Resources / First Time Home Buyer
Your First Home In Colorado, Made Simple
Everything You Need To Know About Buying And Financing Your First Home
Buying your first home is one of the biggest decisions you will make. This guide covers both sides — the real estate process AND the money side — so you go in informed, confident, and ready to act.
The Real Estate Side
Your 6-Step Buying Journey
From getting pre-approved to closing day — what to expect at each step.
01
Get Pre-Approved
Before you tour homes, know your budget. A pre-approval shows sellers you are real — and gives you the confidence to make an offer fast.
02
Find Your Agent
Online listing tools are great for browsing — but a Colorado-specific buyer agent knows neighborhoods, schools, and seller dynamics that apps never will.
03
Tour Homes
See homes in person before you commit. Look at structure, layout, neighborhood feel, and commute — photos miss the most important details.
04
Make An Offer
Colorado is competitive — your offer matters as much as your price. Your agent helps you craft terms that win without overpaying.
05
Inspection + Appraisal
Never skip inspections. The home gets checked top to bottom and you negotiate repairs if issues come up. Then the lender does the appraisal.
06
Close
Closing day takes 1-2 hours. Sign paperwork, get keys, and start your move. Forge handles the lender side so closings go smoothly.
The Financing Side
Money Questions, Answered
What you actually need, what DPA can cover, and which loan type fits your situation.
Down Payment + DPA Programs
Think you need 20% down? Most first-time buyers put down 3-5% with conventional loans, 3.5% with FHA. Colorado DPA programs like CHFA and metroDPA can cover your down payment entirely. Many buyers close with $0 of their own money down.
Credit + Income Requirements
Minimum credit scores: 620 for conventional, 580 for FHA, 620 for VA in most cases. We also look at your debt-to-income ratio (target under 45%). If your numbers are not quite there, Forge maps a credit improvement plan with timelines.
FHA, VA, Conventional — Explained
FHA = lowest down payment, lenient credit, mortgage insurance required. VA = $0 down for military, no PMI, best terms available. Conventional = best for higher credit, drops PMI after 20% equity. Forge matches you to the right one — it is not always obvious.
Closing Costs + Reserves
Plan for 2-5% of the home price in closing costs (title, recording, lender fees, first-year insurance). Some DPA programs cover these too. You should also have 1-2 months of payments in savings as a buffer after closing.
Avoid These
6 First-Time Buyer Mistakes To Avoid
Mistake 1: Shopping for homes before getting pre-approved
You see a home you love, but cannot move on it because you have not been preapproved. By the time you finish the lender process, the home is gone. Always **get pre-approved first** — it takes 24-48 hours and tells you exactly what you can afford.
Mistake 2: Maxing out your budget
Your lender approves you for $500K, so you shop at $500K. Bad idea. Leave room for **repairs, furniture, and emergencies** — buy below your max. Houses always cost more than the purchase price in year one
Mistake 3: Skipping inspections to "win" an offer
Tempting in a competitive market — but never skip the inspection. A $400 inspection can catch $40K in repairs. Negotiate inspection terms instead (faster timelines, smaller credits) if you need to compete.
Mistake 4: Not understanding DPA payback rules
Most DPA programs are **forgivable** (free money you never repay if you live in the home long enough). Some are **deferred loans** (paid back when you sell). Forge explains every program before you commit — never assume.
Mistake 5: Underestimating closing costs
Buyers often save for the down payment and forget closing costs. Plan for **2- 5% of the price** in closing costs. On a $500K home that is $10-25K. Some DPA covers closing too — ask about it.
Mistake 6: Not asking your lender questions
If your lender will not explain something clearly, find another lender. You should understand your rate, your fees, your DPA terms, and what happens if rates drop. Forge encourages questions — that is the whole point.
Real Stories
From Other First-Time Colorado Buyers
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