Colorado attracts buyers with its stunning mountain views, outdoor lifestyle, and strong economy. With over 30K homes for sale in Colorado, you have plenty of options. But buying a house here can be challenging. You must get preapproved, check neighborhoods, and attend open houses.
With Houzeo, Colorado’s best home buying website, managing your home search is simple. You can look through the latest listings in Colorado, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Colorado home search.
At a Glance:
- Determine whether you’re purchasing a primary home, a vacation getaway, or a rental property, and choose Colorado cities that match your goals.
- Set aside 30–45 days for mortgage pre-approval. Aim for a credit score of 620+ to stay competitive in Colorado’s fast-moving market.
- Explore FHA, VA, or USDA loans, and apply for Colorado programs like CHFA or the First-time Homebuyer Program.
- Use platforms like Houzeo to search Colorado homes by city, price, or must-have features like mountain views, ski-in/ski-out access, or extra acreage.
- Schedule inspections for the roof, HVAC, and plumbing. In mountain and wildfire-prone areas, add radon testing, fire mitigation, and soil stability assessments.
- Expect 2%–5% in closing costs. After purchase, file for Colorado’s Homestead Exemption to help reduce your property taxes.
7 Steps for Buying a Home in Colorado ⛰️
Buying a house in Colorado doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Denver or any other cities, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Colorado is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: If you want to buy a home, choose places that fit your lifestyle, whether it’s a city like Denver or a suburb like Highlands Ranch. For investment properties, consider homes for sale in Breckenridge, where tourism drives demand.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. You can check out homes for sale in Colorado Springs or Fort Collins, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburban areas like Golden. But if you prefer something easier to manage, condos in places like downtown Denver can be a smart option. However, they often have smaller lots.
Calculate the cost of living in Colorado to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available for you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, especially if you want a home in an expensive region like Boulder or Denver.
- Set Your Budget: Ensure your budget includes property taxes and homeowners’ insurance. If you’re buying in the mountains, also account for snow removal costs and higher utility bills during winter.
👉 Use a Colorado mortgage calculator to estimate how much property you can afford in the Centennial State.
2. Explore Loans and Assistance Programs
Down payment in Colorado usually ranges between 10% and 20%, but often varies based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
| FHA Loans | Require just 3.5% down and are ideal if you’re a first time home buyer in Colorado. |
| VA & USDA Loans | Offer 0% down with lower interest rates. Perfect for veterans or those purchasing homes in rural areas. |
| CHFA Loans (Colorado Housing and Finance Authority) | Provide down payment and closing cost assistance through grants or second mortgage options, available to first-time buyers and qualified residents. |
| Metro Mortgage Assistance Plus Program | Offers down payment assistance grants in Denver and surrounding metro areas, making urban homeownership more affordable. |
| Turnkey Mortgage Origination Program | Available in El Paso County, this program helps buyers with down payment assistance and competitive interest rates. |
Step 3: Get Pre-Approved for a Mortgage
The Colorado housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better, and reduces delays in the transaction.
Shop around to find the best Colorado mortgage lenders—compare their programs, rates and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID proof.
Step 4: Dive Into the Colorado Market
Whether you’re looking at houses for sale in Pueblo or anywhere else in the Centennial State, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Lamar is the nicest and cheapest place to live in Colorado. The number of homes for sale in Lamar is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In Colorado’s competitive housing market, homes tend to sell fast. Make sure you focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like Fort Collins, you might need to offer above the asking price to stand out.
- Down Payment: In Colorado, down payments usually range from 3% to 20%. In competitive markets like Golden or Longmont, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Denver’s Cherry Creek or LoDo neighborhoods, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and wind mitigation contingencies. These safeguard you from issues like hurricane damage.
- Concessions: Request the seller to cover some closing costs. In Colorado, it’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24- to 72-hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for Colorado’s average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, lender fees, and property taxes in Colorado.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Colorado should cover:
- HVAC System: Ensure the heating and cooling system can handle Colorado’s wide temperature swings. A reliable HVAC is essential for year-round comfort.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in Colorado homes built before the 1980s. Older houses in Boulder or Colorado Springs may be more prone to pipe wear from hard water.
- Electrical System: Verify that all wiring is up to code and can handle storm-related power surges, which are common during summer thunderstorms in the Front Range and mountain regions.
- Roof Condition: Assess for damage from hail, heavy snow, or age-related wear. Roofs in areas like Vail or Steamboat Springs need to withstand heavy snow loads.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, especially in areas with expansive clay soils, such as parts of Aurora or Fort Collins, where soil movement can affect foundations.
If you’re browsing homes for sale in Pensacola or elsewhere, ensure that you get a wind mitigation inspection for any risk. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your Colorado Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign the dotted line and transfer the escrow—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the home is your primary residence, apply for Colorado’s Homestead Exemption to reduce your property taxes. You could get a significant reduction in taxable value, especially valuable in high-tax areas like Denver.
- Set Up Utilities: Get water, electric, internet, and trash service connected, often through local providers. And don’t forget pest control, especially in mountain towns where rodents can be active in winter.
- Get Insurance: Homeowners insurance is required if you’re financing, and you may need wildfire or flood insurance. Rates can be higher in wildfire-prone areas such as Boulder’s Foothills or Colorado’s mountain communities.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Colorado Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
How to Buy a Home in Colorado Near Me
| City | Buying a House in Colorado Near You |
|---|---|
| Denver | Buy a House in Denver |
Should You Buy a House in Colorado?
Absolutely! Buying property in Colorado offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in Colorado.
Whether you’re drawn to Denver’s booming job market or Boulder’s scenic mountain lifestyle, Colorado has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Colorado!
