There are good Denver mortgage brokers. But, it’s not easy to find one I really trust. I have been working with Jimmy for many years. Read his advise carefully. He knows how to get you a mortgage loan in this tough, Seller’s Market. —Dennis Martin
By Jimmy Kinley, Senior Loan Officer at Mortgage Family
These are wild times in the Denver real estate market. Buyers ask me how do we stay prepared and on the front edge of this wave. Buyers need to be prepared now, more than ever. You can’t just go out and look at properties with the thought process of “I am sure I am qualified for a mortgage loan”.
There are 2 problems with that thought process. First , if you don’t have a rock solid pre-approval letter in hand, you will probably miss out on the best property. Odds are that 10 other people looked at the same properties and liked the same one that you liked. With inventory flirting with an all time low in the Denver metro area, waiting even a few hours for a pre-approval letter can make the difference.
Secondly, there are many reasons that someone with great credit, assets, and payment history paying for a mortgage may NOT qualify for a loan. The government says that if you don’t have taxable income that qualifies you for a “Qualified Residential Mortgage”, then you shouldn’t get a loan. That means you could have enough money in the bank to pay cash for the home and have difficulties getting a loan for it.
This doesn’t hurt a lot of borrowers, but it definitely creates complications for self employed borrowers. Jumbo loans are another potential problem. They aren’t always quick pre-approvals anymore. They typically need to be reviewed by investors or underwriters up front so they can take a day. It will typically take a day for a self employed borrower to get pre-approved. Any good lender will review the tax returns prior to pre-approving a buyer. Waiting a day for a pre-approval letter could cost you a house.
Now, being prepared goes beyond just the preapproval. Little things like quicker closing times may help you grab a property over your competition. Trust me…that other buyer bidding on the house you want sees you as the competition. Although we can’t really pull off quick closings like you used to with appraisals taking 2 weeks, you can possibly close comfortably in 3 weeks if you are prepared. That means you make sure you understand what the lender needs when you get pre-approved so you can be ready.
Don’t miss this: If you can, stop moving around your money. The lender has to verify every deposit that comes into your bank account on any statement you give them. This isn’t a big deal if all you have is your direct deposit from your payroll. But, if you are moving money around between 4 accounts and depositing random money from time to time…be ready for a rough ride. These situations literally can triple the work that my clients and I do on a typical file.
Also, keep in mind for quick closings you will need to order the appraisal prior to the inspection being completed and resolved. Therefore you would be on the hook for the cost of both if the deal falls apart at inspection. Even if you aren’t buying for a few months, you need to be ready. If you are looking at property you will not end up waiting. You will find the perfect home and want to jump on it. It happens almost every time so…Be Prepared.
Senior Mortgage Advisor
License# MB100020560, NMLS 287498