Buying your first home is exciting — and it can feel overwhelming. At Bahr Properties, we specialize in patient, education-first guidance so you understand every step, every term, and every decision along the way.
📋 General Informational Notice: All content on this page is intended for educational purposes only. Real estate transactions, mortgage programs, loan requirements, interest rates, costs, and market conditions vary significantly from case to case, lender to lender, and change over time. Nothing on this page constitutes financial, legal, or lending advice. Bahr Properties is a licensed real estate brokerage — not a lender, attorney, or financial advisor. Always work directly with licensed mortgage professionals, attorneys, and advisors for guidance specific to your situation.
Step by Step
The 10 Steps to Buying Your First Home
Every homebuyer walks the same path. Knowing each milestone in advance keeps you informed and empowered — not anxious and confused.
1
Check Your Credit Score
Your credit score determines your loan options and interest rate. Pull free reports from all three bureaus and address any errors before applying.
Pre-approval signals to sellers you're serious and establishes a clear budget ceiling. It requires income verification, a credit check, and asset review.
As your buyer's agent, Bahr Properties works exclusively for you — guiding, negotiating, and protecting your interests from your first tour through closing.
Define must-haves vs. nice-to-haves. Tour in person, research schools, commutes, and neighborhood amenities. We typically tour 5–15 homes before finding "the one."
Closing involves signing documents, paying closing costs (2–5% of purchase price), and receiving your keys. Typical timelines are 30–45 days from accepted offer.
Ready to Start? Let's Map Your Path — No Pressure.
Bahr Properties has guided first-time buyers through every one of these steps. A free consultation could save you months of confusion and thousands of dollars.
Before anything else, know your number. Your FICO score directly determines whether you qualify for a mortgage, what interest rate you'll receive, and how much home you can afford.
Even a 40-point difference in your score can translate to hundreds of dollars per month — and tens of thousands over the life of a loan. The good news: proven strategies can improve your score in 6–12 months.
Exceptional
Best available rates
800–850
Very Good
Excellent rates
740–799
Good
Competitive rates
670–739
Fair
Limited options
580–669
Poor
Improve before buying
300–579
🔍 Get Your Free Credit Report
Federal law entitles you to one free report per year from each bureau. Visit AnnualCreditReport.com — the only federally authorized free source. One in five reports contains an error; catching one could meaningfully boost your score.
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Free reports at AnnualCreditReport.com
⚠️ Informational Disclosure — Credit & Lending Information
Credit score ranges, loan eligibility thresholds, and rate impact estimates shown on this page are general guidelines for educational purposes only. Actual mortgage qualification requirements vary by lender, loan program, and individual borrower circumstances. Credit scoring models differ across bureaus and lenders. This information is not a guarantee of loan approval or a specific interest rate. Consult a licensed mortgage professional for guidance based on your personal financial profile.
8 Proven Ways to Boost Your Credit Before Buying
✓Pay every bill on time — payment history is 35% of your FICO score
✓Keep credit card balances below 30% of each card's individual limit
✓Don't close old accounts — credit history length matters significantly
✓Dispute errors on your reports in writing with each bureau directly
✓Avoid applying for new credit 6+ months before your mortgage application
✓Become an authorized user on a trusted family member's long-standing card
✓Set up automatic payments to eliminate any risk of missed due dates
✓Pay down revolving debt aggressively — even $500 can move the needle
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Colorado has 0% down options via CHFA & VA programs
Steps 2–3 — Budget & Down Payment
Know Your Numbers Before You Search
The most common first-time buyer mistake is browsing listings before knowing what they can truly afford. Start with your budget — not viewing properties.
Your total monthly housing cost (principal, interest, taxes, and insurance) should stay at or below 28% of your gross monthly income. All monthly debt combined should stay below 36%.
You do not need 20% down. Most first-time buyers put far less, and several programs are designed specifically to help:
FHA Loan — as low as 3.5% down with a 580 credit score
Conventional 97 — just 3% down for qualified buyers
VA Loan — 0% down for eligible veterans & active military
USDA Loan — 0% down for qualifying rural & suburban areas
CHFA programs — up to 4% down payment assistance for qualifying Colorado residents
💡 Don't Forget Closing Costs
Beyond your down payment, budget 2–5% of the purchase price for closing costs. On a $350,000 home that's $7,000–$17,500. We can sometimes negotiate seller concessions to help offset these.
Interactive Tool
Down Payment Calculator
Enter your target home price to instantly see what you'd need to save at each down payment tier. Use this to set a concrete savings goal and select the right loan program.
