The Major Types of Denver Mortgage Lenders Explained

When you’re considering buying a home with the help of Denver mortgage lenders, you’ll have to deal with paying a mortgage. Finding the right Denver mortgage lender could be the difference between a smooth and quick home buying process or a drawn-out and expensive one. Before deciding from the countless Denver mortgage lenders out there, check out this quick guide to the various types of lenders.  

Denver mortgage lenders

 

What is a Denver Mortgage Lender?

What is a mortgage lender in the first place? Essentially, a mortgage lender is a company that lends you money to purchase your home. Credit unions, mortgage bankers, and mortgage brokers all fall into this category. Different lenders will often have different requirements to qualify, and some may accept loan types that others won’t. 

Direct Denver Mortgage Lenders

Portfolio lenders and mortgage banks fall under the category of “direct lenders.” These lenders originate their own loans, meaning you’ll work directly with them for your application process and for your payments. Direct lenders in Denver take care of underwriting, processing, and closing loans all by themselves, without the need for intermediaries like mortgage brokers. Direct lenders tend to work quickly, which is great if you need to move fast. 

Wholesale Lenders

When you work with a wholesale Denver mortgage lender, there’s an extra step involved. Wholesale lenders fund mortgages and offer them to banks or credit unions, then the bank or credit union serves as your point of contact. In these situations, the borrower and the wholesale lender never communicate directly. The wholesale lender essentially offers a mortgage to an institution, which then helps the buyer. 

Retail Lenders

Retail lenders, on the other hand, offer mortgages directly to the consumer. Credit unions and banks would fall into this category. Retail lenders have their own unique qualifications and requirements, and they often sell multiple products and services with everything handled in-house. If you want lots of mortgage options to choose from, working with a retail lender could be your best bet. 

Portfolio Lenders

Portfolio lenders are often appealing to those who don’t meet the guidelines of other lenders. These lenders use their own money to originate mortgages. For instance, a community bank could serve as a portfolio lender, offering you a loan and then keeping that loan in its portfolio (as opposed to selling the loan on the secondary market to companies like Freddie Mac or Fannie Mae). If you need a particularly large loan or if you have a less-than-stellar credit score, you may benefit from working with a portfolio lender. Keep in mind, though, that you’ll likely encounter high interest rates. 

Hard Money Lenders

Hard money lenders are usually preferred by borrowers who purchase and “flip” homes or those who can’t qualify with other lenders. These loans involve using the home as collateral during financing. Hard money loans have to be paid back in just a few years, and if you fail to do so, the lender can take over the property. While these loans can be helpful for short-term purchases, they often come with large down payment requirements and high interest rates. 

Work with the Best Denver Mortgage Lenders at 5280Lend

Whether you’re a first time homebuyer in Denver or it’s your next round, knowing a bit about the various Denver mortgage lenders can help you make a well-informed decision before purchasing a home. If you’re still stuck, consider working with 5280Lend. We can help you understand how much you qualify for, what to expect throughout the home buying process, what your potential down payments or closing costs may be, and more. 

5280Lend is your ultimate resource for getting a loan and purchasing a home in Denver. Contact our team today to learn more about how we can help! 

Qualifying for an FHA Loan in Denver

Buying a home for the first time can be intimidating, but a FHA loan in Denver can be a more accessible solution for your needs. Besides finding the right house and packing all your things, there’s a big question hanging over your head: How are you going to pay for it? Getting a home loan doesn’t have to be complicated. One of the most common types of home loans is an FHA loan. But what exactly is it, and how do you qualify? We’ve got your simple guide to FHA loans in Denver.

FHA Loan in Denver
FHA Loan in Denver

What is an FHA Loan?

FHA loans get their name from the Federal Housing Administration, which is the agency that insures your loan. If you default on your home loan, the FHA protects your lender from loss. FHA loans are incredibly appealing, particularly for first-time home buyers, because of their flexibility. They often require lower down payment amounts and credit scores than other types of loans.

FHA loans aren’t all created equal. There are actually several different types of FHA loans, differing in the amount you can receive and even the type of property you can purchase with your loan. A purchase FHA loan is arguably the most common. As the name suggests, this loan helps you purchase a home, typically with a down payment of 4% or less (depending on your credit score).

The FHA also offers rate or term refinances if you’re already paying a mortgage and want to look for lower rates. You may also be interested in an FHA Streamline loan, which is available to those who already have an FHA loan and want to do a term or rate refinance.

