First-Time Home Buyers

If you are a first-time home buyer, use the guide below for helpful hints and tips and learn how to avoid common mistakes when buying your first home in Denver.

  • Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.
  • Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You'll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
  • List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes - things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.
  • Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.
  • Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:
  1. One or more detailed maps with your areas of interest highlighted.
  2. A list or file of the properties that your agent has shown to you.
  3. Paper and pen for taking notes as you search.
  4. A camera to snap pictures of homes you have toured to help you remember your favorites and features you really liked.
  • Visualize the house empty & with your decor: Are the rooms laid out to fit your needs? Is there enough light?
  • Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don't make a hurried decision that you may regret later.
  • Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don't forget such essentials as:
    1. Include inspection & mortgage contingencies in your written offer.
    2. Have the property inspected by a professional inspector.
    3. Request a second walk-through to take place within 24 hours of closing.
    4. You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).

All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please contact us directly to discuss any of these matters in further detail.

How to Buy a House in Denver, CO: Here’s What You Need to Know

Buying a house is one of the most major investment decisions you will most likely make in your lifetime. Denver, CO, is an excellent place to own a home. Here’s an overview of how you should prepare yourself before you buy a house in Denver, CO.

What Do You Need to Buy a House in Denver, CO?

  • A strong credit score
  • Savings for a down payment and closing costs
  • Preapproval for a mortgage loan
  • An efficient real estate agent to guide you correctly throughout the whole process is MUST. Contact Us
  • All the necessary documentation
  • A clear, comprehensive understanding of what goes into purchasing a house

Requirements to buy a House in Denver, Co

  • 620 credit score. I dont know my credit score? With the help of our inhouse lenders you can find out. Contact Us
  • Social Security, US Citizen, Resident, or must have a active work permit
  • 2 year Job History must be in the same company or same line of work
  • Last 2 years tax returns (1099's or W2's) both must be the same. (They can not be mixed or combined)
  • Last two months bank statements or pay check stubs

How Long Does it Take to Buy a House in Denver, CO?

Depends. The time it takes to look for a home varies for each buyer. But once you are under contract, it can take another 30 to 45 days to close. However, the timetable can vary significantly depending on a number of variables, like your financing requirements, market conditions, and inventories.

Choose the Mortgage Type

As a home buyer, you must determine the best loan type for you and which one you qualify for before you can submit an application for a mortgage. Most mortgages in the United States are conventional loans. Homebuyers frequently choose conventional loans because they can qualify for one with as little as 3% down. FHA loans are provided by the Federal Housing Administration for a down payment of 3.5%. Veterans, active members of the Armed Forces and their surviving spouses qualify for the VA loans insured by the Department of Veterans Affairs. VA loans do not require any credit score or down payments. A USDA loan is a another type of government-backed loan that aids homebuyers in rural and suburban areas. A USDA loan is available with no down payment. You must also decide on the mortgage term. Although 10, 15, or 20 year terms may be available at a lower interest rate, 30-year mortgages are the most typical.

Apply for a Mortgage Preapproval

In order to accurately determine your budget, working with a lender to get preapproved for a mortgage is crucial. Given that the lender will have complete knowledge of your finances, a mortgage preapproval will provide you with accurate figures. A preapproval letter also shows that you are a genuine buyer interested in the property. However, keep in mind that this letter is valid only for 90 days, after which it needs to be updated. You can also apply with multiple lenders around the same time and choose accordingly. Mortgage Brokers: Know how they can help you get a fast pre-approval and accelerate the mortgage process!

All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please contact us directly to discuss any of these matters in further detail.