If you’re thinking about buying a vacation home in Steamboat Springs, there are many things to keep in mind during the homebuying process. From saving up for a down payment to finding a certified real estate agent and scheduling showings, there are important steps you can take to ensure your homebuying experience ends on a positive note. Learn about some important steps to take on your search for the perfect vacation home.

At The Porches of Steamboat, we’re proud to offer world-class, luxury mountain vacation homes that you and your family can enjoy for years to come. We offer an array of floor plans in our 20-acre private neighborhood, and you can view them conveniently online. In addition to our beautiful, handcrafted homes, we also offer ownership opportunities including fractional ownership and whole ownership, so you can afford your dream home on your own terms. If you’re interested in learning more about our home ownership options or you’d like to schedule a viewing of one of our homes, contact us today!

Start To Save For Your Down Payment Early

If you’re brand new to homebuying, you may not be aware of the upfront expenses that are included with purchasing a home. For most homebuyers, it’s common to put down a down payment of 20 percent, however, some lenders require much less. Some first-time home buyer programs will even allow you to put down as little as three percent! If you’re having a difficult time trying to figure out how much money you need to save up to purchase a home, there are several different tools that you can utilize online to help. Take the time to play around with a down payment calculator or reach out to a local real estate agent in the area you are looking to buy. If you’re looking for ways to start saving for a down payment, consider setting aside tax refunds and work bonuses until it comes time to make a payment.

Check Your Credit Score

Before you start shopping for a new home, you’ll want to check your credit score to ensure that you are in good standing. Credit will be one of the main factors that a bank will consider when it comes time to apply for a loan, and a good credit score will help you get the best interest rate available. Once you check on the status of your credit score, be sure to dispute any errors and look for opportunities to improve your score.

Research Your Mortgage Options

If you’re like most people, you probably don’t have hundreds of thousands of dollars lying around to pay for the upfront expenses of a home. If you plan on taking out a mortgage to purchase, you’ll need to meet with a bank or mortgage lender. You should get mortgage pre-approval, which serves two main purposes. First, it shows the seller that you are serious about buying a home, but more importantly, it will help you understand how much you can actually afford.

When you work with a qualified loan advisor, he or she will help you sort out your options. They will be able to help determine which type of home loan is best for your situation, and they can walk you through what your payment options would be. There are two main types of mortgages you should be familiar with. Let’s take a look at the differences between them below:

A Fixed-Rate Mortgage – This type of mortgage is exactly what it sounds like. The interest rate of this loan will not vary over the course of time. While the rates of a fixed-rate mortgage may be slightly high, it is often a good choice for new homeowners.

Adjustable-Rate Mortgage – An adjustable-rate mortgage will start with a lower interest rate for the first few years, until they start to “adjust” after a predetermined period (normally after five years). Most borrowers enjoy the initial lower mortgage payments, but this kind of loan can be risky if the interest rates rise quickly. Luckily, there is normally a cap on the interest rate after a period of years.

Try To Stay Under Your Pre Approval Limit

Once you have been preapproved for a loan, it’s time to start shopping for new homes! As your agent takes you around town to look at various properties, make sure to let them know how much you are able to spend. While you can technically afford the amount that your lender has preapproved, you don’t want to look at homes that are at the peak of your budget. This will give you very little wiggle room when it comes time to put in an offer on a home. Rather than maxing out, set a lower purchase budget for yourself so you have room to put in competitive offers.

Make An Offer

When you come across a home that you’re interested in, your real estate agent will be able to help you decide how much money you should put in your offer. Your agent will then present the offer to the seller’s agent, who will either accept, reject, or counter with a different offer. Before you submit your final offer, be sure to take a close look at your budget. If you reach an agreement, you’ll likely make a good-faith deposit before the process transitions into escrow (this is a short period of time where the seller takes the house off of the market with the contractual expectation that you will buy the house).

We hope that these homebuying steps prove to be helpful as you start looking for your next home. At The Porches of Steamboat, we’re proud to offer a variety of luxury mountain homes in Steamboat Springs. We offer a variety of ownership options, including fractional ownership and whole ownership, and we would love to show you around our 20-acre private neighborhood. Contact our ownership representative to learn more!