Denver FHA Loan Requirements

In order to see if you qualify for an FHA loan in Denver, there are several factors to consider. First, you have to have a steady income. The FHA doesn’t designate a specific income requirement, but you do have to be able to prove you make a steady income and would be able to afford your house payments. You’ll often be required to submit bank statements or pay stubs to your lender to verify your income.

You’ll also want to take a look at your credit score. No matter what type of FHA loan you’re interested in, you’ll typically need a credit score of at least 500. Even then, you’ll need to hand over a significant down payment. The higher your credit score is, though, the better chance you have of getting a low interest rate as well as a low down payment.

After you’ve met your personal requirements, you then have to meet some criteria with the house itself. You must move into the house within 60 days of closing on it, and the home you buy has to be your primary residence. You can’t use it as a second home or an investment or rental property. Finally, before you buy, you have to have a home inspection, as well as an appraisal performed by an FHA-approved appraiser.

Get an FHA Loan in Denver with 5280Lend

Looking for a home loan in Denver can leave you feeling overwhelmed, but the team at 5280Lend can help. We’ve been helping clients secure their FHA loans in Denver for years now, and we’ve seen just about every situation you can think of. Our wide range of expertise means we’re ready to help you get your loan and purchase the home of your dreams, no matter your circumstances.

Our team can walk you through the entire application process and will happily answer any questions you may have along the way. In the end, you’ll be able to purchase an incredible property and rest easy knowing you can afford it.

Contact the team at 5280Lend today to get started!

 

 

 

FAQs About VA Home Loans in Denver

VA home loans in Denver can provide a wide range of benefits to veterans along with accessibility. Our veterans deserve to be honored and celebrated, which is why our society offers various benefits to recognize their service. Perhaps one of the biggest benefits that veterans and service members can take advantage of is VA loans. If you’re considering purchasing property with a VA home loan in Denver, you likely have a few questions. We’ve got answers to some of our most common queries. 

VA Home Loans in Denver
VA Home Loans in Denver

Am I eligible for VA home loans in Denver?

VA home loans are incredible tools for veterans, service members, and their surviving family members to purchase or improve a home. However, there are still certain requirements you must meet before you can take advantage of a VA loan. To get VA home loans in Denver, you have to obtain a Certificate of Eligibility (or COE).  

To get a COE, you first have to ensure you meet the minimum active-duty service requirement. If you’re a current service member, you have to have served for at least 90 consecutive days without a break. If you’re a veteran, National Guard member, or Reserve member, your active-duty service requirement can vary based on when you served. The VA provides a list of requirements for each case. 

You might also be able to get a COE even if you don’t meet the minimum service requirement. If you were discharged because of hardship, certain medical conditions, or a service-related disability, you may still qualify. 

How much should my down payment be?

Part of the appeal of VA home loans is the fact that you don’t have to submit a down payment at all. While the vast majority of other home loans require some sort of down payments, VA loan recipients don’t need them. Of course, if you have the means and would like to lower your monthly mortgage payments, a down payment could help with that. The standard recommendation is to save up for a down payment that’s 6% of the loan value. 

What are the different types of VA home loans? 

There are four major types of VA loans: purchase loans, Native American Direct Loans, Interest Rate Reduction Refinance Loans, and cash-out refinance loans. 

Purchase loans are arguably the most common of all VA loans. You can purchase a new home or condo, build a home, or buy a home to improve upon. Because of its flexibility, most service members opt for this loan. 

Native American veterans or veterans married to Native Americans may qualify for a Native American Direct Loan (NADL). This loan allows you to buy or improve a home that sits on federal trust land. 

If you already have a VA-backed home loan, you could qualify for an Interest Rate Reduction Refinance Loan (IRRRL). You’ll be able to replace your existing loan with a new one in order to take advantage of lower rates and reduce your monthly payments. 

Finally, cash-out refinance loans allow you to take cash from your home equity. This type of loan could be helpful if you need cash to handle a major expense, such as handling another debt or paying for school.

How do I get started? 

Applying for VA home loans in Denver is easy when you work with 5280Lend. We can help ensure you meet the qualifications for your preferred loan type and walk you through the application process. Even if you’re unsure of your eligibility, 5280Lend can look at your circumstances and determine all the various loans you may be able to qualify for. 

Don’t wait any longer to find a loan and purchase the home of your dreams. Contact 5280Lend today to get started! 

 

5 Handy Tips for the First Time Homebuyer in Denver CO

Buying your very first house is one of the most exciting occasions of your life as a first time homebuyer in Denver CO. You’re finally able to have a place to call your own and make memories with the friends and family you love most. But the process of buying a home is often confusing and intimidating. If you’re a first time homebuyer in Denver CO, consider these five tips.

