With increasing prices and decreasing inventory, it’s easy for would-be home buyers in Denver to get discouraged. It’s a challenging climate, to be sure, but with more and more vaccines rolling out many experts are hopeful that inventory will begin to creep up, giving buyers more options. In the meantime, there are a few things buyers can do to help increase their chances of finding and snagging the right home.

1. Get mortgage preapproval
You may have heard the terms “pre-qualified” and “pre-approved” used interchangeably, but these two things are different. Getting pre-qualified involves supplying a bank or lender with your overall financial picture, including debt, income, and assets. The lender reviews everything and gives an estimate of how much you can expect to receive. Pre-qualification can be done over the phone or online, and there's usually no cost involved. Getting pre-approved is the next step, and it's much more involved. Here you’ll need to complete an official mortgage application to get pre-approved, as well as supply the lender with all the necessary documentation to perform an extensive credit and financial background check. The lender will then offer pre-approval up to a specified amount.

It may seem like a lot of work up front, but it’s worth it. Not only will you learn how much house you can afford, but unlike those who aren’t pre-approved, you can move very quickly when you find a house that fits your needs.

2. Expect to see lots of houses. Homes go on and off the market very quickly in Denver. Bids can happen in a matter of hours and they’re almost guaranteed to be above asking price.

3. Be prepared to offer more than asking price. Unfortunately, that’s just the nature of our climate right now. If your max budget is $500,000, be prepared to look at homes listed around $400,000. Your real estate agent will be able to gauge how far over asking price successful bids on similar homes have been.

4. Be patient and persistent. Buying a home in a seller’s market can be discouraging, but don’t give up!

Ready to become a homeowner in Denver? You’ll want an experienced pro in your corner. Give Metrowest a shout today and let’s start the process!