1. Know what you can afford as far as a Denver mortgage. The general rule of thumb is that you can afford between 2 and 3 times your gross income.

2. Create your home wish list. After you have created your list, prioritize it.

3. Know where you want to live. put together a list of 3 or 4 neighborhoods you would be happy living in, and remember to take into account things like schools, parks, growth plans and general safety.

4. It’s never too early to start saving. Do you have enough money to both qualify for your Denver home loan and put money down for a down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. And do not forget to factor closing costs into the expenses. Closing costs – including taxes, attorney’s fee, and transfer fees ? typically cost between 2% and 7% of the home price.

5. Get your credit in order. Get a copy of your credit report to make sure there aren’t any errors on it, and if there are, get them fixed right away. Your credit report is your history of all your credit, bad debts, late payments and delinquencies.

6. Figure out how much of a mortgage you qualify for. How large of mortgage do you qualify for? Also, explore different loan options ? such as 30-year or 15-year fixed or ARMs ? and make a decision as to which is best for you.

7. Get pre-approved for your mortgage. Get all the documents a Denver mortgage lender will need to give you a pre-approval on your loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. For example, you might qualify for certain special mortgage programs or down-payment assistance programs. Ask your lender about state and/or local government resources that might have more information about programs like these. If you have money saved in an IRA account, you wouldn’t have to pay an early withdrawal penalty if you’re using the money to buy your first home.

9. Figure out the total cost of Denver homeownership. Take everything into consideration including property taxes and insurance, home association fees, utilities and maintenance.

10. Find a good Denver Realtor. Some first time buyers opt to try to do the deal alone rather than getting an agent. Why even bother? An agent is there to represent you and make sure you get a fair deal. And don’t forget, as a buyer you’re not going to have to pay to have that agent work with you.