Financing a Home

Get started on your Colorado Home Loan!!!

Finding a home is the fun part. Finding financing for a home is another story. There are many options for a home buyer to take when determining who to go to when financing a home. Getting educated about the home loan process is the first step a home buyer should take. At Colorado Home Helper we have pre-screened many diverse, well-educated mortgage professionals who have the experience and the know-how to make the home loan process as smooth as possible.

Our exclusive broker network offers a wide variety of loan programs catered to all borrowers. Listed below is a step-by-step guide to help you better understand financing a home. Plus, there are many options directing you to mortgage professionals who can help get you pre-qualified for a Colorado home loan.

Step 1: How much house can you afford?

Determining how much house you can afford helps the selection process for a home. Lenders used to only be able to lend no more than 28 percent of a borrower's gross monthly income. Today, lenders have loan programs that allow borrowers to borrow as much as 55 percent of their gross monthly income to qualify for a home loan. It is important to prepare months in advance when deciding to buy a home. Managing your credit wisely and having enough funds for a down payment are two key components that help make qualifying for a home loan easier.

Moreover, it is important to know the difference between being pre-qualified for a home loan and being pre-approved for a home loan. Pre-qualified means that a borrower has qualified for a specific amount of funding, while pre-approved means that a borrower has submitted all necessary documentation to a lender and has met all conditions set by an underwriter.

After you have spoken with one of our real estate agents, we suggest that you contact one of our preferred mortgage brokers. Contacting one of our preferred Colorado mortgage brokers helps give us a good idea about how much house you can afford. Our in-house brokers can complete a quick application to start the pre-qualification process. All of our mortgage professionals are bonded with the Better Business Bureau of Colorado, and are signed up with over 90 banks nationally; this gives all of our clients many options for loan programs and pricing for interest rates.

Click here to learn more about our preferred mortgage brokerage The Mortgage Network.

Step 2: Documents needed for a quick and easy loan approval

Depending on the borrower, the number of documents needed for a quick and easy loan approval is premised on a case by case basis. Stated below is a list of documents and information that will be needed to help fulfill requirements set by a lender. (Remember not all of these documents or information may be needed.)

W-2s from past two years' tax returns.
Most recent bank statements for checking and savings accounts from all banking investors.
Most recent pay-stubs. Specifically, copies of the two most recent pay stubs for the borrower and co-borrower.
401k and other retirement information. If the borrower has additional income from a pension or other retirement programs then an award letter will be needed to verify the provider and monthly income.
Stocks/Bonds/IRA.
Alimony/Child Support.
Copies of any decrees or agreements relating to divorces or marital separations.
Personal asset information such as vehicles, household goods, other owned real estate.
All contact information: e-mail addresses, mailing address, phone numbers.
Past employment information: addresses, phone numbers, names of contacts.
Insurance provider: the name of the provider and contact information.
Information about current mortgage - mainly for payoff purposes. A mortgage statement is usually all the lender will need.

Again, every borrower is different so the documentation and information needed may vary. All documentation and personal information is confidential per the Real Estate Settlement Procedures Act (RESPA).

For more information regarding the home loan process go to www.coloradomortgagehelper.com

Step 3: What if I Don't Know What My Credit Looks Like?

Many individuals are accustomed to paying all of their finances on a regular basis and neglect to check their credit report. In today's economy, credit scores are becoming an important factor when determining whether or not a borrower qualifies for a house or even for a credit card. Employers even check credit scores to help determine the potential responsibility level of a future employee. Credit scores are becoming just as valuable as your social security card.

Fair, Isaac and Company scores, or FICO scores, range from 300-850 points and are statistically categorized by three credit bureaus; Equifax, Trans Union, and Experian. The median score from these three credit bureaus give lenders a good idea of how likely the borrower will pay back a loan. The higher the credit score, the better the loan program and interest rate.

Credit reports also show negative marks such as delinquencies, bankruptcies, and foreclosures, all of which damage a borrower's credit score severely. Although credit scores help determine if a borrower is eligible to qualify for a home loan, there are other loan programs that don't require credit scores. The Federal Housing Administration (FHA) has designed a loan program that only requires a borrower to have sufficient income to qualify for a loan, along with other requirements such as paying off all collections and having no late payments for 12 months on at least three trade-lines. These programs include fixed interest rates and offer down payment and closing cost assistance. Colorado Home Helper's preferred broker, The Mortgage Network, has earned the privilege of being approved by the United States Government to provide FHA and VA loans, which eliminates or reduces the cash requirements for purchasing a home.

Our preferred brokers will pull your credit report and help advise you on all possible options. Whether you are 1 month away or 6 months away from buying a home, know the process and be prepared ahead of time.

Step 4: How Long Does It Take To Get A Home Loan Approved By A Lender?

After one of our preferred mortgage brokers has taken an application, and depending on the loan applied for, we can have you approved in no more than a month. Here at Colorado Home Helper we have established a streamlined process that has satisfied all of our customers, making the home buying process convenient for you. We have worked with many home buyers re-locating to Colorado from many states throughout the United States, veterans whom have served proudly for our country, first-time home buyers, and many who have been referred to us by past clients. We have well-established processors who diligently submit our loans to all 92 of our lenders, and have exclusive relationships with each of our investor's account executives. So, whether you are a home buyer from out of state or a home buyer around the block, we have a proven process that will work for you.

To complete a quick application, contact our Senior Loan Officer Erik Aragon at 303-257-7232, e-mail him at aragon.erik@gmail.com, or go to www.coloradomortgagehelper.com and contact any of our preferred brokers who are available 7 days a week.