8 Tips for First-Time Buyers in Denver

Anyone buying a home in the Mile High City has a lot to look forward to. 

The Rocky Mountains serve as a backdrop to Denver, and world-class winter resorts are a short drive away. There are art-filled neighborhoods to discover and six professional sports teams to cheer for. The city’s celebrated sustainability and plentiful commuting options are just the cherries on top. 

But purchasing a home is not easy, no matter how enticing a city may be. First-time homebuyers have a downpayment to save up for, closing costs to prepare for and a possibly long search before they find their dream home in one of Colorado’s best cities. 

Planning is the key to ensuring your first home-buying venture is a comfortable experience.

Below, the team from Prevu Real Estate has put together the top eight tips you can follow to ensure your first home purchase in Denver is smooth and memorable. 

Get to know your neighborhood

Before you start thinking about down payments and mortgages, get to know the neighborhood you may soon call home. 

Not only will you get an idea of what your commutes might look like and what you’ll do for entertainment, but you will discover one of the essential building blocks as you plan to buy a home: price points.

To effectively plan a budget and start saving for a down payment, you need to know what you can expect to pay. Home prices in Golden Triangle are different than in RiNo, and the amount of time it may take you to buy a home in either will vary greatly.

Once you have a reliable price range, you can start planning a budget.

Set up a budget

Budgeting is arguably the most important financial planning step in your home buying journey.

It is crucial to remember what exactly you are saving for as a first-time homebuyer in Denver. It’s not just the down payment but also closing costs, homeowner insurance, and potential legal fees. 

Make a list of all potential expenses you may deal with as you move forward. Research how much home insurance is in Denver and set that aside as a budgeted expense. Aim for the standard 20% down payment and budget that out. Treat other possible expenses, including home inspection price and monthly mortgage payments, as part of the bigger budget.

Such minute attention to detail can help set you up for success.

Get a pre-approval

When you have all your finances in order, the next big step is to secure a pre-approved mortgage loan. 

This isn’t just for your peace of mind but to help you stand out to the seller as a serious buyer. 

When sellers see a pre-approval letter, they immediately know they’re dealing with someone who has their finances in order and won’t back down from the deal. It also helps you stand out from other offers if you’re in the market for a heavily contested home. 

As you embark on your homebuying journey, start collecting all your financial information, such as W-2 forms, pay stubs, and investment statements, so the pre-approval process goes smoothly as you consider different loan options with your mortgage lender.

Interview buyer's agents

It is possible to complete a home purchase alone, but the benefits of hiring a buyer's agent are hard to ignore.

Many buyers view home buying as searching through listings, choosing the right option, considering the home, and then making an offer. While those are essential first steps, they are only the tip of the homebuying iceberg.

As you move forward with the purchase, there is legal paperwork to arrange, negotiating to do, and walkthroughs of the property to schedule to ensure you know what you’re buying. This is where a buyer’s agent becomes an invaluable resource and why it’s vital to interview numerous agents. 

Buyer’s agents should have an encyclopedic knowledge of their local neighborhood. Not only is that knowledge used to guide you on your home search, but also to laser in on specific price points. 

A buyer’s agent will also walk you through every step of the negotiating process and help you arrange all the complicated paperwork. They can also point you toward trusted professionals for mortgages, inspections, and more.

But the most valuable thing a buyer’s agent can do for you is save you money when you purchase a home.  

Work with an agent that offers commission rebates

During your budget planning, the sea of numbers might make you ask yourself: "is there any way I can save?" The answer is yes, and the key lies in commission rebates.

Commission rebates, also known as buyer rebates, are modern real estate tools forward-thinking brokerages provide to help buyers save thousands of dollars when buying a home. For homebuyers navigating rising mortgage rates, commission rebates help lift a significant weight off their shoulders. 

For example, home buyers who buy a house with Prevu can receive up to 1% of that home’s purchase price via a commission rebate. Prevu offers the largest rebate in Denver, which buyers can use to replenish their savings, cover renovation expenses, or invest in new furniture. 

When interviewing agents about commission rebates, it’s also important to ask what services they offer. Even if they provide a buyer rebate, you need to ensure the agent you work with will provide you with the level of service you want and need for your specific situation. 

Collaborate with your agent digitally

Almost every major purchase, from furniture to cars, can be made online. So there should be no reason you can’t do the same with a home.

Tech-enabled brokerages like Prevu invest in their digital platforms to give buyers better control over the home-buying process. When interviewing potential agents, ask if they offer tools to make your search easier. 

Prevu allows buyers to manage almost every detail of their home search. Buyers can input specific criteria to narrow down listings in their preferred area. After finding listings they are interested in, they can schedule a property tour with the click of a button and collaborate with a dedicated Prevu agent to help them move forward.

Working with a brokerage that lets you take advantage of technology can help save a lot of time, especially in a fast-moving market like Denver. 

Consider which housing options work best for you

The quintessential image of your own private home can be enticing, but exploring all your options is crucial to making the right choice when buying your first home in Denver.

Keeping an open mind when home shopping in Denver might allow you to explore options you hadn’t considered before. So before you limit yourself to expensive lakeside homes in Sloan’s Lake, visit the historic Four Points, with its rich cuisine and eccentric jazz clubs. Or visit the museum-filled streets of Golden Triangle.

You may discover that buying a condo in an area with immediate access to Downtown Denver makes more sense. Or you may find more comfortable price points in the further reaches of Denver proper. 

Being open to other housing options may allow for greater flexibility if your initial plan becomes unattainable.

Set up property alerts

Being on top of listings is a surefire way to be ahead of the competition.

This is why using a tech-savvy brokerage can be invaluable. Prevu’s platform automatically sends you property alerts as soon as the right home hits the market. The crucial difference is that you can quickly request a tour with the click of a button and your agent will coordinate and meet you there.

You can then make a plan of action about making an offer and act quickly, which can be the difference in whether you walk away with the keys to the home. 

Interested in buying a home in Denver? Browse listings and see how much you can save with Prevu's Smart Buyer Rebate.