What is it that people do not understand in today’s market
about financing a loan to buy a house in our local Denver Broomfield Thornton Westminster real estate market? A lot! It is amazing when you ask people about financing and they do
not understand or truly know the requirements for qualifying for a loan or what
the terms of the mortgage loan financing is about. This is understandable, most
people do not have contact with or follow the loan financing rules that are
established and enforced within the industry. So quickly, let’s cover some of
the common misconceptions about getting a mortgage in Broomfield or other
metropolitan Denver areas.
Banks and loan institutions require 20% down for a mortgage
loan. NO!!! If you are going to live in the home after you buy it, which is
called owner occupancy, for a conventional loan, 5% down is all that is needed for a conventional loan. For an FHA
loan you only need 3.5% down payment.
I need to have the same job for 2 years! NO!!! You need to
have a job today, and you need to prove that you have been in the same line of
work for a while, but you do not need to show that you have had the same job
for the last 2 years.
Perfect credit is required to qualify for a loan. NO!!! You
need a 640 FICO score to qualify for financing with most lenders, and depending
on the lender and program, they might be able to go as low as 620. There is a
lot of confusion when it comes to credit scores and FICO scores. You should be
checking your FICO score, because it is the industry standard and it is being
used for just about every evaluating system that is out there. You do not need
to worry about other scoring systems.
I need to have thousands of dollars in the bank saved before
I can buy a home. NO!!! You need to have the down payment for the purchase
(unless you are getting it as a gift from a relative, and you might need some
money for closing costs (unless the seller agrees to pay some or all of your
costs for you). If you won multiple properties, then you will need to have
money in the bank. In addition, there are local state programs that allow for
down payment assistance for those who qualify.
HUD recently re-instated the $100 down on Denver area homes REO properties that they list and these homes can be a great
value for anyone looking to buy foreclosed real estate in Broomfield or any of
the surrounding areas. You can view properties that are in foreclosure or
distressed short sales homes listed when you view foreclosures in Broomfield Colorado.
If you are thinking about buying a home in Broomfield Colorado or you want to sell real estate in Broomfield , feel free to call
Shaun Werkele at 303-250-4735 or Janelle Werkele at 303-668-3111 and we will be
glad to assist you in any way that we can. Homewerks is one of the top
prominent real estate teams in Broomfield Colorado and the surrounding areas of
Westminster, Thornton, Brighton, Arvada, and Lakewood, and of course, Denver.
Have a great day!
Shaun Werkele
Homewerks
303-250-4735
Listing courtesy of COLDWELL BANKER RESIDENTIAL 56