Find A Lender | Kenna Real Estate Expert Preferred Partners
A mortgage is typically the largest financial commitment anyone will make, so it is important to choose the right lender who will give you the best service possible while maintaining the highest standards of integrity possible. You do not want to be committed for many years to a bad deal that could jeopardize the home of your dreams and the security of your investment.
The best Denver home loans that are perfectly suited to the home buyer’s particular circumstances are only obtained by taking the time to explore all the options open to the buyer. When asking for a Good Faith Estimate, which is a requirement under Federal Law, look out for missing expenses that make it look more attractive than it really is.
Lenders are not all created equal
Although lenders are not directly involved in the contract of sale, if they fail to meet all the requirements of the loan procedure by the deadline you may lose all of your earnest money deposit. In Colorado law, finalizing the contract is not conditional on the loan being finalized. This means that although the buyer has indicated his commitment to the seller, the lender has no similar requirement to indicate his commitment to the buyer. Mortgage lenders in Denver are therefore in the position where the buyer is forced to trust them with no comeback if that trust is proved unfounded.
Ask your Realtor for a Referral
The question is: how do I get a home loan and also protect my deposit? The best way to do this is to go to a lender that is recommended by your realtor. The Real Estate Settlement Procedures Act (RESPA) prohibits the lender from paying referral fees to a realtor. By recommending a reputable lender, the realtor and the lender will both benefit from completion of the sale, and the buyer will benefit from a good service. There are many reputable Denver lenders to choose from and your realtor should be able to recommend several.
Find a FHA Lender
You should ask about FHA loans. This is a type of loan given under the FHA insurance umbrella whose flexible guidelines allow first time buyers to make lower down-payments. The popular FHA fixed rate loan allows finance on up to 97% of the loan and the insurance rate is rolled into a monthly payment of only 0.5% of the total, keeping down-payments and other costs of finalizing the contract to a minimum. Check how much you can borrow on the home your want to buy: under state regulations about loan limits for FHA lenders Denver allows a maximum loan that varies according to the county and type of property.