Buying a house in 2023’s unpredictable Colorado housing market is a challenge. Whether you’re a first-time buyer or looking to make a strategic investment, navigating such a market requires knowledge and careful planning. Here we’ll provide you with some very helpful instructions on how to buy a house in Denver successfully.

1.     Benefit From Declining Home Prices: Because of the current market, you can save thousands by buying homes at lower prices. In Q1 of 2023, median home prices dropped to $4,36,800 from $4,79,500 in Q4 of 2022.

2.     Take Advantage of Stabilizing Mortgage Rates: Considering that the 30-year fixed mortgage rates are expected to stabilize between 6% to 6.5% in 2023, you get an opportunity to secure a favorable interest rate.

3.     Maintain a Healthy Credit Score: Aim for a credit score of 670 or higher, as a higher credit score can result in a lower interest rate. The median credit score for buyers in Q3 2022 was 768.

4.     Plan Your Down Payment & Closing Costs: Allocate about 20% of the home’s sale price towards a down payment, and budget 2% to 5% of the total purchase price for closing costs.

Ultimately, with declining home prices and stabilizing mortgage rates, now is a favorable time to buy a house in Colorado. Plan your down payment and closing costs in advance to avoid falling short of cash. Likewise, make timely payments to ensure that your credit score stays high. By following these manageable tips and with careful planning, you can confidently start journey to homeownership.

If you’re a first-time buyer who’s not entirely sure where to start, we’d love to help! Give Metrowest a shout today and let’s turn your dreams of becoming a homeowner into a reality!