There’s a lot of questions from people thinking about buying a Denver home – whether for the first time or for the first time in a long time. Here’s a great article from Keeping Current Matters that will demystify the process. You might also want to read our post about the Home Buying Process.
Many people that would like to have their own homes have fears that prevent them from buying. If you're afraid to apply for a new mortgage, you're not alone. A recent survey found that 54 percent of people who plan to buy a home hadn't pursued their goal because they were afraid they wouldn't be able to get a mortgage.
Some people don't apply for a mortgage because they'd rather live in a home-buying fantasy than face the realities of the process. For many, the mortgage process can be scary, but it doesn’t have to be. Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests to follow:
- Find out your current credit history & credit score – according to Ellie Mae, the average FICO Score of all closed loans in September was 731. Even if you don’t have perfect credit, you may already qualify for a loan.
- Start getting all documents needed – start to gather your documents such as income verification (W-2 forms or tax returns), credit history, and assets (bank statements to verify your savings).
- Contact a professional agent– your real estate agent will be able to recommend a loan officer that can help you determine how much home you can afford.
- Consult with your trusted lender – the lender will review your income, expenses, and financial goals in order to determine the type and amount of mortgage you qualify for.
- Talk about Pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change), and demonstrates to home sellers that you are serious and qualified to buy a home.
Most importantly, do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner.
Are you ready to get started finding your dream home? Let our experienced professionals guide you through all your real estate needs that include buying or selling a home in Denver. Whether you’re searching for lovely homes in Castle Rock, such as in The Meadows, or any of the other fine communities surrounding Denver, we are here to help you find your dream home. We will guide you every step of the way!
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Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows
BandyTeam.com - Denver Real Estate & Homes
720-466-3790