First Time Homebuyer Denver

Save for Your Down Payment Early

As soon as you decide you want to buy a home, start saving for your down payment. Even if you can only afford to save $50 each month, those little chunks of cash add up! Depending on what type of loan you get and what your credit score is, you may be able to purchase a home with as little as 3% down. Even if you expect a low down payment, start saving anyway. If you don’t need the money for your down payment, you can use it to cover moving expenses or closing costs instead.

Don’t Buy More Than You Can Afford

It’s tempting to purchase the most upscale home you can afford once you’re approved for a loan, but this path could be a dangerous one. Buying above your means could leave you in a bind if you suddenly lose your job or encounter another financial tragedy. Consider your income, any debts you have, your credit score, and the cost of living in your area to decide how much you can truly afford to spend on your home. A home affordability calculator could also help as a first time homebuyer in Denver CO.

Get a Preapproval Letter

Once you start working with a lender, apply for preapproval. This process essentially involves your lender offering to provide you with a certain loan amount under their terms. When you have a preapproval letter to present to sellers and real estate agents, it proves you’re serious about buying a home and have the confidence of a lender to back you up. If you choose to shop around for a home lender, try to submit your applications within 30 days of each other to minimize the impact on your credit score.  Being a first time homebuyer in Denver CO is very competitive and it will require you to be properly prepared.

Find the Right Neighborhood

In addition to finding the right home, you have to be careful about picking the right neighborhood as well. Many first-time homebuyers in Denver CO, simply focus on the home itself and aren’t as concerned about the neighborhood. If you aren’t careful, though, you could end up on the opposite side of town from your workplace or in a neighborhood that’s too loud for your taste. Think about the privacy your potential neighborhood would afford you, the location compared to your work or school, and whether your neighborhood has an HOA or any other fees.

Don’t Be Afraid to Negotiate

You’ve found a home you like and are ready to submit an offer to the seller. You don’t have to make up your mind based on the asking price alone. You can negotiate with the seller to lower the price of the home if there are any repairs that you may need to make after the sale. Alternatively, you might be able to have the seller pay a portion of the closing costs. Your real estate agent can help you determine if there’s room for negotiation. If you’re buying a home in Denver CO you need to negotiate to get your price down.

5280Lend Helps a First Time Homebuyer in Denver CO

The good thing about being a first time homebuyer in Denver CO, is that you don’t have to do it alone. 5280Lend is here. Our team has been helping homebuyers in Denver for years, giving us the knowledge and confidence to get you the loan you need. We’ll walk you through the application process and help you secure loan terms that work for your budget.

Contact 5280Lend today to learn more!

 

What are Denver Jumbo Loans, and Do I Qualify?

What are Denver Jumbo Loans, and Do I Qualify?

 

Finding the right home loan is a crucial step in the homebuying process. Not only can the proper loan help you secure the home of your dreams, but they can also save you some money on interest in the long run. During your search, you may have come across the concept of jumbo loans. If you’re planning to move to the Denver area, this type of loan could be advantageous to consider. Learn a bit more about Denver jumbo loans before applying!

 

Denver Jumbo Loans

 

What are Jumbo Loans?

 

First things first: what is a jumbo loan? As defined by https://www.fhfa.gov/, “A loan is considered jumbo if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac – currently $647,200 for a single-family home in all states” (except Alaska and Hawaii).

 

In short, a jumbo loan can help you purchase property in areas where the home prices are typically more expensive. Considering the average home price in Denver stands around $652,000, there’s a good chance that you’ll be considering a home that may require a higher amount to be borrowed and therefore the need for a jumbo loan.

 

Besides the amount of the loan, jumbo loans differ from other loan types in several ways. First, you’re likely to encounter a different interest rate with a jumbo loan.  Some of the loan terms can be slightly different and worth paying close attention to.  Additionally, applying for a jumbo loan may mean that you need to put forth a bigger down payment than you would need with a standard mortgage.

 

But there are also some things that jumbo loans and other loans have in common. Jumbo loans can be used for first homes, second homes, or vacation homes, just like a conventional loan. Plus, you can opt for either a fixed-rate or adjustable-rate jumbo loan in the same way you can select one of these options for a traditional loan.

