Denver Metro Home Loan – 5 Things Your Lender Wants You To Know!
#1 – Set Fair Expectations
When you enter into the grand undertaking that is the purchase and financing of your new home in Denver Metro, there are many steps, multiple companies, and numerous people that will be involved in this process. You are almost guaranteed to run into some small speed bumps along the way (and maybe even some big ones!). We have to begin with something really important… Can I be honest with you? It’s something LARGE and is key to the foundation for success. ***Have fair expectations.*** Be aware that some challenges may arise in the inspection report, the appraisal, or perhaps during the underwriting process. I have often found that the people who can get the most stressed or frantic with the home purchase process are those that came into the transaction with unrealistic expectations to begin with.
Consider this journey towards your home purchase akin to an airline flight from Denver to Chicago. Even the best pilot/co-pilot/flight crew in the world cannot predict with perfect accuracy, the weather or turbulence that will be a part of your journey. The good news is that is not their job. You heard me right. Their job is not to avoid turbulence at all costs. No, instead your flight crew is there to support you throughout the journey, to notify you of potentially turbulent patches ahead, to clearly communicate the plan for successful navigation through the turbulence, and to eventually deliver you safely to your intended destination. Whether in air travel or for your Denver Metro Home Loan, know what to expect before you begin.
#2 – Hire a Crew You Trust
Knowing that there may be some small bumps or possible “turbulence” along the way, it is vitally important that you choose the right “flight crew” for your Denver Metro Home Loan adventure. You wouldn’t trust a pilot with an inconsistent or spotty safety record. You probably wouldn’t want to dine at a restaurant with a poor record of customer service or food quality. Do you really want to entrust your Denver Metro Home Loan experience to a lending and real estate team that does not have a proven success record?
Especially because of the Denver Metro housing market BOOM we are still experiencing, it seems like everyone knows several real estate agents or lenders. Throw a rock and you will probably hit someone involved in the industry! But… just because Aunt Sallie knows someone doesn’t mean it’s the best fit for your needs.
You are bringing valuable business to your lending and real estate team with your Denver Metro Home Loan. Make sure they are bringing value to you! Do your homework. Ask questions. Meet with your real estate agent and lender before jumping into the transaction. Interview them. Ask, “How many families have you helped in the last 6 months?” “How do you make sure I’m successful in these current market conditions?“ “If I use you as my agent/lender for my Denver Metro Home Loan and purchase, what can I expect from you and your team?” “How would you define a successful purchase experience?” Ask for references. This is YOUR home purchase. The agent and the mortgage professional involved in the process are there to help YOU. Make sure that you are working with a team that you can trust! (Rest assured when you team with The Ingram Group, you are with a “crew” with an excellent track history of stellar results since 2006! – Read what others are saying about our services!)
#3 – Dust Off Your Tax Returns
Everyone’s financial profile looks a little different. We all have unique financial histories, income challenges, employment woes, quirky home budget methods, or creative credit card usage. Yet when it comes to qualifying for a Denver Metro Home Loan, know that your financial details will be reviewed and might require you to provide further explanation or details. Besides your regular paychecks, make sure that you can document any recent cash deposits – avoid them if possible. Stay current with your payments on any of the credit accounts (credit cards, auto loan, etc) that you owe on.
Be prepared to provide documentation for everything from your 401k, to your bank account statements, from your employment history, to your tax returns. Begin looking for your tax returns now. Know where to find your W2s. Save your paystubs. Once your loan is in the underwriting and review process, don’t be surprised if your mortgage professional asks you to provide a signed and dated letter explaining one or two unique pieces of your financial history for your Denver Metro Home Loan. After all, you can’t expect someone to blindly loan you a quarter of a million dollars without doing their research into some of your personal financial details first. Get started organizing your financial documents today! It will save you the headache later.
#4 – Become “Best Buds” with Your Credit Score
Besides your income, employment, and debt-to-income ratios, your credit score plays an invaluable role in getting you pre-approved for your Denver Metro Home Loan. Your scores not only influence the interest rate you can take advantage of, but also the types of loan programs that may be available to you. If you are planning to purchase with less than 20% down payment, your credit score will also dictate the rate of the monthly mortgage insurance you pay. Higher scores = more savings for you. Know your score. More importantly, know how to improve your score!
Companies like CreditKarma.com now offer free accounts to inform and educate consumers on credit scoring improvements. Credit usage, timely payment history, length of credit history, and credit utilization all play a role in the scoring models. Pay your credit cards on time. Don’t open too many cards at once. Guard how often you let companies check your credit. Work to keep your credit spending under 30% of your individual card credit limits. Also to note – even though your free scores will help you know roughly where you are at, don’t rely the accuracy of that exact credit scoring number, as these do not reflect the scoring models used by most (read all) lenders. Make sure to discuss any questions or concerns about your credit with your mortgage professional for your Denver Metro Home Loan. Remember, they are here to support and help you!
#5 – Save Up Your Pennies
To take advantage of the best rates available in the market today usually means having an excellent credit score and bringing a large down payment to closing. Be aware that you will need to have some available cash in your bank account (or at least in a retirement account) to cover everything from your earnest money check, inspections, down payment, appraisal fee, payment of closing costs, etc.
Yet fear not!… Even if you don’t have a lot of cash on hand, that should not deter you from pursuing a Denver Metro Home Loan. Whether you are looking to buy a home in Parker, buy a home in Southeast Aurora, Highlands Ranch, or Castle Rock, there are many different programs available through FHA, VA, and even conventional loan products that will lower your required down payments. (The Ingram Group LOVES helping you figure out what the best choice is for you. It’s what we have done for years, and what we will continue to do!) Colorado also has some amazing bond programs and Down Payment Assistance grants for your Denver Metro Home loan like CHFA that may be able to get you into a home for as little as $1000. (Awesome!) These Down Payment Assistant programs come with certain income and credit score restrictions, as well as purchase price restrictions, so be sure to ask you mortgage professional about what you may qualify for… and begin saving your pennies now!
Still with me? How about taking a look at some of the different properties available right now – This home finder tool is ALWAYS current!
About the author: Ben Binger is a licensed mortgage consultant with CityWide Home Loans. In addition to helping people discover their financial possibilities for a home purchase, he enjoys hiking, biking, camping, and all of the recreation that Colorado living has to offer. Lately you can find him sipping a latte at Kunjani Coffee Shop, or fishing with his kids at Bingham Lake in the Pinery. He and his family have been Parker Colorado residents since 2004.
If you have any questions about your credit, home purchase qualifications, or the mortgage process, please contact him at firstname.lastname@example.org or (720) 644-4778
Krista Ingram is a Colorado Realtor, CEO & team leader for THE INGRAM GROUP with Keller Williams Realty. She is a life enthusiast. She loves to laugh. She knows that NOTHING is impossible & is determined to live inspired – in ALL things. She leads her real estate team with a clear mission: Move clients smoothly, quickly, & with top-notch excellence to achieving their real estate goals. She has created a POSITIVE brand of overachieving real estate services – one that exceeds expectations & leaves each client fully satisfied with their choice of Realtors. Interested in learning how THE INGRAM GROUP can help you? Let’s talk soon! Contact Us At: Info@HomesByIngram.com