Build Your Credit For Your Home Purchase

Check It Out

  • 5 Steps To Buying A Home

    Step 1. Prepare your finances before searching for your ideal home

    • Find out what you credit score can do for you when it comes to purchasing a home
    • Use a mortgage calculator to estimate a monthly payment
    • Determine your debt-to-income-ratio. The lower the percentage the better!
    • If you are planning on putting less than 20% down, let's explore your other options with Down Payment Assistance Programs in Colorado.

    Step 2. Find a loan type best for you and prequalify!

    • Are you going with a nontraditional or government insured loan?
    • Determine if you are going with a fixed or adjustable rate loan.

    Step 3. Find your perfect home and give an offer a seller can't deny!

    • Learn about mortgage points and how they can lower your monthly payments.
    • Find out what you credit score can do for you when it comes to purchasing a home
    • Know what goes into a purchase of a home; inspections, home insurance, etc.

    Step 4. Mortgage Process

    • Make sure to overview the appraisal and inspection with your real estate agent.
    • Your loan estimate is what you discussed with your mortgage lender.

    Step 5. Closing

    • Knowing what you should expect at closing by talking to your real estate agent
    • Discuss your closing costs and make sure you understand them.
    • Know your moving schedule, and ask for movers or family to help you ahead of time.
  • Pre-Qualifications

    What is Prequalification for a mortgage?

    Getting prequalified for a mortgage will give you a idea of what type of loan fits you best, what type of loan program, and the amount you could possibly borrow. Getting this in advance is one of the smartest thing a potential home buyer can do. It not only helps you get a better understanding of your finances and what you should budget, but setting your expectations at the right level of home you start to look for.

    When you decide to get prequalified for a home, you are essentially getting an estimate of what you could possibly be able to borrow

    This Process:

    • Can be done online
    • Is free of cost
    • Is based off your income you provide, credit check, and assets
    • Gives you an estimate of your borrowing amount
    • Is not a preapproval, nor the lender actually stating this is what you will get. For further for more serious steps, the lender will need further information and paperwork.
  • Types Of Motgage Loans

    Conventional Loans

    A conventional loan is a mortgage made between a lender and a borrower with no other parties involved (such as VA or FHA). Conventional loans customarily require a 20% down payment. Down payments may be as low as 5% with mortgage insurance.

    Here Are Some Advantages:

    • Conventional mortgages are straightforward and easy to understand. Conventional loans offer the largest variety of financing options.
    • Fixed Rate conventional loans feature equal monthly payments that are made over the term of the mortgage. The standard time period is 30 years or less. The interest rate remains the same which keeps the principal and interest payments the same over the term. Payments can vary if taxes or insurance escrow payments change.
    • Adjustable Rate loans are mortgages that allow for payments which change periodically over the life or term of the mortgage. An ARM loan has a set interest rate and payment for a period of time and then adjusts to the market rate at a predetermined point. ARM loans feature lower rates over the initial loan period.

    VA Loans

    The letters stand for Veteran Administration: a branch of the US government. VA is not a lender but rather guarantees mortgages for lenders to help eligible veterans. VA loans require no down payment up to the VA maximum loan limit. VA loans can be assumed by qualified borrowers.

    Here Are Some Advantages:

    • VA requires no down payment. The seller can (but is not required to) pay all closing costs for a veteran

    FHA Loans

    FHA is the Federal Housing Administration, a division of the US Department of Housing and Urban Development, and are most popular amongst . FHA does not lend money; instead, like VA, it insures mortgages allowing lenders to make loans that might not be eligible for conventional financing. Down payments are as low as 3.5%. Both fixed-rate and ARM mortgages are available. FHA loans are assumable by qualified borrowers. FHA mortgages have credit standards and other rules that are more flexible than typical conventional mortgages.

    Here Are Some Advantages:

    • FHA offers a low down payment
    • Colorado has some of the best Down Payment Assistance Programs that could possibly cover your entire down payment and help with closing costs.

FAQ's

  • Why do I need a home inspection?

    Here's Why!

    Home inspections are a buyers expense, but are not always needed. They protect the homeowner from things they cannot see, where a professional inspector might notice. You want to make sure there aren't any huge problems with the home you are wanting to purchase, therefore an inspection would make sure of that. For an existing home this is more common than an inspection for a new build. If the inspector finds things that are wrong with the home, you should be able to negotiate with the seller to either fix them or adjust the price so you can fix them after closing.

  • What are mortgage points?

    Check It Out.

    Points are money paid to your lender that are used to lower your mortgage interest rate. One point will equal 1% of the loan amount. Example: 3 points on a 200,000 mortgage loan is equal to $6,000, which in the end would lower your interest rate.

  • How do I determine my property taxes?

    Here's The Rundown.

    Property taxes are determined by your home's value based on a tax assessor's appraised value of your home. It is a fixed percentage, which are paid to the county or township your home resides in. You can either pay this all upfront, semiannually, or have it lumped into your monthly mortgage payment. If you pay portions of it through you monthly payment, the property taxes will go into an escrow account to be held for when they are due.

  • What is an escrow account?

    Fancy Word.

    An escrow account is simply an account for your money to be held to cover future payments for things such as homeowner's insurance or property taxes. It may be required by your lender, but is nothing to be intimidated by.

  • Why am I required to have homeowners insurance by my lender?

    Because...

    This in the end will protect you and the lender from anything bad happening to the property. It is also known as an insurance policy, and the payment is known as your insurance premium. Homeowner's insurance is most likely going to be lumped into your monthly payment and then will go into an escrow account to be held.

  • What does P&I payment stand for? What about PITI?

    Here You Go,

    P&I stands for Principal and Interest, which is most likely going to be a portion of what your monthly payment is going to look like. The principal is the amount you are asking to borrow, and the interest is the cost amount collected by your lender for borrowing. These two together will make up the majority of your monthly payment. PITI is Principal, Interest, Taxes, and Insurance. All of these variables will most likely add up to your monthly payment.

  • How much do I need for a down payment?

    Great Question,

    Down payments is the percent of your home's price you decide to pay up front when you close of your new home. Down payments range from 3.5% to 20%, depending on your loan program.

  • What about Down Payment Assistance Programs?

    Great news! Colorado has some of the best down payment assistance programs!

    Assistance Programs:

    • Could cover the entire down payment amount!
    • Be applied to the down payment and closing costs
    • Can be for first time home buyers or repeat home buyers
    • Allows home buyers to purchase their home much faster than they thought!

We're here to help, contact us today.