Home Financing Information
Getting your Home Loan
Your Cherry Creek Properties real estate broker’s most important job is to set you up for success in buying your home! Your success starts with ensuring your lending is handled efficiently and professionally. A good mortgage professional (lender) is an essential part of the team. The lender works with your real estate broker to ensure your purchase is as stress-free as possible.
Your real estate broker will recommend a top mortgage professional for you to work with. Your broker will recommend someone who they know will keep their promises to you and get the job done in the timeframe necessary helping you choose the mortgage program that best suits your individual needs.
Getting Pre-Approved by a Lender is Critical
Mortgage lenders take the guess work out of obtaining a loan by helping you determine the amount you can comfortably afford to borrow. Then, they give you a printed document stating the maximum mortgage amount you qualify for based on your particular finances and income. Mortgage pre-approval is critical because the letter provided by the lender is given to the seller of the property when you make an offer. It strengthens your buying position by letting the seller know that you have already been pre-approved for the loan. Most sellers will not accept an offer unless it’s accompanied by a pre-approval letter from a reputable lender.
At Cherry Creek Properties we are proud to partner with our in-house mortgage partner SkyStar Mortgage.
Getting Pre-Approved or Getting Your Questions Answered is Easy! You Can Contact Our Partners At SkyStar Mortgage By:
- Exclusive 24/7 Mortgage Hotline at 720-434-3943
Your call with be connected to one of their experienced Team Members:
Kemper Lewis – President 720-434-3943
- Visit their website at SKYSTARMORTGAGE.com
- Simply complete the form below and they will contact you directly.
Let us help you find the best mortgage – no obligation. Talk to us today.
Getting That Perfect Mortgage
For most first-time home buyers, shopping around for that “perfect” mortgage can be a daunting and complicated task. Just as if you were to take your time purchasing a car or new large screen television, purchasing a mortgage loan takes patience and research so that you receive the best possible deal for you and your family. There are various aspects of a mortgage loan that you have to be aware of so you fully understand the type of loan that you’re receiving. In addition, be certain that you know your credit records, income, debts and assets.
Maintaining a Good Credit Score
One of the most important things that you’ll have to maintain to receive a quality mortgage is your credit score. This includes credit card payments, bills, employment history, debts as well as assets. Your economic history is vital for your economic security, so if your history is unhealthy, then that may affect your chance of getting the loan that you wanted. If you have a poor credit score, then you may be inflicted with higher interest rates.
If you do have a poor credit rating, you may have to wait and save some money before getting a loan. However, if you have a mediocre to poor credit score, but have legitimate reasons of why you have that (ex. Illness, tragedy, and temporary loss in income) then you may not receive as high interest rates. As well, if the information on your credit rating is accurate but still slightly poor, then you may slightly be able to avoid higher interest rates.
There are multiple ways of receiving a mortgage. You get a mortgage loan from a lender, which typically is a bank. Contacting and discussing with multiple lenders will only help your research and your chances a getting that loan you want. However, another method of finding a solid mortgage loan is through the assistance of a mortgage broker. As a separate entity, the broker will contact multiple lenders to try to find you the best deal through your application. However, if you have not signed a contract with the mortgage broker to be your agent then they are not required to give you the best possible deal. Just as you would have contacted multiple lenders, make sure you search around for the most suitable broker, as well as understanding the policies of each one you visit.
Understanding the Information
Thoroughly understanding all the information lenders and brokers tell you is vital to your success of receiving a worthy mortgage. Be sure you also receive all the required information in order to compare the information of one broker and lender to another. And don’t just settle with knowing only the monthly payment or the interest rates – get all the information there is.
Here is Some of the Information That You’ll Need to Know:
- Rates: When you visit each lender and broker, understand their current mortgage interest rates and ask if the rates being quoted are the lowest for that week or day. As well, understand the difference between fixed and adjustable rate mortgages.
- Points: These are separate fees that you pay to the lender or broker that will go towards the cost of the interest rates. Typically, if you pay more and obtain more points, it might lower the interest rate for your mortgage. Make sure you see the points in a dollar amount instead of just the number of points you’ll need to receive a lower interest rate.
- Down payments and PMI: Some lenders – and even more now if the Qualified Residential Mortgages gets implemented – require the borrower to give a down payment of 20 percent. But some lenders, for borrowers who cannot put down such a hefty down payment, offer conventional loans of as little as five percent. If they were to take such a route, then they may be required purchase private mortgage insurance (PMI) to ensure that nothing too detrimental happens to the lender if the borrower defaults on their payments. Make sure you understand the costs, policies and repercussions of these two options.
The best thing for any new home buyer to do while looking for a mortgage is to take their time and to have multiple options. Don’t rush this process, it can be very severe and detrimental to you if receive a high interest rate loan. Just as if you were to take your time looking for a home, use the same amount effort when looking for a mortgage loan and consult with your Real Estate Agent, they have experience working with lenders and can refer you to a trusted professional.
How Much Do I Qualify For?
When buying a home, it is helpful to determine the type of home you’ll like and how much you can afford before beginning your search. Monthly housing costs shouldn’t be more than 32% of your gross monthly income. Housing costs include your monthly mortgage payments (principal and interest), property taxes and heating expenses (PITH— Principal, Interest, Taxes and Heating). To get an idea of how much you can afford to pay each month for a home, multiply your gross monthly income by 32%.
When coupled with current outstanding loans, the total for your debt service should not exceed 40% of your gross monthly income. Some lenders may have slightly more liberal requirements or loan interest rates which may increase your purchasing power.
Mortgage interest, property taxes, loan fees or “points” are currently tax deductible (up to allowable limits). Points are generally deductible in the year paid. A point equals 1% of the mortgage amount. If you are in the 32% tax bracket, this is equivalent to receiving a 32% discount on your mortgage interest and property taxes. During the first years of the mortgage your tax savings are especially high because most of your monthly payment goes toward loan interest.