1. Starting your Search
Finding a reliable home search platform can be tricky. There are many sites that list homes for sale but often these site can be inaccurate, out of date, or are looking to solicit you for other services. In a highly competitive market, having the most recent and accurate listings is critical. We recommend using this home search platform for the most reliable home search site. Denver's Best Home Search Site
2. Determine What you can Afford
Typically, buyers can purchase a home that is no greater than 3 to 5 times their annual income. There are several other factors that go into this calculation, such as, credit score and other debt (e.g. credit cards, student loans and car payments). Buyers should also have a minimum of 3% of the purchase in cash for down payment. A 20% down payment will allow buyers to avoid mortgage insurance payments, improve interest rate, and lower the monthly payments. Also, you can try the affordability calculator at this site for a preliminary idea of what you can afford: Home Affordability Calculator
3. Real Estate Agent vs. Real Estate Advisor
Is there a difference? Absolutely! A real estate agent might be qualified to open the lock box and give you access to the home. A real estate advisor will understand how the home was built, provide a "pre-inspection" during the showing to determine if there are any "landmines" that you might discover only after going under contract. An advisor will be able to assess the building method, materials, and quality of updates and improvements. An advisor is going to work hard to be sure you don't buy a bad home! A real estate agent might be licensed to write contracts on your behalf but be limited in their knowledge of how to leverage the contract in your favor and use certain clauses and provisions to help you win in a competitive situation without having to pay the highest price. An advisor is a skilled negotiator and savvy advocate for you as the buyer. Please contact us to set-up a buyer-advisor meeting to determine the best approach to finding your next home!
4. Get Pre-qualified with a Recommended Lender
A pre-approval or pre-qualification letter is necessary before you can begin making offers on any homes you find. This is typically a simple process but does require you complete an application and provide documents (W-2 statements, paycheck stubs, bank account statements). National banks are an option for buyers, but we suggest that you should engage in a conversation with at least one local lender as they often can provide several loan alternatives and have better over-site of the lending process. Contact your Colorado Home Advisor for a list of our recommended lenders.
5. Get Out There and Start Looking
Looks can be deceiving. The houses you find online are deliberately made to look bigger and brighter. The updates you see on your screen often are poor in quality and construction. There is no way around the need to see each home in person to be sure it's the right one. Additionally, there is something to be said about a "vibe" you get on a certain street or neighborhood; this can't be felt by looking online. If you are new to Denver, your Colorado Home Advisor can provide a city tour, pointing out great "hot spots" and particular neighborhoods that might be best fits based on your wants and needs.
6. Making the Offer
You've finally found the home you've been searching for and its time to write the contract. This is where your Colorado Home Advisor will shine! At this point it will be determined what the competitive nature of the home is and what strategies to employ to help you win. If there is little to no competition, your Colorado Home Advisor will be able to recommend where your offer should fall.
7. Getting to the Closing Table
Once under contract, the next 30 days is a coordinated process between you, your Advisor and lender. I tell my clients that the first 10 days will feel like a part time job. This typically involves responding to requests for information from your lender, scheduling your home inspection and preparing for the pending move. Your Advisor will be a great resource for you during this time as they will be sure the dates and deadlines on your contract are met, negotiate any concessions required from the inspection or appraisal, and be a listening ear at all times.