Qualifying in Colorado

Qualifying for a Mortgage

Sometimes qualifying for a Colorado mortgage can seem a little scary with the probing questions the mortgage lenders ask, but they want to help you qualify for a Colorado mortgage. The Colorado mortgage lender only needs to know information about employment, finances, and the home you are buying if you have already chosen. Here is a list of things the lenders will consider in qualifying you for a Colorado home loan.

Income and expenses
Colorado mortgage lenders consider how you earn your income. They look at bonuses and commissions and how it changes from year to year and the role it plays in your total income to know how reliable they are.

The Colorado mortgage lender will also consider your expenses, specifically your fixed housing expenses such as mortgage, insurance, property or utilities. This should generally be no more than 28% of you gross monthly income. They also will take a look at your other debts such as car or credit card debts as Colorado mortgage qualifications.

Bring qualification information about your employment, salary, bonuses, and other sources of income for the past two years, your most recent pay stubs, previous year’s W-2 forms and tax returns. Also, bring information showing the amount of any dividend and interest income you have received in the past two years as well as any official documentation to support the amount of other regular income that you may receive such as alimony or child support.

Employment history
Job stability is a factor that lenders look at from the last two years for Colorado mortgage qualification. Being employed at your current job for more than two years helps, but is not a requirement. If you stay in the same field just to a different employer or if you have any job advancements, that is also not a problem.

Credit score
Your credit score from the main three credit scoring companies show how likely you are to repay a mortgage debt and help you qualify for a Colorado mortgage.

Personal assets
Colorado mortgage lenders will expect information on current balances and recent statements for checking and saving accounts, value of any investments such as stocks, bonds or certificates of deposit, documentation on retirement funds, value of insurance policies, value of significant piece of property including automobiles, debt information, and balances and account numbers of your current loans and debts.

Underwriting
The mortgage lender's underwrite takes all of the information given and determines the total risk that that specific investor will bring. Each specific investment company has its own underwriting guidelines that determine the loan. Each lender may income, credit history, and property differently, but they all consider the possible risks which are not always a complete list. The lender will review these details more closely:

Income

• Is the income sufficient to repay the loan?
• Is the income stable from monthly and annually?
• Has the borrower had a stable job for a significant amount of time?
• Can the income be verified?

Credit

• Does the borrower have a good credit score (typically, 680 or higher is considered good)?
• Does the borrower have late payments, collections, or a bankruptcy? If yes, is what is the explanation?
• Does the borrower have extreme monthly debts?
• Is the borrower maxed out on credit cards?

Collateral
If the property is not worth what the borrower is paying for it, the mortgage lender may not loan in excess of value. If an appraiser gives a value less than the offer on the house, you can renegotiate the terms with the seller and real estate agent.

If you have disposable cash then you can purchase the Colorado home at the price of the original offer and pay the difference between the loan and the sales price. Assess whether the property you want to buy will hold its value and consider the loan for which you qualified. If you have to make a sudden move and the property has not held its value, you could face significant cash shortfalls when you pay off your loan.

Have a licensed land surveyor survey the property to check for meeting cod requirements, zoning restrictions, location and detentions of the land. Encroachments are improvements done to property that violate any regulations such as building a fence or crossing the property of a neighbor without their permission.

The down payment
The down payment is a certain percentage of the home's value which is determined by the mortgage you choose. The mortgage can generally range from 0 to 20 percent, but may be more if you choose.

For first-time home buyers, a number of Colorado home loans with low down payment are offered. FHA loans may require less than 5 percent down, or if the home owner is a veteran or in military service, there can be no down payment at all. These types of loans allow a higher ratio of payment to income or debt to income. They may also accept all form of credit history if you have not yet established credit through credit cards or car loans. Many state and federal programs offer down payment assistance but may have income and other guidelines to qualify for a Colorado mortgage. 

Fill out An Application

Take the first step and fill out the online application. Once contacted, we will let you know within a day if you are approved for your loan amount and will close within 10 days.

30 Year Home Saver

Our 30-Year Home Saver Loan provides security and saves you money. In fact, few mortgage companies are AUTHORIZED by the Federal Housing Authority to sell these products.