Buying a Home in Denver

Purchasing a new home in a competitive real estate market like Denver isn’t an easy decision to make or pursue. The steps to take before owning property can be overwhelming, especially for people who are buying their own real estate for the first time. In this regard, Mile High Home Pro has compiled a simple-to-follow outline providing the primary steps to take when buying luxury homes in Denver.

Getting in contact with a veteran real estate agent

Before a buyer proceeds to look for a home to purchase within Denver, he or she must first look for a veteran real estate agent who operates within the area. Purchasing a new home is more secure if the buyer is represented by an agent with extensive experience in dealing with the Denver real estate market. What’s more, experienced agents have connections with other trusted and long-standing real estate experts who can make the buying process easier on the prospective homeowner.

 Talking over home purchasing needs

Have a definitive first discussion with the chosen real estate agent over the specifics of the purchase. This often includes projected price range, expected features and amenities, preferred locations or communities, and complete buyer information. This is also the stage where the agent advises the buyer over standards to observe and follow regarding the Denver real estate market’s rules and regulations, as well as the related forms and documents to prepare.

Applying for a loan pre-approval

Prepare to file for a pre-approved home mortgage with the buyer’s bank, or a trusted mortgage lender recommended by the agent. A buyer with a pre-approved loan has a higher chance of being considered for the property because they have a more stable financial platform, and are surer to complete the payments. It is during this step that the buyer’s credit score, employment history, and other finance-related information will be reviewed by the lender. Any negative marks on the credit score can hurt the buyer’s chances of getting his or her loan pre-approved.

Denver property search

With the agent secured and the mortgage pre-approved, it is time for the buyer to size up various properties in Denver, and narrow down which real estate to put in the purchasing shortlist. These days, searching for the home is conducted online through real estate sites, although looking through paper advertisements and the like will still help. This is also the stage where the buyer will take part in home visits to prospective purchases, accompanied by their agent.

Initial offers

This step comes up once the buyer has singled out a property to purchase from among a variety of homes he or she has visited and checked out. The offer will always come with the initial downpayment and the pre-approval letter signed by the lender. The process is often handled by the buyer’s agent, with little direction from the buyer himself or herself.

Finalizing the buying agreement

Reaching this step will only happen once both the buyer and seller have reached an agreement regarding the terms of purchase in the initial purchasing offer. Once all the points have been settled, the agents for both the buyer and the seller will discuss last-minute points before any purchasing documents will be prepared.

Finalizing the mortgage application

The buyer will update the mortgage lender on the state of the purchase, which will eventually lead to the lender to fully approve the loan. This usually requires the lender to review the documents already covered in the section for pre-approval to ensure that all necessary papers are in order.

Getting a home inspection

With all the final negotiations underway regarding financing, the buyer will also have to request for a home inspection to be undertaken. The aim of a home inspection is to determine if the home works as advertised, and to determine if there are any overlooked bits of damage. While the inspection is often at the buyer’s expense, whoever pays for any observed damages will be negotiated by both parties. This process differs from an appraisal, which only determines the approximate value of the property.

Reviewing the settlement agreement

Recent legislation has required all people purchasing homes within Denver to review the settlement agreement a full three days before the sale is closed. This document lists a breakdown of fees and other payments that the buyer is required to hand over prior to closing. The review is handled with the agent to ensure that no errors will be overlooked.

Final inspection and closing the purchase

The buyer will conduct a final inspection of the property prior to closing, to ensure that all the advertised features are still in order, or if the previously-commissioned repairs have already been completed or are underway. The final inspection will ensure that no other outside parties are occupying the property. Afterwards, both parties will sign the papers that will signify the closing of the purchase, under the supervision of both their agents.