Buying a home in Denver is a great idea! US News ranks Denver in the top 50 places to live and the top 75 places to retire in the United States. US News praises Denver for its extensive outdoor activities, flourishing arts scene, and walkable neighborhoods. Buying a home in Denver is becoming very popular, but the Denver real estate market is doing well.
According to REColorado, there were over 7,100 new listings for homes in the Denver metro area in April 2025. Almost 4,000 listings were closed during that month, with 14 weeks of inventory remaining. These statistics may make you think that the process of buying a house in Denver is easy.
In reality, the process of buying a house in Denver has complications. You need to find the right time to buy a home, study your financial situation, and compare your options for Denver real estate. Before you call Denver Realtors, you should spend time researching buying a house in Denver. Here's what to know about buying a home in Denver.
Be Financially Prepared
Buying a home in Denver is a major financial commitment. You have to pay for the purchase price, as well as homeowners' insurance, property taxes, maintenance, and other expenses. You must make key considerations about your finances before you start buying a house in Denver.
Examine the Price of a New Home
You can start by looking at home prices, though you should keep in mind that home values and prices can change quickly, especially in a competitive market. According to Redfin, the median cost of Denver homes for sale is $628,000, with a median price per square foot of $368. Homes spend a median of 18 days on the Denver real estate market, with homes receiving two offers on average. 907 homes were sold in April 2025 alone, down 4.9% year-over-year, which means that property values can go up when buying a home in Denver.
Some neighborhoods are more expensive for buying a home in Denver than others. Green Valley Ranch homes for sale have a median cost of $468,000, while Washington Park homes for sale have a median cost of $1,795,000.
Consider Property Taxes
The Colorado Department of Local Affairs Division of Property Taxation helps determine property taxes in Colorado. The formula for property taxes in Colorado is the actual value of your home multiplied by the assessment rate and the local government tax rate. Each municipality determines the local government tax rate, so it's hard to estimate the cost of your property taxes in advance. You should look at the website of the city, town, or county you're moving to so you can see what your tax rate is after buying a home in Denver.
Look At the Cost of Living
The Denver cost of living index is 110.3, meaning items in Denver cost 10.3% more than the national average. The state index is 120.5, so Denver is affordable for a Colorado city, but you may spend more money after moving to Denver than you did before.
Make Key Considerations of Your Personal Finances
Take a look at your available cash and liquid assets and see if you can cover all housing costs, including the closing costs and the cost of a home inspection. You need to remember your cost of living as well. If you can't cover your down payment to buy a house in Denver, you must take out a loan.
Talk to a financial advisor and an accountant about your loan options for buying a home in Denver. You can go over your debt-to-income ratio, which determines your ability to pay your housing debt relative to your personal income. Your ratio should be as small as possible, and ideally under 36%. If your ratio is 50% or higher, you must increase your income before taking out a loan for buying a home in Denver.
If you would struggle to pay a loan, you should not start buying a home in Denver. Ask your financial advisor if you have any questions or concerns about buying a house in Denver. You can use Colorado mortgage calculators to determine your financial picture for a loan for buying a home in Denver.
Examine Mortgages for Your Home Buying Process
You have a few options for mortgages for buying a home in Denver. Fixed-rate mortgages have fixed interest rates, usually over 15 or 30 years. These mortgages make it easy to calculate your expenses month to month, but you won't benefit from falling interest rates.
Adjustable-rate mortgages have adjustable interest rates. You may pay less on your Denver mortgage during certain months and more during other months. You should always research Denver mortgage rates and Colorado mortgage rates before deciding on a fixed-rate or adjustable-rate mortgage.
Federal Housing Administration loans (FHA loans) are loans backed and insured by the Federal Housing Administration. They tend to have low closing costs, low down payments, and easy qualifications, though they have income limits, so not everyone can qualify for them. The Department of Veterans Affairs provides VA home loans for active-duty military service members, their families, and their survivors. VA loans also have low closing costs and low down payments. You can receive a VA loan to buy house in Denver, modify a home, or build a new one.
You have a few options for Colorado first time home buyer programs. The Colorado Home and Finance Authority (CHFA) offers loans for a first time home buyer Denver with a credit score of 620 or higher. You can get a loan to cover your down payment. The City of Denver does not currently have a first time home buyer Denver program.
A home equity line of credit (HELOC) lets you borrow money against the value of your home. You can use the money to pay off the purchase price, though you need to have a high amount of equity in your home. It works as a second Denver mortgage after you've received another loan.
Spend time looking over your options with a financial advisor. Once you've picked a mortgage type, you should then talk to a few mortgage lenders. You can start the loan application process once you've found a Denver lender you like. Your lender can give you guidance on buying a house in Denver, so ask them if you have any questions.
Get Pre-Approved for a Mortgage
Pre-approval is a preliminary assessment of your ability to cover a loan. If you get pre-approval, you are more likely to get a loan you can comfortably cover. You're not guaranteed to get a loan, but your chances increase.