 

Qualifying for Denver Jumbo Loans

 

There are several things you’ll need to ensure you can qualify for a jumbo loan to purchase your dream home. First, you’ll want to make sure your credit report is in order. The credit score needed to qualify will vary by lender, but no matter what your target score is, be sure to check your credit report and, if anything looks amiss, please feel free to contact 5280 Lend to help you determine what can be done.  Credit diagnostics and credit repair are both critical parts of what we can help you with also.

 

Lenders will also take a look at your debt-to-income, or DTI, ratio. If you have a large amount of debt compared to the income you’re bringing in every month, you may not be approved for a jumbo loan. Your lender may also ask about any cash reserves you have, and it’s often recommended that you aim to keep 6-12 months’ worth of mortgage costs in the bank.

 

Finally, be sure to collect all of the documents you’ll need for your application. In many cases, you’ll need to provide at least the last two years of tax returns, a few of your recent pay stubs and bank statements, and proof of any income you may have. This income can be from a traditional job, self-employment, investment income, bonuses, or any other manner in which you might earn money.

 

Work with 5280Lend

 

While it may seem intimidating to apply for Denver jumbo loans, you don’t have to do it alone. Consider working with 5280Lend to learn more about jumbo loans and to get started applying. Our team has years of experience helping clients secure financing to purchase homes throughout the Denver area, standing out with our dedication to one-on-one attention for every client. Reach out today to get started!

Top 3 Things to Consider When Picking a Denver Mortgage Lender

What to Consider When Picking a Denver Mortgage Lender

 

 

The homebuying process is about so much more than finding the right home. You also have to ensure you have the financing to purchase that dream property. That’s why it’s so important to find the right Denver mortgage lender for your situation. Not all loans are created equally, and neither are all lenders. When it comes to deciding on the ideal Denver mortgage lender to help you through the process, here are a few things to keep in mind.

Denver mortgage lender

 

 

What are Your Options?  Banks, Brokers, or Something else?

 

Many homebuyers choose to work with a local bank to get a mortgage, but this route is far from your only option. In addition to getting a loan from a bank (whether you choose your local bank or a national name), you could also consider working with a credit union.  The good thing about credit unions is that most of them are local.  Locally based lenders are going to be your best choice.

Alternatively, you could work with a mortgage broker.  Mortgage brokers operate independently of commercial banks and usually offer more financing options than banks.  The drawback to brokers is that they lack some of the underwriting control and timeline control that will certainly be things you will need in most cases.

There are also Mortgage Banks who are not associated with commercial banks that offer quick service, more financing solutions, and the underwriting and timeline control you are looking for.  5280 Lend is a Mortgage Bank with decades of experience and a team completely local to the Denver Metro Area.

 

Comparing Loan Offers and Fees

 

Once you’ve come up with a few possibilities for your Denver mortgage lender, it’s time to start comparing.

 

Perhaps the most obvious thing to compare is the interest rates offered by each lender. The main thing to keep in mind here is that interest rates can change by the day, so the rates you see one day may be completely different the next week. The interest rate you ultimately agree to will only be locked in once you’ve finalized your application with your preferred lender.

 

In addition to the interest rate, there are other fees you’ll encounter with any mortgage loan. Some lenders will list out each fee that they charge, while other lenders will lump them all together as one large payment. Be sure to ask your prospective lenders about any fees they charge, such as underwriting costs or application fees. You may be able to negotiate these fees if you’re comparing lenders.

 

Of course, you’ll also want to consider your down payment amount. While it’s important to put down a sizable down payment (helping you save on interest and have lower monthly payments overall), you ideally don’t want to drain your entire savings. Ask your lender if they offer any assistance programs to help with your down payment. You might also ask if you’ll need to purchase private mortgage insurance (PMI) if you make a smaller down payment.

 

Consider 5280Lend as Your Denver Mortgage Lender

 

Finding a Denver mortgage lender is one of the most vital parts in ensuring that your home buying process runs smoothly. The right mortgage lender will be readily available to answer your questions, ensure you get an interest rate that works for you, and work quickly to help you purchase your dream home. 5280Lend is proud to meet these qualifications.  We look at each client as the unique person or family that they all are and we make it our goal to provide a comprehensive solution to the financing needs that they came to use with.

 

5280Lend has more than 25 years of experience working with Denver home buyers to provide mortgage loans of all kinds. Whether you’re a first-time home buyer or have purchased property in the past, our team is happy to walk you through the process and always keep you informed. We will work with you to determine your eligibility and secure the most favorable terms possible for your mortgage loan. Contact 5280Loan today to get started!

