Denver Homebuyer FAQ: The Questions Everyone Is Asking in 2025

Buying a home has never been more exciting—or more confusing. Between rising insurance costs, fluctuating interest rates, and constant talk of concessions, Denver buyers are asking a lot of the same questions right now.

I pulled together the most common ones I hear from clients and the ones popping up daily in online forums, Facebook groups, and first-time buyer communities. Let’s break them down in plain language, with some Denver-specific insights! from someone who is in the market everyday!

Should I buy a home now or wait until rates drop?

This is the number one question everywhere. Here’s the reality: if rates fall, competition almost always spikes, which pushes prices higher. Waiting may save you on interest, but you risk paying more for the house itself. You can always change your interest rate when they come down, but you cannot change the price you pay for your house.

In Denver, inventory is still tight, so buyers who act now can often negotiate concessions or favorable terms. If rates fall in 2026, you can refinance. I regularly guide my clients through both initial purchases and reliable lenders for later refinances—so you’re never stuck.

How much house can I really afford in Denver?

Affordability isn’t just the sticker price. You’ll need to budget for:

• Mortgage principal and interest

• Property taxes (varies by county and neighborhood)

• Homeowners insurance (rising sharply in Colorado)

• HOA dues (if applicable)

• Maintenance and utilities

Lenders may approve you for more than feels comfortable. My role is to help you balance what you qualify for with what you want your life to look like after moving in. I would hate for you to overextend and not be able to enjoy life in your new home.

Do I need 20% down?

Absolutely not. In 2025, most first-time Denver buyers are putting down far less. There are TONS of other options, and those options include:

• Conventional: as low as 3% down

• FHA: 3.5% down

• VA/USDA: 0% down (for those who qualify)

• Down Payment Assistance (DPA): Colorado has several local programs

I help clients evaluate these options and connect them with lenders who understand how to structure them competitively.

FHA vs. Conventional vs. VA/USDA Loans

• Conventional: Good for buyers with strong credit and steady income.

• FHA: Easier credit requirements, great for first-timers, but includes mortgage insurance.

• VA: Excellent option for veterans and service members—no down payment or PMI.

• USDA: For rural properties (and yes, some areas outside Denver metro qualify).

If you’re unsure which is best, I help you compare side-by-side with trusted lender partners.

What’s the real cash to close?

Your total upfront costs include down payment, closing costs, prepaid taxes and insurance, and sometimes reserves. This often surprises first-time buyers. My clients get a complete estimate from preferred lenders early in the process so there are no last-minute shocks.

What happens if the appraisal comes in low?

It’s not uncommon, and its not something we cannot overcome.

Your options are:

• Renegotiate the price

• Bring cash to cover the gap

• Split the difference with the seller

• Cancel under your appraisal contingency

In Denver, I’ve successfully negotiated seller concessions or price reductions in these situations to keep tons of people on the right track to close on their homes.

Should I waive inspections to stay competitive?

The pandemic market made waiving inspections common, but in 2025 most buyers are protecting themselves again. I will NEVER suggest you waiving any inspections, and I didn't in the heat of the crazy markets. You can still be competitive by offering information-only inspections or narrowing repair requests instead of waiving entirely. I’ll walk you through smart ways to stay safe and win the house.

Which inspections matter most in Denver?

Beyond the standard inspection, Denver buyers often add:

• Sewer scopes (tree roots are a common problem)

• Radon tests (Colorado has high radon levels)

• Roof inspections (hail damage is frequent)

• Structural Inspections 

I maintain a list of vetted inspectors so my clients know the house is truly sound.

What are typical HOA fees here?

In Denver, HOAs often range from $200–$500 monthly, but luxury buildings can run $800+. These usually cover exterior maintenance, trash, and sometimes utilities. I always help buyers weigh HOA fees against their overall monthly budget.

Why is my “fixed” mortgage payment changing?

A common confusion point. Your principal and interest don’t change, but your escrow account (property taxes and insurance) can rise every year. Denver’s property tax reassessments and Colorado’s climbing insurance costs make this especially relevant. I prep clients for what to expect before they buy.

What about ongoing maintenance costs?

A good rule of thumb: budget 1% of the home’s value annually for maintenance. On a $500,000 home, that’s $5,000 per year. Older Denver homes may require more, while newer builds may need less early on. I help clients factor this into affordability planning.

How do I make a strong offer without overpaying?

Money isn’t everything. In Denver’s competitive market, strong offers often include:

• Seller concessions instead of big price cuts

• Shorter timelines for inspections or appraisals

• Flexible closing dates to fit the seller’s needs

I specialize in structuring offers that appeal to sellers while protecting my clients’ bottom line.

Is it smarter to buy a starter home or wait?

Many buyers want the “forever home,” but affordability makes starter homes the smarter first step. Equity builds faster when you get into the market sooner, and trade-up strategies still work. I help clients evaluate how long they should realistically plan to stay before moving up.

New Build vs. Resale

• New build: Warranties, modern features, fewer repairs—but often higher prices and HOA fees.

• Resale: Established neighborhoods, mature landscaping, and sometimes more character.

I guide buyers through the pros and cons, including negotiating with builders (where having your own agent is critical).

Do I need my own agent if I buy new construction?

Yes. Builder reps represent the builder, not you. I’ve helped buyers secure upgrades, negotiate warranties, and avoid unfavorable contract clauses in new build purchases.

What documents do underwriters want?

Common asks include:

• Two years of W-2s or tax returns

• Pay stubs and bank statements

• Proof of down payment funds (including gift letters if family is helping)

I prep clients ahead of time so there are no surprises when underwriters start requesting paperwork.

How do I vet a lender?

Ask about:

• Loan types offered

• Closing timeline track record

• Fees and rate lock policies

• Communication style

I connect buyers with vetted lenders who consistently perform well in Denver’s fast-moving market.

Townhome with HOA vs. Single-Family Home

Townhomes may look cheaper upfront but often include HOA dues that add hundreds per month. Single-family homes typically mean more maintenance responsibility but no monthly HOA. I help clients run side-by-side comparisons to see what truly fits their budget and lifestyle.

How do I time my purchase?

The best time depends on your goals. Late-year purchases can mean more motivated sellers, while spring brings more inventory but heavier competition. I provide market updates weekly so my clients can make decisions with fresh data.

Is a 2-bedroom a mistake for resale?

Not necessarily. My first house was a 2 bedroom! Location and layout matter just as much as bedroom count. In Denver, 2-bedroom condos and bungalows can still command strong resale values if they’re in walkable or desirable areas. I guide buyers through both present needs and resale potential.

Can I house-hack my first home?

Yes, and it’s becoming increasingly popular. Options include basement apartments, ADUs, or duplex/half-duplex purchases. I help clients analyze zoning rules and potential rental income to decide if this strategy is right for them.

Should I plan to refinance later?

Many buyers are choosing to buy now and refinance later if rates drop. The key is making sure the current payment is comfortable. I set realistic expectations with clients and connect them with lenders who offer streamlined refi options.

Final Thoughts

Buying a home in Denver in 2025 comes with a lot of moving pieces—but you don’t have to figure it out alone.

I guide clients through:

• Choosing the right loan type and down payment strategy

• Navigating inspections and appraisals

• Structuring offers to win without overpaying

• Understanding the long-term costs of ownership

Whether you’re a first-time buyer or ready to upgrade, my role is to make sure you’re informed, protected, and confident every step of the way.

📲 Have a question not listed here? Call or text me at 662.588.2420 or visit www.salliesimmons.com to get started.