Buying your first home in Colorado Springs can feel exciting and overwhelming at the same time. You want a clear plan, straight answers, and local guidance you can trust. In this guide, you’ll learn the exact steps from budget to keys, how long each step usually takes, and what to watch for in El Paso County’s unique landscape and climate. Let’s dive in.
Your Colorado Springs game plan
Colorado Springs offers a wide mix of neighborhoods, home styles, and price points. Inventory and competition shift month to month, so you will want current data when you begin. Local MLS statistics are the most accurate for pricing, days on market, and inventory trends. Your agent can share the latest market bulletins and help you set a smart search strategy based on your budget and timing.
You will also want to understand local factors that affect comfort and costs. High altitude means heating efficiency and insulation matter. Foothill properties may have wildfire or slope considerations. Some homes sit near drainage corridors where you will want to check flood status. Many communities have HOAs or special districts that add monthly or annual fees. If you look on the outskirts of El Paso County, you may see well and septic systems that need specific inspections and maintenance planning.
Step 1: Set your budget (1–2 weeks)
Start with a full picture of one-time and ongoing costs. A realistic budget helps you shop confidently and make faster decisions.
- One-time costs: down payment, earnest money, closing costs, prepaid taxes and insurance, moving, and immediate repairs or essentials.
- Ongoing costs: mortgage principal and interest, property taxes, homeowners insurance, HOA or special district fees, utilities, landscaping or snow removal, and a maintenance reserve of 1–3 percent of the home price per year.
- Credit prep: pull your credit report, correct errors, and pay down high-interest balances where possible before applying.
Tip: Ask lenders for sample Loan Estimates for your target price range. These documents outline fees and monthly costs so you can compare options.
Step 2: Get pre-approved and choose a loan (1–3 weeks)
A strong written pre-approval gives you an edge when you submit an offer. Compare loan programs that fit first-time buyers:
- Conventional loans with as little as 3 percent down in some cases, often with private mortgage insurance.
- FHA loans with 3.5 percent down for many buyers.
- VA loans with potential 0 percent down for eligible service members and veterans.
- USDA loans for qualifying rural areas in El Paso County, based on address.
- State assistance through the Colorado Housing and Finance Authority for down payment help and competitive rates.
Use these trusted resources as you evaluate lenders and programs:
- Review first-time buyer programs and participating lenders through the Colorado Housing and Finance Authority.
- Verify lender licensing with NMLS Consumer Access and check Colorado-specific licensing at the Colorado Division of Real Estate.
- Check USDA property eligibility for certain addresses on the USDA Single Family Housing Eligibility site.
- Consider a free session with a HUD-approved counselor for budgeting and program guidance using the HUD counseling locator.
Step 3: Start your home search (2–8+ weeks)
Define your must-haves and your nice-to-haves. Common criteria include number of bedrooms, outdoor space, commute time, style and age of home, and HOA or special district fees. Ask your agent to set instant alerts from the local MLS so you see new listings quickly.
Use a smart touring plan:
- Begin with a broad tour to clarify preferences, then narrow the list.
- Schedule blocks of showings to compare homes back to back.
- Revisit neighborhoods at different times to gauge traffic, noise, and parking.
- For homes with wells or septic systems, request recent testing or service records.
- Ask about average utility costs and any special district taxes early.
Plan for local environmental checks:
- Radon is common in Colorado. Include a radon test during inspections and review mitigation options using Colorado Department of Public Health & Environment radon guidance.
- If a home is near drainage corridors or low-lying areas, confirm flood status through the FEMA Flood Map Service Center.
Step 4: Write a strong offer (hours to days)
When you find the right home, your agent will prepare a Colorado purchase contract. Key terms include price, earnest money, financing contingency, inspection timeline, appraisal contingency, closing date, included items, and how closing costs are allocated.
To compete without overreaching, consider these approaches:
- Present a solid pre-approval and proof of funds for your down payment.
- Offer reasonable earnest money held by a title company or brokerage.
- Be flexible on the closing date if the seller needs time.
- Limit non-essential contingencies while keeping critical protections like inspection, appraisal, and clear title.
Colorado sellers typically provide a Seller’s Property Disclosure and a federal lead-based paint disclosure for pre-1978 homes. Review these carefully with your agent.
Step 5: Inspect, appraise, and verify (5–14 days)
Schedule a general home inspection right away. Your inspector will review structure, roof, HVAC, electrical, plumbing, and visible conditions. Based on findings, you can request repairs or credits.
Consider specialty inspections as needed:
- Radon test for indoor air safety.
- Sewer scope for older lines or if there are signs of backups.
- Well water testing and a septic inspection for properties outside municipal systems.
- Pest, roof, or structural specialists if flagged by the general inspector.
Your lender will order an appraisal to confirm value. If the appraisal is low, you can negotiate with the seller, increase your down payment, or work with your lender to review comparable sales. The title company will run a title search and issue title insurance to protect against past liens or defects.