Change your life as a First Time Home Buyer in Denver

What to Know as a First Time Home Buyer in Denver

 

 

 

First time home buyers in Denver are driven by lots of different attractions.  Denver, Colorado, is a breathtaking destination, so it’s no wonder that so many people have fallen in love with the Mile High City. In fact, many first-time home buyers are making their way to the Denver area to settle down. No matter where you are, buying a home for the first time can be an overwhelming process. Thankfully, doing just a bit of research can clear up the process exponentially. Here are a few tips as you move forward as a first-time home buyer in Denver.

About the City of Denver

first time home buyer in Denver

 

The capital of Colorado, Denver is the biggest city in the state with a population of approximately 715,000 people. This city truly offers a little something for everyone, including four major league sports teams, plenty of breathtaking natural attractions, and fun destinations like the Denver Art Museum and the Denver Zoo.

 

In addition to the entertainment, there are plenty of practical reasons to live in Denver. There are multiple modes of transportation available throughout the city, including cars, buses, and commuter rail, and residents have access to the Denver International Airport. Denver is a key point of trade, offering jobs in virtually every field imaginable, and the weather offers something unique in every season.  (https://www.denver.org/things-to-do/)

 

Typical Denver Home Prices

 

If you’re considering purchasing your first home in Denver, you’re likely curious about what you can expect to spend. According to Zillow, the average home price in Denver sits at approximately $650,000, as of the time of writing. This figure is a bit higher than the average home price in Colorado as a whole, which is approximately $590,000, but it is still quite affordable when compared to other major cities across the country.

 

Assistance Programs for First Time Home Buyers in Denver

 

Being a First Time home buyer in Denver gives you access to a wide range of assistance programs to help you afford your dream home. FHA loans can be appealing, as they often require low down payments, meaning that you don’t have to use your entire savings to purchase a home. These loans also offer more relaxed requirements in terms of credit history and job history when compared to other types of mortgage loans.  FHA loans also require the least amount of down payment.  With a 3.5% down payment, you can purchase a new house, townhome, or condo with an FHA loan.

 

For additional support, consider working with the Colorado Housing Assistance Corporation. Not only can they provide assistance in getting you approved for a loan, but they also offer convenient and informative classes for first-time home buyers. These classes provide valuable insights into homeownership and the financial considerations involved throughout the entire process, even after you’ve closed on your property.

 

Work with 5280Lend (https://www.5280lend.com)

 

Purchasing a home can be overwhelming in any case, but when you’re a first-time home buyer, this statement is especially true. At 5280Lend, we understand that you likely have lots of questions about the process, and we’re here to help you get through it.

 

Our team has more than 25 years of experience in real estate and are well-equipped to help you get approved for a mortgage loan that meets your needs. We can help you find the right loan, perfect your application, and get the financing you need to purchase your first home. Having an experienced and dedicated team by your side can make a world of difference when you’re buying your first house. 5280Lend is ready to step in and help you achieve your dream of home ownership. Contact our team today to learn more and to get started!

5 of the Most Popular Denver Home Loans

Denver home loans can be overwhelming without the right guidance.

Denver home loans

Whether you’re buying your first home or you’ve purchased a property or two in the past, you’ve likely encountered several different types of home loans. Finding the right home loan may seem like a challenge, but it could potentially save you tens of thousands of dollars down the line. We’ve created a simple guide to the five basic types of Denver home loans so you can make an informed decision and purchase the house of your dreams.

Conventional Loan

If you have a good credit score, you may consider applying for a conventional loan. These loans aren’t backed by the federal government and can be either conforming or non-conforming, depending on whether they meet the standards set by the Federal Housing Finance Agency (FHFA).

There are several benefits to conventional loans, starting with their flexibility. Conventional loans can be used no matter whether you’re buying your first or second home or even if you’re buying an investment property. You may be able to pay as little as 3% down, which can be appealing for those looking to get a home immediately. Keep in mind that you’ll need at least a 620 FICO score to qualify.

Government-Insured Loan

Alternatively, you could opt for a government-insured loan to purchase your home. There are three main options here: FHA, USDA, or VA loans. FHA loans are perhaps the most well-known, requiring a FICO score of 580 to get a maximum of 96.5% financing. These loans are best for those who can’t put down a significant down payment.

For those looking to purchase in rural areas, USDA loans are good options. These loans only apply if you purchase a home in a USDA-eligible area, and you must also meet income requirements to qualify. Finally, for military personnel and their families, VA loans offer low-interest mortgages without the need for a down payment or a minimum credit score.

