5 Steps to Turn Your Dream Home Into a Reality

Have you been dreaming about a new home or improving the home you are in? Coloramo can help! Talk to Coloramo's home loan professionals about your dreams so we can help you determine the best option to get you there.

Step 1: Determine your buying power. Let us help you figure out what you can afford! We will discuss and learn about your personal situation to help you determine what home loan solution might be the best fit for you.

Step 2: Decide if you are building something new, purchasing a new home or an older home, or just improving your current home. Do some research to see what is on the market for sale while looking at the budget that was discussed in step one. This may help you decide the best option for you.

Step 3: Get your decision in motion. It's time to get the ball rolling by applying for the funds needed.

Step 4: Now that you are prepared with a budget and funding, start shopping for a contractor for your existing home’s improvements or the house of your dreams!

Step 5: Stick to the plan. Make sure you are staying in budget while remembering what your dream is. Before you know it, you will be living your dreams if you can stick to your budgeting plan!

Learn more/ schedule an appointment with a loan officer here.

What is a Home Equity Line of Credit?

With the equity you’ve built up in your home over the years, you could be sitting on a lot of money! When you’re ready to put your home’s equity to work, a Home Equity Line of Credit (HELOC) might be the right option for you.

One of the most common misconceptions is that a Home Equity Line of Credit can only be used for home improvements. These loans can be used for a variety of needs, including consolidating high-interest debt, financing a college education, buying a new car, or taking a dream vacation.

Choosing the loan option that’s right for you starts with an understanding of equity. Equity is the difference between the value of your home and the remaining unpaid principal balance of your mortgage. For example, a home worth $250,000 with a principal loan balance of $100,000 remaining has $150,000 in equity.

A Home Equity Line of Credit – also called a HELOC – is a variable-rate loan that can be drawn down, either all at once or at different times. You can borrow up to the credit maximum, but you will only pay interest on the funds you use. For example, if you’re approved for a $50,000 equity line but only borrow $15,000 right now, you are only charged interest on the $15,000. Once you have repaid the amount borrowed, your credit line is fully renewed and available for borrowing again. Coloramo’ s HELOC features a 10-year draw period followed by a 10-year repayment period. HELOCs can be a smart and convenient way to pay for recurring expenses like college tuition.

A Coloramo home loan specialist can help you determine whether a Home Equity Line of Credit is the best option for you. Schedule an appointment today! https://www.coloramo.org/appointment-scheduler