The second step in the process of becoming a homeowner in Denver is to arrange for the financing of the home. Unless you are an all-cash buyer, this will be an important consideration. Depending on the type loan you get, there may be limitation on the types of properties you can submit offers on. It's important to understand the different types of loan programs available while carefully selecting the best mortgage broker to act as a critical member of your team. Once you are ready to take the next step, Download the Pre-Qualification Questionnaire below.
Ok, I've made the decision. Where do I start?
The natural place to begin this discussion is the amount you plan on putting down to pay for the property. Your down payment will be divided into three categories: 1) Earnest Money 2) Professional Services 3) Down Payment Remainder. As a general rule of thumb, the more you can put down as a down payment the stronger your offer is. That's not to discourage you if you only have a couple thousand dollars for your down payment, there are tactics and strategies that have been tested and proven to work in low equity scenarios. A recommended down payment of 5%+ in Denver will give you the upper hand in most negotiations. Conventional Loans are the most preferential type of loan in a competitive market like Denver.
Who should I work with for my Home Financing?
A mortgage broker is going to help you obtain the best terms possible on financing your home. They will advise you as to which type of loan makes the most sense for the situations, and will serve as an ongoing point of contact as you refinance your property over time. Each bank that they work with have different pricing for different types of loans at different periods of time. They are an important part of your team, and we can help if you don't know where to start. Take a look at out Preferred Lenders on our Affiliated Partner's Page.
So what are the next steps?
To get all of your ducks in a row before you start the process of obtaining financing for your new home purchase, get a copy of our Pre-Qualification Checklist. You'll need to gather up your tax returns, accounts and debit balances, but this critical step will give you valuable insight as to what price point in a home you can afford. Make the investment of time now to prepare, and when you're ready to pull the trigger you'll be that much better prepared when the right time comes along. We are here to help you when you're ready.