Adjustable-Rate Mortgage

Adjustable-rate mortgages aren’t for everyone, but they may be a good option for those who know they won’t be in their home for long. With these loans, interest rates can fluctuate with the market, meaning that your monthly mortgage payment can change.

If you opt for an adjustable-rate mortgage, you may be able to save quite a bit of money on interest, especially in the first couple of years you’re in the home. Just make sure you read the fine print and know exactly what you’re getting yourself into.

Fixed-Rate Mortgage

Unlike its adjustable counterpart, a fixed-rate mortgage is, well, fixed. Your monthly payment will never change since your interest rate is always the same. Typically, these loans have either 15- or 30-year terms.

If you know you’re going to be in your home for quite a while and you don’t want to worry about your payments changing each month, a fixed-rate mortgage could be a promising option. Keep in mind, though, that your interest rate will probably be higher than it would be if you opted for an adjustable-rate mortgage.

Jumbo Loan

As the name suggests, jumbo loans are the largest Denver home loans you’ll find. These loans are quite common in high-cost locations like New York City or Los Angeles, since they provide more money to allow buyers to purchase more expensive properties. Best of all, the interest rates on these loans are not terribly high, especially when compared with conventional loans.

To qualify for a jumbo loan, you’ll have to meet stricter requirements than with other types of loans. In most cases, you’ll need a FICO score of at least 700 and a down payment of 10-20%. You’ll also have to provide additional documentation as determined by your lender, including proof of your assets.

Working with 5280Lend for Denver Home Loans

No matter which of the various Denver home loans you’re seeking, 5280Lend can help. Our team walks you through the entire process of securing a mortgage and answers all of your questions along the way. Contact 5280Lend today to see how we can help you purchase your dream home!

Denver area mortgage financing.

Video:  www.5280lend.com/insider-training/

Insider Training Information on Denver area mortgage financing analysis and choices.

More about Denver area mortgage financing.

We’re going to cover a ton of stuff that’s going to help you tremendously in making your decision about your Denver area mortgage financing (www.5280lend.com) . Even if you’ve done multiple mortgage loans here in the Colorado Front Range you’re going to want to stick around and watch some of this valuable analysis that I’m going to get to a little later on. I’m going to show you how to save thousands or maybe even tens of thousands of dollars on your Denver area mortgage financing over the life of time in which you have mortgages. I know that sounds a little optimistic maybe even a bit unrealistic but I think after you go through the analysis you’re going to see how totally valuable it’s going to be to have this information in your pocket.
Before I get to that let’s cover some of the commonly asked financing questions that come up for mortgage clients shopping for Denver area mortgage financing. The first of those is do I use a bank or a mortgage broker. Actually I don’t think there are just two categories. I think there are regular commercial banks, there are mortgage brokers, and there are online lenders, and there’s what I like to refer to as middle tier mortgage companies that’s what my company is. We exclusively deal with Colorado mortgage lending and Denver area mortgage financing. We don’t do any other bank products so we’re totally focused on that type of solution. Let’s start by looking at commercial banks. They are very visible. They’re on every street corner in every city right so you see them constantly. You go in there once or twice a month so it seems logical that walking into a bank and solving your problem there would be an easy solution. The drawback with banks is that they just do not employ experienced people. The reason for that is they just don’t compensate people well enough. Once people develop some experience at a bank, they usually move on to a middle tier mortgage company or other companies that compensate them better and that’s why a bank is probably despite its visibility is probably going to be a drawback. You need an experienced mortgage project manager to handle your transaction. Despite what a lot of people think that the mortgage product is a commodity-based product. Even a lot of lenders consider themselves to be a commodity and that’s why they focus so much on current mortgage interest rates because they just believe: oh it’s just about the lowest mortgage

Insider Training

rate. I think if you’ve gone through a mortgage transaction or two you’ll realize how much value a good lender can bring to your equation and potentially how much bad value of add lender can bring to your equation. You don’t want to suffer through that you don’t want to find out the hard way so take an interest in noting how much experience someone has.
I’ve been in the mortgage business for just under 30 years. I’m going show you some of my Google reviews right now and some other customer reviews for Denver area mortgage financing that people have been so kind as to write up for me.

