Finding the Right Denver Home and Lender
Your Colorado home-buying process should begin by determining what you are comfortable paying monthly for housing. You need to consider other expenses beyond your mortgage payment that could affect your payment comfort level...things like Homeowner Association fees, increased or decreased utility expenses, and additional commute time.
You want to own your home and not have your home own you - if you can't buy pizza or see a movie - you won't be happy for long. Your payment comfort is one of the most critical pieces of finding the right home.
Five things not to overlook:
1. Rate isn't everything
Someone will always have a lower rate. The question is - "Is that rate cost feasible over time - will I get out of it in lower payments what I paid to get it"?
2. Watch closing costs
Are the closing costs reasonable and is the good faith estimate complete? Many lenders will low ball and leave out third party fees to appear to be more competitive. True closing costs from one reputable lender to another should never vary by more than a few hundred dollars at best.
3. Choose someone you trust
Are you comfortable with your loan officer? Are they local? Do they return your calls promptly? Do they clearly answer your questions so that you understand what they are saying in layman's terms and not mortgage 'mumbo-jumbo'?
4. Customize according to your plans
How long do you plan to stay in the home can affect the type of financing that best suits your financial plan. Be sure to have these conversations with your loan officer. You want your mortgage to be tailored to your financial situation and plans not because it is easier for the lender to put your loan together.
If it sounds too good to be true - it likely is. Many homebuyers fall into buying a pitch that doesn't deliver the homerun. If you talk to three lenders and get three answers that sound about the same then you are on the right track. Be wary of that "great deal" that isn't real.
Your credit is vital - don't assume that you know best what to do or how to improve it without consultation from a professional. What may seem logical to you could actually damage your credit and worsen your credit scores affecting your mortgage terms. Seek guidance first if you are planning on buying a home.