Buying your first home can be stressful for all kinds of reasons.

• There’s a lot of money involved.

• Real estate lingo is unfamiliar and frustratingly legal-ish.

• Everyone has different opinions on what’s “best” for you.

• There are approximately 4,823 moving parts—and they need to happen in a particular order to avoid disappointment or disaster.

In this first-time home buyer series, we address all of these concerns (and many more). Today, we’re tackling that last one: What to do and when. 

When you know what to expect from the get-go, you’re more likely to make smart, confident, regret-free decisions. Let’s do this!

Step 1: Hire a real-estate agent.

Don’t just hire the first agent you interview—even if it’s us. (Seriously.) Ask your friends and family who they used. Read online reviews. Check their social media accounts to see if their personality’s a good fit. Take your time to find a partner you can trust. 

Check out How to Avoid Hiring a Lousy Buyer’s Agent.

Step 2: Get a pre-qualification or pre-approval letter.

Plan to take a week to research lenders, a day to pull together the documents they request, and 3-5 days to receive a decision.

Learn the difference between pre-qualification and pre-approval in Real Estate in Plain English.

Step 3: Start browsing listings.

Make two lists: your non-negotiables (max price, number of bedrooms, and so on) and your damn-this-would-be-awesome-but-I-could-live-without-its. Share your lists with your real estate agent, and trust them to help you set realistic expectations. Especially in a fast-paced market like Denver’s, you’ll have to balance three big elements: price, location, and condition. 

Have we set up a RealScout for you yet? 

Step 4: Go see some houses.

If you come across listings that even remotely interest you, ask your agent to set up showings. Why spend time looking at maybes? Because buying a home is really more a process of elimination than selection. When you see things you don’t like, it’ll be easier to figure out what you do. 

This part usually takes… a while. You might get lucky and find The One your first time out. But it’s more likely you’ll spend a few weeks looking. Or even months.

We know you’re anxious to get into your own place, but don’t rush. Experiencing buyer’s remorse over a too-trendy pair of jeans is one thing. Experiencing it over a many-thousands-of-dollars transaction is quite another.  

Denver’s market is hot, and the inventory of available homes is low. But your home will come along. Trust the process!

If you’re having trouble narrowing down your must-haves, let’s start by looking at some neighborhoods. 

Step 5:  Make an offer. 

When you find a place you love, work with your agent to create an irresistible offer. Be prepared for some negotiation (our favorite part!) and trust your agent’s expertise about the market and the process. A good agent will be watching out for your best interests above anything else. 

It might take a handful of days to find out if you’re moving forward from this point, but often you’ll know the same day if you “won.”

Step 6: Pay your earnest money.

When your offer is accepted, you’ll deliver your earnest money to the title company your lender will be using—usually within three days. 

Earnest money is a relatively small “deposit” (think $1K or so) to show you’re serious about making this deal happen. It’s applied to the purchase price of the home if you make it to closing. If something falls apart before closing, the money is returned to you.

Step 7: Finish your loan application.

Now the fun really begins: the official application process with the lender who pre-qualified or pre-approved your loan. You’ll provide them with a ton of financial paperwork, and they’ll require a ton of signatures from you. 

Most banks require at least 30 days to pull together all the paperwork, perform an appraisal, and underwrite your loan. This is the pins-and-needles part of the process, but a respectable agent will keep you informed the whole way and will make sure both you and your lender are hitting required deadlines. 

In the meantime…

Step 8: Complete inspections.

While your bank’s taking care of the financial stuff—including determining if the property you’re wanting to buy is worth what you’re asking to borrow for it (appraisal)—you hire inspectors to check everything over. This protects you from accidentally buying a money pit. 

Inspections don’t take much time, but getting on an inspector’s schedule might… so don’t procrastinate on this piece. 

And yes, you have to hire inspectors on your dime. That’s one expense many first-time home buyers don’t think about. Check out The True Costs of Moving and Everything You Need to Know About Closing Costs.

Step 9: Do title-related tasks.

Your real estate agent or lender will ask a title company to do some research to make sure the property you want to buy can actually be legally sold to you. Hiccups are uncommon, but occasionally title companies will discover a legal snag. If that happens, it’s on the seller to fix.

Step 10: Final walk-through.

As soon as your lender gives the thumbs up that they’re ready to hand over the big bucks, you and your agent will walk through the property—usually a day or two before closing. During your walk-through, you’ll make sure the seller has fulfilled their contractual obligations (like, they didn’t remove the appliances they agreed to leave in the home) and has taken care of all inspection items as agreed to.

Step 11: Get your keys.

Assuming your appraisal, inspection, title, and loan paperwork all come together, you’ll finalize everything at “closing.” This appointment usually happens at the title company’s office and takes a little more than an hour. 

You’ll hand over a cashier’s check for your down payment and closing costs and run three pens out of ink signing your name. As soon as the seller receives their money from your lender—usually via wire transfer in just a few hours—you’ll be given the go ahead to start moving into your new home!

Wait. Can you explain that part again?

We’d be delighted to! In fact, we’ll explain anything you want, as many times as you want us to. Questions are our favorite, and we’re among the most patient people you’ll ever meet. 

Want to put us to the test?