A Guide to Purchasing Your First Home in Denver
The moving services professionals behind Moving Proz offer advice in first steps toward buying a new home.
Buying your first home is a terrifying and stressful process. For the first time ever, the price of a home in Denver reached an average of over $700,000. Seeing that many zeroes can be a sobering experience for many buyers, to put it lightly.
But finding homes for sale in Denver and surrounding areas is still possible, and now could be the best time to buy a house. As markets continue to roil around the country and the future stays uncertain, owning equity is the best way to guarantee your own future.
The homebuying process is complicated though, filled with tons of different paperwork and negotiations. Especially when many people are moving to Denver from across the country. To learn more about it, keep reading below.
Start Preparing Your Finances For a Home
The first step if you’re buying a home anywhere is to look at your finances.
You need to get a clear estimate of the money you have on hand for immediate expenses. The more money you have on hand, the more you can put down as a down payment.
If you can pay a large down payment, lenders will be more willing to lend you money. They may also increase the amount you are preapproved for when you eventually start shopping for a home. It shows that you are dedicated to owning a house and that you are responsible with money.
They will also want to look at your credit score and collect information about your income. Make sure to have documents like paystubs and a credit report ready. Before buying a house, you should try to make consistent payments on credit cards too, just to pick up your credit score.
Then, you will need to reach out to a lender about finding a loan. Most will speak with you about your financial situation before giving a prequalification letter. This letter essentially shows the amount you have to put down towards a house.
Don’t Stop at Just One Prequalification Letter
If you’re getting ready to own a home, don’t stop at just one prequalification letter. Reach out to multiple lenders and shop around, getting a sense of what they are willing to lend you. Generally, you will want to use the prequalification letter that offers the most.
It will give you the best chance of finding a house in any market. It will also give you more money for any necessary repairs, which can help the closing process go smoothly.
Start Searching for Homes for Sale
Once your finances are in order, it’s time for the fun part of buying real estate — house hunting.
This is when you drive around neighborhoods and visit different houses, seeing them with your own eyes. Most of the time, you will do this with a realtor. These are experts in the area and have many listings they can offer. Their job after all, is to learn more about your situation, what suits your needs, and what you want out of your home.
During the tours, you’ll also start to get a sense of home layout and surroundings. Aspects that pictures simply don’t convey, like the condition of the foundation, or the roof, for example. You can also get a better sense of the flooring, and whether any other work was done to the house previously.
These are great opportunities to envision overall, living lifestyle. You get to imagine repainting a room or installing brand new appliances. During home tours, you can truly see why you’re buying a house — investing in your future.
Real Estate Agents Help You Navigate the Market
It doesn’t matter where you are — real estate markets across the U.S. remain on the rise. Investor buyers and second-home purchasers race to areas across the country. They are buying properties at prices that the every-day person cannot afford, pricing some out of their communities.
Real estate agents will help you manage the stress from this, giving you solutions you may not have thought of. And if you are moving across the country because your old town got too expensive, they can show you what’s great about their area. If you’re moving to Colorado from places like Tennessee or New York, for instance, experts can show what’s great about moving to a new area like Denver.
Offers Are Not Commitments
It’s important to remember that making an offer on a house is not a commitment. It’s simply an indication that you’re interested in the property, and would be willing to pay a certain amount of money for it.
Experts can help in other ways, showing buyers that there are other people who also want a particular home. Other buyers may not want to put up a fight for it and may move on from a property. Placing offers on a house is a great way to take the first step towards owning a home, even if you’re not entirely sure about a specific place.
Buying a House in Denver Means Getting an Inspection
After placing an offer on the home you want, it’s time to return to your lender. Tell them you found a property so they can take the next steps in filing your loan. Usually, that involves sending a home inspector out to the property.
These are people who know how to investigate any of the problems a house may have. They look under every floorboard and in every cranny, evaluating the condition of a home. After learning about the house’s condition, they report back to the lender.
Then, the lender takes that information into consideration when it comes time to actually laying down the money during a closing process. They may require some things to be fixed before committing hundreds of thousands of dollars. It can complicate the closing process.
You may need to negotiate with sellers about who will pay for repairs. Sometimes, sellers may be willing to spend the money on making repairs. In the current real estate market though, it’s more likely that buyers will need to foot the bill.
Finding Homes in Denver is a Good Move
Buying a house in Denver can still be a daunting process, with buyers still wondering if they may be financially ready to take the first steps toward homeownership. Investors, including people looking for their second homes, remain on the prowl in the market. It means average buyers and first-time homeowners need to work harder than ever before to land the house of their dreams.
More hopeful, still, with the right financing, lender and realtor relationships, and processes for planning ahead, including the right professionals to ensure your new move, after all, runs seamlessly from beginning to end — all makes finding a new home possible. With a great team of experts who will be behind you every step of the way not only makes home ownership possible, but also serves as a reminder that buying a new home is an investment in your future.
Kelli Warren has been working with Moving Proz as a business owner since 2018. Kelli holds a background in graphic design, having served as Lead Graphic Designer for VIZIO, and leading design for Moving Proz. Working alongside Founder Derek Shaw and the teams serving Denver and surrounding areas, Kelli helps to positively impact clients while bringing versatility as a female-led business.
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