Step 6: From underwriting to closing (2–4 weeks)
Your lender’s underwriter will finalize the loan by reviewing updated pay stubs, bank statements, and any documentation requested. At least three business days before signing, you will receive a Closing Disclosure that shows your exact cash to close and final loan terms.
Before closing, complete a final walk-through 24–48 hours before signing to confirm agreed repairs and the home’s condition. In Colorado, closings are typically handled by title companies. After signing, funds are disbursed and the deed is recorded with the El Paso County Clerk & Recorder.
Step 7: Move-in checklist (days to weeks)
After closing, take care of these essentials:
- Set up services with Colorado Springs Utilities or your local providers, plus trash and internet.
- Change your address and update accounts and subscriptions.
- Schedule immediate small repairs or upgrades while the home is empty.
- Review your property tax assessment and history with the El Paso County Assessor. File or track any exemptions that may apply and keep documents for future reference.
Local programs and insurance notes
First-time buyers in Colorado often use state assistance to reduce cash needed at closing.
- Explore down payment assistance and education courses at the Colorado Housing and Finance Authority.
- Confirm potential USDA eligibility for certain El Paso County addresses using the USDA eligibility maps.
- If you want one-on-one help with budgeting or credit, connect with a HUD-approved counselor through the HUD counseling locator.
Insurance and risk considerations:
- Homeowners insurance can vary with proximity to foothills and wildfire risk. Get quotes early.
- Flood insurance is required for federally backed loans if the home is in a mapped flood zone. Check a property’s status on the FEMA Flood Map Service Center.
- Mortgage insurance may apply if your down payment is below certain thresholds, depending on loan type.
Quick buyer checklists
Before house hunting:
- Check credit and correct errors.
- Gather pay stubs, W-2s or 1099s, and recent bank statements.
- Speak with 2–3 lenders and compare Loan Estimates.
- Set a target price range and down payment plan.
Touring homes:
- Note age and condition of roof, HVAC, windows, and major systems.
- Look for signs of water issues and check drainage around the home.
- Consider lot slope, sunlight, and winter access.
- Ask about HOA or special district fees and recent utility costs.
Offer phase:
- Have your pre-approval and earnest money ready.
- Confirm your inspection window and appraisal timeline.
- Request HOA documents and the seller’s disclosures early.
Inspection period:
- Book general and specialty inspections quickly.
- Get written estimates for repairs you may request.
- Decide on credits versus repairs with your agent.
Closing:
- Review your Closing Disclosure at least three business days before signing.
- Confirm wire instructions with the title company by phone and plan your final funds.
- Schedule your final walk-through.
Move-in:
- Transfer or start utilities and internet.
- Change address with USPS and key accounts.
- Store closing documents in a safe place for taxes and future reference.
Mini Spanish glossary
- Pre-approval — Preaprobación
- Earnest money — Depósito de garantÃa
- Closing costs — Costos de cierre
- Title — TÃtulo
- Deed — Escritura
- Property tax — Impuesto sobre la propiedad
- HOA — Asociación de propietarios
- Inspection — Inspección
- Appraisal — Tasación
- Contingency — Contingencia
- Seller’s disclosure — Declaración del vendedor
- Down payment — Pago inicial
- Mortgage insurance — Seguro hipotecario
- Underwriting — Aprobación crediticia
- Escrow or closing agent — Agente de cierre
- Radon test — Prueba de radón
- Well or Septic — Pozo o Fosa séptica
¿Prefieres hablar en español? Nuestro equipo puede ayudarte en ambos idiomas.
Ready to buy with a local team?
You deserve a calm, step-by-step path to the keys. Our team serves buyers across Colorado Springs and the I-25 corridor with patient guidance, bilingual support, and trusted vendor connections. If you are ready to tour homes, compare loan options, or map out your timeline, reach out to Rosalind Saucedo for friendly, local help.
FAQs
How much do I need for a down payment as a first-time buyer?
- Many first-time buyers use FHA at 3.5 percent down or conventional options starting near 3 percent, and programs from CHFA can help with down payment assistance.
How long does it take to close in El Paso County?
- A typical financed purchase takes about 30–45 days from offer acceptance, depending on inspections, appraisal timing, underwriting, and title clearance.
Do I need a radon test in Colorado Springs?
- Radon testing is recommended due to elevated levels across Colorado, and mitigation systems are common and effective; see CDPHE radon guidance.
What if the appraisal comes in lower than my offer?
- You can renegotiate with the seller, increase your down payment for the difference, or ask your lender to review comparable sales for a reconsideration.
Are USDA loans available in parts of El Paso County?
- Some perimeter areas may qualify based on address; check the USDA eligibility maps to confirm.
Which offices handle taxes and recording after closing?
- Property tax assessments are managed by the El Paso County Assessor, and deeds are recorded by the El Paso County Clerk & Recorder.
