Boasting some of the best homes in Colorado and throughout American, Denver is the perfect place to purchase a home. But purchasing a home here can be challenging especially for first-time homebuyers in Denver. After all, purchasing a home isn’t a straightforward process. Here is a home buying guide for first-time buyers to help you navigate the process of purchasing your new home in Denver.
Why buy a home in Denver?
For many prospective homebuyers in Denver, the current market conditions are ideal for purchasing a home or house in Denver. Although home prices are rising steadily in Denver, the low mortgage rates make it an ideal time for homebuyers to buy homes of their choice in Denver. Prospective homeowners who will postpone their home purchase may end paying more housing costs later in 2019 or at the beginning of 2020. So this can be the perfect time to purchase a home in Denver.
3 Most Important Things To Know
• Choose the right buyer program: Going by your income levels, pick a home buyer program that could potentially reduce the down payment you are required to pay to get into your new home. On average, a 20% down payment is required to get into a new home. But a good buyer program can significantly reduce this percentage.
• Mortgage payment won’t be higher than your rent payment: Considering that Denver is a high-rent place, your mortgage may be lower than your rent payment. Purchasing a home in Denver may be cheaper than renting a home in the long-run.
• Your credit score matters: Although the Federal Housing Administration requires a minimum credit score of 500 to purchase a home in Denver using an FHA loan, most lenders need a minimum credit of score of either 620 or 640 to be eligible to get funds for your new home.
How to get pre-approved (as a serious home buyer)
• Proof 0f income: Prepare your W-2 statements from the previous 2 years, as well as any other documentation that serves as proof of your income.
• Proof of assets: You also require investment account statements and bank statements as proof of having cash reserves and funds for closing costs and down payment.
• Employment verification: The lender will call your current employer for purposes of verifying whether you are still are employed by the employer you stated in your application.
Owning a home in Denver can be a dream come true for prospective homebuyers who are acquainted with the process of purchasing a home. Even for first-time homebuyers, you can seamlessly buy your dream home only if you follow the right process and do the right things.