A larger down payment lowers your monthly payment — and once you hit 20% equity, PMI (Private Mortgage Insurance) is eliminated automatically.
What Is PMI?
PMI protects lenders if you default and typically costs 0.5–1.5% of your loan amount per year — about $1,750–$5,250/year on a $350,000 loan. It cancels automatically at 20% equity, or you can refinance to remove it sooner.
See how much to save at different down payment percentages.
3% — Conventional 97$10,500
3.5% — FHA Loan$12,250
10% — Lower PMI$35,000
20% — No PMI$70,000
Down payment only — add 2–5% for closing costs. Contact Bahr Properties about Colorado assistance programs.
⚠️ Calculator results are estimates for informational purposes only. Actual down payment requirements, loan amounts, and assistance eligibility vary by lender, loan type, purchase price, and borrower qualifications.
Step 4 — Pre-Approval
Why Pre-Approval Changes Everything
In a competitive market, sellers often won't consider an offer without a pre-approval letter. It shows that a lender has reviewed your finances and is ready to lend you a specific amount.
Pre-approval ≠ pre-qualification. Pre-qualification is a rough self-reported estimate. Pre-approval requires a hard credit pull, income verification, and document review — and carries real weight with sellers in negotiation.
Documents You'll Need
Last 2 years of W-2s and federal tax returns
30 days of recent pay stubs
3–6 months of bank and investment account statements
Government-issued photo ID
Rental history / landlord contact information
Gift letter if receiving down payment funds from family
🏦 Shop Multiple Lenders — Rates Vary Widely
Getting quotes from 3–5 lenders can save thousands over your loan's life. Multiple mortgage inquiries within a 14–45 day window count as just one hard inquiry on your credit. Use the CFPB rate explorer to compare current rates.
Bahr Properties works with a trusted network of local lenders who specialize in first-time buyer programs — we'll connect you with the right fit.
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Pre-approval letters typically valid for 60–90 days
Financing Options
First-Time Buyer Loan Types
Not all mortgages are equal. The right loan depends on your credit score, military service, location, savings, and long-term goals. Bahr Properties will connect you with lenders who specialize in each.
Most Popular
Government-Backed
FHA Loan
Best for buyers with lower credit scores or limited savings. Backed by the Federal Housing Administration and available through most lenders.
Colorado Housing and Finance Authority offers below-market rates and down payment assistance of up to 4% for Colorado residents who meet income and purchase price guidelines.
Many lenders offer their own down payment assistance programs in addition to government options. Guild Mortgage, for example, offers several programs worth exploring with a qualified lender.
⚠️ Informational Disclosure — Loan Program Details
The loan program information above is provided for general educational purposes only and is not a commitment to lend. Requirements, down payment minimums, credit score thresholds, income limits, interest rates, and program availability vary by lender, loan officer, and individual borrower profile and are subject to change without notice. DPA program details for Guild Mortgage and CHFA are summaries only — contact those organizations directly for current, complete program terms. Always consult with a licensed mortgage professional to determine which programs you qualify for based on your specific financial situation.
Not Sure Which Loan Is Right for You?
Bahr Properties will connect you with trusted local lenders who specialize in first-time buyer programs — at no cost to you.
Closing costs often catch first-time buyers off guard. They typically run 2%–5% of the purchase price — separate from and in addition to your down payment.
On a $350,000 home, budget an additional $7,000–$17,500 for closing day. Some costs are negotiable, and Bahr Properties can often secure seller concessions to help reduce what you owe at closing.
📄 Review Your Loan Estimate Carefully
Within 3 business days of your application, lenders must provide a standardized Loan Estimate. Compare it across lenders and use the CFPB Loan Estimate guide to decode every fee.
🏡 The Final Walk-Through
Typically scheduled 24 hours before closing, the final walk-through confirms the home is in agreed-upon condition, repairs were completed, and nothing was improperly removed.
Escrow accounts are typically required by lenders to collect and hold funds for future property tax and insurance payments. Your lender will calculate the exact amount needed at closing based on your local tax rate and insurance premium.
Total Estimate
2–5% of purchase price
⚠️ Disclosure: Closing cost figures shown are general estimates for informational purposes only. Actual costs vary significantly by lender, loan type, purchase price, location, and individual transaction details. Always review your official Loan Estimate and Closing Disclosure from your lender for the exact costs that apply to your situation.