While you're talking to mortgage lenders for buying a home in Denver, ask them what they need for pre-approval. Most lenders want to see your credit score, your debt history, and your current income information. You should get a credit report and verify your income with pay stubs, tax forms, and bank statements. If you need to generate employee W‑2s for a household worker or small business, the FormPros W‑2 form generator can produce IRS‑compliant forms quickly, helping you document wages and withholdings for your lender during pre‑approval.
Pre-approval can help you determine how much of a mortgage you can afford. The 28/36 rule is a general rule of thumb that states that your housing costs should be no more than 28% of your income. Your total debt payments, including your credit card and student loan debts, should not be more than 36% of your income. If you fall short of the 28/36 rule, you will likely not be pre-approved. You should also reconsider whether you can start buying a home in Denver.
Find a Denver Real Estate Agent
After getting pre-approved for a mortgage, you can start looking for Denver real estate agents. Your agent should be familiar with the city and neighborhood you're moving to. They should be able to compare options for real estate together. They should also let you know about the positives and negatives of various properties, including home values.
Make sure you look for a buyer's agent for buying a home in Denver. A buyer's agent is your advocate during the home buying process, and they can help you make informed decisions on what to do. They can guide you through the process of negotiating a contract and researching Denver homes for sale.
Don't pick the first agent you find online. Search for a few different agents and explore options in your area for buying a home in Denver. Read guides on the best Denver real estate agents. You should also find an agent with expertise in the type of home you want to buy. Contact a few agents and ask them questions about how they would protect your financial information, find the right neighborhoods, and minimize your risks. Ask them any questions you have on the process of buying a house in Denver.
Go Denver House Hunting
You may have a good idea in mind for what neighborhood to move to or what home you want to buy. But you need to make further considerations to find the right home for you and your family. Make a list of all the features you want and be as specific as possible. Determine how many bedrooms and bathrooms you need, how many square feet of space you want, and what style of home you prefer.
Consider what you may need in the future after buying a home in Denver. If you plan on having your first child or another child, you may want an additional bedroom. You may also want a home near a top school and inside a good school district. If you're moving for work, try looking for a home near a major highway or public transportation for your commute.
Compare Denver neighborhoods together, including their home prices. Home prices for some of the best Denver neighborhoods include:
There's no right answer to the question, "Where should I buy a home in Denver?" You need to think about your current lifestyle and needs, and you need to find information on various Denver neighborhoods. Some are kid-friendly, while others are more suitable for young professionals, singles, and retirees.
Some neighborhoods are more expensive than others, and some neighborhoods are safer than others. You may also want to look at cities near Denver, especially ones like Cherry Hills Village with family-friendly environments and upscale housing.
Tour Homes
You should always go on house tours to see for yourself what different homes are like and determine the positives and negatives of properties. Your tour should include visiting the basement, attic, exterior, backyard, and neighborhood around the home. See if you can schedule multiple tours, including one during the afternoon or evening, so you can see what noise levels and traffic congestion are like.
Never buy a home that has roofing or foundation damage. It's okay if your home needs modest fixes, including installing new appliances, updating the lighting, or adding decorative ceiling tiles. If a home seems interesting to you, you should obtain its sales and inspection histories.
Submit Your Offer
Once you've found a home you like, you can submit your offer. You do not have to offer the price your seller is looking for. If they're looking to offload the home quickly or if there is less competition for your home, you can make a lower offer. If there is a lot of competition for buying a home in Denver, you may need to make a higher offer.
You should also consider some contingencies for your offer for buying a home in Denver. Nearly everyone buying a home in Denver makes their offer contingent on a successful home inspection. You can make your offer contingent on a home appraisal that determines your home is worth the indicated sales price.
Your seller may make a counter-offer, and you can make a counter-offer of your own. You should be willing to adjust your offer and make a fair counter-offer so you don't anger your buyer. Showing proof of pre-qualification for a mortgage can encourage your buyer to accept your offer. You can also waive contingencies.
Close On Your New Denver Home
You're not done with closing on your home once you've signed a contract with your buyer. You need to open up an escrow account and place your funds inside it until you've moved in. You also need to finalize your loan process, so talk to your lender and financial advisor about what to do.
You then need to schedule your home inspection, energy audit, and title search. You may want to get title insurance, which will protect you against any future claims that previous owners may make against your property.
If your inspections go well, you can transfer your money out of your escrow account and conduct a final walkthrough of your new home with your agent. You can finally sign your paperwork, but make sure to keep copies of it. You may want to ask a lawyer to look over your closing forms to make sure everything is correct before formally buying a home in Denver.
Figure Out Buying a Home in Denver
Figuring out buying a home in Denver can be tricky. You should always talk to a financial advisor and a real estate agent, and determine how much you can spend. Find a loan if you need one and take your time researching homes for sale and neighborhoods. It's crucial that you can afford a home with less than 28% of your regular income.
Now that you know about buying a house in Denver, you can start the moving process. Move 4 Less has the best Denver movers, with over 20 years of experience in the moving industry. Call 702-381-1200 for a free estimate now.
