Buying Your First Home in Colorado? Here are the Answers to Your Questions

Denver, Colorado city skylineWhile many people from Colorado are moving out, many are also coming in. From July 2016 to July 2017, the population grew almost 1.5%, which was one of the top 10 growth rates in the country. By 2050, the community can reach about 3 million, which is double the number in 2015.

People move here for a lot of reasons: adventure, weather, outdoors, and cost of living. Regardless the motive, any first-time homebuyer always has questions. The answers can help one decide whether such decision is correct and what they can expect from the property and expenses.

How much does a Colorado home cost?

Here’s the truth: home prices have gone up, especially in the capital, Denver. A single-family home reached almost $500,000 in 2017. It is an increase of more than 8% a year before.

The good news is working with local real estate teams such as can give you access to many different homes with some worth less than $400,000.

Is it easy to get a mortgage in Colorado?

For the past years after the Great Recession, lenders have relaxed their requirements and criteria in approving the mortgage. It then resulted in 77% of approved loans, higher than 75% in 2015.

Colorado though has a high interest rate, which may make any first-time homebuyer anxious. But like in other states, as long as one has a right credit score and strives to pay 20% of the down payment, he or she can take advantage of much lower interest.

How much are the closing costs in Colorado?

Lenders base the closing costs on the value of the property, and since Colorado homes can be pricey, the actual expense for this one is also higher than other states. An excellent real estate broker, however, can help you save money or provide the best value for your spending. Shopping for lenders also helps lower the cost.

Colorado may be getting more expensive for homebuyers, but there’s a silver lining. With the net migration increasing, the builders can have more time to grow supply. In the process, it can bring the prices down. Besides, although the amount matters, what is more important is the value you get from it, and Colorado has so much to offer.