Denver area mortgage financing

 

I think that these are not only a testament to how committed I am to making sure you have a good experience and that you get the thing that you came to me to get but also that I’m comfortable with telling people what they need to hear versus what they want to hear. A lot of Denver area mortgage financing lenders are so concerned about earning your business and earning their Commission that they forget that their first job is to help you get your transaction done efficiently and effectively and to make sure that you are able to borrow money by spending the least amount of dollars. I am focused on that term dollars and importantly distinguishing that from just focusing on interest rate. That’s something that will lead us into this analysis later. Because you pay dollars you don’t pay interest rate OK so let’s focus on that part and I’m planting that seed for later.
So back to the other options for you are online lenders. Online lenders are almost as visible these days as banks because most people shop for stuff online and the big online lenders are all over Google and all over other search engines. So you’ve got companies like Quicken Home Loans which is same as Rocket Mortgage. You’ve got LendingTree. You’ve got New American Funding, and Amerisave. If you’re here in Denver there’s American financing which advertises on the radio and on the Internet a lot. I’ll tell you the common thread with all of these companies is that they are mass production mortgage operations which means they are a conveyor belt mortgage process which is good for them because it creates a real sense of efficiency for their company. You’ll end up talking to 3-4 maybe five different people throughout the processing of your loan. Like I said that’s great for them because they can kind of categorize what people know and they don’t need to train them on certain aspects of the loan but for you that’s a major drawback. You have to end up dealing with explaining your situation to that many different people. That not only is a pain for you to deal with but it also can cause some real communication gaps and some failures in actually getting your loan done. As much as Rocket Mortgage advertising makes it seem like it’s magic, I can assure you that’s one of the most complained about companies when I’m talking to other real estate agents and other professionals around this business. I don’t know about you but I never want to buy anything that’s mass produced unless I’m getting such a huge discount on that thing that that’s that just makes it totally justifiable. I’ll tell you do not get any discount by using those companies. In fact, most often you’re paying more. You just don’t realize it because they’ll maybe give you the same rate or lower rate but you’re paying so much more in closing costs that’s the overall price of a mortgage loan is much higher. The overall price of the loan is the combination of interest rate and closing costs. In our analysis later we’ll dive into that. I only deal with about 5 to 8 clients every single month so that I can stay focused on that those clients from start to finish in their transaction. I’ll be your only point of contact and you may occasionally talk to my processor but for the most part I will be your main point of contact. I’ll have my hands on the whole thing from start to finish. That’s an important distinguishing factor that you want to consider.
Now the next most important question that comes up is obviously how much Denver area mortgage financing do I qualify for. If you’re going to go out and start shopping for houses you have to know how much house you can afford. You need to know how much your monthly payments are going be and you need to know how much down payment you need to get that job done. That is something that I will usually be able to do within about an hour or two of our first phone conversation. I’ll spend 15 or 20 minutes with you on the phone collecting enough information and start working on your numbers for you and then within an hour or two I can get back to you and tell you how much Denver home financing you qualify for. I can you can get out there and start home shopping for Denver Homes, Englewood Homes, Littleton Homes, Highlands Ranch Homes, Aurora Homes, Lakewood Homes, Brighton Homes, Westminster Homes, Boulder Homes, Arvada Homes, Castle Rock Homes, Parker Homes and any other Colorado Homes that you might be looking at.
There are a few other issues to consider in the mortgage pre-qualifying process. There are employment issues, there are credit issues, there are down payment issues. So let’s start with credit issues: I’ve got some really good resources. One of my best resources for mortgage processing is getting your credit scores increased and approved. We’ve got a Credit Rescore Express program which is an analytical tool which will tell us how quickly and how much higher we can improve your credit scores in a short period of time. Longer term credit repair is another aspect that we will do some Credit Repair Consultation on. We can work on both long and short term stuff. Surprisingly, we can pop credit scores up 20 or 30 points very quickly a lot of times to get you into the rate categories that you need to help you qualify for more. The Rapid Credit Rescore or Rescore Express is a great tool to help you.
Home Loan Down payment issues are another element of the qualifying process that I’ll coach you on. Whether we need to use Colorado down payment assistance programs, Denver VA Home Loans, Denver FHA Home Loans, Fannie Mae Home Ready, Freddie Mac Home Possible, or any of the other low down payment options that are available; I can help you through those things. VA is really one of the only Denver area zero down payment options that’s out there anymore. I’ll coach you through getting gifts for down payment scenarios, and 401K loan options, and other retirement account options that will certainly help you out with down payments.
