It's a Buyer's Market in Denver: Five Tips to Get a New Home Loan

By Gabriel Traverso
Local Lender Columnist
Jul 6, 2007
Last fall The Rocky Mountain News ran an article on how one real estate agent was offering a new Mercedes to whomever bought the listing he had in Cherry Creek North. Gimmicks like this might become more common in Denver as home prices continue to slip, and underscore evidence that this is a buyer's market.

Five Tips to Get Your New Home

Your new home won't fall into your lap--you have to have a plan to make the most of the current real estate market in Denver. These tips will help:

1. Check Your Credit. Many lenders have been forced to tighten their standards as a result of rising foreclosures and mortgage defaults. Take the time to clean up your credit report before you apply.
2. Use a mortgage calculator. Find out exactly how much home loan you can afford using a mortgage calculator. You can also use a mortgage calculator to compare payments between fixed-rate and adjustable mortgages.
3. Find a mortgage lender. Whether you go with a bank, credit union, or mortgage broker it is increasingly important to shop around for your lender. Getting a new home loan for your Denver home means taking the time to find the right lender.
4. Get pre-approved. Once you find the lender you want to work with go through the mortgage application process to get pre-approved. This will help you greatly when it comes time to put an offer down on your Denver home.
5. Negotiate! Don't be afraid to offer less than the asking price. The National Association of Realtors recently released a price report showing homes in Denver have dropped 2% in the past year. Work with your real estate agent to make an aggressive but reasonable offer on your new home.

Sources
Rocky Mountain News: To Sell that House, Pretend You're on a First Date
CNN Money: Home Prices Drop for Third Straight Quarter

About the Author
Gabriel Traverso is a freelance writer, professional musician, and an artist. He resides with his family in Reno, NV.