Buying a Home in the New Year? Here’s What You Should Be Doing Right Now!

As the new year approaches, many people are setting resolutions, and for some, that means finally buying a home. If that’s your goal for 2024, congratulations! This is an exciting step, and planning ahead can make the process smoother and more enjoyable. As a Denver real estate agent who’s helped countless clients achieve their homeownership dreams, here’s my step-by-step guide to help you get started now so you’ll be ready to buy in the new year.  

1. Check Your Credit Score and Financial Health
Your credit score plays a big role in the mortgage process, influencing the interest rates you’ll qualify for. Take some time to review your credit report for any errors and pay down debts if possible. 

Steps to Take:
- Pull a free credit report from AnnualCreditReport.com.
- Dispute any inaccuracies.
- Avoid taking on new debt, as it can impact your debt-to-income ratio.

2. Start Saving for a Down Payment and Closing Costs
While some loan programs offer low or no down payment options, it’s always a good idea to have some savings set aside. Don’t forget to account for closing costs, which are typically 2-5% of the home’s price.  

Pro Tip:  
If you’re selling your current home to buy your next one, start preparing for that sale now. Decluttering and small updates can make a big difference in your home's value.

3. Get Pre-Approved for a Mortgage
A pre-approval not only tells you how much you can afford but also shows sellers that you’re a serious buyer. This can give you a competitive edge in Denver’s fast-moving market.  

How to Get Started:  
- Research mortgage lenders or ask for recommendations- I have many.  
- Gather key documents like pay stubs, tax returns, and bank statements.  
- Discuss loan programs to see what fits your needs.  

4. Research the Denver Market 
The Denver real estate market is unique, with highly desirable neighborhoods, varying price points, and seasonal trends. Begin narrowing down what areas work best for your lifestyle and budget.  

Things to Consider:  
- Do you want to be close to work, schools, or public transportation?  
- What’s your must-have list for a home (e.g., number of bedrooms, outdoor space)?  
- How competitive is the market in your preferred neighborhoods?  

5. Partner with a Trusted Real Estate Agent
Working with a knowledgeable and experienced real estate agent (hey, like me!) can make all the difference. An agent can guide you through the buying process, provide insights on the market, and help you find the perfect home.  

Why Start Early? 
The earlier you start working with an agent, the more prepared you’ll be when it’s time to make an offer. Plus, agents often have access to listings before they hit the market.

6. Organize Your Must-Have and Nice-to-Have Lists  
Think about what you need in your future home versus what would be nice to have. Being clear on your priorities will make it easier to focus your search.  

Examples:
- Must-Have: At least three bedrooms, a large yard for your dog, or proximity to good schools/certain school districts/work.  
- Nice-to-Have: A finished basement, a fireplace, or mountain views.  

7. Keep an Eye on Interest Rates  
Mortgage rates fluctuate, and even a small change can impact your monthly payments. Work with your lender to understand how rates may affect your buying power. If you buy when rates are higher, you can often get a home for closer to list price and with concessions, because your competition is often lower. It is a great way to get into the market and secure a home for a great price and the option to refinance later!

8. Prepare for the Competition  
Denver’s market can be competitive, especially in popular neighborhoods like Berkeley, Wash Park, and Highlands. Homes often receive multiple offers, so be prepared to move quickly when you find "the one."  

Pro Tip:  
Consider getting fully underwritten pre-approval. This shows sellers you’re ready to close and may give you an edge in a bidding war.  I have a wonderful arsenal of professionals- mortgage, insurance, and everything in between to get you a great estimate on what you can afford and what your monthly payment will be!

9. Stay Flexible with Your Timeline 
While the new year is a great time to buy, finding the perfect home can take a few months. The market typically picks up in spring, but starting early gives you time to explore and make confident decisions.  

10. Focus on the Big Picture
Remember, buying a home is a long-term investment in your future. While the process might seem overwhelming, each step brings you closer to your goal. Stay focused on why you’re buying—a bigger space, a better location, or a place to call your own.  

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**Ready to Start? Let’s Chat!**  
If buying a home is part of your new year’s plan, don’t wait until January to start. The work you do now can set you up for success when the right home hits the market.  A spring gets closer, more and more people come out of the woodwork to buy a home. That means more competition for you, so the sooner we can get started, the better!!!

As a Denver real estate expert, I’m here to help every step of the way, from understanding the market to negotiating the best deal. Contact me today, and let’s make your 2024 homeownership dreams a reality!  My cell is 662.588.2420!