As many real estate professionals will attest, more first-time homebuyers in Denver have a dual-income household, family help or end up getting roommates. While lack of affordability has pushed many buyers to the sidelines, they can regain purchasing power with the right financial plan.

Wannabe buyers generally fall into two camps: there are people who are over-prepared or people who think they can afford more than they realistically can.

Here are her tactical tips for making sure you're ready to buy, and determining what you can really afford.

Look at your credit
If you don't have credit or it's not in good shape, it's not time to buy. Your credit score determines how willing lenders are to give you money.

If you're starting from scratch we recommend getting a secured credit card. To start building your score, put a recurring payment like Netflix on the card, and automatically pay it off every month. Never carry a balance.

While credit card debit might be a deal breaker when it comes to buying a home, you don't need to pay off your student loan debt or even car loans before applying for a mortgage.

Calculate your maximum monthly payment
Generally, 28% to 32% of your net monthly cash flow is safe.

Note that your lender will likely approve you for a higher mortgage than what you could comfortably afford. But they’re not factoring in monthly expenses like a gym membership, streaming services, and the like.

Make that monthly payment calculation based on today's mortgage rate. If the rate drops enough for you to refinance into a lower rate in the future, that’s great, but not something you should bank on.

Build your savings and downpayment
Put away at least three months of expenses for emergency savings.

For a downpayment, we suggest at least 10-20% to keep your monthly payment comfortable, and start building equity as quickly as possible.

Plus, more money down could get you that extra bedroom, for instance, even if it means having to save for longer.

If you’re ready to become a homeowner in Denver, that’s great – reach out to one of the experienced pros at Metrowest and let’s go over your options. But if you’re not in that camp yet, hopefully the tips above will help you get there sooner than later.