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Save Smarter, Own Sooner: Expert Tips for Colorado Homebuyers in 2024

A person in a blue shirt is seated at a desk with hands gently cupped around a row of wooden blocks spelling 'SAVE', flanked by a miniature model house on the left and a piggy bank on the right, symbolizing strategic saving for homeownership.

Starting your home-buying journey in Colorado in 2024? It may seem a bit overwhelming, but with the right advice and a strategic saving plan, it's absolutely achievable. Essential in this process is seeking insights from experienced real estate professionals. They will guide you through your budgeting and early home-buying stages, ensuring a smooth transition into homeownership. Here are a few things the experts say you should think about...

Down Payment: Debunking the Myths

One of the first hurdles in the home-buying process is understanding the down payment. How much should you really save? The 20% down payment is a myth that doesn't hold true for every buyer. As highlighted by The Mortgage Reports:

“The idea that you have to put 20% down on a house is a myth. . . The right amount depends on your current savings and your home buying goals.”

For the best guidance, team up with Colorado real estate professionals. They can help you explore various mortgage options and down payment assistance programs in Colorado, making your decision-making process more informed and less stressful.

Closing Costs: Planning Your Finances

Don't overlook the importance of budgeting for closing costs. These are the fees associated with finalizing your real estate transaction. Bankrate provides a clear explanation:

“Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re refinancing a mortgage or buying a new home. These costs can amount to 2 to 5 percent of the mortgage so it’s important to be financially prepared for this expense.”

To fully understand these costs, connect with a knowledgeable lender who can provide detailed explanations and answer any questions you may have.

Earnest Money Deposit: Showing Commitment

Another financial aspect to consider is the earnest money deposit (EMD), a sign of your commitment when making an offer on a property. states that it usually represents 1% to 2% of the total home price:

“It tells the real estate seller you’re in earnest as a buyer . . . Assuming that all goes well and the buyer’s good-faith offer is accepted by the seller, the earnest money funds go toward the down payment and closing costs. In effect, earnest money is just paying more of the down payment and closing costs upfront.”

It's important to remember that an EMD is not mandatory and doesn’t always guarantee offer acceptance. Consult with a real estate expert to understand the best approach for your situation in Colorado.

Conclusion: Your Path to Homeownership in Colorado

Getting ready to buy a home in Colorado in 2024? Remember, it's all about smart planning... The key to successfully saving for a home lies in a multifaceted approach: Gain a solid understanding of the Colorado real estate market, budget comprehensively with an eye on down payments and closing costs, and actively work to enhance your credit score. Don’t overlook the benefits of Colorado-specific first-time homebuyer programs, and most importantly, forge a strong saving strategy complemented by professional advice. This way, you match your money goals with your dream of owning a home in Colorado.

Are you ready to take the first step towards homeownership in Colorado? Connect with us for a free consultation and benefit from our unique expertise in Colorado home financing. We’re here to guide you through every step, ensuring you make the best decisions for your future home.


The Mortgage Reports. (06/01/2023). "20 Percent Down Payment: The Risks of Putting Down Less." Retrieved from (10/05/2022). "Understanding the Earnest Money Deposit." Retrieved from

Bankrate. (11/22/203). "What Are Closing Costs?" Retrieved from


*No down payment loans: Closing costs and fees may still apply. First lien interest rates may be higher when using a DPA second. Opinions expressed are solely my own and do not express the views of my employer. Pre-approvals are given to clients who have met qualifying approval criteria, for specific loan requirements, and have been pre-approved by a PRMI underwriter. VA home loan purchases, have options for 0% down payment, No private mortgage Insurance requirements, competitive interest rates, with specific qualification requirements. VA Interest rate reduction loans (IRRRL) are only for Veterans who currently have a VA loan, current loan rate restrictions apply, and limits to recoupment of costs and fees apply. VA Cash-out Refinances are available for Veterans with or without current VA loans. Policies and guidelines may vary and are subject to the individual borrower(s) qualification. Program and Lender overlays apply.

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