Mortgage Advice for the Denver Real Estate Market
If you have an established credit-worthy FICO score, there is definitely money available if you are looking to buy a home in the Denver real estate market. Yes, lending constraints have tightened, but we are confident in the working relationships that we have established with quality Denver lenders. Here is how I see it:
1. It is a fact that liquidity has tightened and some mortgage companies have had difficulties funding their loans. Correspondent lenders’ credit lines are shrinking, and mortgage brokers have less room to maneuver with wholesale lenders. If you are in the market to buy a home, you should work with an experienced real estate agent that has established relationships with well-capitalized lenders. It is essential that your funds will be there when needed at the closing.
2. As a borrower, you should always work with a lender that can accommodate all types of loans, including FHA, VA, Conforming and Non-Conforming loans. With the recent price increases with PMI (private mortgage insurance), FHA has become much more attractive than in years past. With recent MIP (FHA’s mortgage insurance premium) changes, higher credit score FHA buyers, even those with 10% down or more, may benefit by comparing an FHA loan with a similar conforming loan.
3. As a homebuyer you should get preapproved rather than just prequalified. With no assurances of what future mortgage industry changes will look like, many agents are insisting on a fully underwritten preapproval (subject to appraisal) before house hunting and presenting an offer. Likewise, sellers should always demand, before tying up their property for 30 days or more that a “preapproved” offer is being presented. Nobody benefits when a listing is “tied-up” to find out later that a “prequalified’ borrower’s underwriting terms have changed and, as a result, they no longer qualify for a loan.
4. Sellers, if mortgaging your next transaction, you should also get preapproved prior to listing your current home. With recent mortgage changes, you will want to know that you qualify for a new home loan before you sell your current residence. We certainly would not want the experience of explaining to a home seller that you have to rent rather than buy and your current home is under contract!
If you have any questions concerning buying a home in the Denver metro area, please contact a TeamCox member at 303-400-6060. We are always happy to answer your inquiries.
You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
