WalletGyde has partnered up with long time realtor, Hope Stafford at Keller Williams DTC to help you explore the beautiful growing city of Denver and help you understand what it takes to purchase a home!

Millennials are generally first time home buyers. Deciding to purchase a home is a big decision, and there are many steps in the process that can often be confusing. But, I have simplified the process into 10 steps!

The Denver market is a seller’s market, so these steps are based on a quick turn around in decision making.  Most homes sell in under 30 days, so there is not much time for ‘sleeping on it.’ Knowing the process ahead of time can save you a lot of stress.

Here are the steps to buying a home:

  1. Get pre-approved by a reputable lender.
  • Steps 1 and 2 are interchangeable.
  • If you find an agent first, they can refer you to some good lenders, who will have you submit pay stubs, tax returns, they will look up your credit score, and your debt to income ratio, and tell you how much you can afford to purchase.

  1. Find an agent and start searching for houses.
  • Make sure to interview your agent (hopefully me) to find out if they are a good fit.  
  • This is the fun part of the process, and if your agent is knowledgeable, listens to your wants and needs and is intuitive (like me), you will not have to see a ton of places before you find the one!

3. Put in an offer once you find a home you love.  

  • Go under contract if the offer is accepted, or negotiate if they counter.
  • If you go under contract, you give your agent a check for the earnest money and the agent will take it to the title company who holds it. Earnest money is like a deposit and will go towards the money to close.

  1. Get an inspection.
  • A sewer scope is highly recommended as sewer problems can cost $10,000 plus, and an inspection to find the problem before your big purchase is under $200. Having a structural engineer come take a look is also a good idea if it is a detached single family home. I have one who will do this for free!
  • If things come up in this process, your agent will write an inspection objection and hope they agree to all or some of your requests in their inspection resolution, or you can terminate the contract.

5. Set up your property insurance.

  • Sometimes, you can get a deal, combining your car and home insurance. You can also contact the company you have rental insurance through if you decide to rent.
  • If the property can’t be insured for some reason, you can terminate the deal.

  1. Fill out paperwork from the lender.
  • During this whole process the lender is also sending you paperwork. They need you to fill this out in a timely manner to get your loan approved by the underwriter.
  • Once you have gone under contract, DO NOT, make any major purchases without first talking to your lender.

  1. Look over the title work.
  • You will receive the title work on the house to make sure the current owners don’t have any liens.
  • If they do, you can request that these be taken care of before you close, or you can terminate the contract.

  1. The house will be appraised.
  • The lenders will send out an appraiser and the house will be appraised to determine the value the lenders will loan you money for. I have not had a house appraise for under the price it is under contract for, but it surely can happen.
  • You have to determine if you want to ask the sellers to pay the difference, if it doesn’t appraise at the value you are under contract for, or you can pay the difference, or you can terminate the contract.

  1. The lender gives you your loan conditions, and the title company gives you the settlement sheet.
  • If you approve of your loan conditions and  the lender gives the clear to close you are almost done!
  • The settlement statement itemizes all your closing costs and how much you need to bring to closing.

  1. Attend the closing.
  • Make sure your writing hand is well rested because you will sign a whole stack of papers since this is a big purchase.
  • Once you finish this, you receive the keys and you own the house!

We know this is a lot to take in, but it is most definitely worth it. Maybe after this you are wondering whether you should rent or buy? WalletGyde is here to help with that and more. Also, if you are moving out on your own for the first time, it may be scary, but that is why WalletGyde is here. We want to help you with your finances and grow your wealth along with you.

Comment down below all your thoughts and questions! This month is all about housing, so stay tuned and check out our other blogs. We post on the daily!