Skip to content

The American Dream

  • Making the American Dream Come True for You

    Buying your first home is exciting. For most people, it’s the fulfillment of a life-long dream — The American Dream — of homeownership. Taking that plunge can feel overwhelming, too. There are so many things to consider, so many choices to make, and far too many unknowns. But, breaking it all down into smaller, more digestible pieces can help take away much of the anxiety that accompanies making such a big commitment. Hiring a real estate agent is the first step for nearly everyone when they’re ready to buy a home. That’s a smart first step too. A real estate agent can do so much more than taking you on tours of homes for sale. They can answer your real estate and mortgage lending questions, advise you on properties they feel are good fits based on your needs, and can help you avoid a lot of the pitfalls you might encounter if you try to navigate it on your own.

    Hiring a real estate agent who will give you a Guarantee of Service, like Hamm Homes LLC whose services cover the Denver and surrounding counties' market is even smarter. Having a guarantee takes a lot of the worry out of your home buying process knowing your agent is giving you 100% excellent service.

  • A Starter or Forever Home

    Another one of the first decisions a homebuyer will make is the amount of money they are ready to invest in their home. A “starter home,” is a smaller investment with the hope to sell in a few years. The equity from the sale of that home can then become the downpayment on another home. A starter home usually has two bedrooms or fewer. It will have older appliances and amenities and could be in an older, less fashionable neighborhood. The downside to buying a starter home is that it will be in need of more repair. Also, a family could quickly outgrow it, and knowing it’s only temporary, owners have the tendency to feel like they are just marking time.

    Forever homes give the homebuyer a sense of permanence. Many of the home’s appliances, electrical, plumbing, and HVAC systems will be newer and may even still be under warranty. Being in the neighborhood they want to live in and being near their schools of choice are also important factors for buyers. The downside is the higher cost of purchasing, both in the initial outlay of down payment and closing costs, and a higher monthly mortgage amount, insurance, and tax rate. Also, a larger home is more costly to maintain.

    Mortgages

    FHA is part of the federal government’s Housing and Urban Development. They provide insurance for mortgages made by approved FHA lenders. You may be eligible for assistance under that program, so check to check with your lender. A person is considered to be a first-time homebuyer if:

    • They’ve never bought a home before
    • They haven’t owned a primary residence for at least three years
    • They have owned a home but it was unattached like a mobile home or RV
    • They’ve owned a home but it has been damaged beyond repair and the cost to repair is greater than the cost to purchase new.

    Preparation

    • Check your credit and credit report early enough to repair any negative entries that could prevent you from getting a mortgage or causing you to have to pay a higher interest rate.
    • Make a budget to determine what you can comfortably afford. Use a mortgage calculator to get a monthly payment amount.
    • Gather all the necessary paperwork early enough so that you have time to order any required documents in time to present to your lender.
    • Be prepared for a down payment of between 3.5% and 20% of the purchase price. You may be required to purchase mortgage insurance if you put less than 20% down.

    Moving In

    A large expense many homebuyers encounter is the move itself. Most people are surprised by how much it costs to hire a professional mover. It’s a good idea to do some research using online reviews and reports of any company you’re considering hiring for your move. Then number and label all your boxes with a corresponding list, and photograph all furniture and appliances before they move them in case a damage claim becomes necessary. Though the entire home buying process can feel overwhelming and stressful, every single person who has gone through it will agree that it is so very worth it.