First time home buyer! Where do I start?
Member since 2024 · 10 posts · 5 votes
First time home buyer! Where do I start?
Most Popular Reply
Property Manager · Colorado Springs, CO · Member since 2017 · 126 posts · 67 votes
2yHello Angelo, in Colorado Springs we have a large military presence due to the multiple military bases we have in the city. If you can find a home near Fort Carson that you like, the chances are other military members will also like it. I recommend a home with at least a 1 car garage, 2 car would be great, because this is a big draw. In that price range, you will likely be looking at 2 or 3 bedroom houses around 1000 square feet. There are larger options but these tend to need some TLC.
For your initial search, Zillow can give you an idea of home prices and amenities in your price range. Once you get closer to making the move, reach out to local agents to get up-to-date info from the MLS. I would be happy to connect you with my broker. We have helped quite a few military members purchase homes and then transition into SFR when they relocate.
26 Replies
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes2y
I'd recommend connecting with an agent and also contact a lender. They will tell you if your criteria is realistic. Colorado Springs is expensive so that might be tough
- 2yCory J ThorntonBusiness MemberReal Estate Agent · Raleigh, NC · Member since 2021 · 240 posts · 281 votes
@Angelo Aguirre - A good real estate agent should be able to help you walk through the home buying process.
As you hunt for property, if you are on orders and know you will be leaving that market in a few years, then this home purchase could be an awesome way to start building a rental portfolio. You can use a VA loan or an FHA loan for small multi family property as well as single family.
Best of luck with your relocation. I know that can be stressful even when Uncle Sam isn't the one calling the shots.
- Property Manager · Colorado Springs, CO · Member since 2017 · 126 posts · 67 votes2y
Hello Angelo, in Colorado Springs we have a large military presence due to the multiple military bases we have in the city. If you can find a home near Fort Carson that you like, the chances are other military members will also like it. I recommend a home with at least a 1 car garage, 2 car would be great, because this is a big draw. In that price range, you will likely be looking at 2 or 3 bedroom houses around 1000 square feet. There are larger options but these tend to need some TLC.
For your initial search, Zillow can give you an idea of home prices and amenities in your price range. Once you get closer to making the move, reach out to local agents to get up-to-date info from the MLS. I would be happy to connect you with my broker. We have helped quite a few military members purchase homes and then transition into SFR when they relocate.
- 2yGregory SchwartzBusiness MemberRental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
Check out the guys Miliraty to Millionaire (https://www.frommilitarytomillionaire.com/)
They have great content on their website and podcast for service members growing their wealth through REI.
Schwartz Realty Group5117 Reviews - Member since 2024 · 10 posts · 5 votes2y
@Spencer Abeyta, do you have any recommendations on local agents within Colorado Springs that you have worked with and are supportive towards buyers?
- Member since 2024 · 10 posts · 5 votes2y
@Cory J Thornton, I appreciate the information you gave me. I'm not where to look or find good and trustworthy real estate agents. I am planning on using a VA loan. I don't have hardly any debt ($7000-car). I appreciate the support.
- Lender · 92703 · Member since 2022 · 326 posts · 538 votes2y
Hello Angelo,
First step is to talk to a lender and get pre approved to see what your maximum pre approval is. At that point you can decide if you want to max out on your first property or be conservative and just borrow what you feel comfortable based on the payment. Then once you have your golden ticket (pre approval letter) from the lender then you can begin looking for homes with a realtor and go shopping. Here is a quick tip lenders usually lend you up to half your income. If your targeting a payment of $2300 that means that you need to make at least $4,600 per month gross or $55,200 annual gross. This is assuming you have no other monthly debt. Hope this helps in regards on where to start.
- Member since 2024 · 10 posts · 5 votes2y
@Carlos Valencia, how would someone go about finding a lender when using a VA loan? I'm unsure as to what specific things a lender should have or what I should be looking for in a lender. Any ideas on this? What would be the benefit of taking a max loan for a home? I don't see how taking a max loan would be beneficial for anyone. The military has a Base Allowance for Housing set at roughly $2,300.
- 2yHamp Lee IIIPro MemberReal Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
I'm active duty Air Force and I have three VA loans now.
When I started, I didn’t know where to start, so I went with the big companies, USAA, Navy Federal, and Veterans United.
If you don’t have an agent, I know USAA and Veterans United have agents they are connected to and can refer them to you. This was how I met my first agent that helped me purchase two of my homes.
I know it can seem daunting at times, but you’re making a decision to create long-term and maybe generational wealth.
