How to buy a house in Colorado

The cost of buying a house in Colorado varies by location, with many rural and mountain areas costing less than homes in high-end Denver neighborhoods and resort towns. With a sufficient down payment or income, a wide range of homeowners can afford a house in Colorado.

How much do homes cost in Colorado?

The first step to buying a home in Colorado is understanding the average home price and the salary needed to afford it. According to recent data, the average (mean) home price in Colorado is $625,100.

As of the end of October 2025, there were nearly 40,000 homes listed for sale in Colorado. Based on current inventory trends and demand, the Colorado Association of REALTORS® reports that the market has shifted to a buyer's market.

The estimated salary needed to afford the cost of a house in Colorado is $161,000, though a larger down payment could offset the need for such a high income.

When figuring out how much house you can afford, it’s important to factor in your income, existing debts, and any other financial obligations. Current mortgage interest rates in Colorado can also play a significant role.

You can quickly estimate if a home is within reach, given your current financial situation, with our simple home affordability calculator.

As of the end of October 2025, there were nearly 40,000 homes listed for sale in Colorado. Based on current inventory trends and demand, the Colorado Association of REALTORS® reports that the market has shifted to a buyer's market.

What is the median price of a home in Colorado?

The median sale home price for October 2025 in Colorado is $625,100, according to Redfin. That’s 42% higher than the national median sale price of $439,917. The Colorado median sale price is 2.2% lower than it was at the same point last year.

Get mortgage preapproval to buy a home in Colorado

When you're ready to buy a home in Colorado, it's a good idea to get mortgage preapproval.

When you apply for mortgage preapproval, your lender will review some of your financial information and estimate how much it expects you can borrow to buy a home. It also shows real estate agents and sellers that you're ready to buy.

Preapproval differs from prequalification, which usually requires no review of your financial information.

Consider using a mortgage broker in Colorado

An effective way to shop for mortgages is to find a mortgage broker. The broker will take your financial information and present the best available loan options. A broker also can help you navigate the underwriting and mortgage approval process and keep you updated with progress and due dates as your closing date nears.

Finding a real estate agent in Colorado

While you can do quite a bit of home searching yourself online and visiting open houses, a real estate agent can play a significant role in helping you find a home and making an offer.

Agents help you stay apprised of new listings added to the multiple listing service, arrange home tours, help you negotiate the best deal, manage paperwork for the transaction, and walk you through the closing process.

If you don’t already have an agent, getting a referral from a trusted friend or relative can be a good place to start.

If you're new to the area, consider resources like the Colorado Association of REALTORS^® and REColorado to find a real estate agent that meets your needs.

Home buying assistance programs in Colorado

If you’re struggling to save up enough for a down payment and closing costs, consider home buying assistance programs from a nonprofit or government agency, particularly if you’re a first-time buyer.

Some cities, such as Denver and Longmont, have their own programs. If you don’t have local options, you can also check with the Colorado Housing and Finance Authority for the latest programs.

Colorado Housing and Finance Authority

The Colorado Housing and Finance Authority provides real estate assistance to home buyers, renters, and businesses. CHFA offers down payment assistance grants of up to $25,000 to qualifying buyers.

The $25,000 grant isn’t a loan. There’s nothing to repay. The valuable program can make up an entire down payment or serve as an addition to your savings.

MetroDPA

MetroDPA is an official down payment assistance program in the Denver area, serving several cities and counties. You may qualify if you earn up to $210,150 per year and have a credit score of at least 620.

MetroDPA helps procure home loans and may offer direct financial assistance, including a portion of your down payment. The amount you may receive is based on the home value, type of loan, and other factors.

HomesFund

The nonprofit HomesFund provides assistance to home buyers in southwest Colorado. It’s a certified Community Development Financial Institute and a HUD-approved housing counseling agency. It’s based in Durango and offers official programs for the city of Durango and La Plata County.

HomesFund offers free home buyer education classes and advising. If you complete the program, you may qualify for mortgage assistance. The organization offers down payment assistance and “shared appreciation loans,” where HomesFund receives a portion of the profit if you sell in the future.

Longmont down payment assistance

Longmont is another municipality offering down payment assistance. The Longmont program is busy and requires joining a waitlist, so it’s best to apply ASAP if you think you’ll qualify. You must complete a class with Boulder County or another approved provider and have an income that’s below 120% of the area median income, among other requirements.    

Home buying process in Colorado

Buying a home in Colorado can be exciting and rewarding, but it takes preparation and the right team to find and buy the best available home at the best possible price. Following these general steps can put you on the path to homeownership:

1. Get approved for a mortgage. The best place to start when buying a home is understanding your budget. Work with a mortgage company to get preapproval.
2. Find a real estate agent. A real estate agent helps you through many critical steps of the home buying process, and choosing a good agent could be the difference between finding the best home at the best price rather than having to settle or pay too much.
3. Search for your home. Finding the right home within your budget can be quick and easy, or it can take months of searching and touring properties.
4. Make an offer. Once you believe you’ve found the right fit, you can submit an offer. Including a preapproval letter from your lender makes your offer more attractive to sellers, which can be particularly helpful in a competitive market.
5. Get a home inspection. A professional home inspector examines all aspects of the property and its structures, including electrical, plumbing, foundation, HVAC, and other key details. Ultimately, you'll receive a report on the home's condition.
6. Negotiate seller concessions. Based on the outcome of your inspection, you can ask for seller concessions. That’s commonly a request to make repairs or reduce the property's cost so you can have them fixed after the purchase, or some agreement in between.
7. Agree on a final price. You may have to negotiate and make additional offers or amended offers back and forth until you get a final price. Once you agree on terms, it’s time to prepare for your closing.
8. Close on your home. Leading up to closing, you’ll go through additional steps to complete your mortgage approval, ensure there are no property title issues, and line up a wire transfer for your down payment and closing costs. If you get a message about updated wire instructions, be sure to verify them on the phone with your title company to ensure you don’t fall victim to fraud.

The bottom line: Now might be a great time to buy in Colorado

If you’ve been waiting for the right moment, now might be a great moment to make your move. Buying a house in Colorado could be the perfect next step for your lifestyle or career. With world-class recreation and a relatively strong state economy, there are plenty of good reasons to call Colorado home.

If you’re looking to get started buying a home in Colorado, take the first step with a mortgage application today with Rocket Mortgage^®.