May we suggest enlisting the help of a Mortgage Planner before anything else?  A professional planner is like a GPS system that navigates the trek ahead, preparing buyers for preapproval for their Denver home loans.  Preapproval saves time, money, and disappointment. 

Even before contacting the Planner, buyers should opt out of trigger lists that sell personal information and credit scores.  The Planner reviews the buyer’s credit, helping to repair any potholes before the loan application is submitted. 

People journeying to homeownership should keep credit account balances low.  That means avoiding buying anything on credit that cannot be paid off in full each month, including vehicles. 

Potential buyers also need to be building reserves of savings and investments, saving up down-payment monies and closing costs along with three to six months of expenses.  Low reserves do not look stable to loan officers.  According to Dave Muti in Strategic Homeowner Magazine, “While most lenders will permit this amount to be held in retirement accounts, my recommendation is for this to be held in non qualified liquid assets without incurring any penalties.”

It is best to stay on the road, of course.  Some people have the habit of moving money around between accounts.  This makes it harder to document the source of the funds and could raise red flags about the applicant.  If buyers must change banks, lenders will require documentation including copies of statements from old banks, check, and deposit slips to cross reference.

Additionally, a steady employment history is best.  Lenders like tenure, longevity, and stability.  Anyone wanting to change jobs should consult with his/her Mortgage Planner.  The rule of thumb is that any job moves should come with more income or greater responsibility.  Lateral moves should be in the same industry and must be carefully considered.

Homeowners should sell their homes before buying the next homes.  It is better to rent for a while than to stress out over unforeseen problems that could come up while trying to carry two mortgages.

Starting early consulting with reputable Mortgage Planners helps buyers to analyze their goals, dreams, and finances.  When the time is right, the Mortgage Planners assist buyers to connect with the right real estate agents.  From then on, the ride should be smooth all the way to the destination.

For more information about homes, farms, horse properties, and real estate in the Mile High City, call Michael Paul of Realty Oasis at (303) 268-6052.