Determining how much home you can afford depends on several factors, including your income, debt-to-income ratio, credit score, and down payment. A general rule is that your monthly mortgage payment should not exceed 28-30% of your gross monthly income. Mortgage calculators can provide a rough estimate, but for an accurate assessment, it’s best to get pre-approved by a local Denver lender. They will evaluate your financial situation and provide a realistic home-buying budget based on current Denver housing market trends and mortgage rates.
Pre-qualification is a quick estimate of how much you might be able to borrow based on self-reported financial information. It’s a helpful first step but doesn’t carry as much weight with sellers.
Pre-approval, on the other hand, is a detailed financial review by a lender, including credit checks, income verification, and debt analysis. A pre-approval letter shows sellers that you are a serious buyer with financing ready to go—giving you a competitive edge in Denver’s fast-moving real estate market.
The home-buying process can take anywhere from 30 to 90 days, depending on market conditions and financing approval. Here’s a general breakdown for buyers in the Denver metro area:
• Mortgage Pre-Approval: 1–2 weeks
•Home Search & Offer Acceptance: A few weeks to several months, depending on inventory and competition
• Under Contract & Inspections: 10–14 days
• Loan Processing & Appraisal: 3–4 weeks
•Closing & Move-In: Typically 30–45 days after contract acceptance
Being prepared with pre-approval and a strong real estate agent can help speed up the process and secure the home you love in Denver’s competitive market.
While it’s possible to buy a home without an agent, having a local Denver real estate expert can make a huge difference. A buyer’s agent helps by:
✔ Negotiating the best price and terms on your behalf; Sellers have someone representing them, and ensuring their best interests are protected, You should have the same. It’s sort of an “unfair match-up” otherwise
✔ Finding homes that match your needs (including off-market listings)
✔ Navigating contracts, inspections, and closing paperwork
✔ Providing market insights and pricing trends for different neighborhoods
The best part? Buyer representation often costs you NOTHING, as many sellers are willing to pay your agent’s commission/compensation (all real estate commissions are negotiable). Working with an experienced real estate agent ensures you make a smart, informed investment in the Denver housing market while avoiding common pitfalls.
The same is true of buying a new build. While oftentimes people view this as an entirely different type of transaction, it actually is not. While builders often have on-site sales agents, those agents represent the builder’s interests—not yours. Having your own buyer’s agent ensures you have someone looking out for your best interests, helping you navigate contracts, upgrades, inspections, and potential pitfalls. Best of all? It typically doesn’t cost you anything as the buyer, and NOT having someone advocating for you WILL NOT SAVE YOU ANY MONEY, as the builders already have this build in and are not giving you a discount for not having an agent, BUT it certainly could cost you MORE when you don’t use someone who can negotiate on your behalf..