Colorado Springs
Best Starter Home Neighborhoods
The following areas are general overviews of communities in and around the Colorado Springs metro region where first-time buyers often search. This is not an endorsement of or recommendation for any specific area — the right location for you is a personal decision based on your own priorities.
📋 Important Disclosure — Fair Housing & Anti-Steering Notice
The areas listed below are provided for general informational purposes only and represent broad overviews of those communities. Homes of all price ranges can be found in any area, and actual availability, pricing, and neighborhood characteristics vary widely. This information does not constitute a recommendation for or against any specific area, neighborhood, or community. Bahr Properties is committed to equal housing opportunity and does not steer buyers toward or away from any area based on protected characteristics. The right community for you depends entirely on your personal priorities, budget, and lifestyle — and that decision is yours alone to make.
Powers Corridor
Common Range: $300K – $425K+
A well-established area with convenient access to shopping, dining, and military installations. A variety of home types and price points can be found throughout this corridor.
Fountain / Security
Common Range: $275K – $400K+
Located south of Colorado Springs, this area offers a range of housing options. Proximity to Fort Carson makes it popular with military families, though buyers of all backgrounds live here.
Falcon / Peyton
Common Range: $350K – $475K+
An eastern area featuring newer construction and larger lot sizes. Home styles and prices vary throughout; buyers are encouraged to research current listings to find what fits their needs.
Stetson Hills
Common Range: $400K – $550K+
A planned community in the northwest with parks and trails. Like all areas, pricing and availability change with market conditions. A wide range of buyers and families call this area home.
Pueblo West
Common Range: $275K – $420K+
Located southwest of Colorado Springs in Pueblo County, Pueblo West offers larger lot sizes and a more rural character at a range of price points. It may appeal to buyers seeking more space and a quieter setting, though commute times and available amenities will vary.
Price ranges shown are general market overviews and are not guarantees of availability. Homes at all price points exist throughout every area. Contact Bahr Properties for current, specific listings that match your criteria.
FHA loans allow scores as low as 580 with 3.5% down, or 500 with 10% down. Conventional loans typically require 620+. VA and USDA loans vary but most lenders require 620–640. A 760 score vs. a 660 score can save $150+ per month on a $300,000 loan — so improving your score before applying pays off significantly.
Much less than most people assume. VA and USDA loans require 0% down. FHA requires 3.5%, and conventional loans can start at 3%. Putting down 20%+ eliminates PMI and significantly reduces monthly payments. Colorado's CHFA program also provides down payment assistance to qualifying residents — ask us about your eligibility.
From accepted offer to closing typically takes 30–45 days. The home search phase varies — some buyers find their home in weeks, others take a few months. The more preparation you do upfront (credit, pre-approval, budget), the smoother and faster the entire process will be.
Pre-qualification is a rough estimate based on self-reported income and debt — it takes minutes but carries little weight with sellers. Pre-approval involves submitting actual documents (tax returns, pay stubs, bank statements) and a hard credit pull, resulting in a formal letter from the lender. In competitive markets, sellers often won't consider offers without it.
You're not legally required to have one, but it is strongly advisable — especially as a first-time buyer. A buyer's agent negotiates on your behalf, explains every contract, protects your interests, and coordinates your transaction from offer through closing. Bahr Properties will clearly explain the compensation structure upfront so there are no surprises.
Closing costs are fees paid at the close of the transaction — typically 2–5% of the purchase price — covering the appraisal, title insurance, lender fees, prepaid taxes and insurance, and more. Buyers generally pay most closing costs, but sellers can agree to cover some through "seller concessions." Bahr Properties often negotiates these on your behalf.
Yes — always. A professional inspector examines things invisible to an untrained eye: foundation, roof, HVAC, electrical panels, plumbing, insulation, and water intrusion. A $400 inspection could save you $40,000 in undisclosed problems. Never waive an inspection unless you're genuinely prepared to accept the home completely as-is.
Colorado offers several strong programs. CHFA (Colorado Housing and Finance Authority) provides below-market rates and down payment assistance of up to 4% as grants or second mortgages, along with required home buyer education courses. Eligible military buyers can access VA loans with 0% down. Some lenders, such as Guild Mortgage, also offer their own proprietary DPA programs. Some counties and municipalities offer additional local programs as well. Bahr Properties will connect you with a CHFA-approved lender and walk you through every option you qualify for. Program details, eligibility requirements, and available assistance amounts vary and are subject to change — always confirm current terms directly with your lender.
Ready to Get Started?
Contact Bahr Properties today for personalized, patient guidance through every step of your first home purchase.
