The Mortgage Process and Options Available for Denver Home Buyers

When it comes to buying a home, many people don’t know their options when it comes to getting a loan. We recently sat down with Lisa Souza from The Mortgage Company as well as Pamela Primm, a Denver real estate agent with Ion Real Estate to discuss renting vs. buying in the Denver area, as well as the process of buying a home and its different aspects. You can listen to the full podcast and read the transcription here. We put together some of the highlights from the podcast on the different loan options available for Denver buyers and what the loan process looks like.

If you are even remotely thinking about buying a home, it is important to talk to a loan officer before you even begin looking at potential homes, areas, etc. It is important to sit down and look at all the details from what your parameters are to what you are trying to achieve. We can get you some estimates on what your potential monthly costs will look like, what your closing costs will be, and any other numbers given your price range. From there, we take all your information and details to the underwriter to get you pre-approved. This is essential in today’s market because most sellers won’t even look at your offer if you are not pre-approved. Once you are pre-approved, there’s really only property specific conditions remaining aspects like homeowners insurance, earnest money, and the appraisal. That is the first step in buying a home is talking to a loan officer about your options and then getting pre-approved. Then, you can begin looking at homes.

Loan Options

One of the biggest concerns many home buyers have is in regards to the down payment. Most people think they do not have enough for a down payment and therefore cannot buy a home but there are programs out there that are designed specifically for those reasons.

  • CHFA: The Colorado Housing and Finance Authority is based here in Colorado and is designed specifically to help people obtain homeownership. They provide reduced mortgage insurance costs, competitive interest rates, and downpayment assistance programs.
  • FHA: The Federal Housing Administration provides government insured loans with the goal of making homeownership accessible for more individuals and families.
  • VA Loans: Designed specifically for the people that have served our country, the VA Loans are one of the best and most attractive loans out there. The VA Loan allows for 100% financing with no down payment, no mortgage insurance and typically closing costs can be rolled into that as well.

Now that you know the process for obtaining a loan, it is time to start looking for your perfect home. This is a daunting task, especially if you do not know what areas to look in and do not know what to expect when you do find a home. Next week, we will discuss the steps that come after you are pre-approved including where to look, how to find the right house and the process of closing on a home and officially owning it!

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