Investing in Real Estate is one of the smartest moves to improve your financial situation and grow your wealth. It’s typically a slow build and you should think of it as a long game–but one that you’ll be glad you got into. While the data from the last few years is sporadic, you can see in this graph the upward trend in average home sale prices over the last 5 years for Boulder County, Gilpin County, and Nederland.

With that, you may be thinking that you are priced out of the area that you want to live in–and you may not be entirely wrong. First time home buyers, there may be a degree of sacrifice that comes with where you purchase your first home. Remember–it’s a long game. You may need to consider purchasing a condo in a place that is more affordable initially, and then in 3-5 years, when you’re ready to level-up, you’ll be better positioned to purchase that sweet house in the mountains like you’ve always dreamed.

I am here to encourage you to start taking steps to put yourself in a position of power and readiness to own your first home. It’s time to plan a date with a pen, notepad, and your bank account. With “Let’s Get It On” by Marvin Gaye in the background, allow yourself to get intimate with your finances.

To start, take a good honest look at your financial situation. How much do you earn and spend in a month? This part might be stressful. If it does cause stress, use that feeling to help you to imagine an ideal financial situation that would leave you feeling confident. Write down and visualize your goals.

Next, look at your savings. You will be shocked by how much money you can save yearly by cooking your meals at home and finding your way to a lower car payment. Take a look at the ways you can reduce your spending and save more money. While there are loan programs designed to work with low down payments, the more you put down the lower your monthly mortgage payment will be. Down payments typically range from 3.5%-20% of the purchase price.

Finally, review your credit. Credit is a powerful tool when acquiring a home loan. There are lots of ways to improve and/or establish your credit which I review in depth on my Facebook and YouTube page. Most importantly, make your payments consistently, on time, and keep your credit usage below 33%. The older the account the better, so don’t cancel those older credit card accounts. 740 is a good score to aim for.

This journey will take hard work and a proactive attitude. Your future self will be eternally grateful when you start to feel the equity building in your home. Follow me on Facebook and check out my YouTube videos for a deeper dive on first time home ownership and wealth building.

Emma Quarterman can be reached at 303-506-5218 or by email at emma@livewestrealty.com. Check out her website at emmaskycolorado.com/.