The market in Denver has been red hot for quite some time now, and that trend is spreading across the US, making buying a house anywhere more of a challenge. However, if you team up with a great real estate agent and lender, there are still some great opportunities out there.

If you’re planning on becoming a homeowner, you’ll most likely need a mortgage, which means you will be dealing with banks, credit unions, or other financial institutions. Before you start scheduling walk throughs, here are some things the finance experts want you to know.

1.     Get pre-approved ASAP
Before even thinking about making an offer, you want to have proof of your financial viability. Experts say potential buyers should make pre-approval their first step. That way, you know your loan will be sufficient before you fall in love with a house.

2.     Prepare for bidding wars ahead of time
Buyers all over the country are facing bidding wars after making an offer. This can be attributed to low mortgage rates and low inventory creating strong demand from buyers. Some sellers are even receiving dozens of all-cash offers.

3.     Understand appraisal gaps
An appraisal gap is a disparity between the offer you put on a property and what the property is deemed to be worth by a lender. If a home appraisal comes in low, you will have to decide if you want to cover the gap. If you’re willing to do this, that can be written into your offer and stating how high you’re willing to pay. This demonstrates to the seller that you want the home and can pay top dollar to get it.

4.     Research down payment assistance programs

Buying a house in a seller’s market is difficult, but it’s especially challenging if you’re a first-time home buyer. That’s where down payment assistance programs come in. Government organizations and private agencies offer these types of programs to qualified first-time buyers to help them come up with a sizable down payment. Eligibility varies by location and type of program, but an organization will look at your income and credit history before choosing to award you a grant or loan.

Whether you pull the trigger now or later, home prices are expected to keep appreciating. The $400,000 home you want today could very well sell for $440,000 next year. So, what are you waiting for? Give Metrowest a shout today – we’d love to help you start the process!