Employment issues are the next most important issue which you will want an experienced person to be able to coach you through. Denver Self-employed people usually have some tax return issues that need to be considered. Or if you are commissioned income or part time employee. All of these things are things that I can coach you through and help you try to figure out because these are difficulties that can sometimes present problems. The earlier on that we know about these problems earlier we can work on a solution. I’ll try to vet that stuff out right in the beginning while we’re gone through our Live Phone pre-qualification.
Now if you’re in the Denver real estate market, Littleton real estate market, Aurora real estate market, Lakewood real estate market, Highlands Ranch real estate market, Arvada real estate market, Brighton real estate market, Thornton real estate market, Westminster real estate market, Broomfield real estate market, or Boulder real estate market; you know how competitive these areas can be. You have to give yourself a leg up in these bids for real estate. You probably are not somebody who can just write a check for more and more money. If you’re a billionaire that’s no problem for the rest of us regular people we have to come up with a little bit more creative solution to give ourselves a chance to out-shine the competition. There might be as many as eight or ten other people offering on a house that you might be looking at. You have to find a way to distinguish yourself from those people. The best way to do that is to get a full Denver Mortgage pre-approval. This is a little bit more extensive process: it’ll take us about a week to a week and a half to get you fully credit approved. We’ll exchange some documents and go through a full credit approval process then you become effectively the same as a Denver cash buyer and that way when you make an offer on a house, at that stage, you can close in a week to two weeks. Then you are essentially the same as a cash buyer. You will still have time to get an inspection and to get an appraisal. At this point though, those are the only two things that’ll be left for you to get done
The last question that I wish people asked me about more because I wish they were more conscious of this issue is the analysis on what’s more important, or at least as important, as a low interest rate. Here is where I’m going to dive into this closing cost analysis.
This is a comparison between a typical Denver mortgage quote and a Denver no closing cost mortgage quote. The first typical one were getting quoted 3.875 we’ve got our closing cost descriptions over here which included origination charge of 1% origination fee it’s just 1% of this loan balance, we’ve got lender charges of 1775 that includes appraisal fees, underwriting fees, and processing fees, and we’ve got title insurance fees of about 1268. All of that stuff totals up to $6443. Now as a comparison on our no cost mortgage option we’re getting a quote of 4.25%. For that higher rate, the tradeoff is that we do not have any origination fee, and we still have our lender charges, and we have title insurance charges. Now the other tradeoff is that we also get a Denver mortgage lender credit of $2922.50. We do not have that on the typical mortgage quote. Now that lender credit will be kept as profit by a lot of other lenders. We will apply that to your closing costs. So the net closing costs you have is only $107.00 versus the typical quote you’ve got $6443. The difference being $6335 now that’s $6335 gets you a 3.875 rate that’s much better right? The big difference is it only saves you $44 a month and payment. If you do the mortgage payment break-even analysis you just divide this Closing Cost Investment you made of $6335 by your $44 monthly savings, it takes you 143 months to break even or to get your investment back in the form of the lower payments. That’s one month under 12 years. That’s a really long break even. This spreads between these interest rates and these credits are not always the same but the break even generally goes from anywhere from as low as three years to as much as 12 to 15 years. So you can see that your investment of the $6000 that you’re spending definitely isn’t worth it. It is also a lot less money out of pocket that you have to come up with. Either way it’s an expense that you incur and it’s not something you can get back. So looking at the period of time that it takes you to recuperate that expense being this long obviously you can tell that during the no cost option is a significantly better financial option.
Remember again where I talked about the dollars that you’re spending. You’re spending dollars, not interest rate. The overall expenditure is really high so think about that this is a chart with 30 year fixed rate mortgage rates from the early 80s through 2021 (https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate-chart)   . This chart shows a steady decline of Denver mortgage interest rates for 40 years. That’s not accidental that is intentional economic Federal Reserve policy. A lot of people ask: can Denver mortgage rates go lower than 2.5%? It wouldn’t seem logical, but in Europe, rates are actually negative and have been for like the last six or seven years. Here, in all likelihood, based on this chart we will likely go below 2.5% and at some point possibly negative.
This no cost strategy is one that I have been using for about the last 15 years, and I have to tell you that I really rarely do this thorough analysis where we look at that 40 year history of things. When we look back and see how much savings someone could have realized during that period of time, I am really very surprised myself about how much savings are realized. It’s literally saving people 10s of thousands of dollars. Most people roll in closing costs of 3-4 maybe 5-6 thousand dollars. I’ve seen people roll in as much as $12,000 in closing costs and the discount points. On average people save maybe 100 to 200 a month on Denver area mortgage refinancing. You can do the math.
If you are looking into Denver area mortgage financing options or Buying a New Home in Denver, please think about give us a call and letting us help guide you in the right direction.