What do you need to buy a home in Metro Denver? While the exact dollar amounts you'll need vary depending on many different factors, the following guidelines will give you a general idea of what to expect. To buy a home, you need:
You need a credit rating good enough to qualify for a mortgage. The higher your credit rating, the better interest rate you'll usually qualify for. You can probably buy a house with a less-than-great credit rating, but it will cost you more due to the higher interest rate.
Unless you have enough cash to buy a home, you'll need to be approved for a loan by a licensed mortgage lender. You'll need pre-approval to make an offer on a home. To complete the purchase, you'll need final loan approval.
The down payment amount varies depending on the price of the home you buy and the type of loan you qualify for. The down payment is generally about 3.5 - 10%. If you qualify for a VA loan, the down payment is 0%. Your lender will give you more information on this.
You'll deposit part of your down payment when your offer is accepted, to show that you're "earnest" about buying the home. That means your earnest money needs to be available to write a check against sooner than the balance of your down payment.
For a thorough, professional home inspection (the only kind that protects you), expect to spend about $400 - $500.
Total closing costs vary from contract to contract and are affected by many variables, including the price of the home you buy and the type of loan you qualify for. The title company will give you the exact amount.
The Benefits of Working With Us | Our Services for Metro Denver Home Buyers | What You Need to Buy a Home | First Time Home Buyers | Mortgage Loans | Lead Paint | Frequently Used Real Estate Terms | Real Estate Glossary