Getting the Best Mortgage as a First Time Home Buyer in Colorado
It’s no secret that purchasing a home comes with a ton of outright and hidden costs, and for first time home buyers in Colorado, navigating through these additional costs can be challenging.
In fact, Colorado first time home buyers may find themselves paying more than most. The closing costs associated with Colorado mortgages are relatively high, averaging between 2-5 percent of the purchase price.
Whether you are a first time home buyer in Denver, a first time home buyer in Colorado Springs, or any other city throughout the state, it’s important to get your finances in order.
As a first time home buyer in Colorado, being prepared for higher closing costs—and knowing your options for first time home buyer programs in Colorado—can make a huge difference in the affordability of homeownership.
Hidden Costs for First Time Home Buyers in Colorado
For first time home buyers in Denver, first time home buyers in Colorado Springs, and cities across the state, the hidden costs of a mortgage can quickly add up.
To ensure that the first few months of homeownership are as manageable as possible, Colorado first time home buyers should be prepared for these costs before signing off on a mortgage.
While researching your options for first time home buyer grants in Colorado, it’s helpful to consider the following “hidden costs” of mortgage rates:
- Mortgage application fees (typically 1-2 percent of the total purchase price)
- “Good faith deposit” (helps the seller know that you intend to buy)
- Down payment (20 percent of the total mortgage)
While some buyers may be eligible for down payment assistance in Colorado, there are also closing costs to consider, which can include:
- Mortgage points
- Attorney’s fees
- Inspections or surveys
- Title insurance
- Escrow deposit
- City recording fees
Although all mortgages are subject to differences depending on loan amount, location, appraisal, etc., Investopedia estimates that Colorado first time home buyers will pay the 12th highest closing costs in the nation, which include:
- $1,192 for lender fees
- $719 for third party fees
Colorado First Time Home Buyer Programs
Aside from the mountains of paperwork and lists of financial jargon, many first time home buyers in Colorado find that a down payment is one of their biggest financial obstacles.
Thankfully, there are plenty of first time home buyer programs in Colorado that are meant to provide lower rates, cheaper closing costs, and down payment assistance in Colorado.
Below, you can find a list of the most common first time home buyer programs in Colorado and first time home buyer grants in Colorado:
- Metro Mortgage Assistance Plus Program—Offers a grant to first time home buyers in Denver that meet low to moderate income requirements
- Turnkey Mortgage Program—Provides down payment assistance in Colorado of 4 percent for El Paso County
- Mortgage Credit Certificate Program—Gives Colorado first time home buyers an annual tax benefit (maximum $2,000)
For county and city-specific down payment assistance in Colorado and first time home buyer programs in Colorado, first time home buyers in Colorado can visit the U.S. Department of Housing and Urban Development.
Conclusion – Getting the Best Mortgage as a First Time Home Buyer in Colorado
When it comes to buying a new home, finding the best mortgage for first time home buyers in Colorado is crucial.
Whether you are a first time home buyer in Colorado Springs, a first time home buyer in Denver, or any other city in Colorado, the costs from insurance, fees, and closing can quickly add up.
Given these additional fees, first time home buyers in Colorado could certainly benefit from finding great mortgage rates to carry them through the next few decades.
If eligible, enrolling in a first time home buyer grant in Colorado or one of the various first time home buyer programs in Colorado can prepare homeowners for financial success throughout the life of their mortgage.
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