How to Buy a Home in Colorado: 6 Steps

Aspiring homeowners, buckle up because we’re about to take you on a journey to homeownership! Don’t worry, we’ll make sure to highlight all the important steps to ensure that your new asset is a safe and secure investment.

Step 1: Get Ready for Home Ownership

First things first, to make your dream of homeownership come true, ensuring your credit history is good is crucial. Get mortgage pre-approval, find out what type of mortgages you qualify for, and save up for a downpayment (typically 10-20% of the property’s value; if FHA-qualified, then possibly less). But wait, there’s more! You should also consider hiring an attorney to review all contracts and agreements associated with the home buying process. Remember, knowledge is power!

Step 2: Find a Real Estate Professional

You’ll need some expert help to find your dream home. Consider asking friends, family, and work colleagues for referrals, searching realtor.com®, or looking for real estate yard signs and advertisements. Make sure you understand buyer’s representation contracts and agreements before signing.

Step 3: Find the Right Colorado Property

This step is all about you! Determine what’s important such as particular schools, neighborhood amenities, monthly mortgage payments, public transportation, walkability, etc. Don’t forget to include home owner’s assessments, utilities, and taxes when calculating the monthly mortgage payment.

Step 4: Finance the Property

You’re one step closer to getting the keys to your brand new home! Contact your mortgage broker or lender to get started. The lender or attorney will run a title search to ensure there are no clouds on the title. Make sure you understand the financing terms—ask the lender for clarification if needed.

Step 5: Make an Offer

Getting to this step means you’re closer than ever to owning your dream home. Ensure the property is inspected by a licensed home inspector, acquire title insurance and read all contracts before signing. Don’t forget to place a competitive bid and be prepared to make a counter-offer. Remember, only one offer will result in a sale, so if your bid is not accepted, be ready to move on.

Step 6: Closing and Life After the Buying a Home in Colorado

Congratulations, you did it! Now it’s time to protect your new asset by obtaining insurance such as homeowner’s, flood, disaster, and fire. Don’t forget to weatherproof your new home and maintain files—digital or print—for all warranties, insurance documents, contracts, etc. Keep original closing documents in a safe place, preferably outside your home, and set up utilities bills in your name. Finally, implement desired aesthetic changes such as painting, minor construction, and re-flooring. Welcome to life as a homeowner!