If you have any general questions, don’t hesitate to reach out.
I wish you all the best.
- Investor · Colorado Springs · Member since 2016 · 232 posts · 150 votes2y
Hi Angelo,
You’re going to have a hard time finding a decent home or townhome in a decent neighborhood for $300,000. Unfortunately, prices have gone up and stayed strong in Colorado Springs. Fountain, Colorado is very close to Fort Carson. There are some decent neighborhoods and lower prices that Springs zip codes. I agree with the other comments about finding a good agent. I have a suggestion for you if you want to message me. I’ve been working with this agent and she understands Investors and first time buyers. While property taxes are lower than some states in Colorado, homeowners insurance is quite steep. Just a heads up on that. I moved here from Maryland and was thrilled with the lower property taxes, but very surprised when I went to get homeowners insurance. - Member since 2024 · 10 posts · 5 votes2y
@Carlos Valencia, if I ask you to be my mortgage broker, what ties would I have to you? As in what obligations would I have that would require me to stay with you as my mortgage broker?
My current goal is to find a house and turn it into a rental for the future currently.
- Member since 2024 · 10 posts · 5 votes2y
@Ruth Lyons, I am comfortable with looking for a house that's 2 bedroom and 2 bath. I do understand that looking for something like that is pretty difficult within the area of Colorado Springs and Fountain. I would like to hear any suggestions you have! I also did not know about the steep homeowners insurance within CO, but that does make sense as to why.
- Member since 2024 · 10 posts · 5 votes2y
@Hamp Lee III, Thank you for the words of encouragement and different approaches and using your experiences to help give me a good idea on what I can do as well.
- 2yJames CarlsonPro MemberReal Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
An early welcome to Colorado Springs. A pretty nice place to be stationed.
Unfortunately, Colorado Springs is also a popular place to move to which has driven up prices. That said, if you're open to townhomes, there are some decent places out there in your budget.
Even if it's not perfect, you'd be in such a good position getting into something in the area. Colorado Springs continues to get overflow from the much pricier Denver to the north, and it keeps showing up near the top of lists of best places to live, which is driving more people to move here. In terms of long-term investment, you'd be looking pretty good.
I wish you the best!
- New to Real Estate · Denver, CO · Member since 2024 · 14 posts · 7 votes2y
Quote from @Hamp Lee III:
I'm active duty Air Force and I have three VA loans now.
When I started, I didn’t know where to start, so I went with the big companies, USAA, Navy Federal, and Veterans United.
If you don’t have an agent, I know USAA and Veterans United have agents they are connected to and can refer them to you. This was how I met my first agent that helped me purchase two of my homes.
I know it can seem daunting at times, but you’re making a decision to create long-term and maybe generational wealth.
If you have any general questions, don’t hesitate to reach out.
I wish you all the best.
How do you have 3 VA loans? I thought you could only have one active VA loan?
- 2yHamp Lee IIIPro MemberReal Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
Quote from @Kyle Allen:
Quote from @Hamp Lee III:
I'm active duty Air Force and I have three VA loans now.
When I started, I didn’t know where to start, so I went with the big companies, USAA, Navy Federal, and Veterans United.
If you don’t have an agent, I know USAA and Veterans United have agents they are connected to and can refer them to you. This was how I met my first agent that helped me purchase two of my homes.
I know it can seem daunting at times, but you’re making a decision to create long-term and maybe generational wealth.
If you have any general questions, don’t hesitate to reach out.
I wish you all the best.
How do you have 3 VA loans? I thought you could only have one active VA loan?
You can have more than one at a time. It depends on your remaining entitlement. Some lenders require a qualifying event like moving, downsizing, etc. Others do not ask.
I have two properties in the same area and one when I PCS’d.
- Real Estate Agent · Colorado Springs, CO · Member since 2021 · 279 posts · 121 votes2y
Hey @Angelo Aguirre,
I feel the most powerful tool in your belt right now is the power of using an Assumable loan to purchase your next house. With your VA eligibility you have a great opportunity to take over an existing lower interest loan to buy your home here in Colorado Springs!
As others have mentioned in the above posts, you will have some limited options at the $300k range if you are buying a home at today's interest rates. BUT, if you assume a loan that was originated a couple years ago you will have a much lower payment and can afford a much more expensive home! There are over 55 properties on the active market today in Colorado Springs that are eligible for a loan assumption.
I assumed a VA loan last November on a $425,000 home that had a 3.08% interest rate. I have a monthly payment of $2,157 that includes Interest, Principal, Taxes and Insurance! With your VA eligibility and the amount of eligible VA or FHA Assumable loans in this military town, you have plenty of options!
The only negatives with an assumable loan is that they take longer to close, 60-90 days generally, and you would also need to come to the table with a little cash to cover the sellers equity (if any) and some other closing costs. But you will save thousands of dollars every year on mortgage payments and don't forget that juicy additional principal paydown when you have a loan that has already amortized for 24+ payments!
If you would like to learn more about the absolute best way to buy a primary residence in this market than check out my blog post on biggerpockets here...
https://www.biggerpockets.com/forums/922/topics/1175338-maxi...
Good luck in your journey and if I can ever do anything to help you along your path, please reach out and let me know!
Take Care,
Brian Bohrer - Realtor
- Member since 2024 · 10 posts · 5 votes2y
@Brian Bohrer, how does one go about applying or getting approved for using an assumable loan to purchase a house? Where can I see the other 55 properties that you mentioned that are on the active market that are eligible for a loan Assumption? I am currently not in the US and won't be able to see the house in person. How long does a normal VA loan that is used to purchase a home usually take? Also, can you explain what seller equity is? My understanding is that it is me paying out of pocket what the previous owner has put into the house. I will definitely check out your blog post! Thank you
- Lender · 92703 · Member since 2022 · 326 posts · 538 votes2y
Quote from @Angelo Aguirre:
@Carlos Valencia, if I ask you to be my mortgage broker, what ties would I have to you? As in what obligations would I have that would require me to stay with you as my mortgage broker?
My current goal is to find a house and turn it into a rental for the future currently.
Hi Angelo,
if you decide to work with us that would be great! but there's no legal ties to stay with us meaning that any moment you can leave us, we hope you don't if we have earned your business. Feel free to direct message me so we can connect and discuss more in detail your scenario.
- Real Estate Agent · Colorado Springs, CO · Member since 2021 · 279 posts · 121 votes2y
Quote from @Angelo Aguirre:
@Brian Bohrer, how does one go about applying or getting approved for using an assumable loan to purchase a house? Where can I see the other 55 properties that you mentioned that are on the active market that are eligible for a loan Assumption? I am currently not in the US and won't be able to see the house in person. How long does a normal VA loan that is used to purchase a home usually take? Also, can you explain what seller equity is? My understanding is that it is me paying out of pocket what the previous owner has put into the house. I will definitely check out your blog post! Thank you
Hey Angelo,
When you assume a loan, you will be working with the lender who currently services the loan so there would not be a way to pre-qualify. What you can do though, if you already have a lender that you are working with, is ask them to give you an amount that you can afford in the form of a monthly payment. This amount is based on your DTI (or Debt To Income ratio) which most lenders generally want to see your total DTI somewhere in between 36%-48% when accounting for all of your monthly debt including the new mortgage payment. If your goal is assume a loan, I would offer the lender some sort of compensation as they are generally only paid if they write your loan, which is not the case with an assumable loan, as the current servicer will be underwriting and providing the new loan.
I don't think you mentioned your income, but if you can truly afford a $2,300 monthly payment, then you would have to make approximately $5,000 per month (or $65,000 annual) gross income and have NO OTHER Debts that are paid monthly... Student loans, car payments, credit cards can all affect your DTI, and would reduce the amount of mortgage payment you could afford.
If you would like to be on this list of assumable loan eligible homes, I would be happy to set you up with a list that is sent to your email. Please reach out to me via a private message or text me at 719-212-5477 with your email address and I will get you set up!
Also, if you decide to work with me I can set up virtual tours for any properties that you may be interested in... Generally a normal VA loan transactions is 30-45 days when writing a new loan, but when assuming I would plan on at least 60-90 days from contract to closing.
Seller equity is the remaining value of the home that is left after paying all closing costs and loans. For instance; if the home was sold for $450,000 and they owed $400,000 with $30,000 in closing costs, then they would take home $20,000 in equity/profit. If you were buying off market, you may be able to negotiate a smaller equity payment to the seller, but anything on the market will be subject to realtor commission etc... So in this example, if the home was found off market you may be able to pay $20k to the seller for his equity, but if it was on the market you would have to cover realtor fees and would likely pay closer to $50k.
I hope this helps! Please feel free to reach out if you have any further questions! :)
- New to Real Estate · Denver, CO · Member since 2024 · 14 posts · 7 votes2y
Quote from @Hamp Lee III:
Quote from @Kyle Allen:
Quote from @Hamp Lee III:
I'm active duty Air Force and I have three VA loans now.
