If you’ve been thinking about buying a home in Denver you’ll need to be sure you can make a competitive offer on the home you find. If not you won’t be living in a home in Denver! There are a few things that you should have in place before you start looking to be sure you can make that competitive offer.
Start with your down payment
You need to be sure that you have at least 10% to put down, if not more. That takes time and a will to save. But no money down in Denver isn’t going to fly. There are too many others who have saved and will make an offer with the down money necessary to make the deal.
All cash offer
Here’s an even better idea, make an all cash offer if possible. It’s not an easy thing to do, but if you are selling your current home and you have enough equity in it that you can do just that, do it. A seller who is guaranteed to close without the hassles a mortgage application will bring is going to jump at an all cash offer.
Speaking of selling your current home, if you want to get that new home don’t enter into a contract for it until you have one on your current home. If you haven’t gotten a contract on your home, you’ll want a contingency that lets you out of the new contract if your home doesn’t sell. If someone else puts in an offer without any contingencies you can bet your current home on the fact that the seller will take that offer over yours.
Lastly, if you can get a conventional mortgage, get one
Many sellers will turn down an offer for a buyer who has to use an FHA or VA loan. Why? They take longer to close and require more inspections. Those inspections will mean the need for more fixes that need to be made. Why accept that when they can accept an offer that doesn’t drag out the process and cost them more money?
Be sure to get your ducks in a row if you want to buy a home in Denver!