Before you even begin your home search,
keep in mind that there are laws to protect
you from scams, unnecessary expenses
and discrimination in the process of
buying a new home. The Fair Housing
Act makes it illegal to discriminate in the
sale, rental and financing of dwellings,
and in other housing-related transactions
based on race, color, national origin,
religion, sex, handicap (disability) or
familial status (including children under
the age of 18 living with parents or legal
custodians, pregnant women and people
securing custody of children under the
age of 18).
The Real Estate Settlement Procedures
Act (RESPA) makes it illegal for anyone to
pay or receive a fee, kickback or anything
of value because they agree to refer
settlement service business to a particular
person or organization. Your mortgage
lender is forbidden from paying your real
estate broker $250 for referring you to the
lender, for example.
Save yourself trouble by taking the time
to figure out the mortgage you can afford
and then get pre-approved. Keep in mind
that you must consider current loan interest
rates. Generally, the lower the interest rate,
the more expensive a home you can afford
to purchase. Also keep in mind that you
don’t have to take out the highest loan that
you qualify for.
For a general estimate of what type of
home you can afford by going to www.
ginniemae.gov. You’ll be asked to answer
a few questions and then the calculator
will provide a general estimate of the
maximum sale price you may qualify for
under the Federal Housing Administration
(FHA), Veterans Association (VA) and
conventional loans. This tool also estimates your down payment, closing costs,
total cash required at closing, monthly
mortgage payment, other monthly housing
costs and your remaining monthly income.
Keep in mind that these are only estimates. See a lender for more details.
HIRE SOMEONE TO HELP
The details involved in buying a home,
particularly the financial ones, can be
mindboggling. The entire process can be
made easier by finding a good real estate
professional who can guide you through
the entire process.
Choose a real estate broker who is well
acquainted with your needs and wants for
your new home. Make sure they are familiar
APPLYING FOR A
You can save time if you have the following items with you
when you visit your lender. Depending on your lender, you may
be asked for other information.
1. Social Security numbers for both you and your spouse, if
both of you are applying for the loan.
2. Copies of your checking and savings account statements
for the past six months.
3. Evidence of any other assets such as bonds or stocks.
4. A recent paycheck stub detailing your earnings.
5. A list of all credit card accounts and the approximate
monthly amounts owed on each.
6. A list of account numbers and balances due on outstanding
loans, such as car loans.
7. Copies of your last two years of income tax statements.
8. The name and address of someone who can verify
What you need to know
METRO DENVER LENDER SPOTLIGHT
Cornerstone Home Lending www.houseloan.com
Elevations Credit Union www.elevationscu.com
ENG Lending www.boedenver.com/teamfilipi
Loan Simple www.loansimplecolorado.com
Summit Funding www.summitfunding.net