When I started, I didn’t know where to start, so I went with the big companies, USAA, Navy Federal, and Veterans United.
If you don’t have an agent, I know USAA and Veterans United have agents they are connected to and can refer them to you. This was how I met my first agent that helped me purchase two of my homes.
I know it can seem daunting at times, but you’re making a decision to create long-term and maybe generational wealth.
If you have any general questions, don’t hesitate to reach out.
I wish you all the best.
How do you have 3 VA loans? I thought you could only have one active VA loan?
You can have more than one at a time. It depends on your remaining entitlement. Some lenders require a qualifying event like moving, downsizing, etc. Others do not ask.
I have two properties in the same area and one when I PCS’d.
Do you have a lender you recommend that has experience with multiple VA Home Loans at once?
- 2yRose JonesPro MemberMember since 2019 · 57 posts · 18 votes
Get a small house, get a roommate and build up your portfolio. I know it can be done.
- 2yHamp Lee IIIPro MemberReal Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
Quote from @Kyle Allen:
Quote from @Hamp Lee III:
Quote from @Kyle Allen:
Quote from @Hamp Lee III:
I'm active duty Air Force and I have three VA loans now.
When I started, I didn’t know where to start, so I went with the big companies, USAA, Navy Federal, and Veterans United.
If you don’t have an agent, I know USAA and Veterans United have agents they are connected to and can refer them to you. This was how I met my first agent that helped me purchase two of my homes.
I know it can seem daunting at times, but you’re making a decision to create long-term and maybe generational wealth.
If you have any general questions, don’t hesitate to reach out.
I wish you all the best.
How do you have 3 VA loans? I thought you could only have one active VA loan?
You can have more than one at a time. It depends on your remaining entitlement. Some lenders require a qualifying event like moving, downsizing, etc. Others do not ask.
I have two properties in the same area and one when I PCS’d.
Do you have a lender you recommend that has experience with multiple VA Home Loans at once?
I don’t have a direct connection in CO if you were looking there.
- New to Real Estate · Denver, CO · Member since 2024 · 14 posts · 7 votes2yDo you have a lender you’ve worked with that I could contact about getting my 2nd VA Home loan with? I’d love to utilize that loan again but was told I could only have 1 active VA Home Loan at a time
Quote from @Hamp Lee III:
Quote from @Kyle Allen:
Quote from @Hamp Lee III:
I'm active duty Air Force and I have three VA loans now.
When I started, I didn’t know where to start, so I went with the big companies, USAA, Navy Federal, and Veterans United.
If you don’t have an agent, I know USAA and Veterans United have agents they are connected to and can refer them to you. This was how I met my first agent that helped me purchase two of my homes.
I know it can seem daunting at times, but you’re making a decision to create long-term and maybe generational wealth.
If you have any general questions, don’t hesitate to reach out.
I wish you all the best.
How do you have 3 VA loans? I thought you could only have one active VA loan?
You can have more than one at a time. It depends on your remaining entitlement. Some lenders require a qualifying event like moving, downsizing, etc. Others do not ask.
I have two properties in the same area and one when I PCS’d.
- 2yHamp Lee IIIPro MemberReal Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votesFor my additional VA loans, I used a local credit union that moved the loan to Citizens Bank, then Navy Federal, and Veterans United.
Quote from @Kyle Allen:
Do you have a lender you’ve worked with that I could contact about getting my 2nd VA Home loan with? I’d love to utilize that loan again but was told I could only have 1 active VA Home Loan at a timeQuote from @Hamp Lee III:
Quote from @Kyle Allen:
Quote from @Hamp Lee III:
I'm active duty Air Force and I have three VA loans now.
When I started, I didn’t know where to start, so I went with the big companies, USAA, Navy Federal, and Veterans United.
If you don’t have an agent, I know USAA and Veterans United have agents they are connected to and can refer them to you. This was how I met my first agent that helped me purchase two of my homes.
I know it can seem daunting at times, but you’re making a decision to create long-term and maybe generational wealth.
If you have any general questions, don’t hesitate to reach out.
I wish you all the best.
How do you have 3 VA loans? I thought you could only have one active VA loan?
You can have more than one at a time. It depends on your remaining entitlement. Some lenders require a qualifying event like moving, downsizing, etc. Others do not ask.
I have two properties in the same area and one when I PCS’d.
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