Talk with a Lender
Obtaining a pre-approval with a local mortgage lender in Colorado should be done before you start looking at homes. There has been a large adjustment to mortgage guidelines over the last few years and the changes in the mortgage industry will likely continue. Even with all the changes in the mortgage industry there are mortgage financing options available for most prospective homebuyers. Most homebuyers learn they don’t have a problem obtaining a pre-approval for a mortgage, however, they are approved for less than they thought and the process is more in depth then it was in the past. If you can’t qualify for a mortgage immediately most lenders will help you overcome the obstacles preventing you from purchasing a home.
The pre-approval process is usually fairly easy and can be completed quickly with your assistance. Mortgage lenders will take the following steps provide you a pre-approval.
- You will complete a mortgage application with a lender.
- You will provide income (previous 2 years) and asset documents (previous 60 days).
- The lender will review and evaluate the loan application and documents.
- The lender will obtain an approval using an automated underwriting engine.
- The lender will discuss your options and the conditions of your pre-approval.
Working with the right mortgage professional is very important and using a local company will usually make the process easier. Local companies have a much better understanding of the market, local mortgage programs, and Colorado mortgage laws and guidelines. Homebuyers working with national companies and mortgage professionals not located in Colorado often have problems when trying to obtain a purchase loan in Colorado and it can cost you thousands of dollars and/or the loss of the contract.
There are also three different types of mortgage lenders; banks, brokers and lenders. You can find out the differences between lenders and advantages.
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