So now that you've done your homework and arranged financing, it's time to kick things up a notch and really start making some progress towards making your new home a reality. Although you are not quite at the point where it's time to start touring properties, you're almost there. Now it's time to decide which Realtor you want to work with, define your perfect home and receive your Pre-Qualification Letter in hand. If you're ready to Take Action, then start packing because you're well on your way to becoming a homeowner.
Picking a Realtor
What is a Realtor anyways? A good Realtor is a professional that understands the inner workings of the local market, has negotiation tips and tricks to help their client get the best terms on their purchase and ideally has been in the business for more than 3 years full-time. Since you have read this far, I think it's fair to say that you're considering me to represent you in the home purchase. And for good reason. I've been in the industry since 2014, publish a market statistics blog on the Denver Housing Market, and was previously an Investment Banker with a bag full of techniques to help you get the better hand. Best of all, the seller pays my commission so it doesn't cost you anything to work with me! Drop me a line at the bottom of this page and we'll get started.
Define your perfect home.
If you don't know where you are headed, you'll never get there. Or worse yet, you won't know it when you see it. Real Estate is all about compromises, but if you have a clear picture in your head about what your perfect property looks like then it makes it easier to compromise on the less important features. To paint that picture in your head about what your perfect home looks like, click the link below to fill out the Buyer Questionnaire. Beds, Baths, Location, etc., it's all included. This Buyer Questionnaire not only helps you organize your thoughts, but also helps me understand exactly what you are looking for so that I can tailor my recommendations. Take Action by clicking the Buyer Questionnaire link below.
Do you have your Pre-Qualification Letter in hand?
If so, great! You know exactly how much is too much, and have already beaten out 80% of the other buyers because you took the time to prepare. If you haven't yet, don't worry. Our team works on your schedule. To be thorough, make sure you download the Pre-Qualification Checklist below then contact one of our Preferred Lenders. Our team is here to make your home buying experience an informed and pleasurable experience. Let's do this!
The second step in the process of becoming a homeowner in Denver is to arrange for the financing of the home. Unless you are an all-cash buyer, this will be an important consideration. Depending on the type loan you get, there may be limitation on the types of properties you can submit offers on. It's important to understand the different types of loan programs available while carefully selecting the best mortgage broker to act as a critical member of your team. Once you are ready to take the next step, Download the Pre-Qualification Questionnaire below.
Ok, I've made the decision. Where do I start?
The natural place to begin this discussion is the amount you plan on putting down to pay for the property. Your down payment will be divided into three categories: 1) Earnest Money 2) Professional Services 3) Down Payment Remainder. As a general rule of thumb, the more you can put down as a down payment the stronger your offer is. That's not to discourage you if you only have a couple thousand dollars for your down payment, there are tactics and strategies that have been tested and proven to work in low equity scenarios. A recommended down payment of 5%+ in Denver will give you the upper hand in most negotiations. Conventional Loans are the most preferential type of loan in a competitive market like Denver.
Who should I work with for my Home Financing?
A mortgage broker is going to help you obtain the best terms possible on financing your home. They will advise you as to which type of loan makes the most sense for the situations, and will serve as an ongoing point of contact as you refinance your property over time. Each bank that they work with have different pricing for different types of loans at different periods of time. They are an important part of your team, and we can help if you don't know where to start. Take a look at out Preferred Lenders on our Affiliated Partner's Page.
So what are the next steps?
To get all of your ducks in a row before you start the process of obtaining financing for your new home purchase, get a copy of our Pre-Qualification Checklist. You'll need to gather up your tax returns, accounts and debit balances, but this critical step will give you valuable insight as to what price point in a home you can afford. Make the investment of time now to prepare, and when you're ready to pull the trigger you'll be that much better prepared when the right time comes along. We are here to help you when you're ready.
How To Buy A House In Denver
Step 1: Research
The first step in making an informed home purchase is to do your homework. Many important decisions will have to be made in the process of purchasing a home the right way. The more you understand about the process on the front end, the better prepared you can be to make it as smooth of a transition as possible. Because that's what a move is, a transition.
Live where you want.
The neighborhood you choose to live is more than a location in the city, it's an expression about the lifestyle you want to create for yourself and/or family. Doing your research about what neighborhood you would like to live in will give you a clear target of where to start your home search. Check out our Neighborhood Resources by clicking the button below.
Who's on my team?
The Listing Agent who appears on the marketing materials for the property is looking out for the best interest of the Seller. The Buyer's Agent, on the other hand, advises the Buyer acting as a consultant who knows the potential pitfalls, property valuation and negotiation tactics. Along with Buyer Representation and Advisory, you will need to add several other members to your team. A Mortgage Lender, Inspector and Insurance Broker will all be key players as you move towards the closing table. Check out our Affiliated Partners for our pre-vetted list of vendors.
So what's going on in the Denver Housing Market?
The Denver Housing Market has always had a revolving door of people who move into Denver, stay for a couple years, and a certain number will move away. This creates an environment where there is a lot of demand for a good deal when buying a house in Denver. Certain strategies and techniques can be used to get around the crowds. That's why you need to align yourself with a trusted professional with experience in the local market. For Denver Housing Market Statistics sent to you monthly, sign up for the Denver Housing Statistics eNewsletter.
Congratulations! You have either just decided to purchase a home in Denver, or you are taking the first steps by looking into what the process of purchasing a house in Denver. Whether you have been renting, in a roommate situation or looking to take the next step in life, this guide will help you prepare ahead of time so you know exactly what the process of purchasing a house in Denver looks like.
I've heard Denver is a 'Competitive Market'
True. Depending on the timing, inventory and number of buyers in your price range, Denver can be a very competitive market for buyers looking to make their first home purchase. That's why it's incredibly important to align yourself with a professional who knows not only the local buying environment but the loopholes that many other buyers are missing entirely giving you the upper-hand.
How much will I need for a Down Payment?
As a general rule of thumb: The larger the down payment, the stronger the offer. To increase the probability that your offer will be accepted the first time, consider Conventional Financing with a Down Payment of 5%. In some cases, FHA financing could be an option at 3.5%. I can help you size up with HOA fees, taxes and other out-of-pocket expenses you might need so that there are no surprises.
What should I do next?
If you are ready to take the next step in your journey to buy a home, click the link below to complete a Buyer Questionnaire form which will allow our team to understand what your ideal property looks like. This series of questions will clarify exactly where you are at in the buying process, where your ideal location is, what your perfect home looks like and more.