Finding and buying a home is an exciting experience—but it
can also be challenging. We’ve compiled some information
to help Denver newcomers overcome some of the hurdles
encountered in the home-buying process—and point you in
the right direction for additional information.
MORTGAGES + FINANCES
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