Discover Options For First Time Home Buyers In Denver Colorado!
We love working with Denver first time home buyers – and helping our borrowers navigate the mortgage process for the very first time. Buying a home can be the biggest financial investment that most people make during their lifetime. At first glance the process can seem overwhelming and confusing. That’s why we here at The Newman Team will be here to walk you through each step as it happens. Below you’ll find answers to some of our most frequently asked questions as well as the things you’ll want to keep in mind as you consider purchasing your first home.
Our Most Frequently Asked First Time Home Buyer Questions:
What’s the difference between pre-qualification and pre-approval?
Pre-qualification means that we’ve reviewed your finances, application and credit. Based on the supplied information we’ve determined an estimated mortgage amount that you qualify for. This allows you to know that you are qualified to finance a certain amount of money even though you haven’t found that home yet.
Pre-approval means that we’ve done a much deeper analysis of your financial profile and credit report. It’s a much more in-depth process than pre-qualification and has been reviewed by one of our underwriters.
Why do I need to be pre-qualified?
Getting pre-qualified can be done fairly quickly once you’ve supplied us with a completed mortgage application and given us permission to run your credit report.
In today’s market being pre-qualified is often a requirement of putting an offer on a home. The sellers want to be certain that you’re serious about your offer and that you have the financing to back up the offer.
Being pre-qualified also lets you know how much money you can qualify for thereby helping you set a budget for your pending home purchase.
What actually goes into my monthly mortgage payment?
A mortgage payment is comprised of your principal, interest, taxes and insurance costs (together these are called PITI).
Principal –This is the actual payment towards your loan amount. A portion of this is paid off in each mortgage payment.
Interest – The interest is the amount that is charged by Cherry Creek Mortgage for borrowing the money for your home.
Taxes – The tax portion of your PITI payment include your real estate taxes broken down monthly.
Insurance – The insurance of your payment can include homeowner’s insurance, mortgage insurance and flood insurance.
How do I get the loan financing process started?
If you’re ready to get started with your first time home buyers Denver home loan financing, there are a couple of ways for you to get started. You can give us a call at 720-974-8400, you can fill out your application online or you can set a time to meet with us in person.
Remember This When Thinking About Purchasing Your First Home:
When it comes to buying a home, just remember the #2 — it’s the number that will help you get started on the path to owning your own home!
When applying for a mortgage, we’ll most likely as for the following items:
2 Year’s W-2 Forms
During the loan process we need to verify your annual income and W-2’s are the easiest way to do that.
2 Year’s Tax Returns (In Some Cases)
Your tax returns give us an overall picture of your financial history (for the past two years) and allow us to verify the rest of your financial information.
2 Concurrent Paystubs (30 Days)
It is also important for us to verify your monthly income (especially if you’ve recently changed jobs) and sending us your paystubs is the easiest way to do that.
2 Concurrent Month’s Bank Statements
In cases where you’re supplying money for a down payment or closing closts etc., we’ll need to verify the funds in your accounts. This also helps us understand all the assets you have at your disposal.
2 Year’s Residence History (Renting Or Owning)
It’s important to cross the “T’s” and dot the “I’s” and part of that is understanding where you’ve been living the past two years.
2 Year’s Employment In The Same Line (Or Related) Work
Your job stability is one of the many factors we look at, having two years at your current job (or at least in the same industry) will help us check this off our list.
If you’re ready to get started with your home purchase, please give us a call (720.97.8400) or email us (email@example.com) today!