Making an offer? What you need to know first

12161928_sI get lots of real estate related questions throughout the course of my day and I thought I’d post them every now and then just in case its something you are thinking about too.

Here’s a good one about what to know before making an offer on a home.

Q:  My wife and I are ready to buy our first house.  What things should we consider before making an offer on a home?

A:  Before you start searching the housing websites or head out to neighborhood open houses please do yourself a BIG favor and determine what your budget is for buying a home.  It always breaks my heart when a someone gets all excited about a house only to find out they can’t qualify for the required mortgage.

A very loose rule of thumb is you can afford to buy a home approximately equal in price to three times your gross annual income.  But more precisely, the price you can afford will depend on six factors:

1.  Your income and the income of your spouse

2. The amount of cash you have available for a down payment

3.  Your outstanding debts

4.  Your credit history

5.  The type of mortgage you select

6.  The current interest rates

Its so much easier, and less emotional, if you start out knowing what price range you can look in for a house.  Getting pre-qualified, and getting pre-approved is even getter in this market, with your mortgage lender is the best first step.

If you need a referral to some of the best mortgage lenders in Boulder County please give me a call.  I’m happy to share their names and contact information with you – and just to be clear, I don’t get anything in return from referring you to them except excellent customer service for you, my clients.


I am a Boulder County real estate specialist. Over the past three years, I have earned the distinction of being named a 5280 Five Star Realtor. This puts me in the top 7% of all Realtors in the Denver Metro Area for customer satisfaction. If you would like to schedule a buyer or seller meeting with me, please feel free to call me at 303-579-1617 or contact me by email.

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