorado Springs.
Visit the RESOURCES link on this site for access to great information on Colorado Springs Crime Statistics, Community Info, Demographics, and many other items that can help you decide what area you would want to live in. School Information can be found by searching properties and finding the resulting school information in the listings.
Perhaps Rent-To-Own is for you? Not Recommended, but it can have its Place… If your credit score is below 580 but you have about 3.5% of the purchase price in cash to put down plus first months rent, then our “Lease Purchase” aka “Rent-To-Own” (RTO) program can get you into the home of your choice with a small down payment. You can’t have a lot of collections for high amounts either. We would still do a mortgage analysis on you because we have to see and project what your current state is. Rent-To-Own is the least desirable method of trying to buy a home but it has its place. If you can hold out and just rent until you can get your score up above 580 at least, most cases 620, or even better yet to a 640 to get a “Turnkey” Free down payment money program, that is the best course of action. In fact if you are a Veteran and can get a VA loan, you only need a 620 mid FICO score and it may be in your best interest to jump at that rather than trying to get it up to 640 for the “Turnkey” free down payment money. The common denominator is income, you must have income to Rent, Rent-To-Own, and Buy as normal. There are cases where a client of ours has relocated out here and did not have a job but they put the 3.5% down, paid 3 months rent in advance, and had cash in the bank as reserves. So it all depends on the situation and we need to review that before will go out seeking a RTO deal for you. If you want to read more on the Rent-To-Own program, go to the Buyer Tab above and look for the “Rent-To-Own Program” or click the link here Rent-To-Own Program Details
No Reason to wait, Owning is within Your Grasp! Many tenants are willing to live somewhere that does not reflect their preferred lifestyle because it’s “temporary.” Don’t put up with noisy and sometimes frightening neighbors. Maintenance issues can be a hassle too such as inefficient heating systems, broken pipes, black mold, and just plain unresponsive landlords in making timely repairs. When you’re in a home of your own, you have more freedom and peace of mind. You deserve to live better. Let us help you improve your lifestyle now, it’s the American dream. Some people will never achieve it because they either don’t know or fail to take advantage of the opportunity you have right now. Let us help you buy a nice home sooner than you expect. Let’s see if we have an attractive home now that fits your budget and lifestyle. A home you can move into quickly and easily, with or without a down payment. Do you know how close you are to realizing the Wish of Home ownership? Why not find out, it only takes 15 minutes! Some people actually get Free money to buy a house and you could be one of them! Don’t be a First Time Home Buyer anymore, be a Home Owner!
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