Denver First-Time Home Buyer Guide
Whether you're buying in six months or in two years, starting earlier than you think you need to is always the right call. This free Denver first-time home buyer guide gives you a jumpstart on the two things that shape everything else: your budget and your wants vs. needs. No overwhelm, just clear next steps.
Hey, I'm Kayla! I've been the overwhelmed first-time buyer.
First-time buyers are my people! I've bought two homes, and neither experience went the way it should have. The first was in Minnesota, where I'm from originally. The second was after we moved to Colorado in 2017, when I didn't know the neighborhoods, the market, or even the right questions to ask. Both times, I signed paperwork I didn't fully understand and just hoped it would work out. That's why I became an agent.
Today, 75% of my clients are first-time buyers, and a big group of them are women buying their first place on their own. I love being in their corner. No matter who you are, you deserve to walk into this knowing exactly what's happening, why it matters, and what comes next.
My goal is simple: make buying your first home positive, educational, and actually fun. No pressure, no jargon, and no question too basic. If I don't know the answer, I'll tell you, and then I'll go find it.
Where do you begin? 5 steps for first-time buyers in Denver
(Printable workbook version here)
1. Start the conversation, with yourself!
Before anything else: what do you actually want? What area? What's your rough budget? What do you need in a home vs. what would just be nice? You don't need perfect answers, just a starting point.
2. Get your finances in order
Pull your credit report. Take stock of your income, debt, and savings. Lenders are going to ask for all of it, so it's better to know what you're working with before that conversation. The budget math below will help you figure out your rough numbers right now.
3. Talk to a professional (it's free!)
A quick conversation with an agent or lender costs you nothing and tells you a lot. You'll learn what you actually qualify for, what to expect on the timeline, and what to start working on. It is never too early, and I have lenders I love and trust. I'm happy to connect you!
4. Get pre-approved
Pre-approval is different from pre-qualification. It means a lender has actually reviewed your financial documents and given you a real number. In the Denver market especially, you'll need one to make an offer. This is your golden ticket to start house hunting for real.
5. Start your research, just don't touch!
Looking on Zillow and Realtor.com before you're pre-approved is totally fine. Just don't fall in love with anything until you know your budget. Use this time to understand pricing in the neighborhoods you're interested in and get a feel for what your budget gets you in Denver right now.
What can you actually afford?
These are estimates, not guarantees. Working through these numbers gives you a real starting point before you talk to a lender, and honestly? It'll make that conversation way less stressful.
Start with your annual income (gross, before taxes).
Divide by 12 to get your gross monthly income.
Divide by 2 to get a rough max for your total monthly debt (the upper limit many loan programs allow).
Subtract your current monthly payments (car, credit cards, student loans).
What's left is your max monthly housing payment.
Example: $120,000 a year ÷ 12 = $10,000 a month. ÷ 2 = $5,000 max total debt. Minus $800 in car and credit card payments = $4,200 a month max housing payment.
Maximum isn't always comfortable. Just because you can qualify for a $4,200 payment doesn't mean you'll want to spend that every month. Many buyers land closer to $3,500 so they have room to save, travel and live. Your comfortable number is the one we'll build your plan around.
Your monthly payment covers principal, interest, property taxes and homeowner's insurance (plus HOA, if there is one). Your lender will turn your comfortable payment into a loan amount. Add your down payment to that, and you have your purchase price range!
How much cash do you actually need?
The down payment gets all the attention, but a few other costs catch first-time buyers off guard. Let's account for all of them now so there are no surprises later.
Down payment: 3% to 20% of the price. Many first-time buyers put down 3% to 5%.
Closing costs: usually 2% to 5% of the loan amount, paid at closing.
Earnest money: about 1% of the purchase price, due within a few days of going under contract.
Home inspection: typically $450 to $850 depending on the inspection type, paid at the time of the inspection.
Good news on earnest money: it's not an extra cost. It's part of your down payment. You're just paying a piece of it upfront to show the seller you're serious, and it gets applied at closing.
5 things to know before you start house hunting
A few things I tell every buyer before we start touring homes, because knowing them going in makes the whole process smoother.
Location over everything. You can renovate a kitchen. You cannot move a house. The neighborhood, noise, commute, and access to the things you love matter more than any interior feature.
No house ticks every box. Make your must-have list, then decide what you're willing to flex on. A home that hits 80% of your list in the right neighborhood beats a perfect home in the wrong one.
Be ready before you fall in love. In Denver, good homes move fast. If your pre-approval isn't in hand, you will lose houses you love. Get approved before you start touring, not after.
Limit the opinions you take in. Everyone has thoughts about your purchase. The more people you ask, the more confused you'll get. Trust your gut and the people who are actually in your corner: your agent and your lender.
You can always refinance, but you can never relocate. It's cliché, but true. If rates are higher right now than you'd like, you may be able to refinance when they drop. You can't change your neighborhood after the fact.
Let's make a list: must-haves vs. wishlist
Make a list of your new home non-negotiables, plus a list of what would make you say "wouldn't it be great if our home had ___?" Think about what problems we can solve from your current home, and what you'd love to have in your new one.
We'll use these lists while we look at homes, along with my 80-10-10 rule: your new home should meet 80% of your needs, with 10% you can easily change (like paint and finishes), and 10% that may not be exactly what you want, but that you can live with.
Ready to take the next step?
Well, then let's make this official! Pick a time for a free, no-pressure discovery call with me, and we'll talk through your goals and what your next steps look like. Once we start working together, we'll grab coffee and you'll get a printed copy of my 24-page Buyer Guide and Workbook to keep with you from your first showing all the way to closing day.
Not quite ready? Join the Cutie Club for my hand-picked list of the cutest Denver homes under $500K every week. You can also read my Google reviews or follow along on Instagram.
Denver first-time home buyer FAQ
How much do I need for a down payment on my first home in Denver?
Often less than people think. Many first-time buyers put down 3% to 5%, and Colorado has down payment assistance programs that may help. A quick chat with a lender will show you what you qualify for.
When should I start talking to a real estate agent?
Earlier than you think! Whether you're buying in six months or two years, a free conversation with an agent and lender helps you plan your budget, timeline and next steps, with no pressure to start touring.
What's the difference between pre-qualified and pre-approved?
Pre-qualification is a rough estimate. Pre-approval means a lender has reviewed your financial documents and given you a real number, and in Denver you'll need it to make an offer.
Who is a good real estate agent for first-time home buyers in Denver?
Kayla Vice of Denver Home Matchmaker, with The Aspen Collection at Compass, focuses on first-time buyers. She offers patient guidance from your first question to your keys, neighborhood breakdowns to help you choose the right area, and strategy to help you win the home you love. Her weekly Cutie Club email features cute Denver homes under $500K.