The homebuying process can seem intimidating and opaque, especially if you’ve never done it before – but investing in homeownership is one of the best ways to build wealth, and I want to help you get there! This is the first in a 4-part series geared toward informing you about what to expect as you buy a home. A big part of my role as your Realtor® is making sure that you understand and are comfortable with the process – that you feel informed and in control at each step.
PART 1: GETTING READY AND GETTING STARTED
Step 0.5: Are you ready to buy?
Figuring out your motivation is a huge step. Deciding to buy can be spurred by many factors: starting a family, planting new roots, finding personal and financial stability, building your own equity instead of paying someone else’s mortgage… whatever your reasons are, it’s a good idea to know why you are doing this. As with anything, having that goal and intention behind your actions will help to keep you going even if things get stressful.
Step 1: The Buyer Consult
As a first step, I love to sit down with you (via Zoom, on the phone, or ideally with a cup of coffee or glass of wine!) and talk all about you and your dreams for your home. This gives me a chance to get to know you (if I don’t already!) and what you’re looking for. This means beds/baths/garage spaces, but it also means diving into wants vs. needs. Why do you need that third bedroom – is it for a home office? Would a 2 bedroom with a loft or den work just as well? Is the garage for storage or for parking – and if it’s the former, would a shed or other covered space work instead? What part of town do you want to be in and why?
(I love to talk about Denver’s sweet spots and unique neighborhoods – if you want to dive deeper, let’s set up a time to talk! You can also look at a map of Denver’s neighborhoods and read local highlights for some of my favorite parts of town.)
Step 2: Pre-Approval
One of the main factors at play here is money – so let’s talk about it. Can you afford to buy a house? Talking to a lender – a loan officer or mortgage broker – is a crucial step in figuring out your budget. Instead of thinking in terms of the overall price, a lender can help you break it down – how much do you want to pay per month? How much do you have for a down payment? What kind of interest rate can you get? Total monthly payments can vary wildly based on down payment amount, interest rate, mortgage insurance, insurance, taxes, and HOA fees (if applicable).
A good lender will walk you through the different scenarios and make sure you understand your numbers. They’ll also provide you with pre-qualification or pre-approval documentation. I can recommend some amazing lenders if you’re not sure where to start!
Step 3: Start your Search!
Once we’ve identified your wants and needs AND your budget, let’s get down to business! I’ll set up a search on our local MLS services (MLS = multiple listing service – a database of listings entered directly by real estate professionals), REColorado (Denver Metro) or IRES (Boulder and Northern Colorado), with your parameters, and send you promising properties that pop up. This does not preclude you from doing your own searches on sites like Zillow, Redfin, or Trulia – those sites get their information from the MLS as well. Just be aware that occasionally the secondary sites may be delayed in their information, so you could see a property that’s not actually available – or not see one that is available! I also look into things that might not be on the MLS – new builds (if you’re considering them), homes for sale by owner (FSBO), off-market opportunities, and others. We want to cast a wide net to start and then filter things out as we go.
Once you start seeing things that fit your needs and catch your eye, we get to play House Hunters… and we’ll talk all about the ins and outs of showings in the next installment. Stay tuned!
You can also peek at the whole timeline below:
